Document:

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                                                                    EXHIBIT 10.1

                      AMENDED AND RESTATED CREDIT AGREEMENT

                           Dated as of March 28, 2003

                                      among

                       COMMERCIAL VEHICLE SYSTEMS LIMITED,
                              KAB SEATING LIMITED,
                            NATIONAL SEATING COMPANY
                                       and
                        COMMERCIAL VEHICLE SYSTEMS, INC.
                                  as Borrowers,

                               CVS HOLDINGS, INC.,
                            NATIONAL SEATING COMPANY,
                        COMMERCIAL VEHICLE SYSTEMS, INC.
                                       and
                             BOSTROM HOLDING, INC.,
                                 as Guarantors,

                             BANK OF AMERICA, N.A.,
                             as Administrative Agent
                                       and
                              as Swing Line Lender,

                               JPMORGAN CHASE BANK
                             as Documentation Agent
                                       and

                  THE OTHER FINANCIAL INSTITUTIONS PARTY HERETO

                         BANC OF AMERICA SECURITIES LLC
                               Sole Lead Arranger
                                and Book Manager

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                                TABLE OF CONTENTS

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ARTICLE I   DEFINITIONS.....................................................................         2
   1.01   Certain Defined Terms.............................................................         2
   1.02   Other Interpretive Provisions.....................................................        35
   1.03   Accounting Principles.............................................................        36
   1.04   Currency Equivalents Generally....................................................        37
ARTICLE II  THE CREDITS.....................................................................        37
   2.01   Amounts and Terms of Commitments..................................................        37
   2.02   Loan Accounts.....................................................................        40
   2.03   Procedure for Borrowing...........................................................        40
   2.04   Conversion and Continuation Elections.............................................        42
   2.05   The Swing Line Loans..............................................................        43
   2.06   Voluntary Termination or Reduction of Revolving Loan Commitments..................        46
   2.07   Optional Prepayments..............................................................        46
   2.08   Termination of Commitments; Reduction of Commitment Amounts;
          Mandatory Commitment Reductions; Mandatory Prepayments of Loans...................        47
   2.09   Repayment.........................................................................        50
   2.10   Interest..........................................................................        52
   2.11   Fees..............................................................................        52
   2.12   Computation of Fees and Interest..................................................        53
   2.13   Payments by the Borrowers.........................................................        54
   2.14   Payments by the Lenders to the Administrative Agent...............................        55
   2.15   Sharing of Payments, Etc..........................................................        55
   2.16   Utilization of Commitments in Offshore Currencies.................................        56
   2.17   Security and Guaranty.............................................................        58
ARTICLE III LETTERS OF CREDIT...............................................................        58
   3.01   The Letter of Credit Subfacility..................................................        58
   3.02   Issuance, Amendment and Renewal of Letters of Credit..............................        60
   3.03   Risk Participations, Drawings and Reimbursements..................................        62
   3.04   Repayment of Participations.......................................................        63
   3.05   Role of Issuers...................................................................        64
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   3.06   Obligations Absolute..............................................................        65
   3.07   Cash Collateral Pledge............................................................        66
   3.08   Letter of Credit Fees.............................................................        66
   3.09   Uniform Customs and Practice......................................................        67
   3.10   Existing Loan Note Credit Support.................................................        67
   3.11   Existing Letters of Credit........................................................        67
ARTICLE IV  TAXES, YIELD PROTECTION AND ILLEGALITY..........................................        68
   4.01   Taxes.............................................................................        68
   4.02   Illegality........................................................................        69
   4.03   Increased Costs and Reduction of Return...........................................        70
   4.04   Funding Losses....................................................................        70
   4.05   Inability to Determine Rates......................................................        71
   4.06   Reserves on Offshore Rate Loans...................................................        71
   4.07   Exchange Controls.................................................................        72
   4.08   Certificates of Lending Party.....................................................        72
   4.09   Substitution of Lenders...........................................................        72
   4.10   Withholding Tax...................................................................        73
   4.11   U.K. Tax Matters..................................................................        75
   4.12   Survival..........................................................................        76
ARTICLE V   CONDITIONS PRECEDENT............................................................        76
   5.01   Conditions to Effectiveness of Amendment and Restatement..........................        76
   5.02   Conditions to All Credit Extensions...............................................        79
ARTICLE VI  REPRESENTATIONS AND WARRANTIES..................................................        80
   6.01   Corporate Existence and Power.....................................................        80
   6.02   Corporate Authorization; No Contravention.........................................        81
   6.03   Governmental Authorization........................................................        81
   6.04   Binding Effect....................................................................        81
   6.05   Litigation........................................................................        81
   6.06   No Default........................................................................        82
   6.07   ERISA Compliance..................................................................        82
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   6.08   Use of Proceeds; Margin Regulations..................................................     83
   6.09   Title to Properties..................................................................     83
   6.10   Taxes................................................................................     83
   6.11   Financial Condition..................................................................     83
   6.12   Environmental Matters................................................................     84
   6.13   Collateral Documents.................................................................     85
   6.14   Regulated Entities...................................................................     86
   6.15   No Burdensome Restrictions...........................................................     86
   6.16   Copyrights, Patents, Trademarks and Licenses, etc....................................     86
   6.17   Capitalization; Subsidiaries.........................................................     86
   6.18   Insurance............................................................................     87
   6.19   Swap Obligations.....................................................................     87
   6.20   Consummation of Transaction..........................................................     87
   6.21   Solvency.............................................................................     87
   6.22   Location of Real Property............................................................     87
   6.23   Full Disclosure......................................................................     88
ARTICLE VII AFFIRMATIVE COVENANTS..............................................................     88
   7.01   Financial Statements.................................................................     88
   7.02   Certificates; Other Information......................................................     89
   7.03   Notifications........................................................................     90
   7.04   Preservation of Corporate Existence, Etc.............................................     91
   7.05   Maintenance of Property..............................................................     91
   7.06   Insurance............................................................................     92
   7.07   Payment of Obligations...............................................................     92
   7.08   Compliance with Laws.................................................................     92
   7.09   Compliance with ERISA................................................................     93
   7.10   Inspection of Property and Books and Records.........................................     93
   7.11   Environmental Laws...................................................................     93
   7.12   Use of Proceeds......................................................................     94
   7.13   Further Assurances; Additional Pledge; Additional Collateral Documents...............     94
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   7.14   Additional Guaranties and Personal Property Pledge...............................         95
   7.15   Additional Real Property.........................................................         96
   7.16   Additional Capital...............................................................         96
ARTICLE VIII NEGATIVE COVENANTS............................................................         96
   8.01   Limitation on Liens..............................................................         96
   8.02   Disposition of Assets............................................................         99
   8.03   Consolidations and Mergers.......................................................        100
   8.04   Loans and Investments............................................................        100
   8.05   Limitation on Indebtedness.......................................................        102
   8.06   Transactions with Affiliates.....................................................        103
   8.07   Use of Proceeds..................................................................        104
   8.08   Contingent Obligations...........................................................        104
   8.09   Restricted Payments..............................................................        105
   8.10   ERISA............................................................................        106
   8.11   Change in Business...............................................................        106
   8.12   Accounting Changes...............................................................        106
   8.13   Amendments to Organizational Documents or Management Agreement;
          Preferred Stock..................................................................        106
   8.14   Net Worth........................................................................        107
   8.15   Total Leverage Ratio.............................................................        107
   8.16   Fixed Charge Coverage Ratio......................................................        107
   8.17   Minimum EBITDA...................................................................        108
   8.18   Capital Expenditures.............................................................        108
   8.19   Restrictive Agreements...........................................................        109
ARTICLE IX   EVENTS OF DEFAULT.............................................................        109
   9.01   Event of Default.................................................................        109
   9.02   Remedies.........................................................................        112
   9.03   Rights Not Exclusive.............................................................        112
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ARTICLE X    THE AGENTS.....................................................................       113
   10.01  Appointment and Authorization.....................................................       113
   10.02  Delegation of Duties..............................................................       113
   10.03  Liability of Agents...............................................................       113
   10.04  Reliance by Agents................................................................       114
   10.05  Notice of Default.................................................................       114
   10.06  Credit Decision...................................................................       115
   10.07  Indemnification of Agents.........................................................       115
   10.08  Agent in Individual Capacity......................................................       116
   10.09  Successor Administrative Agent....................................................       116
   10.10  Administrative Agent May File Proofs of Claim.....................................       117
   10.11  Collateral Matters................................................................       118
   10.12  Administrative Agent as English Trustee...........................................       119
ARTICLE XI   MISCELLANEOUS..................................................................       119
   11.01  Amendments, Etc...................................................................       119
   11.02  Notices...........................................................................       120
   11.03  No Waiver; Cumulative Remedies....................................................       121
   11.04  Costs and Expenses................................................................       121
   11.05  Borrower Indemnification..........................................................       122
   11.06  Marshalling; Payments Set Aside...................................................       124
   11.07  Successors and Assigns............................................................       124
   11.08  Assignments, Participations, etc..................................................       124
   11.09  Confidentiality...................................................................       126
   11.10  Set-off...........................................................................       127
   11.11  Automatic Debits of Fees..........................................................       128
   11.12  Notification of Addresses, Lending Offices, Etc...................................       128
   11.13  Counterparts......................................................................       128
   11.14  Severability......................................................................       128
   11.15  No Third Parties Benefited........................................................       128
   11.16  GOVERNING LAW AND JURISDICTION....................................................       129
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   11.17  WAIVER OF JURY TRIAL..............................................................       129
   11.18  Judgment..........................................................................       130
   11.19  Intercreditor Agreement...........................................................       130
   11.20  Entire Agreement..................................................................       131
ARTICLE XII GUARANTIES OF U.S. GUARANTORS...................................................       131
   12.01  The Guaranties....................................................................       131
   12.02  Returned Payments.................................................................       132
   12.03  Authorization.....................................................................       132
   12.04  Miscellaneous.....................................................................       133
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SCHEDULES

Schedule 1.01         Pricing Grid
Schedule 2.01         Commitments, Pro Rata Shares and Term Loans
Schedule 2.17         Dormant Subsidiaries
Schedule 3.10         Existing Loan Note Credit Support
Schedule 3.11         Existing Letters of Credit
Schedule 6.05         Litigation
Schedule 6.07         ERISA
Schedule 6.11         Financial Statements
Schedule 6.17         Capitalization; Subsidiaries and Minority Interests
Schedule 6.18         Insurance Matters
Schedule 6.22(a)      Owned Real Property
Schedule 6.22(b)      Leased Real Property
Schedule 8.01         Permitted Liens
Schedule 8.04         Investments
Schedule 8.05         Permitted Indebtedness
Schedule 8.08         Contingent Obligations
Schedule 11.02        Administrative Agent's Office: Lending Offices; Addresses
                      for Notices

EXHIBITS

Exhibit A      Form of Notice of Borrowing
Exhibit B      Form of Notice of Conversion/Continuation
Exhibit C      Form of Compliance Certificate
Exhibit D      Form of Assignment and Acceptance
Exhibit E-1    Form of Opinion Howes Percival
Exhibit E-2    Form of Opinion of Kirkland & Ellis
Exhibit F-1    Form of BHI Solvency Certificate
Exhibit F-2    Form of Company Solvency Certificate
Exhibit F-3    Form of KAB Seating Solvency Certificate
Exhibit F-4    Form of NSC Solvency Certificate
Exhibit F-5    Form of CVS, Inc. Solvency Certificate
Exhibit G      Form of Borrowing Base Certificate
Exhibit H      Form of EBITDA Certificate
Exhibit I      Form of Perfection Certificate

                                       vii

<PAGE>

                      AMENDED AND RESTATED CREDIT AGREEMENT

      THIS AMENDED AND RESTATED CREDIT AGREEMENT is dated as of March 28, 2003,
and is made by and among Commercial Vehicle Systems Limited, a private limited
liability company incorporated under the laws of England and Wales (the
"Company"), KAB Seating Limited, a private limited company incorporated under
the laws of England and Wales ("KAB Seating"), National Seating Company, a
corporation incorporated under the laws of the State of Delaware ("NSC"),
Commercial Vehicle Systems, Inc., a corporation incorporated under the laws of
the State of Delaware ("CVS, Inc."), CVS Holdings, Inc., a corporation
incorporated under the laws of the State of Delaware ("CVS Holdings, Inc."),
Bostrom Holding, Inc., a corporation incorporated under the laws of the State of
Delaware ("BHI"), the several financial institutions from time to time party to
this Agreement (each individually a "Lender" and, collectively, the "Lenders"),
Fleet National Bank, as an Issuer and Bank of America, N.A., as administrative
agent for the Lenders (the "Administrative Agent"), Collateral Agent, Swing Line
Lender and an Issuer.

      WHEREAS, the Company, the Administrative Agent, the Lenders and certain
other parties previously entered into a US$70,000,000 Credit Agreement, dated as
of September 1, 2000 (as amended to the date hereof, the "Original U.K. Credit
Agreement");

      WHEREAS, CVS, Inc., CVS Holdings, Inc., the Administrative Agent, certain
of the Lenders and certain other parties previously entered into a US$70,000,000
Credit Agreement, dated as of March 31, 2000 (as amended to the date hereof, the
"Original U.S. Credit Agreement");

      WHEREAS, the parties hereto desire to consolidate the Original U.S. Credit
Agreement and the Original U.K. Credit Agreement and to amend and restate both
such documents as set forth herein;

      WHEREAS, each of the Company, KAB Seating, NSC, CVS, Inc. and CVS
Holdings, Inc is a direct or indirect Wholly-Owned Subsidiary of BHI;

     WHEREAS, BHI intends to cause CVS Merger Co., a corporation incorporated
under the laws of the State of Delaware and a Wholly-Owned Subsidiary of BHI
(the "Merging Subsidiary"), to merge (the "Merger") into CVS Holdings, Inc., and
BHI intends to cause CVS Holdings, Inc. to be the surviving entity of the Merger
as a Wholly-Owned Subsidiary of BHI;

      WHEREAS, in order to continue the term loans outstanding under the
Original U.S. Credit Agreement and the Original U.K. Credit Agreement, Existing
Term Loans will be deemed to be outstanding hereunder;

      WHEREAS, the NSC Term Loan Commitment will be used by the applicable
Borrower to support a letter of credit outstanding on the date hereof;

      WHEREAS, the Sterling Term Loan Commitment will be used to repurchase Loan
Notes and to support the Loan Note Credit Support;

                                        1

<PAGE>

      WHEREAS, a portion of the Revolving Loan Commitment will be used by the
Borrowers and their respective Subsidiaries to continue the revolving loans
outstanding under the Original U.S. Credit Agreement and the Original U.K.
Credit Agreement and for ongoing working capital and general corporate purposes
of the Borrowers and their respective subsidiaries; and

      WHEREAS, the Lenders are willing to extend commitments to make term loans,
revolving credit loans and swing line loans to the Borrowers and the Issuers are
willing to issue letters of credit on the application of Borrowers, in each case
for the purposes specified above and only on the terms and subject to the
conditions set forth herein;

      NOW, THEREFORE, in consideration of the mutual agreements, provisions and
covenants contained herein, the parties agree that the Original U.S. Credit
Agreement and the Original U.K. Credit Agreement are hereby amended and restated
in their entirety to state collectively as follows:

                                    ARTICLE I

                                   DEFINITIONS

      1.01  Certain Defined Terms. The following terms have the following
meanings:

      "Acquisition" means any transaction or series of related transactions for
the purpose of or resulting, directly or indirectly, in (a) the acquisition of
all or substantially all of the assets of a Person, or of any business or
division of a Person, (b) the acquisition of in excess of 50% of the capital
stock, partnership interests, membership interests or equity of any Person, or
otherwise causing any Person to become a Subsidiary, or (c) a merger or
consolidation or any other combination with another Person (other than a Person
that is a Subsidiary).

      "Additional Capital" shall have the meaning specified in Section 7.16.

      "Adjusted Working Capital" means the remainder of:

      (a)   (i) the consolidated current assets of BHI and its Subsidiaries,
            less (ii) the amount of cash and cash equivalents included in such
            consolidated current assets;

      less

      (b)   (i) consolidated current liabilities of BHI and its Subsidiaries,
            less (ii) the amount of short-term Indebtedness (including current
            maturities of long-term Indebtedness) of BHI and its Subsidiaries
            included in such consolidated current liabilities.

      "Administrative Agent" means Bank of America in its capacity as
administrative agent for the Lending Parties hereunder, and any successor
Administrative Agent appointed pursuant to Section 10.09.

                                       2

<PAGE>

      "Administrative Agent's Office" means the Administrative Agent's address
as set forth in Schedule 11.02, or such other address as the Administrative
Agent may from time to time specify to the Borrowers and the Lenders.

      "Affiliate" means, as to any Person, any other Person which, directly or
indirectly, is in control of, is controlled by, or is under common control with,
such Person. A Person shall be deemed to control another Person if the
controlling Person (i) possesses, directly or indirectly, the power to direct or
cause the direction of the management and policies of the other Person, whether
through the ownership of voting securities, membership interests, by contract,
or otherwise; or (ii) possesses, directly or indirectly, the power to vote 10%
or more of the Voting Equity of the other Person.

      "Agent-Related Persons" means Bank of America, in its various agency,
lending and letter of credit issuing capacities hereunder, and any successor
Administrative Agent arising under Section 10.09 or any successor Collateral
Agent, and any successor Issuer hereunder, together with its respective
Affiliates (including the Arranger), and the officers, directors, employees,
agents and attorneys-in-fact of such Persons and Affiliates.

      "Agent's Payment Office" means each of the addresses for payments set
forth on Schedule 11.02 in respect of the currencies set forth on such Section
11.02 or such other addresses as the Administrative Agent may from time to time
specify.

      "Agreed Alternative Currency" has the meaning specified in Section
2.16(e).

      "Agreement" means this Amended and Restated Credit Agreement, as the same
may be amended, supplemented, restated or otherwise modified from time to time.

      "Aggregate Commitment" means, at any time, the sum of (a) the Aggregate
Revolving Loan Commitment, (b) the Aggregate NSC Term Loan Commitment and (c)
the Aggregate Sterling Term Loan Commitment.

      "Aggregate Existing Dollar Term Loan Commitment Amount" means the sum of
the Existing Dollar Term Loan Commitment Amounts of the Lenders, equal to
$37,316,059.99 on the Closing Date.

      "Aggregate Existing Sterling Term Loan Commitment Amount" means the sum of
the Existing Sterling Term Loan Commitment Amounts of the Lenders, equal to
(pound)2,321,637.91 on the Closing Date.

      "Aggregate NSC Term Loan Commitment" means the sum of the NSC Term Loan
Commitments of the Lenders, equal to $6,820,547.95 on the Closing Date.

      "Aggregate Revolving Loan Commitment" means the aggregate Revolving Loan
Commitments of the Lenders, equal to the Equivalent Amount of $35,000,000 as the
same may be adjusted from time to time pursuant to the terms of this Agreement.

      "Aggregate Sterling Term Loan Commitment" means the sum of the aggregate
Sterling Term Loan Commitments of the Lenders, equal on the Closing Date to
(pound)5,475,586.50.

                                       3

<PAGE>

      "Agreement" means this Amended and Restated Credit Agreement.

      "Agreement Currency" has the meaning specified in Section 11.18.

      "Applicable Base Rate Margin" means, at all times prior to the delivery of
a Compliance Certificate pursuant to subsection 7.02(b) for the fiscal quarter
ended March 31, 2003, a per annum rate equal to 250.0 basis points and, at all
times thereafter, a per annum rate equal to the Applicable Base Rate Margin in
effect at such time as determined by reference to the Pricing Grid attached
hereto as Schedule 1.01 and the applicable Total Leverage Ratio for the
applicable period, determined as of the last day of the immediately preceding
fiscal quarter.

      "Applicable Currency" as to any particular payment, Loan or Letter of
Credit, means Dollars or the Offshore Currency in which such payment, Loan or
Letter of Credit is denominated or payable.

      "Applicable Offshore Rate Margin" means, at all times prior to the
delivery of a Compliance Certificate pursuant to subsection 7.02(b) for the
fiscal quarter ended March 31, 2003, a per annum rate equal to 375.0 basis
points and, at all times thereafter, a per annum rate equal to the Applicable
Offshore Rate Margin in effect at such time as determined by reference to the
Pricing Grid attached hereto as Schedule 1.01 and the applicable Total Leverage
Ratio for the applicable period, determined as of the last day of the
immediately preceding fiscal quarter.

      "Approved Fund" means, any fund that invests in bank loans and is advised
or managed by a Lender, an Affiliate of a Lender or an entity or an Affiliate of
an entity that advises or manages a Lender.

      "Arranger" means Banc of America Securities LLC, a Delaware limited
liability company, as Sole Lead Arranger.

      "Asset Disposition" has the meaning specified in Section 8.02.

      "Assignee" has the meaning specified in subsection 11.08(a).

      "Assignment and Acceptance" has the meaning specified in Section 11.08(a).

      "Attorney Costs" means and includes all reasonable fees and disbursements
of any law firm or other external counsel.

      "Bank of America" means Bank of America, N.A., a national banking
association.

      "Bankruptcy Code" means the Federal Bankruptcy Reform Act of 1978 (11
U.S.C. Section 101, et seq.).

      "Base Rate" means, for any day, the higher of (a) 0.50% per annum above
the latest Federal Funds Rate; and (b) the rate of interest in effect for such
day as publicly announced from time to time by Bank of America as its "prime
rate." (The "prime rate" is a rate set by Bank of America based upon various
factors including Bank of America's costs and desired return,

                                       4

<PAGE>

general economic conditions and other factors, and is used as a reference point
for pricing some loans, which may be priced at, above, or below such announced
rate.)

      Any change in the prime rate announced by Bank of America shall take
effect at the opening of business on the day specified in the public
announcement of such change.

      "Base Rate Loan" means a Loan or an L/C Advance that bears interest based
on the Base Rate.

      "basis point" means one one-hundredth of one percent.

      "BHI" has the meaning specified in the preamble of this Agreement.

      "Borrower" means each of the Company, KAB Seating, NSC and CVS, Inc., as
the context may require, and their respective successors, and "Borrowers" means
all of the foregoing. When used in connection with a specific Credit Extension,
the term "Borrower" means the obligor (or proposed obligor) with respect
thereto.

      "Borrower Representative" has the meaning specified in Section
2.03(a)(ii).

      "Borrowing" means a borrowing hereunder consisting of Loans of the same
Type and in the same Applicable Currency made to a Borrower on the same day by
the Lenders under Article II, and, in the case of Offshore Rate Loans, having
the same Interest Period.

      "Borrowing Base" means the amount set forth on the Borrowing Base
Certificate most recently delivered to the Administrative Agent pursuant to
Section 7.02(e), equal to the sum of (i) 85% of all receivables of BHI and its
Subsidiaries plus (ii) 55% of all inventory of BHI and its Subsidiaries, in each
case determined in accordance with GAAP and subject to GAAP reserves.

      "Borrowing Base Certificate" means a certificate substantially in the form
of Exhibit G.

      "Borrowing Date" means any date on which a Borrowing occurs under Section
2.03.

      "Bostrom International" means Bostrom International Limited., a private
limited liability company incorporated under the laws of England and Wales.

      "Bostrom Ltd." means Bostrom Limited, a private limited liability company
incorporated under the laws of England and Wales

      "Business Day" means any day other than a Saturday, Sunday or other day on
which commercial banks in New York, New York, or in the state where the
Administrative Agent's Office is located, are authorized or required by law to
close, and with respect to any rate quotations, disbursements or payments in and
calculations pertaining to any Offshore Currency Loan, a day on which commercial
banks are open for foreign exchange business in London, England, and on which
dealings in the relevant Offshore Currency are carried on in the applicable
offshore foreign exchange interbank market in which disbursements or payment in
such Offshore Currency will be made or received hereunder.

                                       5

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      "Capital Expenditures" means, for any Person for any period, the sum of
all expenditures made, directly or indirectly, by such Person or any of its
Subsidiaries during such period for equipment, fixed assets, real property or
improvements, or for replacements or substitutions therefor or additions
thereto, that have been or should be, in accordance with GAAP, reflected as
additions to property, plant or equipment on a consolidated balance sheet of
such Person; provided, however, that Capital Expenditures shall not include (i)
proceeds from insurance or condemnation to the extent that such proceeds from
insurance or condemnation are reinvested in assets as permitted under this
Agreement, (ii) any portion of the purchase price paid in connection with a
Permitted Acquisition or (iii) proceeds from the sale of assets reinvested
within 180 days in assets in an aggregate amount not to exceed $1,000,000 in any
fiscal year.

      "Capital Stock" means (a) in the case of a corporation, corporate stock,
(b) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) of
corporate stock, (c) in the case of a partnership or limited liability company,
partnership or membership interests (whether general or limited) and (d) any
other interest or participation that confers on a Person a similar right to
receive a share of the profits and losses of, or distributions of assets of, the
issuing Person other than an interest or participation that would constitute
compensation expense or purchase price for a Permitted Acquisition in accordance
with GAAP.

      "Capitalized Leases" means all leases that should be, in accordance with
GAAP, recorded as capitalized leases.

      "Cash Collateralize" means to pledge and deposit with or deliver to the
Collateral Agent, for the benefit of the Administrative Agent, the Issuer and
the Lenders, as additional collateral for the L/C Obligations, cash or deposit
account balances pursuant to documentation in form and substance reasonably
satisfactory to the Administrative Agent and the Issuer (which documents are
hereby consented to by the Lenders). Derivatives of such term shall have
corresponding meanings.

      "CERCLA" shall mean the Comprehensive Environmental Response Compensation
and Liability Act of 1980, 42 U.S.C. Section 9601 et seq.

      "Change of Control" means the occurrence of any of the following: (a) the
sale, lease, transfer, conveyance or other disposition (other than by way of
merger or consolidation), in one or a series of related transactions, of all or
substantially all of the assets of BHI and its Subsidiaries taken as a whole to
any "person" (as such term is used in Section 13(d)(3) of the Exchange Act); (b)
the adoption of a plan relating to the liquidation or dissolution of any Loan
Party; (c) the Existing Hidden Creek Investors or their Related Parties,
collectively, cease to own and cease to have the right to vote directly or
indirectly at least 51% of the Voting Equity of J2R; (d) J2R and/or Onex and/or
its or their Related Parties, collectively, cease to have the right to vote
directly or indirectly at least 51% of the Voting Equity of BHI; (e) except as
otherwise permitted under subsection 8.03(b), BHI consolidates with, or merges
with or into, any Person, or any Person consolidates with, or merges with or
into, BHI, in any such event pursuant to a transaction in which any of the
outstanding Voting Equity of BHI is converted into or exchanged for cash,
securities or other property, other than any such transaction where the Voting
Equity of BHI outstanding immediately prior to such transaction is converted
into or exchanged for Voting

                                       6

<PAGE>

Equity of the surviving or transferee Person constituting a majority of the
outstanding shares of such Voting Equity of such surviving or transferee Person
(immediately after giving effect to such issuance), (f) BHI ceases to own,
beneficially and of record, 100% of the Voting Equity of CVS Holdings Ltd., (g)
CVS Holdings, Inc. ceases to own, beneficially and of record, 100% of the Voting
Equity of CVS, Inc. or (g) Bostrom Limited shall cease to be a Wholly-Owned
Subsidiary of the Company.

      "Closing Date" means the date on which all conditions precedent set forth
in Section 5.01 are satisfied or waived in accordance with the terms of this
Agreement.

      "Code" means the Internal Revenue Code of 1986 and regulations promulgated
thereunder.

      "Collateral" means all property and interests in property and proceeds
thereof now owned or hereafter acquired by the Borrowers, any of their
respective Subsidiaries or any Guarantor in or upon which a Lien now or
hereafter exists in favor of the Lenders, or the Administrative Agent or the
Collateral Agent on behalf of the Lenders, under this Agreement, under the
Collateral Documents or under any other documents executed by any such Person
and delivered to the Administrative Agent, the Collateral Agent or the Lenders.

      "Collateral Agent" means Bank of America, in its capacity as collateral
agent under the Collateral Documents.

      "Collateral Documents" means, collectively (if and when each such document
is required to be executed and delivered pursuant to the terms of this
Agreement), (a) the Security Agreements, the Guaranties, the Mortgages (if any),
the Pledge Agreements and all other security agreements, mortgages, deeds of
trust, patent and trademark assignments, lease assignments, guarantees and other
similar agreements between any Loan Party and the Lenders, or the Administrative
Agent or the Collateral Agent for the benefit of the Administrative Agent, the
Issuers and the Lenders, now or hereafter delivered to the Lenders, the
Administrative Agent or the Collateral Agent pursuant to or in connection with
the transactions contemplated hereby, and all financing statements (or
comparable documents now or hereafter filed in accordance with the UCC or
comparable law) against any Loan Party as debtor in favor of the Administrative
Agent or the Collateral Agent for the benefit of the Administrative Agent, the
Issuers and the Lenders as secured party, (b) the letter agreement, dated as of
the date hereof, between NSC and the Administrative Agent and (c) all
amendments, restatements, supplements, modifications, renewals, replacements,
reaffirmations, confirmations, consolidations, substitutions and extensions of
any of the foregoing.

      "Commitment" means, as to each Lender, the sum of (a) such Lender's NSC
Term Loan Commitment, plus (b) such Lender's Sterling Term Loan Commitment, plus
(c) such Lender's Revolving Loan Commitment.

      "Commitment Fee" has the meaning specified in Section 2.11(b).

      "Companies Act" means the Companies Act of 1985 of the United Kingdom.

      "Company" has the meaning specified in the preamble of this Agreement.

                                       7

<PAGE>

      "Compliance Certificate" means a certificate substantially in the form of
Exhibit C.

      "Computation Date" has the meaning specified in Section 2.16(a).

      "Consolidated Interest Expense" means, for any period, the total interest
expense (including that attributable to capital leases) of BHI and its
Subsidiaries on a consolidated basis in accordance with GAAP (excluding costs
and expenses related to the incurrence of indebtedness); provided, however, that
for any four quarter period which commences prior to the Merger (the
"Calculation Period"), Consolidated Interest Expense for the period commencing
from the start of such four quarter period to, but not including, the effective
date of the Merger (as used in this definition, the "Pre-Merger Period") shall
be an amount equal to (x) Consolidated Interest Expense for CVS Holdings, Inc.
and its Subsidiaries for the Pre-Merger Period plus (y) Consolidated Interest
Expense for BHI and its Subsidiaries (other than CVS Holdings, Inc. and its
Subsidiaries) for the Pre-Merger Period (it being understood that for the
remainder of any Calculation Period, Consolidated Interest Expense shall be
calculated as set forth prior to this proviso).

      "Contingent Obligation" means, as to any Person, any direct or indirect
liability of that Person, whether or not contingent, with or without recourse,
(a) with respect to any Indebtedness, lease, dividend, letter of credit or other
obligation (the "primary obligations") of another Person (the "primary
obligor"), including any obligation of that Person (i) to purchase, repurchase
or otherwise acquire such primary obligations or any security therefor, (ii) to
advance or provide funds for the payment or discharge of any such primary
obligation, or to maintain working capital or equity capital of the primary
obligor or otherwise to maintain the net worth or solvency or any balance sheet
item, level of income or financial condition of the primary obligor, (iii) to
purchase property, securities or services primarily for the purpose of assuring
the owner of any such primary obligation of the ability of the primary obligor
to make payment of such primary obligation, or (iv) otherwise to assure or hold
harmless the holder of any such primary obligation against loss in respect
thereof (each of (i)-(iv), a "Guaranty Obligation"); (b) with respect to any
Surety Instrument issued for the account of that Person or as to which that
Person is otherwise liable for reimbursement of drawings or payments; (c) to
purchase any materials, supplies or other property from, or to obtain the
services of, another Person if the relevant contract or other related document
or obligation requires that payment for such materials, supplies or other
property, or for such services, shall be made regardless of whether delivery of
such materials, supplies or other property is ever made or tendered, or such
services are ever performed or tendered; or (d) in respect of any Swap Contract.
The amount of any Contingent Obligation, (w) in the case of Guaranty
Obligations, shall be deemed equal to the lesser of (i) the stated or
determinable amount of the primary obligation in respect of which such Guaranty
Obligation is made or, if not stated or if indeterminable, the maximum
reasonably anticipated liability in respect thereof, and (ii) the stated amount
of the guaranty, (x) in the case of Contingent Obligations in respect of Swap
Contracts, shall be deemed equal to the aggregate Swap Termination Value of such
Swap Contracts, (y) in the case of Contingent Obligations in respect of Surety
Instruments other than Non-Surety L/Cs, shall be deemed equal to the probable
amount of the expected liability thereunder, and (z) in the case of Contingent
Obligations in respect of Non-Surety L/Cs, shall be deemed equal to (i) the face
amount of outstanding Non-Surety L/Cs which are not Letters of Credit and (ii)
the outstanding amount of L/C Obligations in respect of Non-Surety L/Cs which
are Letters of Credit.

                                       8

<PAGE>

      "Continuation Fee" has the meaning specified in Section 2.11(c).

      "Contractual Obligation" means, as to any Person, any provision of any
security issued by such Person or of any material agreement, undertaking,
contract, indenture, mortgage, deed of trust or other instrument, material
document or material agreement to which such Person is a party or by which it or
any of its material property is bound.

      "Conversion/Continuation Date" means any date on which, under Section
2.04, the Company (a) converts Loans (other than Swing Line Loans) of one Type
to another Type, or (b) continues Loans having Interest Periods expiring on such
date as Loans of the same Type, but with a new Interest Period.

      "Credit Extension" means and includes (a) the making of any Loans
hereunder, and (b) the Issuance of any Letters of Credit hereunder.

      "CVS Holdings, Inc." has the meaning specified in the preamble of this
Agreement.

      "CVS Holdings, Inc. Guaranty" means the obligations of CVS Holdings, Inc.
set forth in Article XII hereof.

      "CVS Holdings Ltd." means CVS Holdings Limited, a private limited company
incorporated under the laws of England and Wales.

      "CVS, Inc." has the meaning specified in the preamble of this Agreement.

      "CVS, Inc. Guaranty" means the obligations of CVS, Inc. set forth in
Article XII hereof.

      "Deed of Confirmation" means the Deed of Confirmation, dated the Closing
Date, among Bank of America, CVS Ltd., CVS Holdings Ltd., Bostrom Ltd., Bostrom
International and KAB Seating.

      "Default" means any event or circumstance which, with the giving of
notice, the lapse of time, or both, would (if not cured or otherwise remedied
during such time) constitute an Event of Default.

      "Dollars," "dollars," U.S. Dollars and "$" each mean lawful currency of
the United States.

      "EBITDA" means, for any period, for BHI and its Subsidiaries on a
consolidated basis, determined in accordance with GAAP, and without duplication,
the sum of (a) the Net Income (or Net Loss) for such period, plus (b) all
amounts treated as expenses for (x) depreciation and the amortization of
intangibles of any kind and similar non-cash charges and (y) interest, in each
case to the extent included in the determination of such net income (or loss),
plus (c) the provision for taxes based on income for such period, plus (d) fees
and expenses (including non-recurring payments made pursuant to employee
retention plans put in place in connection with a Permitted Acquisition in order
to retain employees of the Person being acquired) incurred in connection with
any Permitted Acquisition to the extent included in the determination of such
net income (or loss), plus (e) Additional Capital for such period, if
applicable; provided,

                                       9

<PAGE>

however, that Net Income (or Net Loss) shall be computed without giving effect
to extraordinary gains or extraordinary losses (including, without limitation,
gains and losses with respect to foreign exchange and/or interest rate
protection adjustments reflected in the income statement of BHI) or other
non-cash restructuring charges; provided further that "EBITDA" for the first
four complete fiscal quarters ending after the Closing Date shall be calculated
on a Pro Forma Basis as if the Transaction had been consummated on the first day
of such applicable four quarter period; provided, further, that for any four
quarter period which commences prior to the effective date of the Merger (the
"Calculation Period"), EBITDA for the period commencing from the start of such
four quarter period to, but not including, the Merger (as used in this
definition, the "Pre Merger Period") shall be an amount equal to (x) EBITDA for
CVS Holdings, Inc. and its Subsidiaries for the Pre-Merger Period plus (y)
EBITDA for BHI and its Subsidiaries (other than CVS Holdings, Inc. and its
Subsidiaries) for the Pre-Merger Period (it being understood that for the
reminder of any Calculation Period, EBITDA shall be calculated as set forth
prior to this proviso).

      "EBITDA Certificate" means a certificate substantially in the form of
Exhibit H.

      "EBITDAR" means, for any period, EBITDA for such period, plus Rental
Obligations for such period.

      "Effective Amount" means, as of any Computation Date (i) with respect to
any Loans of any Type outstanding as of any date, the Equivalent Amount of the
aggregate outstanding principal amount thereof after giving effect to any
Borrowings and prepayments or repayments of Loans of such Type occurring on such
date; and (ii) with respect to any outstanding L/C Obligations on any date, the
Equivalent Amount of the amount of such L/C Obligations on such date after
giving effect to any Issuances of Letters of Credit occurring on such date and
any other changes in the aggregate amount of the L/C Obligations as of such
date, including as a result of any reimbursements of outstanding unpaid drawings
under any Letters of Credit or any reductions in the maximum amount available
for drawing under Letters of Credit taking effect on such date.

      "Eligible Assignee" means (a) a Lender, (b) an Approved Fund, (c) a
commercial bank organized under the laws of the United States, or any state
thereof, and having a combined capital and surplus of at least $100,000,000; (d)
a commercial bank organized under the laws of any other country which is a
member of the Organization for Economic Cooperation and Development (the
"OECD"), or a political subdivision of any such country, and having a combined
capital and surplus of at least $100,000,000, provided that such bank is acting
through a branch or agency located in the United States; (e) a Person that is
primarily engaged in the business of commercial banking and that is (i) a
Subsidiary of a Lender, (ii) a Subsidiary of a Person of which a Lender is a
Subsidiary, or (iii) a Person of which a Lender is a Subsidiary; (f) (i) an
"accredited investor," as such term is defined in Rule 501(a) of Regulation D
under the Securities Act of 1933, as amended (other than the Company or an
Affiliate of the Company) or (ii) a finance company, insurance company or other
financial institution or fund (whether a corporation, partnership, trust or
other entity) that is, in each case, primarily engaged in the business of
making, purchasing or otherwise investing in commercial loans; and (g) any other
entity approved by the Borrower Representatives, the Issuers and the
Administrative Agent; provided, that, in each case, such Person, as of the
effective date of any assignment pursuant to

                                       10

<PAGE>

Section 11.08, has the ability to fund its obligations under this Agreement in
each Offshore Currency at the applicable Agent's Payment Office.

      "Environmental Claims" means all claims, however asserted, by any
Governmental Authority or other Person alleging potential liability or
responsibility for violation of any Environmental Law, or for release or injury
to the environment, personal injury (including sickness, disease or death),
property damage, natural resources damage, or otherwise alleging liability or
responsibility for damages (punitive or otherwise), investigation, cleanup,
removal, remedial or response costs, restitution, civil or criminal penalties,
injunctive relief, or other type of relief, resulting from or based upon the
presence, placements, discharge, emission or release (including intentional and
unintentional, negligent and non-negligent, sudden or non-sudden, accidental or
non-accidental, placements, spills, leaks, discharges, emissions or releases) of
any Hazardous Material at, in, or from any property, whether or not owned by the
Company or any of its respective Subsidiaries or taken as collateral, or in
connection with any operations of such Loan Party.

      "Environmental Laws" means all applicable federal, provincial, state,
municipal or local laws, statutes, common law duties, rules, regulations,
directives, ordinances and codes, together with all administrative orders,
directed duties, requests, licenses, requirements of authorizations and permits
of, and agreements with, any Governmental Authority, in each case relating to
protection of the environment or occupational health and safety, and the
generation, use, transportation or disposal of Hazardous Materials, including
without limitation, CERCLA, the Clean Air Act, the Federal Water Pollution
Control Act of 1972, the Solid Waste Disposal Act, the Federal Resource
Conservation and Recovery Act, and the Toxic Substances Control Act.

      "Environmental Permits" has the meaning specified in subsection 6.12(b).

      "Equivalent Amount" means, as of any Computation Date, the amount
determined by reference to the following table:

<TABLE>
<CAPTION>
IF THE NOTIONAL AMOUNT                  THE EQUIVALENT AMOUNT                 THE EQUIVALENT AMOUNT IN AN
  IS DENOMINATED IN:                       IN DOLLARS IS:                        OFFSHORE CURRENCY IS:
----------------------               ---------------------------          -----------------------------------
<S>                                  <C>                                  <C>
Dollars                              Such Amount                          The amount of such Offshore
                                                                          Currency that can be purchased
                                                                          with Dollars at the Spot Rate

An Offshore Currency                 The amount of Dollars that           The amount of such Offshore
                                     can be purchased with such           Currency or, if to another Offshore
                                     Offshore Currency at the             Currency, the amount of such
                                     Spot Rate                            other Offshore Currency that can
                                                                          be purchased with such Offshore
                                                                          Currency at the Spot Rate
</TABLE>

      "ERISA" means the Employee Retirement Income Security Act of 1974 and
regulations promulgated thereunder.

                                       11

<PAGE>

      "ERISA Affiliate" means, with respect to the Company, any trade or
business (whether or not incorporated) under common control with the Company
within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and
(o) of the Code for purposes of provisions relating to Section 412 of the Code).

      "ERISA Event" means, with respect to the Company, (a) a Reportable Event
with respect to a Pension Plan; (b) a withdrawal by the Company or any ERISA
Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan
year in which it was a substantial employer (as defined in Section 4001(a)(2) of
ERISA) or a cessation of operations which is treated as such a withdrawal under
Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Company or
any ERISA Affiliate from a Multiemployer Plan or notification that a
Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to
terminate, the treatment of a Plan amendment as a termination under Section 4041
or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a
Pension Plan or Multiemployer Plan; (e) an event or condition which might
reasonably be expected to constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Pension Plan
or Multiemployer Plan; or (f) the imposition of any liability under Title IV of
ERISA, other than PBGC premiums due but not delinquent under Section 4007 of
ERISA, upon the Company or any ERISA Affiliate.

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

      "Event of Default" means any of the events or circumstances specified in
Section 9.01.

      "Event of Loss" means, with respect to any property, any of the following:
(a) any loss, theft, destruction or damage of such property; (b) any institution
of any proceedings for the condemnation or seizure of such property or for the
exercise of any right of eminent domain; or (c) any actual condemnation, seizure
or taking, by exercise of the power of eminent domain or otherwise, of such
property, or confiscation of such property or the requisition of the use of such
property.

      "Exchange Act" means the Securities Exchange Act of 1934 and the
regulations promulgated thereunder.

      "Excess Cash Flow" means for any period, the remainder of

      (a)   the sum, without duplication, of

            (i)     EBITDA, plus

            (ii)    any net decrease in Adjusted Working Capital during such
                    period (exclusive of decreases in working capital associated
                    with asset sales), plus

            (iii)   any net cash extraordinary gains included in determining Net
                    Income, minus

                                       12

<PAGE>

      (b)   the sum, without duplication, of

            (i)     Consolidated Interest Expense, to the extent paid in cash,
                    plus

            (ii)    repayments of principal of the Term Loans, prepayments of
                    principal of the Revolving Loans reflecting reductions in
                    the Revolving Loan Commitments, principal payments arising
                    with respect to any other long-term Indebtedness of BHI and
                    its Subsidiaries, and the portion of any payments with
                    respect to Capitalized Leases allocable to principal, in
                    each case during such period, plus

            (iii)   any payment of long-term liabilities to the extent not
                    reflected in the change in Adjusted Working Capital during
                    such period, plus

            (iv)    Capital Expenditures of BHI and its Subsidiaries permitted
                    to be made for such period, except to the extent made from
                    proceeds of Indebtedness (other than Revolving Loans or
                    Swing Line Loans) or new equity issuances or reinvestment of
                    disposition proceeds, plus

            (v)     all federal, state, local and foreign income taxes paid in
                    cash by BHI and its Subsidiaries during such period, plus

            (vi)    any net increase in Adjusted Working Capital during such
                    period (exclusive of increases in working capital associated
                    with asset purchases), plus

            (vii)   Investments of the types described in subsections 8.04(d)
                    and (j) made in cash during such period, plus

            (viii)  Distributions of the type described in subsection 8.09(c)
                    made in cash during such period, plus

            (ix)    any net cash extraordinary charges, to the extent deducted
                    in computing Net Income for such period.

      "Excluded Equity" has the meaning specified in Section 2.08(g).

      "Excluded Offsite Inventory and Equipment" means inventory and equipment
from time to time stored at locations of certain suppliers of the Borrowers;
provided that (i) the fair market value of such inventory shall at no time
exceed $2,500,000 in the aggregate and (ii) the fair market value of such
equipment shall at no time exceed $2,500,000 in the aggregate.

      "Existing Dollar Commitment Amount" means, as to each Lender, such
Lender's Existing Dollar Commitment Amount, as specified on Schedule 2.01, as
the same may be adjusted from time to time pursuant to the terms of this
Agreement.

      "Existing Dollar Term Loan" has the meaning specified in Section 2.01(b).

                                       13

<PAGE>

      "Existing Fleet Letter of Credit" has the meaning specified in Section
3.11.

      "Existing Hidden Creek Investors" means those individuals holding equity
interests in J2R as of the Closing Date.

      "Existing Letters of Credit" has the meaning specified in Section 3.11.

      "Existing Loan Note Credit Support" has the meaning specified in Section
3.10

      "Existing Sterling Commitment Amount" means as to each Lender such
Lender's Existing Sterling Commitment Amount, as specified on Schedule 2.01, as
the same may be adjusted from time to time pursuant to the terms of this
Agreement.

      "Existing Sterling Term Loans" has the meaning specified in Section
2.01(c).

      "Existing Term Loans" has the meaning specified in Section 2.01(c).

      "Federal Funds Rate" means, for any day, the rate per annum equal to the
weighted average of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers on such
day, as published by the Federal Reserve Bank on the Business Day next
succeeding such day; provided that (a) if such day is not a Business Day, the
Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business Day,
and (b) if no such rate is so published on such next succeeding Business Day,
the Federal Funds Rate for such day shall be the average rate (rounded upward,
if necessary, to a whole multiple of 1/100 of 1%) charged to Bank of America on
such day on such transactions as determined by the Administrative Agent.

      "Fee Letter" has the meaning specified in subsection 2.11(a).

      "Fixed Charge Coverage Ratio" means, as of the end of any fiscal quarter,
the ratio of (i) EBITDAR for the four fiscal quarter period then ended, minus
Capital Expenditures of BHI and its Subsidiaries for the four fiscal quarter
period then ended, minus taxes payable in cash by BHI and its Subsidiaries for
the four fiscal quarter period then ended to (ii) the sum of Fixed Charges for
such four fiscal quarter period.

      "Fixed Charges" means, with respect to BHI and its Subsidiaries on a
consolidated basis, as of any date of determination, (a) Consolidated Interest
Expense (but excluding any payment-in-kind interest) payable in cash for the
period of four fiscal quarters ending on the date of determination, (b) Rental
Obligations for the period of four fiscal quarters ending on the date of
determination, and (c) the amount of payments made by BHI and its Subsidiaries
in respect of principal on the Obligations during the period of four fiscal
quarters ending on the date of determination; provided that, for purposes of
calculating the Fixed Charges for the fiscal quarters ending on March 31, 2003,
June 30, 2003, September 30, 2003 and December 31, 2003, the amount of principal
payments referenced in this clause (c) shall be deemed to be $5,000,000.

      "Foreign 956 Subsidiary" means any Subsidiary (i) that is a Non-U.S.
Subsidiary where a guaranty of the Obligations by such Subsidiary which would
result in a material deemed

                                       14

<PAGE>

dividend of its current and accumulated earnings and profits under section 956
of the Code or (ii) where a guaranty of Obligations of such Subsidiary would
result in a material adverse tax consequence under any similar foreign tax law.

      "FRB" means the Board of Governors of the Federal Reserve System of the
United States, and any Governmental Authority succeeding to any of its principal
functions.

      "Funded Indebtedness" of any Person means all Indebtedness of such Person
except (a) Indebtedness specified in clause (c) of the definition of
"Indebtedness" and in clauses (i) and (h) of the definition of "Indebtedness,"
to the extent they relate to Indebtedness referred to in such clause (c), and
(b) Permitted Earn-Out Debt.

      "Further Taxes" means any and all present or future taxes, levies,
assessments, imposts, duties, deductions, fees, withholdings or similar charges
(including net income taxes and franchise taxes but excluding any internal
charges), and all liabilities with respect thereto, imposed by any jurisdiction
on account of amounts payable or paid pursuant to Section 4.01.

      "FX Trading Office" means the Bank of America Foreign Exchange Trading
Desk in Charlotte, North Carolina, or such other office or source of information
as the Administrative Agent may designate with the concurrence of the Company.

      "GAAP" means generally accepted accounting principles set forth from time
to time in the opinions and pronouncements of the Accounting Principles Board
and the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board (or agencies with
similar functions of comparable stature and authority within the U.S. accounting
profession), which are applicable to the circumstances as of the date of
determination.

      "Governmental Authority" means (a) any nation or government, any state or
other political subdivision thereof, any central bank (or similar monetary or
regulatory authority) thereof, any entity exercising executive, legislative,
judicial or regulatory functions of or pertaining to government, and any
corporation or other entity owned or controlled, through stock or capital
ownership or otherwise, by any of the foregoing, and (b) the National
Association of Insurance Commissioners.

      "Guaranteed Creditors" means and includes (i) the Administrative Agent,
the Collateral Agent, the Issuers and the Lenders and (ii) each Person (other
than any Loan Party) which is a party to a Swap Agreement to the extent such
Person constitutes a Secured Creditor.

      "Guaranteed Obligations" means (i) the full and prompt payment when due
(whether at the stated maturity, by acceleration or otherwise) of the principal
and interest (whether such interest is allowed as a claim in a bankruptcy
proceeding with respect to any Borrower or otherwise) on each Loan made under
this Agreement and all reimbursement obligations and unpaid drawings with
respect to Letters of Credit, together with all other Obligations (including
obligations which, but for the automatic stay under Section 362(a) of the
Bankruptcy Code, would become due) and liabilities (including liabilities for
Administrative Agent, Collateral Agent or Issuer indemnities and fees and
interest thereon) of any Borrower to such Lender, Administrative Agent,
Collateral Agent or Issuer now existing or hereafter incurred under,

                                       15

<PAGE>

arising out of or in connection with this Agreement or any other Loan Documents
and the due performance and compliance with all terms, conditions and agreements
contained in the Loan Documents by any Borrower and (ii) the full and prompt
payment when due (whether by acceleration or otherwise) of all obligations
(including obligations which, but for the automatic stay under Section 362(a) of
the Bankruptcy Code, would become due) of any Borrower or its Subsidiaries owing
under any Swap Contract entered into by any Borrower or any of its Subsidiaries
with any Lender or any Affiliate thereof (even if such Lender subsequently
ceases to be a Lender under this Agreement for any reason) so long as such
Lender or Affiliate participates in such Swap Contract and their subsequent
assigns, if any, whether or not in existence or hereafter arising, and the due
performance and compliance with all terms, conditions and agreements contained
therein.

      "Guarantors" means: (a) with respect to the Company: BHI, each U.K.
Subsidiary of BHI (other than the Company) and each U.S. Subsidiary of BHI; (b)
with respect to KAB Seating: BHI, each U.K. Subsidiary of BHI (other than KAB
Seating) and each U.S. Subsidiary of BHI; (c) with respect to NSC: BHI, each
U.K. Subsidiary of BHI (other than Foreign 956 Subsidiaries) and each U.S.
Subsidiary of BHI (other than NSC); (d) with respect to CVS, Inc., BHI, each
U.K. Subsidiary of BHI (other than Foreign 956 Subsidiaries) and each U.S.
Subsidiary of BHI (other than CVS, Inc.); and (e) any Person delivering a
Guaranty pursuant to Section 7.14; provided, that the term "Guarantor" shall not
include any of the Subsidiaries set forth on Schedule 2.17.

      "Guaranty" means, collectively, (a) the Syndicated Composite Guarantee and
Debenture, dated October 5, 2000, by the Company, Bostrom Ltd., KAB Seating and
NSC, (b) the National Seating Company Guaranty, dated as of October 5, 2000, by
NSC, (c) the Guarantee, dated as of October 5, 2000, by CVS Limited and CVS
Holdings Ltd., (d) the Bostrom Holding, Inc. Guaranty, dated as of September 27,
2002, by BHI, (e) the CVS, Inc. Guaranty, (f) the CVS Holdings, Inc. Guaranty,
(g) the Composite Guarantee and Debenture, dated March 12, 2001, by Bostrom
International, (h) the Guarantee, dated March 12, 2001, by Bostrom Ltd., KAB
Seating and A.J.W. Holdings Limited, and (i) each guaranty delivered by a
Subsidiary pursuant to Section 7.14, in each case in favor of Bank of America,
on behalf of itself, the Issuers and the Lenders, as the same may be amended,
supplemented, restated or otherwise modified from time to time.

      "Guaranty Obligation" has the meaning specified in the definition of
"Contingent Obligation."

      "Hazardous Materials" means all those substances that are regulated by, or
which may form the basis of liability or a standard of conduct under, any
Environmental Law, including any substance identified under any Environmental
Law based upon their harmful or deleterious properties as a pollutant,
contaminant, hazardous waste, hazardous constituent, special waste, hazardous
substance, hazardous material, or toxic substance, or petroleum or
petroleum-derived substance or waste.

      "Hedge Agreement" means the ISDA Master Agreement, dated as of April 6,
2001 between the Hedge Counterparty and the Company, together with each of the
related schedules and confirmations, if any, as amended, modified or
supplemented from time to time.

                                       16

<PAGE>

      "Hedge Counterparty" means Bank One, NA (f/k/a Bank One, Michigan).

      "Hidden Creek" means Hidden Creek Industries, a New York general
partnership.

      "Indebtedness" of any Person means, without duplication, (a) all
indebtedness for borrowed money; (b) all obligations issued, undertaken or
assumed as the deferred purchase price of property or services (other than trade
payables and accrued expenses entered into or incurred in the ordinary course of
business on ordinary terms); (c) all Contingent Obligations with respect to
Surety Instruments; (d) all obligations evidenced by notes, bonds, debentures or
similar instruments, including obligations so evidenced incurred in connection
with the acquisition of property, assets or businesses; (e) all indebtedness
created or arising under any conditional sale or other title retention
agreement, or incurred as financing, in either case with respect to property
acquired by the Person (even though the rights and remedies of the seller or
bank under such agreement in the event of default are limited to repossession or
sale of such property); (f) all principal and interest obligations (classified
as a liability on such Person's balance sheet) with respect to Capitalized
Leases; (g) the principal balance outstanding under any synthetic lease, tax
retention operating lease, off-balance sheet loan or similar off-balance sheet
financing product to which such Person is a party, where such transaction is
considered borrowed money indebtedness for tax purposes but is classified as an
operating lease in accordance with GAAP; (h) all indebtedness referred to in
clauses (a) through (g) above secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by)
any Lien upon or in property (including accounts and contract rights) owned by
such Person, even though such Person has not assumed or become liable for the
payment of such Indebtedness; and (i) all Guaranty Obligations in respect of
indebtedness or obligations of others of the kinds referred to in clauses (a)
through (h) above. For all purposes of this Agreement, the Indebtedness of any
Person shall include all recourse Indebtedness then outstanding of any
partnership or joint venture or limited liability company in which such Person
is a general partner or a joint venturer or a member and as to which such Person
is or may become directly liable.

      "Indemnified Liabilities" has the meaning specified in Section 11.05.

      "Indemnified Person" has the meaning specified in Section 11.05.

      "Independent Auditor" has the meaning specified in subsection 7.01(a).

      "Insolvency Proceeding" means, with respect to any Person, (a) any case,
application, petition, notice, action or proceeding with respect to such Person
before any court or other Governmental Authority relating to bankruptcy,
reorganization, insolvency, liquidation, receivership, dissolution,
administration, winding-up or relief of debtors or for the appointment of a
trustee, receiver, administrator, administrative receiver or similar officer to
take possession of or to be appointed over, or an encumbrancer taking possession
of, the whole or substantially the whole of that Person's undertaking, property
or assets in connection with any such case, action or proceeding, (b) any
general assignment for the benefit of creditors, composition, marshalling of
assets for creditors, or other, similar arrangement in respect of its creditors
generally or any substantial portion of its creditors; in each case, undertaken
under U.S. Federal, state or foreign law, including the Bankruptcy Code, or the
Insolvency Act 1986 (United

                                       17

<PAGE>

Kingdom) or (c) the convening of a meeting for the purpose of the passing of a
resolution for the winding up of that Person in accordance with the Insolvency
Act 1986 (United Kingdom) except for the purpose of a solvent amalgamation or
reconstruction on a basis where the resulting entity assumes all of the
obligations of that person under this Agreement.

      "Interest Payment Date" means, as to any Offshore Rate Loan, the last day
of each Interest Period applicable to such Loan and, as to any Base Rate Loan,
the last Business Day of each calendar quarter; provided, that if any Interest
Period for an Offshore Rate Loan exceeds three months, the date that falls three
months after the beginning of such Interest Period and after each Interest
Payment Date thereafter is also an Interest Payment Date.

      "Interest Period" means, as to any Offshore Rate Loan, the period
commencing on the Borrowing Date of such Loan or on the Conversion/Continuation
Date on which the Loan is converted into or continued as an Offshore Rate Loan,
and ending on the date one, two or three months thereafter (or, with the consent
of all Lenders making or continuing such Loan, a date six months thereafter), as
selected by the applicable Borrower or Borrower Representative in its Notice of
Borrowing or Notice of Conversion/Continuation;

      provided that:

                  (a)   if any Interest Period would otherwise end on a day that
            is not a Business Day, that Interest Period shall be extended to the
            following Business Day unless the result of such extension would be
            to carry such Interest Period into another calendar month, in which
            event such Interest Period shall end on the preceding Business Day;

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

                  (c)   no Interest Period for any Term Loan shall extend beyond
            the final scheduled maturity date of such Term Loan, and no Interest
            Period for any Revolving Loan shall extend beyond the Revolving Loan
            Termination Date; and

                  (d)   no Interest Period applicable to a Term Loan or portion
            thereof shall extend beyond any date upon which is due any scheduled
            principal payment in respect of the Term Loans unless the aggregate
            principal amount of Term Loans represented by Base Rate Loans, or by
            Offshore Rate Loans having Interest Periods that will expire on or
            before such date, equals or exceeds the amount of such principal
            payment.

      "Investments" has the meaning specified in Section 8.04. The amount of any
Investment by any Person on any date of determination shall be the sum of the
acquisition price of the assets acquired by such Person (including the amount of
any Funded Indebtedness assumed in connection with the acquisition by such
Person to the extent such Funded Indebtedness would be reflected on a balance
sheet prepared in accordance with GAAP) plus all additional capital
contributions or purchase price paid in respect thereof, without any adjustments
for increases or

                                       18

<PAGE>

decreases in value, or write-ups, write-downs or write-offs with respect to such
Investment minus the amount of all cash returns of principal or capital thereon,
cash dividends thereon and other cash returns on investment thereon or
liabilities expressly assumed by another Person (other than the Company or
another Subsidiary of Company) in connection with the sale of such Investment.
Whenever the term "outstanding" is used in this Agreement with reference to an
Investment, it shall take into account the matters referred to in the preceding
sentence.

      "IRS" means the Internal Revenue Service of the United States, and any
Governmental Authority succeeding to any of its principal functions under the
Code.

      "Issuance Date" has the meaning specified in subsection 3.01(a).

      "Issue" means, with respect to any Letter of Credit, to issue or to extend
the expiry of, or to renew or increase the amount of, such Letter of Credit; and
the terms "Issued," "Issuing" and "Issuance" have corresponding meanings.

      "Issuer" means (i) in respect of each Letter of Credit (other than the
Existing Fleet Letter of Credit), Bank of America in its capacity as issuer of
the Letters of Credit hereunder (it being understood and agreed that Bank of
America's branch in London, England is not permitted to issue commercial letters
of credit) and (ii) in respect of the Existing Fleet Letter of Credit, Fleet
National Bank, and in each case together with any replacement letter of credit
issuer appointed under subsection 10.01(b) or Section 10.09.

      "Joint Venture" means a single-purpose corporation, partnership, limited
liability company, joint venture or other similar legal arrangement (whether
created by contract or conducted through a separate legal entity) now or
hereafter formed by the Company or its Subsidiaries with another Person in order
to conduct a common venture or enterprise with such Person.

      "Judgment Currency" has the meaning specified in Section 11.18.

      "J2R" means J2R Partners VII, a Delaware general partnership.

      "KAB Seating" has the meaning specified in the preamble of this Agreement.

      "L/C Advance" means each Lender's participation in any L/C Borrowing in
accordance with its Pro Rata Share.

      "L/C Amendment Application" means an application form for amendment of
outstanding standby or commercial documentary letters of credit as shall at any
time be in use at the applicable Issuer, as the Issuer shall request.

      "L/C Application" means an application form for issuances of standby or
commercial documentary letters of credit as shall at any time be in use at the
applicable Issuer, as such Issuer shall request.

                                       19

<PAGE>

      "L/C Borrowing" means an extension of credit resulting from a drawing
under any Letter of Credit which shall not have been reimbursed on the date when
made nor converted into a Borrowing of Loans under Section 3.03(d).

      "L/C Commitment" means, at any time, the commitment of the Issuers to
Issue, and the commitment of the Lenders severally to participate in, Letters of
Credit from time to time Issued or outstanding under Article III, in an
aggregate amount not to exceed the lesser of the Aggregate Revolving Loan
Commitment and the Borrowing Base at such time less the aggregate Effective
Amount of Revolving Loans and L/C Obligations then outstanding; provided that
the L/C Commitment is a part of the Aggregate Revolving Loan Commitment, rather
than a separate, independent commitment.

      "L/C Obligations" means at any time, without duplication, the sum of (a)
the aggregate undrawn amount of all Letters of Credit (other than that portion
of the Letters of Credit supported by the NSC Term Loan Commitment and the
Sterling Term Loan Commitment) then outstanding, plus (b) the amount of all
outstanding L/C Advances (other than in the form of a Term Loan) or other
unreimbursed drawings under all Letters of Credit (other than that portion of
the Letters of Credit supported by the NSC Term Loan Commitment and the Sterling
Term Loan Commitment) including all outstanding L/C Borrowings (other than L/C
Borrowings made as a result of drawings on the NSC Term Loan Commitment or the
Sterling Term Loan Commitment).

      "L/C-Related Documents" means the Letters of Credit, the L/C Applications,
the L/C Amendment Applications, the Loan Note Instrument and any other document
relating to any Letter of Credit, including any standard form documents used by
any Issuer for letter of credit issuances.

      "Lender" has the meaning specified in the introductory clause hereto.
References to the "Lenders" shall include Bank of America, including in its
capacity as Issuer and Swing Line Lender, and for purposes of clarification
only, to the extent that Bank of America may have any rights or obligations in
addition to those of the Lenders due to its status as Issuer or Swing Line
Lender, respectively, its status as such will be specifically referenced.

      "Lending Office" means, as to any Lender, the office or offices of such
Lender specified as its "Domestic Lending Office" or "Offshore Lending Office,"
as the case may be, on Schedule 11.02, or such other office or offices as such
Lender may from time to time notify the Borrower Representative and the
Administrative Agent.

      "Lending Party" means any Lender, Swing Lender or any Issuer, as the case
may be.

      "Letters of Credit" means, collectively, the Loan Note Credit Support, the
Existing Letters of Credit, any letter of credit issued by an Issuer, and any
amendments thereto or replacements thereof, pursuant to Article III.

      "Lien" means any security interest, mortgage, deed of trust, pledge,
hypothecation, assignment, charge or deposit arrangement, encumbrance, lien
(statutory or other), trust or flawed asset arrangement (for the purpose of, or
having the effect of, granting a security interest) or similar interest of any
kind or nature whatsoever in respect of any property (including those

                                       20

<PAGE>

created by, arising under or evidenced by any conditional sale or other title
retention agreement, the interest of a lessor under a capital lease, any
financing lease having substantially the same economic effect as any of the
foregoing, or the filing of any financing statement naming the owner of the
asset to which such lien relates as debtor, under the UCC or any comparable law)
and any contingent or other agreement to provide any of the foregoing, but not
including the interest of a lessor under an operating lease.

      "Loan" means an extension of credit by a Lender to a Borrower under
Article II or Article III in the form of a Revolving Loan, an NSC Term Loan, an
Existing Term Loan, a Sterling Term Loan, a Swing Line Loan or an L/C Borrowing.

      "Loan Documents" means this Agreement, the Fee Letter, the L/C-Related
Documents, the Collateral Documents and all other documents delivered to the
Administrative Agent, the Collateral Agent or any Lender in connection herewith
but not including any other Transaction Document.

      "Loan Note Credit Support" has the meaning specified in Section
3.01(a)(ii).

      "Loan Note Instrument" means that certain Deed constituting Floating Rate
Unsecured Guaranteed Loan Notes, dated October 5, 2000, executed by Commercial
Vehicle Systems Limited regarding the issuance of the Loan Notes and the Loan
Note Credit Support relating thereto.

      "Loan Notes" means, collectively, the Loan Notes issued by the Company as
constituted by the Loan Note Instrument and payable to certain former
shareholders of Bostrom International.

      "Loan Notes Payment Date" means any Business Day on which a holder of a
Loan Note may demand a payment of principal on such Loan Note pursuant to the
terms of the Loan Notes and the Loan Notes Instrument.

      "Loan Party" means the Borrowers and each Guarantor.

      "Management Agreement" has the meaning specified in Section 8.06(d).

      "Margin Stock" means "margin stock" as such term is defined in Regulation
U or X of the FRB.

      "Material Adverse Effect" means (a) a material adverse change in, or a
material adverse effect upon, the operations, business, properties or condition
(financial or otherwise) of BHI and its Subsidiaries taken as a whole; (b) a
material impairment of the ability of BHI and its Subsidiaries taken as a whole
to perform any material obligation under any Loan Document and to avoid any
Event of Default; or (c) a material adverse effect upon the legality, validity,
binding effect or enforceability against the applicable Loan Party of any Loan
Document.

      "Merger" has the meaning specified in the sixth paragraph of this
Agreement.

                                       21

<PAGE>

      "Merger Documents" means the Agreement and Plan of Merger, dated as of the
date hereof, by and between BHI, CVS Holdings, Inc. and CVS Merger Co., a
Delaware corporation.

      "Merging Subsidiary" has the meaning specified in the sixth paragraph of
this Agreement.

      "Minimum Amount" means with respect to each of the following actions, the
minimum amount and any multiples in excess thereof set forth opposite such
action:

<TABLE>
<CAPTION>
                                                                                      MULTIPLES IN EXCESS
TYPE OF ACTION                                  MINIMUM AMOUNT                              THEREOF
--------------------------------      ----------------------------------        ----------------------------------
<S>                                   <C>                                       <C>
Borrowing of, prepayment of, or       $ 500,000                                 $ 100,000
conversion into, Base Rate Loans

Borrowing of, prepayment of,          $ 500,000                                 $ 100,000
continuation of, or Conversion
into, Dollar-denominated
Offshore Rate Loans

Borrowing of, prepayment of,          Lesser of (a) Equivalent Amount of        Lesser of (a) Equivalent Amount of
Continuation of, or Conversion        $500,000 and (b) 500,000 units of         $100,000 and (b) 100,000 units, of
into, Offshore Currency Loans         Offshore Currency                         Offshore Currency

Borrowing of Swing Line Loans         $250,000 for Dollar denominated           $100,000 or 100,000 units of
                                      Swing Line Loans or 250,000 units         Offshore Currency
                                      of Offshore Currency

Letter of Credit                      $100,000 or for Letters of Credit         None
                                      denominated in Offshore Currency,
                                      the lesser of (a) Equivalent Amount
                                      of $100,000 and (b) 100,000 units
                                      of Offshore Currency

Reduction in Commitments              $ 1,000,000                               $ 250,000

Assignments                           $ 1,000,000                               None
</TABLE>

      ;provided, that a Borrowing of a Sterling Term Loan may be requested in an
amount lower than the Minimum Amount specified above in connection with the
repayment of Loan Notes by the Company after the Closing Date.

      "Mortgage" means any deed of trust, mortgage, leasehold mortgage,
assignment of rents or other document creating a Lien on real property or any
interest in real property.

      "Mortgaged Property" means all property subject to a Lien pursuant to a
Mortgage.

                                       22

<PAGE>

      "Multiemployer Plan" means a "multiemployer plan," within the meaning of
Section 4001(a)(3) of ERISA, to which the Company or any ERISA Affiliate makes,
is making, or is obligated to make contributions or, during the preceding three
calendar years, has made, or been obligated to make, contributions.

      "Net Income" and "Net Loss" mean, respectively, with respect to any
period, the aggregate of the net income (loss) of the Person in question for
such period, determined in accordance with GAAP on a consolidated basis;
provided that (i) the net income (loss) of any Person which is not a
consolidated Subsidiary shall be included only to the extent of the amount of
cash dividends or distributions paid to the Person in question or to a
consolidated Subsidiary of such Person and (ii) the net income (loss) of any
Person acquired in a pooling of interests transaction for any period prior to
the date of such acquisition shall be excluded.

      "Net Proceeds" means (a) with respect to any Asset Disposition, the sum of
cash or readily marketable cash equivalents received (including by way of a cash
generating sale or discounting of a note or receivable, but excluding any other
consideration received in the form of assumption by the acquiring Person of debt
or other obligations relating to the properties or assets so disposed of or
received in any other non-cash form) therefrom, whether at the time of such
disposition or subsequent thereto (but, in the case of amounts received
subsequent thereto, excluding interest on such amounts), or (b) with respect to
any sale or issuance of equity or debt securities of BHI or any Subsidiary, cash
or readily marketable cash equivalents received (but excluding any other
non-cash form) therefrom, whether at the time of such disposition, sale or
issuance or subsequent thereto, net (subject to reserves for normal course
post-closing adjustments and reserves for indemnification obligations and
retained liabilities in connection with such transaction and without
duplication), in either case, of all legal, title, recording and any other tax
expenses, commissions and other fees and all costs and expenses incurred and all
federal, state, local and other taxes required to be accrued as a liability as a
consequence of such transactions and, in the case of an Asset Disposition, net
of all payments made by BHI or any of its respective Subsidiaries on any
Indebtedness which is secured by such assets pursuant to a Permitted Lien upon
or with respect to such assets or which must by the terms of such Lien, or in
order to obtain a necessary consent to such Asset Disposition, or by applicable
law be repaid out of the proceeds from such Asset Disposition.

      "Net Worth" means the stockholders equity of BHI as determined in
accordance with GAAP, less (without duplication) the outstanding principal
amount of loans to officers, directors, and employees of BHI and its
Subsidiaries to purchase Capital Stock of BHI, but excluding (a) gains and
losses with respect to foreign exchange and/or interest rate protection
adjustments reflected in the consolidated balance sheet of BHI, (b) previously
capitalized costs and expenses related to the incurrence of indebtedness and
costs and expenses related to the execution and delivery of this Agreement, not
to exceed $3,250,000 in the aggregate and (c) adjustments with respect to
goodwill made in accordance with Financial Accounting Standard 142.

      "Non-Surety L/Cs" means letters of credit which are not Surety L/Cs.

      "Non-U.S. Pension Plan" means any plan, fund (including, without
limitation, any superannuation fund) or other similar program established or
maintained outside the United States of America by BHI or any one or more of its
Subsidiaries primarily for the benefit of

                                       23

<PAGE>

employees of BHI or such Subsidiaries residing outside the United States of
America, which plan, fund or other similar program provides, or results in,
retirement income, a deferral of income in contemplation of retirement or
payments to be made upon termination of employment, and which plan is not
subject to ERISA or the Code.

      "Non-U.S. Subsidiary" means each Subsidiary of BHI that is not a U.S.
Subsidiary.

      "Notice of Borrowing" means a notice in substantially the form of Exhibit
A.

      "Notice of Conversion/Continuation" means a notice in substantially the
form of Exhibit B hereof.

      "NSC" has the meaning specified in the preamble of this Agreement.

      "NSC Term Loan" has the meaning specified in Section 2.01(a)(i).

      "NSC Term Loan Commitment" means as to each Lender, such Lender's NSC Term
Loan Commitment, as specified in Schedule 2.01, as the same may be adjusted from
time to time pursuant to the terms of this Agreement.

      "Obligations" means all advances, moneys, debts, liabilities, obligations,
covenants and duties arising under any Loan Document owing by any Loan Party to
any Lending Party, the Administrative Agent, the Collateral Agent or any
Indemnified Person, whether direct or indirect (including those acquired by
assignment), absolute or contingent, due or to become due, now existing or
hereafter arising; provided, that for purposes of the Collateral Documents, the
term "Obligations" shall include the debts, liabilities, obligations, covenants
and duties of the Company owing to the Hedge Counterparty pursuant to the Hedge
Agreement.

      "OECD" has the meaning specified in the definition of "Eligible Assignee."

      "Offshore Currency" means, at any time, Sterling, Euros or such other
currency as is acceptable to the Administrative Agent and the Lenders in
accordance with Section 2.16(e).

      "Offshore Currency Domestic Rate" means, with respect to any amount in an
Offshore Currency, for any day, the rate of interest per annum equal to the sum
of (a) the higher of (i) the rate of interest per annum at which overnight
deposits in the applicable Offshore Currency, in an amount approximately equal
to the amount with respect to which such rate is being determined, would be
offered for such day by Bank of America's local branch to major banks in the
local market or other applicable offshore interbank market, and (ii) the cost of
funds to Bank of America's local branch with respect to such amount for such
day, expressed as a rate of interest per annum plus (b) 50 basis points.

      "Offshore Currency Loan" means any Loan that is denominated in an Offshore
Currency.

      "Offshore Rate" means for any Interest Period with respect to any Offshore
Rate Loan:

            (a)   the rate per annum equal to the rate determined by the
      Administrative Agent to be the offered rate that appears on the page of
      the Telerate screen (or any

                                       24

<PAGE>

      successor thereto) that displays an average British Bankers Association
      Interest Settlement Rate for deposits in the Applicable Currency (for
      delivery on the first day of such Interest Period) with a term equivalent
      to such Interest Period, determined as of approximately 11:00 a.m. (London
      time) two Business Days prior to the first day of such Interest Period,

            (b)   if the rate referenced in the preceding clause (a) is not
      available, the rate per annum equal to the rate determined by the
      Administrative Agent to be the offered rate on such other page or other
      service that displays an average British Bankers Association Interest
      Settlement Rate for deposits in the Applicable Currency (for delivery on
      the first day of such Interest Period) with a term equivalent to such
      Interest Period, determined as of approximately 11:00 a.m. (London time)
      two Business Days prior to the first day of such Interest Period, or

            (c)   if the rates referenced in the preceding clauses (a) and (b)
      are not available, the rate per annum determined by the Administrative
      Agent as the rate of interest at which deposits in the Applicable Currency
      for delivery on the first day of such Interest Period in same day funds in
      the approximate amount of the Offshore Rate Loan being made, continued or
      converted by Bank of America and with a term equivalent to such Interest
      Period would be offered by Bank of America's London Branch to major banks
      in the London interbank eurodollar market at their request at
      approximately 4:00 p.m. (London time) two Business Days prior to the first
      day of such Interest Period.

      "Offshore Rate Loan" means a Loan that bears interest based on the
Offshore Rate.

      "Onex" means Onex Corporation, an Ontario corporation.

      "Operating Lease" of any Person, means any lease (including, without
limitation, leases which may be terminated by the lessee at any time) of any
property (whether real, personal or mixed) by such Person, as lessee, which is
not a Capitalized Lease.

      "Original U.K. Credit Agreement" has the meaning specified in the second
paragraph of this Agreement.

      "Original U.S. Credit Agreement" has the meaning specified in the third
paragraph of this Agreement.

      "Organization Documents" means (a) with respect to any corporation, the
certificate or articles of incorporation and the bylaws, any certificate of
determination or instrument relating to the rights of preferred shareholders of
such corporation, any shareholder rights agreement; (b) with respect to any
limited liability company, the articles of formation, certificate of
incorporation, memorandum and articles of association and/or operating
agreement; and (c) with respect to any partnership, joint venture or other form
of business entity, the partnership agreement and any agreement governing the
rights of the holders of its capital stock, filing or notice with respect
thereto filed with the secretary of state of the state of its formation or other
Governmental Authority in the jurisdiction of its organization, in each case as
amended from time to time.

                                       25

<PAGE>

      "Other Taxes" means any present or future stamp, court or documentary
taxes or any other excise or property taxes, charges or similar levies which
arise from any payment made hereunder or from the execution, delivery,
performance, enforcement or registration of, or otherwise with respect to, this
Agreement or any other Loan Documents but excluding franchise taxes and any such
taxes imposed on the net income of any Lender.

      "Outstanding Indebtedness" has the meaning specified in the definition of
"Total Leverage Ratio."

      "Participant" has the meaning specified in subsection 11.08(d).

      "Participating Member State" means any member state of the European Union
that has elected the Euro as its lawful currency.

      "PBGC" means the Pension Benefit Guaranty Corporation, or any Governmental
Authority succeeding to any of its principal functions under ERISA.

      "Pension Plan" means a pension plan (as defined in Section 3(2) of ERISA)
subject to Title IV of ERISA, other than a Multiemployer Plan, which the Company
or any ERISA Affiliate sponsors, maintains, or to which it makes, is making, or
is obligated to make contributions, or otherwise has any liability, or in the
case of a multiple employer plan (as described in Section 4064(a) of ERISA) has
made contributions at any time during the immediately preceding five (5) plan
years.

      "Permitted Acquisitions" means any Acquisition by BHI or any of its
Subsidiaries which complies with each of the following: (i) such Person is
engaged in substantially the same, similar or supportive line of business as one
or more businesses of BHI or any of its Subsidiaries, (ii) the prior, effective
written consent to, or approval of, such Acquisition by the board of directors
or shareholders or equivalent governing body of the acquiree is obtained, (iii)
after giving effect to the proposed Acquisition on a Pro Forma Basis for the
period of four fiscal quarters of BHI ending with the fiscal quarter for which
financial statements have most recently been delivered (or were required to be
delivered) under Section 7.01, BHI is in compliance with the financial covenants
set forth in Sections 8.14, 8.15 and 8.16, and BHI shall deliver a certificate
setting forth in reasonable detail the basis for calculation of such financial
covenants; (iv) immediately after giving effect to the proposed Permitted
Acquisition, the Borrowers would be able to borrow at least $2,500,000 of Loan
proceeds, and, the Borrowers reasonably project that within 30 days after
consummation of the proposed Permitted Acquisition, it will be able to borrow at
least $5,000,000 of Loan proceeds; (v) BHI shall give the Administrative Agent
and the Lenders not less than ten (10) Business Days prior written notice of its
intention to make a Permitted Acquisition, such notice to include the proposed
amounts, date and form of the proposed transaction, a reasonable description of
the stock or assets to be acquired and the location of all assets, a description
and calculation in reasonable detail of the effect on a Pro Forma Basis of such
Acquisition on the financial covenants contained in Sections 8.14, 8.15 and
8.16, two years of audited financial statements of the Person to be acquired (or
financial statements otherwise acceptable to the Administrative Agent in its
reasonable discretion), (vi) the prior, effective written consent to, or
approval of, such Acquisition by the Required Lenders shall have been obtained,
(vii) concurrently with the making of a Permitted Acquisition, BHI or the
applicable

                                       26

<PAGE>

Subsidiary of BHI (other than a Foreign 956 Subsidiary) shall, as additional
collateral security for the Obligations, grant to the Collateral Agent for the
benefit of the Administrative Agent, the Issuers and the Lenders, first priority
perfected Liens (subject to Liens permitted pursuant to Section 8.01) on and
security interests in any of the acquired assets by the execution and delivery
to the Collateral Agent of such agreements, instruments and documents as shall
be reasonably satisfactory in form and substance to the Collateral Agent (it
being understood and agreed that only 65% of the Capital Stock of a first-tier
Foreign 956 Subsidiary shall be required to be pledged pursuant to any
Collateral Document), and (viii) neither BHI nor any Subsidiary shall make any
Permitted Acquisition at any time during which a Default or an Event of Default
shall exist and be continuing or would exist after giving effect to such
Permitted Acquisition.

      "Permitted Cost Savings" means, with respect to the determination of Net
Income on a Pro Forma Basis, such cost savings as would be permitted pursuant to
Rule 11.02 of Regulation S-X; provided that, prior to the consummation of any
Permitted Acquisition, the Company's certified public accountants shall certify
to the Administrative Agent (in a manner consistent with example d of SAS 72)
that such pro forma financial information complies as to form in all material
respects with the applicable accounting requirements of Rule 11.02 of Regulation
S-X.

      "Permitted Earn-Out Debt" shall mean Indebtedness of BHI or any of its
Subsidiaries incurred in connection with a Permitted Acquisition, which
Indebtedness is not secured by any assets of BHI or any of its Subsidiaries
(including without limitation the assets so acquired) and is only payable by BHI
or such Subsidiary (x) in the event certain future performance goals are
achieved with respect to the assets acquired, (y) if no Default or Event of
Default shall exist at the time of, or as a result of, any such payment and (z)
a certificate executed by a Responsible Officer of BHI has been delivered to the
Administrative Agent demonstrating compliance, on a Pro Forma Basis, with the
financial covenants contained in Sections 8.14, 8.15 and 8.16 immediately after
giving effect to any such payment; provided that such Indebtedness shall only
constitute Permitted Earn-Out Debt to the extent the terms of such Indebtedness
expressly limit the maximum potential liability of BHI or such Subsidiary with
respect thereto.

      "Permitted Liens" has the meaning specified in Section 8.01.

      "Permitted Swap Obligations" means all obligations (contingent or
otherwise) of BHI or any Subsidiary existing or arising under Swap Contracts,
provided that each of the following criteria is satisfied: (a) such obligations
are (or were) entered into by such Person for the purpose of directly mitigating
risks associated with liabilities, commitments or assets held or reasonably
anticipated to be held by such Person, or changes in the value of securities
issued by such Person in conjunction with a securities repurchase program not
otherwise prohibited hereunder, and not for purposes of speculation or taking a
"market view"; and (b) such Swap Contracts do not contain any provision
("walk-away" provision) exonerating the non-defaulting party from its obligation
to make payments on outstanding transactions to the defaulting party.

      "Person" means an individual, partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated association,
joint venture or Governmental Authority.

                                       27

<PAGE>

      "Plan" means an employee benefit plan (as defined in Section 3(3) of
ERISA) covered by ERISA which BHI or any ERISA Affiliate sponsors or maintains
or to which BHI or any ERISA Affiliate makes, is making, or is obligated to make
contributions or otherwise has any liability and includes any Pension Plan.

      "Pledge Agreements" means, collectively, (a) the Holdings Pledge
Agreement, dated as of March 31, 2000, executed by CVS Holdings, Inc. regarding
the shares of CVS, Inc., (b) the Pledge Agreement, dated as of October 5, 2000,
executed by NSC regarding the shares of its Subsidiaries, (c) the Mortgage Over
Securities, dated October 5, 2000, executed by CVS Holdings Ltd., regarding the
shares of the Company, (d) the Mortgage Over Securities, dated October 5, 2000,
executed by the Company, regarding the shares of Bostrom Ltd., (e) the Mortgage
Over Securities, dated March 12, 2001, executed by Bostrom Ltd. and A.J.W.
Holdings Limited, regarding the shares of the Company, (f) the Mortgage over
Securities, dated the Closing Date, executed by Bostrom Ltd., regarding the
shares of KAB Seating and Bostrom International, (g) each pledge agreement
delivered by a Subsidiary of BHI in favor of the Administrative Agent and (h)
each pledge agreement delivered by a Subsidiary of BHI pursuant to Section 7.14,
in each case pledging the stock of all or certain of their respective
Subsidiaries to the extent provided therein to the Collateral Agent, for the
benefit of the Administrative Agent, the Issuers and the Lenders, as the same
may be amended, supplemented, restated or otherwise modified from time to time.

      "Pledged Collateral" has the meaning specified in the Pledge Agreements.

      "Pro Forma Basis" means, for purposes of the tests set forth in the
definition of Permitted Acquisitions and in the permitted adjustment to EBITDA
and Rental Obligations, a pro forma on the basis that (a) any Indebtedness
incurred or assumed in connection with the Merger or such Permitted Acquisition
was incurred or assumed on the first day of the applicable period, (b) if such
Indebtedness bears a floating interest rate, such interest shall be paid over
the pro forma period at the rate in effect on the Closing Date or the date of
such Permitted Acquisition, as the case may be, and (c) all income and expense
associated with the assets or entity acquired in connection with the Merger or
such Permitted Acquisition for the most recently ended four fiscal quarter
period for which such income and expense amounts are available shall be treated
as being earned or incurred by BHI over the applicable period on a pro forma
basis without giving effect to any cost savings other than Permitted Cost
Savings.

      "Pro Rata Share" means, as to any Lender, (a) in respect of a particular
Loan and/or Commitment, (i) at any time at which the Commitments in respect of
such Loan remain outstanding, the percentage equivalent (expressed as a decimal,
rounded to the ninth decimal place) at such time of such Lender's Commitment in
respect of such Loan divided by the aggregate Commitments in respect of such
Loan, and (ii) after the termination of the Commitments in respect of such Loan,
the percentage equivalent (expressed as a decimal, rounded to the ninth decimal
place) at such time of the Effective Amount of such Loans held by such Lender
divided by the Effective Amount of such Loans held by all Lenders, and (b) in
respect of all Loans and/or Commitments, (i) at any time at which the Aggregate
Commitment (or any portion thereof) remains outstanding, the percentage
equivalent (expressed as a decimal, rounded to the ninth decimal place) at such
time of (x) the sum of such Lender's (A) outstanding Existing Dollar Term Loans,
(B) the Equivalent Amount of outstanding Existing Sterling Term

                                       28

<PAGE>

Loans, (C) the Equivalent Amount of outstanding Sterling Term Loans, (D) the
Equivalent Amount of undrawn Sterling Term Loan Commitment, (E) outstanding NSC
Term Loans, (F) undrawn NSC Term Loan Commitment and (G) Revolving Loan
Commitment, divided by (y) the sum of (A) the outstanding Existing Dollar Term
Loans of all Lenders, (B) the Equivalent Amount of the outstanding Existing
Sterling Term Loans of all Lenders, (C) the Equivalent Amount of the outstanding
Sterling Term Loans of all the Lenders, (D) the Equivalent Amount of the undrawn
Aggregate Sterling Term Loan Commitment, (E) the outstanding NSC Term Loans of
all the Lenders, (F) the undrawn Aggregate NSC Term Loan Commitment and (G) the
Aggregate Revolving Loan Commitment, and (ii) after the termination of the
Aggregate Commitment, the percentage equivalent (expressed as a decimal, rounded
to the ninth decimal place) at such time of the Effective Amount of such
Lender's outstanding Loans (including such Lender's ratable share of the
Effective Amount of L/C Obligations) divided by the Effective Amount of the
outstanding Loans and L/C Obligations of all of the Lenders.

      "Quoted Rate" means the interest rate as may be agreed upon from time to
time by the Company and the Swing Line Lender.

      "Reaffirmation Agreement" means the Reaffirmation and Amending Agreement,
dated as of the Closing Date, among NSC, CVS, Inc., BHI and CVS Holdings, Inc.

      "Related Parties" means, with respect to any Person, (i) any controlling
stockholder of such Person, (ii) any Subsidiary of such Person more than 50% of
which is owned by such Person; (iii) any trust, corporation, partnership or
other entity, the beneficiaries, stockholders, partners, owners or Persons
beneficially holding more than a 50% controlling interest of which consist of
other Persons referred to in the immediately preceding clauses (i) or (ii), and
(iv) any employees, officers and directors of such Person or any of the
foregoing.

      "Rental Obligations" means, for any period, the aggregate fixed amount
payable by BHI or any of its Subsidiaries under any lease (or other agreement
conveying the right to use) of any real or personal property by BHI or any of
its Subsidiaries, as lessee, other than a Capitalized Lease; provided, however,
that for any four quarter period which commences prior to the effective date of
the Merger (the "Calculation Period"), Rental Obligations for the period
commencing from the start of such four quarter period to, but not including, the
Merger (the "Pre-Merger Period") shall be an amount equal to (x) Rental
Obligations for CVS Holding, Inc. and its Subsidiaries for the Pre-Merger Period
plus (y) Rental Obligations for BHI and its Subsidiaries (other than CVS
Holdings, Inc. and its Subsidiaries) for the Pre-Merger Period (it being
understood that for the remainder of any Calculation Period, Rental Obligations
shall be calculated as set forth prior to this proviso); provided further, that
"Rental Obligations" shall be calculated after giving effect on a Pro Forma
Basis to any Permitted Acquisition as if such Permitted Acquisition occurred on
the first day of the applicable period.

      "Reportable Event" means, any of the events set forth in Section 4043(c)
of ERISA, other than any such event for which the 30-day notice requirement
under ERISA has been waived in regulations issued by the PBGC.

      "Required Lenders" means at any time Lenders then holding more than
66 2/3% of the sum of (i) the outstanding Existing Dollar Term Loans, (ii) the
Equivalent Amount of the outstanding

                                       29

<PAGE>

Existing Sterling Term Loans, (iii) the outstanding NSC Term Loans, (iv) the
undrawn NSC Term Loan Commitment, (v) the Equivalent Amount of the outstanding
Sterling Term Loans, (vi) Equivalent Amount of the undrawn Sterling Term Loan
Commitment, and (vii) the amount of the Aggregate Revolving Loan Commitment (or
if the Revolving Loan Commitment has been terminated, then the aggregate
principal amount outstanding of Revolving Loans and Swing Line Loans, plus the
outstanding amount of L/C Obligations); provided, that if no principal amount of
any Loan is then outstanding, "Required Lenders" shall mean Lenders then having
more than 66 2/3% of the Aggregate Commitment.

      "Requirement of Law" means, as to any Person, any law (statutory or
common), treaty, rule or regulation or determination of an arbitrator or of a
Governmental Authority, in each case applicable to or binding upon the Person or
any of its property or to which the Person or any of its property is subject.

      "Requisite Time" means, with respect to any of the actions listed below,
the time and date set forth below opposite such action (unless otherwise noted,
all times are Charlotte, North Carolina time (standard or daylight)):

<TABLE>
<CAPTION>
         TYPE OF ACTION                                 TIME*                  DATE OF ACTION
------------------------------------                 -----------         ----------------------------
<S>                                                  <C>                 <C>
Delivery of Request for Extension of
Credit for, or notice for:

Borrowing of, prepayment of,                          11:00 a.m.         Same date as such Borrowing,
Conversion into, Base Rate Loans or                                      prepayment or Conversion
Loans maintained at the Offshore
Currency Domestic Rate

Borrowing of, prepayment of,                          11:00 a.m.         3 Business Days prior to such
Continuation of, or Conversion into,                                     borrowing, prepayment,
Dollar-denominated Offshore Rate                                         Continuation or Conversion
Loans maintained at the Offshore Rate

Borrowing of, prepayment of,                          11:00 a.m.         4 Business Days prior to such
Continuation of, or Conversion into,                                     Borrowing, prepayment,
Offshore Currency Loans                                                  Continuation or Conversion

Requests for new Offshore Currencies                  11:00 a.m.         10 Business Days prior to
                                                                         proposed Borrowing

Borrowing of Swing Line Loans in                      2:30 p.m.          Same date as such Borrowing
Dollars

Borrowing of Swing Line Loans in a                    11:00 a.m.         Same date as such Borrowing
currency other than Dollars

Prepayment of Swing Line Loans                        3:00 p.m.          Same date as such prepayment

Letter of Credit action                               10:00 a.m.         2 Business Days prior to such
                                                                         action

Payments by Lenders or Borrower to                    11:00 a.m.         On date payment is due
Administrative Agent
</TABLE>

                                       30

<PAGE>

      With respect to the time by which any action referred to in the above
table must be preformed regarding any Borrowing utilizing a Non-U.S. branch of a
Lender, such time shall be the local time of such Non-U.S. branch.

      "Responsible Officer" means the chief executive officer, the president,
the chief financial officer, the treasurer or the corporate controller of a
Person (and in the case of any U.K. Subsidiary, any director of such U.K.
Subsidiary assuming such, or similar, responsibilities), or any other officer
having substantially the same authority and responsibility.

      "Restricted Payments" has the meaning specified in Section 8.09.

      "Revolving Lenders" shall mean any Lender having a Revolving Loan.

      "Revolving Loan Commitment" as to each Revolving Lender has the meaning
specified in subsection 2.01(e).

      "Revolving Loans" has the meaning specified in subsection 2.01(e).

      "Revolving Loan Termination Date" means the earlier to occur of

            (a)   January 2, 2006; and

            (b)   such earlier date on which the Aggregate Revolving Loan
      Commitment terminates in accordance with the provisions of this Agreement.

      "Same Day Funds" means (a) with respect to disbursements and payments in
Dollars, immediately available funds, and (b) with respect to disbursements and
payments in an Offshore Currency, same day or other funds as may be reasonably
determined by the Administrative Agent to be customary in the place of
disbursement or payment for the settlement of international banking transactions
in the relevant Offshore Currency.

      "SEC" means the Securities and Exchange Commission, or any Governmental
Authority succeeding to any of its principal functions.

      "Security Agreements" means, collectively, each security agreement
delivered by BHI or any Subsidiary of BHI, in each case granting a security
interest in all of such Person's personal property to the extent provided
therein to the Administrative Agent or the Collateral Agent, for the benefit of
itself, the Issuers and the Lenders, as the same may be amended, supplemented or
otherwise modified from time to time and each reaffirmation or confirmation
thereof, including the Reaffirmation Agreement and the Deed of Confirmation.

      "Solvent" means (A) as to any Person (other than as set forth in clause
(B) below), at any time, that (a) the fair value of the property of such Person
(on a going concern basis) is greater than the amount of such Person's
liabilities (including disputed, contingent and unliquidated

                                       31

<PAGE>

liabilities (without duplication of any underlying liability related thereto))
as such value is established and liabilities evaluated for purposes of Section
101(31) of the Bankruptcy Code and, in the alternative, for purposes of the New
York Uniform Fraudulent Transfer Act; (b) the present fair saleable value of the
property of such Person (on a going concern basis) is not less than the amount
that will be required to pay the probable liability of such Person on its debts
as they become absolute and matured; (c) such Person is able to realize upon its
property and pay its debts and other liabilities (including disputed, contingent
and unliquidated liabilities (without duplication of any underlying liability
related thereto), but applying the reasonably anticipated liability, after
giving effect to payments under insurance policies and indemnity agreements
which such Person reasonably expects to receive) as they mature in the normal
course of business; (d) such Person does not intend to, and does not believe
that it will, incur debts or liabilities beyond such Person's ability to pay as
such debts and liabilities mature; and (e) such Person is not engaged in
business or a transaction, and is not about to engage in business or a
transaction, for which such Person's property would constitute unreasonably
small capital; and (B) for any Person incorporated in England and Wales, on a
particular date, on that date such Person has the ability to pay its debts as
and when they fall due and could not be deemed to be unable to pay its debts as
interpreted in accordance with Section 123 of the Insolvency Act 1986 of the
United Kingdom. "Solvency" shall have a correlative meaning.

      "Spot Rate" for a currency means the rate quoted (expressed as a decimal,
rounded to the fourth decimal place) to the Administrative Agent as the spot
rate for the purchase of such currency with another currency through the FX
Trading Office at approximately 10:00 a.m. (Charlotte, North Carolina time) on
the date two Business Days prior to the date as of which the foreign exchange
settlement is made.

      "Stated Amount" means the stated or face amount of a Letter of Credit to
the extent available at the time for drawing (subject to presentment of all
requested documents), as the same may be increased or decreased from time to
time in accordance with the terms of such Letter of Credit.

      "Sterling" and "(pound)" means the lawful currency of the United Kingdom.

      "Sterling Term Loan" has the meaning specified in subsection 2.01(d).

      "Sterling Term Loan Commitment" means, as to each Lender, such Lender's
Term Loan Commitment, as specified on Schedule 2.01, as the same may be adjusted
from time to time pursuant to the terms of this Agreement.

      "Subsidiary" means (A) with respect to any Person, any corporation,
association, partnership, limited liability company, joint venture or other
business entity of which more than 50% of the Voting Equity, membership
interests or other equity interests (in the case of Persons other than
corporations), is owned or controlled directly or indirectly by such Person, or
one or more of the Subsidiaries of the Person, or a combination thereof and (B)
with respect to any Person incorporated in England and Wales, a subsidiary
within the meaning of Section 736 of the Companies Act and, unless the context
otherwise requires, a subsidiary undertaking within the meaning of Section 258
of the Companies Act. Unless the context otherwise clearly requires, references
herein to a "Subsidiary" refer to a Subsidiary of BHI.

                                       32

<PAGE>

      "Subsidiary Guarantor" means, collectively, each Subsidiary of BHI that is
a Guarantor on the Closing Date and, to the extent required pursuant to Section
7.14, each Subsidiary of BHI that becomes a Guarantor after the Closing Date;
provided that the term Subsidiary Guarantor shall not include KAB Seating, Pty,
a company organized under the laws of Australia, KAB Seating, S.A., a company
organized under the laws of Belgium, or KAB Seating, AB, a company organized
under the laws of Sweden.

      "Surety Bonds" means all bonds issued for the account of the Company or
any of its Subsidiaries to assure the performance thereby (or to the extent
issued in the ordinary course of business, any other Person) under any contract
entered into in the ordinary course of business.

      "Surety Instruments" means all letters of credit (including standby and
commercial), banker's acceptances, bank guaranties, shipside bonds, performance
bonds, Surety Bonds, remarketing agreements and similar instruments.

      "Surety L/Cs" means letters of credit which are issued for the account of
the Company or any of its Subsidiaries to provide credit support, in the
ordinary course of business, for (a) a contract bid by any such Person, (b) the
performance by any such Person under any contract, (c) any warranty extended by
any such Person and (d) the repayment of advance payments made to any such
Person.

      "Swap Contract" means (a) any and all rate swap transactions, basis swaps,
credit derivative transactions, forward rate transactions, commodity swaps,
commodity options, forward commodity contracts, equity or equity index swaps or
options, bond or bond price or bond index swaps or options or forward bond or
forward bond price or forward bond index transactions, interest rate options,
forward foreign exchange transactions, cap transactions, floor transactions,
collar transactions, currency swap transactions, crosscurrency rate swap
transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions
of any kind, and the related confirmations, which are subject to the terms and
conditions of, or governed by, any form of master agreement published by the
International Swaps and Derivatives Association, Inc., any International Foreign
Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, a "Master
Agreement"), including any such obligations or liabilities under any Master
Agreement.

      "Swap Termination Value" means, in respect of any one or more Swap
Contracts, after taking into account the effect of any legally enforceable
netting agreement relating to such Swap Contracts, (a) for any date on or after
the date such Swap Contracts have been closed out and termination value(s)
determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a) the amount(s) determined as the
mark-to-market value(s) for such Swap Contracts, as determined by the Company
based upon one or more mid-market or other readily available quotations provided
by any recognized dealer in such Swap Contracts (which may include any Lender).

                                       33

<PAGE>

      "Swing Line Commitment Amount" has the meaning specified in Section
2.05(a).

      "Swing Line Lender" means Bank of America, in its capacity as provider of
the Swing Line Loans.

      "Swing Line Loan" has the meaning specified in Section 2.05(a).

      "Swing Line Termination Date" means the earlier to occur of:

      (a)   the date which is the fifth Business Day prior to January 2, 2006;
            and

      (b)   the date on which the Revolving Loan Commitment terminates in
            accordance with the provisions of this Agreement.

      "Taxes" means any and all present or future taxes, levies, assessments,
imposts, duties, deductions, fees, withholdings or similar charges, and all
liabilities with respect thereto, excluding, in the case of each Lending Party
and the Administrative Agent, respectively, franchise taxes and taxes imposed on
or measured by its net income by the jurisdiction (or any political subdivision
thereof) under the laws of which such Lending Party or the Administrative Agent,
as the case may be, is organized or maintains a lending office.

      "Term Loan" means an NSC Term Loan, an Existing Dollar Term Loan, an
Existing Sterling Term Loan or a Sterling Term Loan.

      "Total Leverage Ratio" means, as of any date of determination, the ratio
of (a) without duplication, all Funded Indebtedness of BHI and its Subsidiaries
determined on a consolidated basis as of such date, less any cash subject to a
cash collateral account pursuant to the terms of this Agreement as of such date
(the "Outstanding Indebtedness"), to (b) EBITDA for the period of four fiscal
quarters ending on such date.

      "Transaction" means (a) the Merger, and (b) the refinancing of certain
Indebtedness of the Company, CVS, Inc. and certain of their affiliates on the
Closing Date.

      "Transaction Documents" means the Loan Documents and the Merger Documents.

      "Treaty" means the Treaty establishing the European Economic Community,
being the Treaty of Rome of March 25, 1957 (as amended by the Single European
Act 1987, the Maastricht Treaty (which was signed at Maastricht on February 7,
1992 and came into force on November 1, 1993), the Amsterdam Treaty (which was
signed at Amsterdam on October 2, 1997 and came into force on May 1, 1999) and
the Nice Treaty (which was signed on February 26, 2001)), each as amended from
time to time and as referred to in legislative measures of the European Union
for the introduction of, changeover to or operating of the Euro in one or more
member states.

      "Type" means, with respect to Loans consisting of Revolving Loans or Term
Loans, the status of each such Loan as either a Base Rate Loan or an Offshore
Rate Loan.

      "UCC" means the Uniform Commercial Code as in effect in the State of
Illinois.

                                       34

<PAGE>

      "U.K. Subsidiary" means any Subsidiary of BHI incorporated under the laws
of England and Wales.

      "Unfunded Pension Liability" means the excess of a Plan's benefit
liabilities under Section 4001(a)(16) of ERISA, over the current value of that
Plan's assets, determined in accordance with the assumptions used for funding
the Pension Plan pursuant to Section 412 of the Code for the applicable plan
year.

      "United States" and "U.S." each means the United States of America.

      "U.S. Guarantor" means any of BHI, CVS Holdings, Inc., CVS, Inc. and NSC,
and their respective successors and permitted assigns, and "U.S. Guarantors"
means, collectively, all such entities.

      "U.S. Subsidiary" means any Subsidiary of BHI organized under the laws of
the United States or any state thereof.

      "Voting Equity" of any Person as of any date means the Capital Stock of
such Person that is entitled to vote in the election of the board of directors
(or other governing body) of such Person.

      "Wholly-Owned Subsidiary" of a Person means any corporation in which
(other than directors' qualifying shares required by law and/or other nominal
amounts of shares that are required by law to be held by Persons other than BHI
or its Wholly-Owned Subsidiaries, as applicable) 100% of the capital stock of
each class having ordinary voting power, and 100% of the capital stock of every
other class, in each case (or, in the case of Persons other than corporations,
membership interests or other equity interests), at the time as of which any
determination is being made, is owned, beneficially and of record, by such
Person, or by one or more of the other Wholly-Owned Subsidiaries, or both.

      1.02  Other Interpretive Provisions.

            (a)   The meanings of defined terms are equally applicable to the
singular and plural forms of the defined terms.

            (b)   The words "hereof', "herein," "hereunder" and similar words
refer to this Agreement as a whole and not to any particular provision of this
Agreement; and subsection, Section, Schedule and Exhibit references are to this
Agreement unless otherwise specified.

            (c)   The term "documents" includes any and all instruments,
documents, agreements, certificates, indentures, notices and other writings,
however evidenced.

            (d)   The term "including" is not limiting and means "including
without limitation."

            (e)   In the computation of periods of time from a specified date to
a later specified date, the word "from" means "from and including"; the words
"to" and "until" each mean "to but excluding," and the word "through" means "to
and including."

                                       35

<PAGE>

            (f)   The term "property" includes any kind of property or asset,
real, personal or mixed, tangible or intangible.

            (g)   Unless otherwise expressly provided herein, (i) references to
agreements (including this Agreement) and other contractual instruments shall be
deemed to include all subsequent amendments, restatements, supplements and other
modifications thereto, but only to the extent such amendments, restatements,
supplements and other modifications are not prohibited by the terms of any Loan
Document, and (ii) references to any statute or regulation are to be construed
as including all statutory and regulatory provisions consolidating, amending,
replacing, supplementing or interpreting the statute or regulation, whether
effective prior to or subsequent to the date hereof.

            (h)   The captions and headings of this Agreement are for
convenience of reference only and shall not affect the interpretation of this
Agreement.

            (i)   This Agreement and other Loan Documents may use several
different limitations, tests or measurements to regulate the same or similar
matters. All such limitations, tests and measurements are cumulative and shall
each be performed in accordance with their terms.

            (j)   This Agreement and the other Loan Documents are the result of
negotiations among and have been reviewed by counsel to the Administrative
Agent, the Company and the other parties, and are the products of all parties.
Accordingly, they shall not be construed against the Lenders, the Administrative
Agent or the Collateral Agent merely because of the Administrative Agent's, the
Collateral Agent's or Lenders' involvement in their preparation.

      1.03  Accounting Principles.

            (a)   Unless the context otherwise clearly requires, all accounting
terms not expressly defined herein shall be construed, and all financial
computations required under this Agreement shall be made, in accordance with
GAAP, consistently applied, but shall not give effect to purchase accounting
adjustments required or permitted by Accounting Principles Board 16 and
Financial Accounting Standard 142 or interpretations thereof.

            (b)   References herein to "fiscal year" and "fiscal quarter" refer
to such fiscal periods of BHI and its Subsidiaries.

            (c)   In the event that any changes in GAAP occur after the date of
this Agreement and such changes result in a material variation in the method of
calculation of financial covenants or other terms of this Agreement, then the
Company, and the Required Lenders agree to negotiate in good faith to amend such
provisions of this Agreement so as to equitably reflect such changes so that the
criteria for evaluating the Company's financial condition will be the same after
such changes as if such changes had not occurred and compliance shall continue
to be determined without giving effect to any such change until such amendment
becomes effective pursuant to the terms of this Agreement.

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      1.04  Currency Equivalents Generally. For all purposes of this Agreement
(but not for purposes of the preparation of any financial statements delivered
pursuant hereto), the equivalent in any Offshore Currency or other currency of
an amount in Dollars, and the equivalent in Dollars of an amount in any Offshore
Currency or other currency, shall be determined as set forth in the definition
of Equivalent Amount.

                                   ARTICLE II

                                   THE CREDITS

      2.01  Amounts and Terms of Commitments.

            (a)   NSC Term Loans. Each Lender severally agrees, on the terms and
conditions set forth in Article V, to make loans (each such loan, an "NSC Term
Loan") in Dollars to NSC from time to time on any Business Day during the period
from the Closing Date to the Revolving Loan Termination Date, in an aggregate
amount not to exceed such Lender's NSC Term Loan Commitment as set forth on
Schedule 2.01 (as such amount may be reduced pursuant to Section 2.08);
provided, that NSC Term Loans made after the Closing Date may only be requested
by, or on behalf of, NSC to settle a drawing under the Existing Fleet Letter of
Credit. Amounts borrowed as NSC Term Loans which are repaid or prepaid may not
be reborrowed.

            (b)   Existing Dollar Term Loans. Prior to the Closing Date term
loans denominated in Dollars were borrowed by certain of the Borrowers under the
Original U.S. Credit Agreement and the Original U.K. Credit Agreement (the
"Existing Dollar Term Loans") and, as of the Closing Date, such Existing Dollar
Term Loans remain outstanding in the amounts set forth on Schedule 2.01 annexed
hereto and made a part hereof. Each Loan Party, the Administrative Agent, each
Issuer and each of the Lenders hereby agree with respect to the Existing Dollar
Term Loans that, subject to Section 2.01(g), on the Closing Date, all such
Existing Dollar Terms Loans shall, for all purposes under this Agreement, be
deemed to be Loans outstanding hereunder to each Borrower as set forth in
Schedule 2.01 and the Borrowers shall be deemed to have made a Borrowing of
Loans hereunder in the amount of the Existing Dollar Term Loans. Such deemed
Borrowing shall, for all purposes, be treated as a Borrowing made hereunder on
the Closing Date and shall be governed by the terms and conditions of this
Agreement. Amounts borrowed as Existing Dollar Term Loans which are repaid or
prepaid may not be reborrowed.

            (c)   Existing Sterling Term Loans. Prior to the Closing Date term
loans denominated in Sterling were borrowed by certain of the Borrowers under
the Original U.S. Credit Agreement and the Original U.K. Credit Agreement (the
"Existing Sterling Term Loans" and, together with the Existing Dollar Term
Loans, the "Existing Term Loans") and, as of the Closing Date, such Existing
Sterling Term Loans remain outstanding in the amounts set forth on Schedule 2.01
annexed hereto and made a part hereof. Each Loan Party, the Administrative
Agent, each Issuer and each of the Lenders hereby agree with respect to the
Existing Sterling Term Loans that, subject to Section 2.01(g), on the Closing
Date, all such Existing Sterling Terms Loans shall, for all purposes under this
Agreement, be deemed to be Loans outstanding hereunder to each Borrower as set
forth in Schedule 2.01 and the Borrowers shall be deemed to

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<PAGE>

have made a Borrowing of Loans hereunder in the amount of the Existing Sterling
Term Loans. Such deemed Borrowing shall, for all purposes, be treated as a
Borrowing made hereunder on the Closing Date and shall be governed by the terms
and conditions of this Agreement. Amounts borrowed as Existing Sterling Term
Loans which are repaid or prepaid may not be reborrowed.

            (d)   Sterling Term Loans. Each Lender severally agrees, on the
terms and conditions set forth in Article V, to make loans (each such loan, a
"Sterling Term Loan") in Sterling to the Company from time to time on any
Business Day during the period from the Closing Date to the Revolving Loan
Termination Date, in an aggregate amount not to exceed such Lender's Sterling
Term Loan Commitment as set forth on Schedule 2.01 (as such amount may be
reduced pursuant to Section 2.08); provided, that Sterling Term Loans made after
the Closing Date shall only be requested by, or on behalf of, the Company to
repurchase Loan Notes or to settle a drawing under the Loan Note Credit Support.
Amounts borrowed as Sterling Term Loans which are repaid or prepaid may not be
reborrowed.

            (e)   Revolving Credit.

            (i)   Subject to Section 2.05, each Lender severally agrees, on the
terms and conditions set forth in Article V, to make loans to a Borrower (each
such loan, a "Revolving Loan") from time to time on any Business Day during the
period from the Closing Date to the Revolving Loan Termination Date, in an
aggregate amount not to exceed at any one time outstanding the amount set forth
on Schedule 2.01 (such amount, as the same may be reduced under Section 2.06 or
reduced or increased as a result of one or more assignments under Section 11.08,
the Revolving Lender's "Revolving Loan Commitment"); provided, however, that,
after giving effect to any Borrowing of Revolving Loans, the Effective Amount of
Revolving Loans, Swing Line Loans and L/C Obligations at such time shall not at
any time exceed an amount equal to the lesser of (a) the Aggregate Revolving
Loan Commitment at such time and (b) the Borrowing Base at such time; and
provided, further, that the Effective Amount of Revolving Loans of any Revolving
Lender, plus the participation of such Revolving Lender in the Effective Amount
of all L/C Obligations and such Revolving Lender's Pro Rata Share of the
Effective Amount of Swing Line Loans shall not at any time exceed the lesser of
(a) such Revolving Lender's Revolving Loan Commitment and (b) such Revolving
Lender's Pro Rata Share of the Borrowing Base at such time. Within the limits of
each Revolving Lender's Commitment, and subject to the other terms and
conditions hereof, each Borrower may borrow under this Section 2.01(e), prepay
under Section 2.07 and reborrow under this Section 2.01(e).

            (ii)  Prior to the Closing Date revolving loans were borrowed by
certain of the Borrowers under the Original U.S. Credit Agreement and the
Original U.K. Credit Agreement (the "Existing Revolving Loans") and, as of the
Closing Date, such Existing Revolving Loans remain outstanding in the amounts
set forth on Schedule 2.01 annexed hereto and made a part hereof. The Borrowers,
the Administrative Agent, each Issuer and each of the Lenders hereby agree with
respect to the Existing Revolving Loans that, notwithstanding Section
2.01(e)(i), on the Closing Date, all such Existing Revolving Loans shall, for
all purposes under this Agreement, be deemed to be Revolving Loans outstanding
hereunder and each of the Borrowers shall be deemed to have made a Borrowing
hereunder in the amount of the Existing Revolving Loans of such Borrower;
provided, that each proviso contained in Section 2.01(e)(i) shall be applicable
to such deemed Borrowing. Such deemed Borrowings shall, for all purposes, be

                                       38

<PAGE>

treated as Borrowings made hereunder on the Closing Date and shall be governed
by the terms and conditions of this Agreement.

            (f)   If, as a result of Section 2.01(b), 2.01(c) or 2.01(e)(ii), as
determined by the Administrative Agent, any Lender shall have funded (or been
deemed to have funded) less than its Pro Rata Share of any Loan, such Lender
shall purchase from the other Lenders, and such other Lenders shall sell to such
Lender, a portion of such Loans funded (or deemed funded) by such other Lenders
as shall be necessary to cause each Lender to have funded an amount of Loans
equal to its Pro Rata Share of all outstanding Loans. If any Lender shall incur
any expense or suffer any loss as a result of the purchase or sale of any Loan
or portion of a Loan on any day other than the last day of the Interest Period
applicable thereto, the applicable Borrower shall reimburse the applicable
Lender therefor, and shall hold such Lender harmless therefrom, upon such
Lender's demand, in accordance with the terms of Section 4.04.

            (g)   The Lenders hereby acknowledge and agree that at any time
after the Closing Date, each Borrower shall be entitled to assign Existing Term
Loans to any other Borrower; provided that (i) the applicable Borrower
Representative shall have provided notice of such assignment to the
Administrative Agent and the Lenders at least three Business Days prior to the
date of such proposed transfer, together with a revised amortization schedule
setting forth the repayment obligations of each Borrower on and after the date
of such assignment, and the Administrative Agent and the Required Lenders shall
have approved such assignment and amortization schedule (provided that at any
time during which an Event of Default exists, such assignment shall require the
consent of all of the Lenders providing the Existing Term Loans), (ii) the
applicable Borrowers shall have executed and delivered to the Administrative
Agent an assignment agreement, in form and substance satisfactory to the
Administrative Agent, (iii) the aggregate amount of Existing Dollar Term Loans
outstanding shall not exceed the Aggregate Existing Dollar Commitment Amount,
(iv) the amount of Existing Dollar Term Loans made by any Lender shall not
exceed such Lender's Existing Dollar Commitment Amount, (v) the aggregate amount
of Existing Sterling Term Loans outstanding shall not exceed the Aggregate
Existing Sterling Commitment Amount and (vi) the amount of Existing Sterling
Term Loans made by any Lender shall not exceed such Lender's Existing Sterling
Commitment Amount.

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<PAGE>

      2.02  Loan Accounts. The Loans made by each Lender and the Letters of
Credit Issued by each Issuer shall be evidenced by one or more accounts or
records maintained by such Lender or Issuer, as the case may be and by the
Administrative Agent, in the ordinary course of business. The accounts or
records maintained by the Administrative Agent, each Issuer and each Lender
shall govern absent manifest error in the amount of the Loans made by such
Lender to a Borrower and the Letters of Credit Issued for the account of the
applicable Borrower, and the interest and payments thereon. Any failure to so
record or any error in doing so shall not, however, limit or otherwise affect
the obligation of a Borrower hereunder to pay any amount owing with respect to
the Loans or any Letter of Credit. In the event of any conflict between the
accounts and records maintained by the Administrative Agent and the accounts and
records of any Lender or Issuer in respect of such matters, the accounts and
records of the Administrative Agent shall control in the absence of manifest
error.

      2.03  Procedure for Borrowing.

            (a)   (i) Each Borrowing (other than a Borrowing of Swing Line Loans
or a L/C Borrowing) shall be made upon a Borrower Representative's irrevocable
(except in the circumstances described in Section 4.05 as provided therein)
notice delivered to the Administrative Agent in the form of a Notice of
Borrowing (which notice must be received by the Administrative Agent not later
than the Requisite Time therefor) specifying:

                  (A)   the amount of the Borrowing, which shall be in a Minimum
      Amount;

                  (B)   the requested Borrowing Date, which shall be a Business
      Day;

                  (C)   whether such Loan shall be a Revolving Loan, an NSC Term
      Loan or a Sterling Term Loan;

                  (D)   if a Loan comprised of Offshore Currency Loans, the
      Applicable Currency;

                  (E)   the Type of Loans comprising the Borrowing;

                  (F)   the identity of the Borrower;

                  (G)   with respect to Offshore Rate Loans, the duration of the
      Interest Period applicable to such Loans included in such notice. If the
      Notice of Borrowing fails to specify the duration of the Interest Period
      for any Borrowing comprised of Offshore Rate Loans, such Interest Period
      shall be one month; and

                  (H)   the Borrowing Base, as set forth in the most recent
      Borrowing Base Certificate delivered (or required to be delivered) to the
      Administrative Agent pursuant to Section 7.02(e).

            (ii)  Each Borrower that is a U.S. Subsidiary hereby designates CVS,
Inc. as its representative and agent on its behalf, and each Borrower that is a
Non-U.S. Subsidiary hereby designates the Company as its representative and
agent on its behalf, in each case for the

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<PAGE>

purposes of issuing notices hereunder, giving instructions with respect to the
disbursement of the proceeds of the Loans, selecting interest rate options,
requesting Letters of Credit, giving and receiving all other notices and
consents hereunder or under any of the other Loan Documents and taking all other
actions (including in respect of compliance with covenants) on behalf of any
Borrower or the Borrowers under the Loan Documents (in such capacity, each a
"Borrower Representative"). Each Borrower Representative hereby accepts such
appointment. The Administrative Agent and each Lender may regard any notice or
other communication pursuant to any Loan Document from a Responsible Officer of
the Borrower Representative as a notice or communication from the applicable
Borrowers, and may give any notice or communication required or permitted to be
given to any Borrower or the Borrowers hereunder to such Responsible Officer of
the Borrower Representative on behalf of such Borrower or the Borrowers. Each
Borrower agrees that each notice, election, representation and warranty,
covenant, agreement and undertaking made on its behalf by a Responsible Officer
of the Borrower Representative shall be deemed for all purposes to have been
made by such Borrower and shall be binding upon and enforceable against such
Borrower to the same extent as if the same had been made directly by such
Borrower.

            (b)   The Administrative Agent will promptly notify each applicable
Lender of its receipt of any Notice of Borrowing and of the amount of such
Lender's Pro Rata Share of that Borrowing. In the case of a Borrowing of Loans
comprised of Offshore Currency Loans, such notice will provide the amount of
each Lender's Pro Rata Share of the Borrowing, and the Administrative Agent will
promptly notify each Lender of the exact Equivalent Amount of such Lender's Pro
Rata Share of the Borrowing, in the case of a Borrowing not utilizing the
Sterling Term Loan Commitment, or of the exact Sterling amount of such Lender's
Pro Rata Share of a Borrowing utilizing the Sterling Term Loan Commitment. The
Equivalent Amount of any Borrowing in an Offshore Currency will be determined by
the Administrative Agent for such Borrowing on the Computation Date therefor in
accordance with Section 2.16(a).

            (c)   Each Lender will make the amount of its Pro Rata Share of each
Borrowing available to the Administrative Agent for the account of the
applicable Borrower at the applicable Agent's Payment Office on the Borrowing
Date requested by the Borrower Representative in Same Day Funds and in the
requested currency (i) in the case of a Borrowing comprised of Loans in Dollars,
by 1:00 p.m. (Charlotte, North Carolina time) and (ii) in the case of a
Borrowing comprised of Offshore Currency Loans, by such time as the
Administrative Agent may specify. The proceeds of all such Loans will then be
made available to the relevant Borrower by the Administrative Agent at such
office by crediting the account of the relevant Borrower on the books of Bank of
America with the aggregate of the amounts made available to the Administrative
Agent by the Lenders and in like funds as received by the Administrative Agent.

            (d)   After giving effect to any Borrowing, unless the
Administrative Agent shall otherwise consent, there may not be more than twenty
different Interest Periods in effect.

            (e)   The Borrowers hereby authorize the Administrative Agent to
accept Notices of Borrowing based on telephonic notices made by any person or
persons the Administrative Agent in good faith believes to be acting on behalf
of the Borrowers. The Borrower Representative agrees to deliver promptly to the
Administrative Agent a written

                                       41

<PAGE>

confirmation of each telephonic notice, signed by a Responsible Officer of each
Borrower Representative or an authorized designee. If the written confirmation
differs in any material respect from the action taken by the Administrative
Agent, the records of the Administrative Agent and the Lenders shall govern
absent manifest error.

      2.04  Conversion and Continuation Elections.

            (a)   Subject to subsection (e) below, the applicable Borrower
Representative may, upon irrevocable (except in the circumstances described in
Section 4.05 as provided therein) notice to the Administrative Agent in
accordance with subsection 2.04(b):

                  (i)   elect, as of any Business Day, in the case of Base Rate
      Loans, or as of the last day of the applicable Interest Period, in the
      case of any other Type of Revolving Loans or Term Loans, to convert any
      such Loans (or any part thereof in a Minimum Amount) into Loans of any
      other Type; or

                  (ii)  elect as of the last day of the applicable Interest
      Period, to continue any Offshore Rate Loans having Interest Periods
      expiring on such day (or any part thereof in a Minimum Amount);

provided, that if at any time the aggregate amount of Offshore Rate Loans in
respect of any Borrowing is reduced, by payment, prepayment, or conversion of
part thereof to be less than the Minimum Amount, such Offshore Rate Loans shall
automatically convert into Base Rate Loans, and on and after such date the right
of the Company to continue such Loans as, and convert such Loans into, Offshore
Rate Loans shall terminate. A conversion pursuant to this Section 2.04 does not
constitute a new advance by the Lenders.

            (b)   The Borrower Representative shall deliver a Notice of
Conversion/ Continuation to be received by the Administrative Agent not later
than the Requisite Time, specifying:

                  (A)   the proposed Conversion/Continuation Date;

                  (B)   the aggregate amount of Loans to be converted or
continued;

                  (C)   the Type of Loans resulting from the proposed conversion
or continuation;

                  (D)   the Applicable Currency;

                  (E)   the identity of the Borrower; and

                  (F)   other than in the case of conversions into Base Rate
Loans, the duration of the requested Interest Period.

            (c)   If upon the expiration of any Interest Period applicable to
Offshore Rate Loans (other than Offshore Currency Loans), the Borrower
Representative has failed to timely select a new Interest Period to be
applicable to such Offshore Rate Loans, as the case may be, or

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<PAGE>

if any Default or Event of Default then exists, the Borrower Representative
shall be deemed to have elected to convert such Offshore Rate Loans into Base
Rate Loans effective as of the expiration date of such Interest Period. If the
Borrower Representative has failed to select a new Interest Period to be
applicable to Offshore Rate Loans made as Offshore Currency Loans prior to the
fourth Business Day in advance of the expiration date of the current Interest
Period applicable thereto as provided in Section 2.04(b), or if any Default or
Event of Default shall then exist, the applicable Borrower shall be deemed to
have elected to continue such Offshore Rate Loans on the basis of a one month
Interest Period.

            (d)   The Administrative Agent will promptly notify each applicable
Lender of its receipt of a Notice of Conversion/Continuation, or, if no timely
notice is provided by the Borrower Representative, the Administrative Agent will
promptly notify each applicable Lender of the details of any automatic
conversion for the applicable Borrower. All conversions and continuations shall
be made ratably according to the respective outstanding principal amounts of the
Loans with respect to which the notice was given held by each Lender.

            (e)   Unless the Required Lenders otherwise consent, during the
existence of a Default or Event of Default, the Borrower Representative may not
elect to have (i) a Loan made in Dollars converted into or continued as an
Offshore Rate Loan or (ii) an Offshore Rate Loan made as an Offshore Currency
Loan continued on the basis of an Interest Period exceeding one month.

            (f)   After giving effect to any conversion or continuation of
Loans, unless the Administrative Agent shall otherwise consent, there may not be
more than twenty different Interest Periods in effect.

            (g)   The Borrowers hereby authorize the Lenders and the
Administrative Agent to accept Notices of Conversion/Continuation based on
telephonic notices made by any person or persons the Administrative Agent or any
Lender in good faith believes to be acting on behalf of the relevant Borrowers.
Each Borrower Representative agrees to deliver promptly to the Administrative
Agent a written confirmation of each telephonic notice, signed by a Responsible
Officer of the Borrower Representative. If the written confirmation differs in
any material respect from the action taken by the Administrative Agent and the
Lenders, the records of the Administrative Agent and the Lenders shall govern
absent manifest error.

      2.05  The Swing Line Loans.

            (a)   Subject to the terms and conditions hereof, the Swing Line
Lender may, in its sole discretion (subject to Section 2.05(b)), make Swing Line
loans in Dollars or such other currency as may be agreed to by the
Administrative Agent (each such loan, a "Swing Line Loan") to any Borrower on
any Business Day during the period from the Closing Date to the Swing Line
Termination Date in accordance with the procedures set forth in this Section
2.05 in an aggregate Equivalent Amount at any one time outstanding not to exceed
the least of (x) the aggregate available amount of the Revolving Loan
Commitments, (y) $8,000,000 (the "Swing Line Commitment Amount") and (z) the
Borrowing Base, notwithstanding the fact that such Swing Line Loans, when
aggregated with the Swing Line Lender's outstanding Revolving Loans and its Pro
Rata Share of L/C Obligations, may exceed the Swing Line Lender's Pro Rata Share

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<PAGE>

of the aggregate amount of the Revolving Loan Commitments; provided that at no
time shall the sum of (i) the Effective Amount of all outstanding Revolving
Loans (including for the purposes hereof Swing Line Loans) plus (ii) the
Effective Amount of all L/C Obligations exceed the lesser of (a) the Aggregate
Revolving Loan Commitment and (b) the Borrowing Base. Upon the approval of the
Administrative Agent, the Swing Line Commitment Amount may be subdivided, from
time to time, into commitments of one or more specified branches of the Swing
Line Lender so that Swing Line Loans may be made available by the Swing Line
Lender through such branch in local currencies and at local times in an
aggregate amount for such branch not to exceed its designated portion of the
Swing Line Commitment Amount, provided that the aggregate of such subdivided
commitments shall not exceed the Swing Line Commitment Amount. Subject to the
other terms and conditions hereof, a Borrower may borrow under this Section
2.05(a), prepay pursuant to Section 2.05(d), and reborrow pursuant to this
Section 2.05(a) from time to time; provided that the Swing Line Lender shall not
be obligated to make any Swing Line Loan.

            (b)   The Borrower Representative shall provide the Administrative
Agent and the Swing Line Lender irrevocable written notice (or notice by a
telephone call confirmed promptly by facsimile) of any Swing Line Loan requested
hereunder (which notice must be received by the Swing Line Lender prior to the
Requisite Time (with a copy to the Administrative Agent)) specifying (i) the
amount to be borrowed and the currency requested, (ii) the identity of the
Borrower, and (iii) the requested Borrowing Date, which must be a Business Day.
Upon receipt of such notice, the Swing Line Lender will promptly confirm with
the Administrative Agent (by telephone or in writing) that the Administrative
Agent has received a copy of such notice from the relevant Borrower and, if not,
the Swing Line Lender will provide the Administrative Agent with a copy thereof.
If and only if the Administrative Agent notifies the Swing Line Lender on the
proposed Borrowing Date that it may make available to the relevant Borrower the
amount of the requested Swing Line Loan, then, subject to the terms and
conditions hereof, the Swing Line Lender may make the amount of the requested
Swing Line Loan available to the relevant Borrower by crediting the account of
the relevant Borrower on the books of Bank of America with the amount of such
Swing Line Loan. The Administrative Agent will not so notify the Swing Line
Lender if the Administrative Agent has knowledge that (A) the limitations set
forth in the proviso set forth in the first sentence of Section 2.05(a) are
being violated or would be violated by such Swing Line Loan or (B) one or more
conditions specified in Article V is not then satisfied. Each Swing Line Loan
shall be in a Minimum Amount.

            (c)   Principal of and accrued interest on each Swing Line Loan
shall be due and payable (i) on demand made by the Swing Line Lender at any time
upon one Business Day's prior notice to the relevant Borrower furnished at or
before the Requisite Time, and (ii) in any event on the Swing Line Termination
Date. Interest on Swing Line Loans shall be for the sole account of the Swing
Line Lender (except to the extent that the other Lenders have funded the
purchase of their respective participations therein pursuant to Section
2.05(e)).

            (d)   A Borrower may, from time to time on any Business Day, make a
voluntary prepayment, in whole or in part, of the outstanding principal amount
of any Swing Line Loan, without incurring any premium or penalty; provided that

                                       44

<PAGE>

                  (i)   each such voluntary prepayment shall require prior
      written notice given to the Administrative Agent and the Swing Line Lender
      no later than the Requisite Time on the day on which the relevant Borrower
      intends to make a voluntary prepayment, and

                  (ii)  each such voluntary prepayment shall be a Minimum Amount
      (or the aggregate outstanding principal amount of all Swing Line Loans
      then outstanding).

Voluntary prepayments of Swing Line Loans shall be made by the relevant Borrower
to the Swing Line Lender at such office as the Swing Line Lender may designate
by notice to the Borrower Representatives from time to time. All such payments
shall be made as set forth in Section 2.13(a) no later than the Requisite Time
(and any payment received later than such time shall be deemed to have been
received on the next Business Day). The Swing Line Lender will promptly notify
the Administrative Agent of the amount of each prepayment of Swing Line Loans.

            (e)   If (i) any Swing Line Loan shall remain outstanding at 11:00
a.m. (Charlotte, North Carolina time) on the Business Day immediately prior to a
Business Day on which Swing Line Loans are due and payable pursuant to Section
2.05(c) and by such time on such Business Day the Administrative Agent shall
have received neither (A) a Notice of Borrowing delivered pursuant to Section
2.03 requesting that Revolving Loans be made pursuant to Section 2.01 on such
following Business Day in an amount at least equal to the aggregate principal
amount of such Swing Line Loans, nor (B) any other notice indicating the
relevant Borrower's intent to repay such Swing Line Loans with funds obtained
from other sources, or (ii) any Swing Line Loans shall remain outstanding during
the existence of a Default or Event of Default and the Swing Line Lender shall
in its sole discretion notify the Administrative Agent that the Swing Line
Lender desires that such Swing Line Loans be converted into Revolving Loans,
then the Administrative Agent shall be deemed to have received a Notice of
Borrowing from the relevant Borrower pursuant to Section 2.03 requesting that
Base Rate Loans be made pursuant to Section 2.01 on the following Business Day
in an amount equal to the aggregate amount of such Swing Line Loans, and the
procedures set forth in Section 2.03(c) shall be followed in making such Base
Rate Loans; provided that such Base Rate Loans shall be made notwithstanding the
relevant Borrower's failure to comply with Section 5.02; and provided, further,
that if a Borrowing of Revolving Loans becomes legally impractical and if so
required by the Swing Line Lender at the time such Revolving Loans are required
to be made by the Revolving Lenders in accordance with this Section 2.05(e),
each Revolving Lender agrees that in lieu of making Revolving Loans as described
in this Section 2.05(e), such Revolving Lender shall purchase a participation
from the Swing Line Lender in the applicable Swing Line Loans in an amount equal
to such Lender's Pro Rata Share of such Swing Line Loans, and the procedures set
forth in Section 2.03(c) shall be followed in connection with the purchases of
such participations. The proceeds of such Base Rate Loans (or participations
purchased) shall be delivered by the Administrative Agent to the Swing Line
Lender to repay such Swing Line Loans (or as payment for such participations). A
copy of each notice given by the Administrative Agent to the Revolving Lenders
pursuant to this Section 2.05(e) with respect to the making of Revolving Loans,
or the purchases of participations, shall be promptly delivered by the
Administrative Agent to the relevant Borrower. Each Revolving Lender's
obligation in accordance with this Agreement to make the Revolving Loans, or
purchase the participations, as

                                       45

<PAGE>

contemplated by this Section 2.05(e), shall be absolute and unconditional and
shall not be affected by any circumstance, including (1) any set-off,
counterclaim, recoupment, defense or other right which such Lender may have
against the Swing Line Lender, the relevant Borrower or any other Person for any
reason whatsoever; (2) the occurrence or continuance of a Default, an Event of
Default or a Material Adverse Effect; or (3) any other circumstance, happening
or event whatsoever, whether or not similar to any of the foregoing.

      2.06  Voluntary Termination or Reduction of Revolving Loan Commitments.

            (a)   The Borrowers may, upon not less than three Business Days'
prior notice to the Administrative Agent, terminate the Revolving Loan
Commitments, or permanently reduce the Revolving Loan Commitments in a Minimum
Amount; unless, after giving effect thereto and to any prepayments of Loans made
on the effective date thereof, the Effective Amount of all Revolving Loans,
Swing Line Loans and L/C Obligations outstanding would exceed the Aggregate
Revolving Loan Commitment then in effect. Once reduced in accordance with this
Section 2.06, the Revolving Loan Commitments may not be increased. Any reduction
of the Revolving Loan Commitments shall be applied to each Revolving Lender
according to its Pro Rata Share. All accrued commitment and letter of credit
fees to, but not including, the effective date of any reduction or termination
of Revolving Loan Commitments, shall be paid on the effective date of such
reduction or termination.

            (b)   At no time shall the Swing Line Commitment exceed the
Aggregate Revolving Loan Commitment and any reduction of the Aggregate Revolving
Loan Commitment which reduces the Aggregate Revolving Loan Commitment below the
then-current amount of the Swing Line Commitment shall result in an automatic
corresponding reduction of the Swing Line Commitment to the amount of the
Aggregate Revolving Loan Commitment, as so reduced, without any action on the
part of the Swing Line Lender. At no time shall the Swing Line Commitment exceed
the Commitment of the Swing Line Lender, and any reduction of the Aggregate
Revolving Loan Commitment which reduces the Commitment of the Swing Line Lender
below the then-current amount of the Swing Line Commitment shall result in an
automatic corresponding reduction of the Swing Line Commitment to the amount of
the Commitment of the Swing Line Lender, as so reduced, without any action on
the part of the Swing Line Lender.

      2.07  Optional Prepayments.

      Subject to Section 4.04, a Borrower may, at any time or from time to time,
upon irrevocable notice from a Borrower Representative (which notice shall be
delivered three (3) Business Days' prior in the case of Offshore Currency Loans
maintained at the Offshore Rate) (or, subject to Section 4.04, such shorter
period that may be agreed to by the Administrative Agent) to the Administrative
Agent, in respect of Offshore Rate Loans, and in respect of Base Rate Loans, by
not later than 11:00 a.m. (local time) on the prepayment date, prepay Loans in
whole or in part, in a Minimum Amount. Such notice of prepayment shall specify
the date and amount of such prepayment, which Loans are to be prepaid, the
applicable Borrower, the Type(s) of such Loans to be prepaid and the Applicable
Currency. The Administrative Agent will promptly notify each Lender of its
receipt of any such notice, and of such Lender's Pro Rata Share of such
prepayment. If such notice is given by a Borrower Representative, the applicable

                                       46
<PAGE>

Borrower shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date specified therein, together, in the
case of Offshore Rate Loans, with accrued interest to each such date on the
amount prepaid and any amounts required pursuant to Section 4.04. The amount of
such optional prepayment of Existing Term Loans shall be applied and paid by the
applicable Borrower to reduce its Existing Term Loan pro rata with respect to
each remaining installment of principal of such Loan.

      2.08  Termination of Commitments; Reduction of Commitment Amounts;
Mandatory Commitment Reductions; Mandatory Prepayments of Loans.

            (a)   (i)   The Aggregate NSC Term Loan Commitment (and, as
applicable, the NSC Term Loan Commitment of each Term Lender) shall be
automatically reduced from time to time on the date, and in the amount, of (x)
any Borrowing of an NSC Term Loan and (y) any reduction in the Stated Amount of
the Existing Fleet Letter of Credit in the event, for this clause (y), such
reduction is not accompanied by a request and/or a deemed request for a
Borrowing of an NSC Term Loan.

            (ii)  The Sterling Term Loan Commitment shall be automatically
reduced from time to time on the date, and in the amount, that the amount
available to be drawn under the Loan Note Credit Support is reduced pursuant to
the terms of the Loan Note Credit Support (but after giving effect to any
Borrowing of Sterling Term Loans used to repay drawings thereunder on such
date). In addition, the Aggregate Sterling Term Loan Commitment (and, as
applicable, the Sterling Term Loan Commitment of each Term Lender) shall be
automatically reduced from time to time on the date, and in the amount, of any
Borrowing of a Sterling Term Loan.

            (iii) The Aggregate Existing Dollar Term Loan Commitment Amount
(and, as applicable, the Existing Dollar Term Loan Commitment Amount of each
Term Lender) shall be automatically reduced from time to time on the date, and
in the amount, of any repayment or prepayment of an Existing Dollar Term Loan.

            (iv)  The Aggregate Existing Sterling Term Loan Commitment Amount
(and, as applicable, the Existing Sterling Term Loan Commitment Amount of each
Term Lender) shall be automatically reduced from time to time on the date, and
in the amount, of any repayment or prepayment of an Existing Sterling Term Loan.

            (b)   If on any date the aggregate amount of L/C Obligations exceeds
the L/C Commitment, the relevant Borrower shall Cash Collateralize on such date
the applicable outstanding Letters of Credit in an amount equal to the excess of
the maximum amount then available to be drawn under the Letters of Credit over
the L/C Commitment. Subject to Section 4.04, if on any date after giving effect
to any Cash Collateralization made on such date pursuant to the preceding
sentence, the aggregate amount of all Revolving Loans and Swing Line Loans then
outstanding plus the aggregate amount of all L/C Obligations exceeds the
Aggregate Revolving Loan Commitment, the respective Borrower shall immediately,
and without notice or demand, prepay the outstanding principal amount of its
Revolving Loans and L/C Advances by an amount equal to its pro rata share of the
applicable excess.

                                       47
<PAGE>

            (c)   Subject to Section 4.04, if on any Computation Date the
Administrative Agent shall have determined that the then aggregate Equivalent
Amount of principal of all Revolving Loans and Swing Line Loans then outstanding
plus (without duplication) the Effective Amount of all L/C Obligations exceeds
the Aggregate Revolving Loan Commitment by more than $1,000,000 due to a change
in applicable rates of exchange between Dollars, on the one hand, and Offshore
Currencies on the other hand, then the Administrative Agent shall give notice to
the applicable Borrower Representative that a prepayment is required under this
Section 2.08(c), and the applicable Borrower agrees thereupon to make
prepayments of Loans such that, after giving effect to such prepayment, the
outstanding Equivalent Amount of principal of all Revolving Loans and Swing Line
Loans plus (without duplication) the Effective Amount of all L/C Obligations
does not exceed the Aggregate Revolving Loan Commitment by more than $1,000,000.

            (d)   If any portion of the Sterling Term Loan Commitment remains
unutilized on the date that the Loan Note Credit Support is terminated and the
Loan Notes Instrument is released, then such portion of the Sterling Term Loan
Commitment shall be automatically deemed to be reduced.

            (e)   If at any time the then aggregate Equivalent Amount of the
outstanding principal of all Revolving Loans and Swing Line Loans plus (without
duplication) the Effective Amount of all L/C Obligations exceeds the Borrowing
Base by more than $1,000,000, the Borrowers shall immediately prepay the Loans
by an amount equal to such excess.

            (f)   Subject to Section 2.08(h), on each date occurring one hundred
twenty (120) days after the last day of each fiscal year of BHI, beginning with
the fiscal year ending December 31, 2003, BHI shall cause the Borrowers, and the
Borrowers hereby agree, to prepay Term Loans in an amount equal to fifty percent
(50%) of the Excess Cash Flow, if any, of BHI and its Subsidiaries during the
immediately preceding fiscal year of BHI. Any mandatory prepayment of Terms
Loans required by this Section 2.08(f) shall be made pro rata by each of the
Borrowers and shall be allocated pro rata to NSC Term Loans, Existing Dollar
Term Loans, Existing Sterling Term Loans and Sterling Term Loans. The amount of
such prepayment shall be applied pro rata with respect to each remaining
installment of principal of the Term Loans until such time as the sum of (i) an
amount equal to fifty percent (50%) of the aggregate Excess Cash Flow of BHI and
its Subsidiaries calculated in accordance with the first sentence of this
Section 2.08(f), commencing with the fiscal year ending December 31, 2003, (ii)
the Net Proceeds received from Asset Dispositions (other than pursuant to
subsection 8.02(a), (b), (c), (d), (e), (g), (h) or (j)) made by BHI or its
Subsidiaries after the date hereof, (ii) the Net Proceeds realized upon all debt
issuances (other than the Loans and any other Indebtedness permitted by this
Agreement) made by BHI or its Subsidiaries, (iii) the insurance proceeds
received by BHI or any Subsidiary following a casualty or Event of Loss
involving such Person's property, and any payments received by BHI or any
Subsidiary from a condemnation of such Person's Property, after the date hereof,
and (iv) 50% of Net Proceeds of any equity issuances made after the date hereof
by BHI or any Subsidiary (other than Excluded Equity), shall exceed $5,000,000.
Thereafter, the amount of any such prepayment shall be applied to the remaining
installment of principal of the Term Loans in inverse order of their maturities.
Such proceeds shall be applied first, to the extent possible, to prepay its Base
Rate Loans and then to prepay Offshore Rate Loans (provided that the
Administrative Agent shall, so long as no Default or Event of Default

                                       48
<PAGE>

has occurred and is continuing, hold such amounts to be used to prepay Offshore
Rate Loans until the end of any Interest Period so as to avoid breakage costs
unless otherwise requested by the applicable Borrower to immediately apply such
amounts). Each Borrower shall use its commercially reasonable efforts to notify
the Administrative Agent and each Lender holding a Term Loan of the amount of
any required prepayment at least three (3) Business Days before it is made.

            (g)   Subject to Section 2.08(h), on the day of receipt of the
proceeds from the events specified below, BHI shall cause each Borrower, and
each Borrower hereby agrees, to prepay Term Loans in an amount equal to (i) 100%
of the sum of (x) the Net Proceeds realized upon all Asset Dispositions (other
than pursuant to subsection 8.02(a), (b), (c), (d), (e), (g), (h) or (j)) made
by BHI and its Subsidiaries in excess, in the aggregate, of $1,500,000 in any
fiscal year of BHI and its Subsidiaries, (y) the Net Proceeds realized upon all
debt issuances (other than the Loans and any other Indebtedness permitted by
this Agreement) made by BHI or its Subsidiaries and (z) the insurance proceeds
received by BHI or any Subsidiary following a casualty or Event of Loss
involving such Person's property, and the payments received by BHI or any
Subsidiary in such fiscal quarter from a condemnation of such Person's Property,
aggregating in excess of $1,500,000 for BHI and its Subsidiaries, to the extent
in the case of amounts derived from the events described in clauses (x) and (z)
above such amounts are not applied (or committed to be applied) within 180 days
after the consummation or receipt thereof, as applicable, to the purchase of
other assets that are not classified as current assets under GAAP and are used
or useful in the business of BHI or such Subsidiary, and (ii) 50% of the Net
Proceeds realized upon all equity issuances made by BHI or any Subsidiary in
such fiscal quarter; provided, however, that no prepayment need be made with the
proceeds of (1) any equity issuances by any Loan Party or any of its
Subsidiaries to another Loan Party or any of its Subsidiaries, (2) any equity
issuances by BHI issued to any consultants, directors and employees of BHI and
its Subsidiaries; provided that the aggregate amount of such equity issuances
after the first anniversary of the Closing Date shall not exceed $3,000,000),
(3) any common equity issuances by BHI issued to the holders of its Capital
Stock as of the Closing Date and their Related Parties (including, for purposes
hereof, Onex and its Affiliates), (4) any common equity issuances by BHI issued
in connection with a Permitted Acquisition or an Investment under Section
8.04(j) and (5) any common equity issuances by BHI 100% of the proceeds of which
are utilized to repay Term Loans; provided, that no prepayment of the Term Loans
need be made with the proceeds of debt issuances pursuant to Section 7.16 (it
being understood that such proceeds shall be applied to payment of the Revolving
Loans only) (each of the items set forth in clauses (1) through (5) of the first
proviso in this Section 2.08(g), the "Excluded Equity"). Any mandatory
prepayment of Terms Loans required by this Section 2.08(g) shall be made pro
rata by each of the Borrowers and shall be allocated pro rata to NSC Term Loans,
Existing Dollar Term Loans, Existing Sterling Term Loans and Sterling Term
Loans. The amount of such prepayment shall be applied pro rata with respect to
each remaining installment of principal of the Term Loans until such time as the
sum of (i) an amount equal to fifty percent (50%) of the aggregate Excess Cash
Flow of BHI and its Subsidiaries calculated in accordance with the first
sentence of Section 2.08(f), commencing with the fiscal year ending December 31,
2003, (ii) the Net Proceeds received from Asset Dispositions (other than
pursuant to subsection 8.02(a), (b), (c), (d), (e), (g), (h) or (j)) made by BHI
or its Subsidiaries after the date hereof, (ii) the Net Proceeds realized upon
all debt issuances (other than the Loans and any other Indebtedness permitted by
this Agreement) made by BHI or its Subsidiaries, (iii) the insurance proceeds
received by BHI or any Subsidiary

                                       49
<PAGE>

following a casualty or Event of Loss involving such Person's property, and any
payments received by BHI or any Subsidiary from a condemnation of such Person's
Property, after the date hereof, and (iv) 50% of Net Proceeds of any equity
issuances made after the date hereof by BHI or any Subsidiary (other than
Excluded Equity), shall exceed $5,000,000. Thereafter, the amount of any such
prepayment shall be applied to the remaining installment of principal of the
Term Loans in inverse order of their maturities. Such proceeds shall be applied
first, to the extent possible, to prepay Base Rate Loans or Loans maintained at
the Offshore Currency Domestic Rate and then to prepay Offshore Rate Loans
(provided that the Administrative Agent shall, so long as no Default or Event of
Default has occurred and is continuing, hold such amounts to be used to prepay
Offshore Rate Loans until the end of any Interest Period so as to avoid breakage
costs, unless otherwise requested by the Company to immediately apply such
amount). Each Borrower shall use its best efforts to notify the Administrative
Agent and each Lender holding a Term Loan of the amount of any required
prepayment at least three (3) Business Days before it is made.

            (h)   Notwithstanding the foregoing, no Borrower shall be required
to make the mandatory prepayments specified in Sections 2.08(f) or 2.08(g) to
the extent that the Total Leverage Ratio (calculated as of the most recently
ended fiscal quarter of BHI on a pro forma basis after giving effect to the
transaction or event giving rise to the need for a prepayment) would be less
than 2.00 to 1.0; provided, that the Administrative Agent shall have received a
certificate of a Responsible Officer of the Borrower Representative certifying
to the foregoing and attaching appropriate calculations.

      2.09  Repayment.

            (a)   Term Loans.

            (i)   The Company shall repay its Existing Term Loans in an amount
equal to the Sterling amounts set forth below on each Principal Payment Date:

<TABLE>
<CAPTION>
     Date                            Term Loan Payment
     ----                            -----------------
<S>                                  <C>
March 31, 2003                       (pound) 71,131.20
June 30, 2003                        (pound) 71,131.20
September 30, 2003                   (pound) 71,131.20
December 31, 2003                    (pound) 71,131.20
March 31, 2004                       (pound)142,262.40
June 30, 2004                        (pound)142,262.40
September 30, 2004                   (pound)142,262.40
December 31, 2004                    (pound)142,262.40
March 31, 2005                       (pound)213,393.59
June 30, 2005                        (pound)213,393.59
September 30, 2005                   (pound)213,393.59
January 2, 2006                      (pound)827,882.74
</TABLE>

                                       50
<PAGE>

                  (ii)  (A)   NSC shall repay its Existing Term Loans in an
amount equal to the Dollar amounts set forth below on each Principal Payment
Date:

<TABLE>
<CAPTION>
     Date                                Term Loan Payment
     ----                                -----------------
<S>                                      <C>
March 31, 2003                           $      353,678.67
June 30, 2003                            $      353,678.67
September 30, 2003                       $      353,678.67
December 31, 2003                        $      353,678.67
March 31, 2004                           $      707,357.34
June 30, 2004                            $      707,357.34
September 30, 2004                       $      707,357.34
December 31, 2004                        $      707,357.34
March 31, 2005                           $    1,061,036.00
June 30, 2005                            $    1,061,036.00
September 30, 2005                       $    1,061,036.00
January 2, 2006                          $    4,116,400.04
</TABLE>

                        (B)   In addition to the above, NSC shall repay to the
Lenders on the Revolving Loan Termination Date the aggregate outstanding
principal amount of NSC Term Loans.

                  (iii) CVS, Inc. shall repay its Existing Term Loans in an
amount equal to the Dollar amounts set forth below on each Principal Payment
Date:

<TABLE>
<CAPTION>
     Date                                Term Loan Payment
     ----                                -----------------
<S>                                      <C>
March 31, 2003                           $      789,624.54
June 30, 2003                            $      789,624.54
September 30, 2003                       $      789,624.54
December 31, 2003                        $      789,624.54
March 31, 2004                           $    1,579,249.07
June 30, 2004                            $    1,579,249.07
September 30, 2004                       $    1,579,249.07
December 31, 2004                        $    1,579,249.07
March 31, 2005                           $    2,368,873.61
June 30, 2005                            $    2,368,873.61
September 30, 2005                       $    2,368,873.61
January 2, 2006                          $    9,190,292.68
</TABLE>

                  (iv)  The Sterling Term Loan. The Company shall repay to the
Lenders on the Revolving Loan Termination Date the aggregate principal amount of
its Sterling Term Loans outstanding on such date.

                                       51
<PAGE>

            (b)   The Revolving Credit. The Borrowers shall repay to the Lenders
on the Revolving Loan Termination Date the aggregate principal amount of its
Revolving Loans outstanding on such date.

            (c)   The Swing Line. The Borrowers shall repay the Swing Line Loans
on demand.

      2.10  Interest.

            (a)   Each Revolving Loan and Term Loan shall bear interest on the
outstanding principal amount thereof from the applicable Borrowing Date at a
rate per annum equal to the Offshore Rate, the Base Rate or the Offshore
Currency Domestic Rate, as the case may be (and subject to the relevant
Borrower's right to convert to other Types of Loans under Section 2.04), plus
the Applicable Offshore Rate Margin or Applicable Base Rate Margin, as
applicable. Swing Line Loans shall bear interest on the principal amount thereof
from the applicable Borrowing Date at a rate per annum equal to the Quoted Rate.

            (b)   Interest on each Revolving Loan and the Term Loan shall be
paid in arrears on each Interest Payment Date. Interest on Base Rate Loans shall
also be paid on the date of any payment (including prepayment) in full thereof.
Interest on Offshore Rate Loans shall also be paid on the date of any payment
(including prepayment) in full thereof. During the existence of any Event of
Default, interest on all Loans shall be paid on demand of the Administrative
Agent at the request or with the consent of the Required Lenders.

            (c)   Notwithstanding subsection (a) of this Section 2.10, effective
immediately upon the occurrence and during the continuance of an Event of
Default pursuant to subsection 9.01(a), or effective upon the thirtieth day
after the occurrence and continuance of any other Event of Default pursuant to
subsections 9.01(b) through (n), the Borrowers agree to pay interest on all of
their outstanding Obligations, payable on demand, at a fluctuating rate per
annum equal to the rate otherwise in effect with respect to such Obligations,
plus two percent (2.0%).

            (d)   Anything herein to the contrary notwithstanding, the
obligations of the Borrowers to any Lender hereunder shall be subject to the
limitation that payments of interest shall not be required for any period for
which interest is computed hereunder, to the extent (but only to the extent)
that contracting for or receiving such payment by such Lender would be contrary
to the provisions of any law applicable to such Lender limiting the highest rate
of interest that may be lawfully contracted for, charged or received by such
Lender, and in such event the Borrowers shall pay such Lender interest at the
highest rate permitted by applicable law.

      2.11  Fees.

            In addition to certain fees described in Section 3.08:

            (a)   Arrangement, Agency Fees. The Borrowers shall pay such fees to
the Administrative Agent and the Arranger as are required by the letter
agreement ("Fee Letter") among CVS, Inc., the Company, the Arranger and the
Administrative Agent dated as of January 27, 2003.

                                       52
<PAGE>

            (b)   Commitment Fees. The Borrowers shall pay to the Administrative
Agent for the account of each Revolving Lender a commitment fee on the average
daily unused portion of such Revolving Lender's Loan Commitment (the "Commitment
Fee"), computed on a quarterly basis in arrears on the last Business Day of each
calendar quarter based upon the daily utilization for that quarter as calculated
by the Administrative Agent. At all times prior to the delivery of a Compliance
Certificate pursuant to subsection 7.02(b) for the fiscal quarter ended March
31, 2003, the Commitment Fee shall be a per annum rate equal to 50.0 basis
points and, at all times thereafter, the Commitment Fee shall be a per annum
rate equal to the Commitment Fee in effect at such time as determined by
reference to the Pricing Grid attached hereto as Schedule 1.01 and the
applicable Total Leverage Ratio for the applicable period set forth in the most
recent Compliance Certificate delivered pursuant to Section 7.02(b). For
purposes of calculating utilization under this subsection 2.11(b), the Revolving
Loan Commitments shall be deemed used to the extent of the aggregate amount of
Revolving Loans then outstanding plus the aggregate amount of L/C Obligations
then outstanding and shall not be deemed used by a Lender's Pro Rata Share of
Swing Line Loans. Such commitment fee shall accrue from the date hereof to the
Revolving Loan Termination Date and shall be due and payable quarterly in
arrears on the last Business Day of each calendar quarter commencing on March
31, 2003, with the final payment to be made on the Revolving Loan Termination
Date. The Commitment Fee provided in this subsection 2.11(b) shall accrue at all
times after the date hereof, including at any time during which one or more
conditions in Article V are not met.

            (c)   Continuation Fee. At the times and in the amounts set forth
below, the Borrowers shall pay to the Administrative Agent for the account of
each Lender a fee (the "Continuation Fee"), on the amount of each Lender's
Commitment as of the Closing Date. The Continuation Fee shall be a per annum
rate equal to (i) in the event the Commitments are not terminated and the
Obligations (other than contingent indemnification obligations) are not paid in
full in cash by March 31, 2005, $1,135,406, (ii) in the event the Commitments
are not terminated and the Obligations (other than contingent indemnification
obligations) are not paid in full in cash by June 30, 2005, $227,081, (iii) in
the event the Commitments are not terminated and the Obligations (other than
contingent indemnification obligations) are not paid in full in cash by
September 30, 2005, $227,081, and (iv) in the event the Commitments are not
terminated and the Obligations (other than contingent indemnification
obligations) are not paid in full in cash by January 2, 2006, $227,081. Such
fees shall be fully earned as of the Closing Date and shall be due and payable
as of the dates set forth in clauses (i) through (iv) above; provided, that such
fees shall only be due and payable on each such date if the Commitments have not
been terminated (unless terminated by operation of law) and the Obligations have
not been paid in full in cash (other than contingent indemnification
obligations) by such date.

      2.12  Computation of Fees and Interest.

            (a)   All computations of interest for Base Rate Loans when the Base
Rate is determined by Bank of America's "prime rate" and all computations of
interest for Loans denominated in Sterling shall be made on the basis of a year
of 365 or 366 days, as the case may be, and actual days elapsed. All other
computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more interest being paid than if
computed on the basis of a 365-day year), unless market practice for a currency
(other than U.S. Dollars, Sterling or Euro) as determined by the Administrative
Agent is different, in which case

                                       53
<PAGE>

such different basis shall apply. Interest and fees shall accrue during each
period during which interest or such fees are computed from the first day
thereof to the last day thereof.

            (b)   Each determination of an interest rate or an Equivalent Amount
by the Administrative Agent shall be conclusive and binding on the Borrowers and
the Lending Parties in the absence of manifest error.

      2.13  Payments by the Borrowers.

            (a)   All payments to be made by any Loan Party shall be made
without set-off, recoupment or counterclaim. Except as otherwise expressly
provided herein, all payments by any Loan Party shall be made to the
Administrative Agent for the account of the Lending Parties at the Agent's
Payment Office, and, with respect to principal of, interest on, and any other
amounts relating to, any Offshore Currency Loan, shall be made in the Offshore
Currency in which such Loan is denominated or payable, and, with respect to all
other amounts payable hereunder, shall be made in Dollars (or in the case of
Letter of Credit Fees relating to the Loan Note Credit Support, in Sterling) and
in each case, in immediately available funds, and (i) in the case of Offshore
Currency payments, no later than such time on the dates specified herein as may
be reasonably determined by the Administrative Agent to be necessary for such
payment to be credited on such date in accordance with normal lending procedures
in the place of payment (as notified to the Borrower Representatives on or prior
to the Closing Date and thereafter at least five Business Days prior to any
change therein) and (ii) in the case of any Dollar payments no later than 1:00
p.m. (Charlotte, North Carolina time). The Administrative Agent will promptly
distribute to each Lender its Pro Rata Share of such payment in like funds as
received. Any payment received by the Administrative Agent later than the
applicable time set forth above shall be deemed to have been received on the
following Business Day and any applicable interest or fee shall continue to
accrue.

            (b)   Subject to the provisions set forth in the definition of
"Interest Period" herein, whenever any payment is due on a day other than a
Business Day, such payment shall be made on the following Business Day, and such
extension of time shall in such case be included in the computation of interest
or fees, as the case may be.

            (c)   Unless the Administrative Agent receives notice from the
Borrower Representative on behalf of a Borrower prior to the date on which any
payment is due to the Lenders that such Borrower will not make such payment in
full as and when required, the Administrative Agent may assume that such
Borrower has made such payment in full to the Administrative Agent on such date
in immediately available funds and the Administrative Agent may (but shall not
be so required), in reliance upon such assumption, distribute to each Lender on
such due date an amount equal to the amount then due such Lender. If and to the
extent such Borrower has not made such payment in full to the Administrative
Agent, each Lender shall repay to the Administrative Agent on demand such amount
distributed to such Lender, together with interest thereon at the Federal Funds
Rate for each day from the date such amount is distributed to such Lender until
the date repaid.

                                       54
<PAGE>

      2.14  Payments by the Lenders to the Administrative Agent.

            (a)   Unless the Administrative Agent receives notice from a Lender
on or prior to the Closing Date or, with respect to any Borrowing after the
Closing Date, at least one Business Day prior to the date of such Borrowing,
that such Lender will not make available as and when required hereunder to the
Administrative Agent for the account of the relevant Borrower the amount of that
Lender's Pro Rata Share of the Borrowing, the Administrative Agent may assume
that each Lender has made such amount available to the Administrative Agent in
Same Day Funds on the Borrowing Date and the Administrative Agent may (but shall
not be so required), in reliance upon such assumption, make available to the
relevant Borrower on such date a corresponding amount. If and to the extent any
Lender shall not have made its full amount available to the Administrative Agent
in Same Day Funds and the Administrative Agent in such circumstances has made
available to the relevant Borrower such amount, that Lender shall on the
Business Day following such Borrowing Date make such amount available to the
Administrative Agent, together with interest at the Federal Funds Rate (or in
the case of non-Dollar denominated Loans, the Administrative Agent's cost of
funds with respect thereto) for each day during such period. A notice of the
Administrative Agent submitted to any Lender with respect to amounts owing under
this subsection (a) shall be conclusive, absent manifest error. If such amount
is so made available, such payment to the Administrative Agent shall constitute
such Lender's Loan on the date of Borrowing for all purposes of this Agreement.
If such amount is not made available to the Administrative Agent on the Business
Day following the Borrowing Date, the Administrative Agent will notify the
relevant Borrower of such failure to fund and, upon demand by the Administrative
Agent, the relevant Borrower shall pay such amount to the Administrative Agent
for the Administrative Agent's account, together with interest thereon for each
day elapsed since the date of such Borrowing, at a rate per annum equal to the
interest rate applicable at the time to the Loans comprising such Borrowing.

            (b)   The failure of any Lender to make any Loan on any Borrowing
Date shall not relieve any other Lender of any obligation hereunder to make a
Loan on such Borrowing Date, but no Lender shall be responsible for the failure
of any other Lender to make the Loan to be made by such other Lender on any
Borrowing Date.

      2.15  Sharing of Payments, Etc.

      If, other than as expressly provided elsewhere herein, any Lender shall
obtain on account of the Loans made by it any payment (whether voluntary,
involuntary, through the exercise of any right of set-off, or otherwise) in
excess of its ratable share (or other share contemplated hereunder), such Lender
shall immediately (a) notify the Administrative Agent of such fact, and (b)
purchase from the other Lenders such participations in the Loans made by them as
shall be necessary to cause such purchasing Lender to share the excess payment
pro rata with each of them; provided, however, that if all or any portion of
such excess payment is thereafter recovered from the purchasing Lender, such
purchase shall to that extent be rescinded and each other Lender shall repay to
the purchasing Lender the purchase price paid therefor, together with an amount
equal to such paying Lender's ratable share (according to the proportion of (i)
the amount of such paying Lender's required repayment to (ii) the total amount
so recovered from the purchasing Lender) of any interest or other amount paid or
payable by the purchasing Lender in respect of the total amount so recovered.
The Borrowers agree that any Lender so purchasing

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a participation from another Lender may, to the fullest extent permitted by law,
exercise all its rights of payment (including the right of set-off, but subject
to Section 11.10) with respect to such participation as fully as if such Lender
were the direct creditor of the Borrowers in the amount of such participation.
The Administrative Agent will keep records (which shall be conclusive and
binding in the absence of manifest error) of participations purchased under this
Section 2.15 and will in each case notify the Lenders following any such
purchases or repayments.

      2.16  Utilization of Commitments in Offshore Currencies.

            (a)   The Administrative Agent will determine the Equivalent Amount
with respect to any (i) Borrowing comprised of Offshore Currency Loans as of the
requested Borrowing Date, (ii) outstanding Offshore Currency Loans denominated
in a currency other than Dollars as of the last Business Day of each month,
(iii) outstanding Offshore Currency Loans denominated in a currency other than
Dollars as of any redenomination date pursuant to this Section 2.16 or Section
3.5, (iv) L/C Obligations denominated in a currency other than Dollars, on the
date of Issuance and thereafter as of the last Business Day of each month and
(v) Offshore Currency Loans or L/C Obligations, as of any date specified for
determining the Equivalent Amount of any amount (each such date under clauses
(i) through (iv) a "Computation Date"); provided, however, that the provisions
of this Section 2.16(a) shall not apply to any Borrowing utilizing the Sterling
Term Loan Commitment.

            (b)   In the case of a proposed Borrowing comprised of Offshore
Currency Loans (other than a Borrowing of a Sterling Term Loan), the Lenders
shall be under no obligation to make Offshore Currency Loans in the requested
Offshore Currency as part of such Borrowing if the Administrative Agent has
received notice from any of the Lenders by 11:00 a.m. (Charlotte, North Carolina
time) four Business Days prior to the day of such Borrowing that such Lender
cannot provide Loans in the requested Offshore Currency, in which event the
Administrative Agent will give notice to the relevant Borrower no later than
1:00 p.m. (Charlotte, North Carolina time) on the third Business Day prior to
the requested date of such Borrowing that the Borrowing in the requested
Offshore Currency is not then available, and notice thereof also will be given
promptly by the Administrative Agent to the Lenders. If the Administrative Agent
shall have so notified the relevant Borrower that any such Borrowing in a
requested Offshore Currency is not then available, the relevant Borrower may, by
notice to the Administrative Agent not later than 5:00 p.m. (Charlotte, North
Carolina time) two Business Days prior to the requested date of such Borrowing,
withdraw the Notice of Borrowing relating to such requested Borrowing. If the
relevant Borrower does so withdraw such Notice of Borrowing, the Borrowing
requested therein shall not occur and the Administrative Agent will promptly so
notify each Lender. If the relevant Borrower does not so withdraw such Notice of
Borrowing, the Administrative Agent will promptly so notify each Lender and such
Notice of Borrowing shall be deemed to be a Notice of Borrowing that requests a
Borrowing comprised of Offshore Rate Loans for the same Interest Period
previously applicable in an aggregate amount equal to the amount of the
originally requested Borrowing as expressed in Dollars in the Notice of
Borrowing; and in such notice by the Administrative Agent to each Lender the
Administrative Agent will state such aggregate amount of such Borrowing in
Dollars and such Lender's Pro Rata Share thereof.

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<PAGE>

            (c)   In the case of a proposed continuation of Offshore Currency
Loans for an additional Interest Period (other than Sterling Term Loans), the
Lenders shall be under no obligation to continue such Offshore Currency Loans if
the Administrative Agent has received notice from any of the Lenders by 5:00
p.m. (Charlotte, North Carolina time) four Business Days prior to the day of
such continuation that such Lender cannot continue to provide Loans in the
relevant Offshore Currency, in which event the Administrative Agent will give
notice to the relevant Borrower not later than 1:00 p.m. (Charlotte, North
Carolina time) on the third Business Day prior to the requested date of such
continuation that the continuation of such Offshore Currency Loans in the
relevant Offshore Currency is not then available, and notice thereof also will
be given promptly by the Administrative Agent to the Lenders. If the
Administrative Agent shall have so notified the relevant Borrower that any such
continuation of Offshore Currency Loans is not then available, any Notice of
Continuation/Conversion with respect thereto shall be deemed withdrawn and such
Offshore Currency Loans shall be redenominated into Offshore Rate Loans in
Dollars for the same Interest Period previously applicable with effect from the
last day of the Interest Period with respect to any such Offshore Currency
Loans. The Administrative Agent will promptly notify the relevant Borrower and
the Lenders of any such redenomination and in such notice by the Administrative
Agent to each Lender the Administrative Agent will state the aggregate
Equivalent Amount of the redenominated Offshore Currency Loans as of the
Computation Date with respect thereto and such Lender's Pro Rata Share thereof.

            (d)   Notwithstanding anything herein to the contrary, during the
existence of an Event of Default, upon the request of the Required Lenders, all
or any part of any outstanding Offshore Currency Loans (other than Existing
Sterling Term Loans and Sterling Term Loans) shall be redenominated and
converted into Base Rate Loans in Dollars on the last day of the Interest Period
with respect to any such Offshore Currency Loans. The Administrative Agent will
promptly notify the relevant Borrower and the Lenders of any such redenomination
and conversion request.

            (e)   Each Borrower shall be entitled to request that Revolving
Loans and Swing Line Loans hereunder also be permitted to be made in any other
lawful currency (other than Dollars), in addition to the currencies specified in
the definition of "Offshore Currency" herein, that in the opinion of the
Administrative Agent, the Swing Line Lender and the Revolving Lenders is at such
time freely traded in the offshore interbank foreign exchange markets and is
freely transferable and freely convertible into Dollars (an "Agreed Alternative
Currency"). The relevant Borrower shall deliver to the Administrative Agent any
request for designation of an Agreed Alternative Currency to be received by the
Administrative Agent not later than 11:00 a.m. (Charlotte, North Carolina time)
at least 10 Business Days in advance of the date of any Borrowing hereunder
proposed to be made in such Agreed Alternative Currency. Upon receipt of any
such request the Administrative Agent will promptly notify the Revolving Lenders
thereof, and each Revolving Lender will use its commercially reasonable efforts
to respond to such request within five (5) Business Days of receipt thereof.
Each Lender may grant, accept or reject such request in its sole discretion. The
Administrative Agent will promptly notify the relevant Borrower and the
Revolving Lenders of the acceptance or rejection of any such request.

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      2.17  Security and Guaranty.

            (a)   All Obligations of the Borrowers and the Guarantors shall be
secured in accordance with and to the extent of the Collateral Documents.

            (b)   All Obligations of (i) the Company shall be unconditionally
guaranteed by BHI, each U.K. Subsidiary of BHI (other than the Company) and each
U.S. Subsidiary of BHI, (ii) KAB Seating shall be unconditionally guaranteed by
BHI, the Company, each U.K. Subsidiary of BHI (other than KAB Seating) and each
U.S. Subsidiary of BHI, (iii) NSC shall be unconditionally guaranteed by BHI,
the Company, each U.K. Subsidiary of BHI (other than Foreign 956 Subsidiaries)
and each U.S. Subsidiary of BHI (other than NSC), and (iv) CVS, Inc. shall be
unconditionally guaranteed by BHI, each U.K. Subsidiary of BHI (other than
Foreign 956 Subsidiaries) and each U.S. Subsidiary of BHI (other than CVS,
Inc.), in each case pursuant to and in accordance with the Guaranties.
Notwithstanding the foregoing, the obligations shall not be guaranteed by any of
the Subsidiaries listed on Schedule 2.17. The Borrowers represent and warrant
that none of the Subsidiaries on such Schedule 2.17 have, and hereby covenant
that none of the Subsidiaries on such Schedule 2.17 shall at any time have,
assets in excess of (pound)2,500,000 and the Borrowers represent and warrant
that such Subsidiaries in the aggregate do not have, and hereby covenant that
the Subsidiaries in the aggregate shall not at any time have, assets in excess
of (pound)10,000,000.

            (c)   100% (or 65% of each first tier Foreign 956 Subsidiary) of the
outstanding Capital Stock of each first tier Subsidiary of BHI shall be pledged
to secure all of the Obligations of BHI.

            (d)   100% (or 65% of each first tier Foreign 956 Subsidiary) of the
outstanding Capital Stock of each Subsidiary of a Borrower shall be pledged to
secure all of the Obligations of such Borrower.

                                   ARTICLE III

                                LETTERS OF CREDIT

      3.01  The Letter of Credit Subfacility.

            (a)   (i)   On the terms and conditions set forth in Article V (I)
each Issuer agrees, (A) from time to time on any Business Day, during the period
from the first Business Day to occur after the Closing Date to the day which is
five days prior to the Revolving Loan Termination Date, to issue Letters of
Credit for the account of a Borrower in an aggregate Stated Amount in Dollars or
an Offshore Currency at any one time that, the Stated Amount of which, together
with the aggregate Stated Amount of all other outstanding Letters of Credit
issued pursuant hereto, does not exceed the L/C Commitment, and to amend or
renew Letters of Credit previously issued by it, in accordance with subsections
3.02(c) and 3.02(d), and (B) to honor drafts under the Letters of Credit; and
(II) the Lenders severally agree to participate in Letters of Credit Issued for
the account of such Borrower (in the amounts determined in accordance with
Section 3.03(a)); provided, that no Issuer shall be obligated to Issue, and no
Lender shall be obligated to participate in, any Letter of Credit if as of the
date of Issuance of such Letter of

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Credit (the "Issuance Date") (1) the Effective Amount of all L/C Obligations
plus the Effective Amount of all Revolving Loans and of all Swing Line Loans
exceeds the Aggregate Revolving Loan Commitment, (2) the participation of any
Lender in the Effective Amount of all L/C Obligations plus the Effective Amount
of the Revolving Loans of such Lender and such Lender's Pro Rata Share of any
outstanding Swing Line Loans exceeds such Lender's Revolving Loan Commitment, or
(3) the Effective Amount of L/C Obligations exceeds the L/C Commitment. Within
the foregoing limits, and subject to the other terms and conditions hereof, a
Borrower's ability to obtain Letters of Credit shall be fully revolving, and,
accordingly, such Borrower may, during the foregoing period, obtain Letters of
Credit to replace Letters of Credit which have expired or which have been drawn
upon and reimbursed.

                  (ii)  Pursuant to Section 3.10, Bank of America, N.A., as an
      Issuer, agrees (A) to maintain the irrevocable bank guarantee for the
      account of the Company that was previously issued in the form attached to
      the Loan Note Instrument under the Original U.K. Credit Agreement (the
      "Loan Note Credit Support") and, subject to the satisfaction of the
      conditions in Section 5.02, to amend or renew the Loan Note Credit Support
      in accordance with Sections 3.02(c) and (d), and (B) to honor drawings
      under the Loan Note Credit Support.

                  (iii) On the terms and conditions set forth in Article V, and
      in accordance with Section 3.11, Fleet National Bank, as an Issuer, agrees
      to maintain the Existing Fleet Letter of Credit.

            (b)   No Issuer is under any obligation to, and shall not, Issue any
Letter of Credit if:

                  (i)   any order, judgment or decree of any Governmental
      Authority or arbitrator shall by its terms purport to enjoin or restrain
      an Issuer from Issuing such Letter of Credit, or any Requirement of Law
      applicable to an Issuer or any request or directive (whether or not having
      the force of law) from any Governmental Authority with jurisdiction over
      an Issuer shall prohibit, or request that an Issuer refrain from, the
      Issuance of letters of credit generally or such Letter of Credit in
      particular or shall impose upon an Issuer with respect to such Letter of
      Credit any restriction, reserve or capital requirement (for which an
      Issuer is not otherwise compensated hereunder) not in effect on the
      Closing Date, or shall impose upon an Issuer any unreimbursed loss, cost
      or expense which was not applicable on the Closing Date and which an
      Issuer in good faith deems material to it;

                  (ii)  an Issuer has received written notice from any Lender,
      the Administrative Agent or the Borrower Representative, on or prior to
      the Business Day prior to the requested date of Issuance of such Letter of
      Credit, that one or more of the applicable conditions contained in Article
      V is not then satisfied;

                  (iii) the expiry date of any requested Letter of Credit (other
      than the Loan Note Credit Support and the Existing Fleet Letter of Credit)
      is (A) more than 365 days after the date of Issuance, unless the Required
      Lenders have approved such expiry date in writing, or (B) after the date
      which is five days prior to the Revolving Loan

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      Termination Date, unless all of the Revolving Lenders have approved such
      expiry date in writing;

                  (iv)  any requested Letter of Credit (other than the Loan Note
      Credit Support and the Existing Fleet Letter of Credit) does not provide
      for drafts, or is not otherwise in form and substance, acceptable to an
      Issuer, or the Issuance of a Letter of Credit shall violate any applicable
      policies of the Issuer; or

                  (v)   such Letter of Credit is to be denominated in a currency
      other than Dollars or an Offshore Currency.

      3.02  Issuance, Amendment and Renewal of Letters of Credit.

            (a)   Each Letter of Credit shall be issued upon the irrevocable
written request of the Borrower Representative received by an Issuer (with a
copy sent by the Borrower Representative to the Administrative Agent) at least
three Business Days (or such shorter time as an Issuer may agree in a particular
instance in its sole discretion) prior to the proposed date of Issuance. Each
such request for Issuance of a Letter of Credit shall be by facsimile, confirmed
immediately in an original writing, in the form of an L/C Application (or such
other form as shall be acceptable to the Issuer), and shall specify in form and
detail satisfactory to the applicable Issuer: (i) the proposed date of Issuance
of the Letter of Credit (which shall be a Business Day); (ii) the face amount
and Applicable Currency of the Letter of Credit; (iii) the expiry date of the
Letter of Credit; (iv) the name and address of the account party and beneficiary
thereof; (v) the documents to be presented by the beneficiary of the Letter of
Credit in case of any drawing thereunder; (vi) the full text of any certificate
to be presented by the beneficiary in case of any drawing thereunder; and (vii)
such other matters as the Issuer may require.

            (b)   At least two Business Days prior to the Issuance of any Letter
of Credit (or such shorter time as the Administrative Agent may agree in a
particular instance in its sole discretion), the applicable Issuer will confirm
with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has received a copy of the L/C Application or L/C Amendment
Application from the applicable Borrower and, if not, the applicable Issuer will
provide the Administrative Agent with a copy thereof. Unless the applicable
Issuer has received notice on or before the Business Day immediately preceding
the date such Issuer is to issue a requested Letter of Credit from the
Administrative Agent (A) directing such Issuer not to issue such Letter of
Credit because such issuance is not then permitted under subsection 3.01(a) as a
result of the limitations set forth in clauses (1) through (3) thereof or under
subsection 3.01(b)(ii) or (iii); or (B) that one or more conditions specified in
Article V are not then satisfied; then, subject to the terms and conditions
hereof, such Issuer shall, on the requested date, Issue a Letter of Credit for
the account of the applicable Borrower in accordance with the Issuer's usual and
customary business practices.

            (c)   Subject to the penultimate sentence of this subsection (c),
from time to time while a Letter of Credit is outstanding and prior to the
Revolving Loan Termination Date, the applicable Issuer will, upon the written
request of the Borrower Representative received by such Issuer (with a copy sent
by the Borrower Representative to the Administrative Agent) at least three days
(or such shorter time as such Issuer may agree in a particular instance in its
sole

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discretion) prior to the proposed date of amendment, amend any Letter of Credit
issued by it. Each such request for amendment of a Letter of Credit shall be
made by facsimile, confirmed immediately in an original writing, made in the
form of an L/C Amendment Application and shall specify in form and detail
satisfactory to the applicable Issuer: (i) the Letter of Credit to be amended;
(ii) the proposed date of amendment of the Letter of Credit (which shall be a
Business Day); (iii) the nature of the proposed amendment; and (iv) such other
matters as the Issuer may require. No Issuer shall be under any obligation to
and shall not, amend any Letter of Credit if: (A) such Issuer would have no
obligation at such time to issue such Letter of Credit in its amended form under
the terms of this Agreement; or (B) the beneficiary of any such letter of Credit
does not accept the proposed amendment to the Letter of Credit. The
Administrative Agent will promptly notify the Lenders of the receipt by it of
any L/C Application or L/C Amendment Application.

            (d)   Subject to the last sentence of this paragraph (d), the
applicable Issuer and the Lenders agree that, while a Letter of Credit is
outstanding and prior to the date that is five days prior to the Revolving Loan
Termination Date, at the option of the applicable Borrower and upon the written
request of the Borrower Representative received by the applicable Issuer (with a
copy sent by the applicable Borrower Representative to the Administrative Agent)
at least three days (or such shorter time as such Issuer may agree to in a
particular instance in its sole discretion) prior to the proposed date of
notification of renewal, such Issuer shall be entitled to authorize the renewal
of any Letter of Credit issued by it. Each such request for renewal of a Letter
of Credit shall be made by facsimile, confirmed immediately in an original
writing, in the form of an L/C Amendment Application, and shall specify in form
and detail satisfactory to the applicable Issuer: (i) the Letter of Credit to be
renewed; (ii) the proposed date of notification of renewal of the Letter of
Credit (which shall be a Business Day); (iii) the revised expiry date of the
Letter of Credit; and (iv) such other matters as such Issuer may require. The
applicable Issuer shall be under no obligation so to renew any Letter of Credit
if: (A) such Issuer would have no obligation at such time to issue or amend such
Letter of Credit in its renewed form under the terms of this Agreement; or (B)
the beneficiary of any such Letter of Credit does not accept the proposed
renewal of the Letter of Credit. If any outstanding Letter of Credit shall
provide that it shall be automatically renewed unless the beneficiary thereof
receives notice from the applicable Issuer that such Letter of Credit shall not
be renewed, and if at the time of renewal such Issuer would be entitled to
authorize the automatic renewal of such Letter of Credit in accordance with this
subsection 3.02(d) upon the request of the Borrower Representative but such
Issuer shall not have received any L/C Amendment Application from the applicable
Borrower with respect to such renewal or other written direction by the Borrower
Representative with respect thereto, the Issuer shall nonetheless be permitted
to allow such Letter of Credit to renew, and the applicable Borrower and the
Lenders hereby authorize such renewal, and, accordingly, such Issuer shall be
deemed to have received an L/C Amendment Application from the applicable
Borrower requesting such renewal. Notwithstanding the above, no Letter of Credit
shall be renewed, whether via a request for renewal or via an automatic renewal,
if the new expiry date of any such Letter of Credit (other than the Loan Note
Credit Support and the Existing Fleet Letter of Credit) is (A) more than 365
days after the date of renewal, unless the Required Lenders have approved such
expiry date in writing, or (B) after the date which is five days prior to the
Revolving Loan Termination Date, unless all of the Revolving Lenders have
approved such expiry date in writing.

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            (e)   The applicable Issuer may, at its election (or as required by
the Administrative Agent at the direction of the Required Lenders), deliver any
notices of termination or other communications to any Letter of Credit
beneficiary or transferee (other than the Loan Note Credit Support), and take
any other action as necessary or appropriate, at any time and from time to time,
in order to cause the expiry date of such Letter of Credit to be a date not
later than the date which is five days prior to the Revolving Loan Termination
Date.

            (f)   This Agreement shall control in the event of any conflict with
any L/C-Related Document (other than any Letter of Credit).

            (g)   The applicable Issuer will also deliver to the Administrative
Agent, concurrently or promptly following its delivery of a Letter of Credit, or
amendment to or renewal of a Letter of Credit, to an advising bank or a
beneficiary, a true and complete copy of each such Letter of Credit or amendment
to or renewal of a Letter of Credit.

      3.03  Risk Participations, Drawings and Reimbursements.

            (a)   Immediately upon the Issuance of each Letter of Credit, each
Lender shall be deemed to, and hereby irrevocably and unconditionally agrees to,
purchase from the applicable Issuer a participation in such Letter of Credit and
each drawing thereunder in an amount equal to the product of (A) the Pro Rata
Share of such Lender, times (B) the maximum amount available to be drawn under
such Letter of Credit and the amount of any such drawing thereunder,
respectively.

            (b)   In the event of any request for a drawing under a Letter of
Credit by the beneficiary or transferee thereof, the applicable Issuer will
promptly notify the Borrower Representatives. The applicable Borrower shall
reimburse the applicable Issuer prior to the Requisite Time, on each date that
any amount is paid by such Issuer under any Letter of Credit (each such date, an
"Honor Date"), in an amount equal to the amount so paid by such Issuer. In the
event the applicable Borrower fails to reimburse the applicable Issuer for the
full amount of any drawing under any Letter of Credit by 1:00 p.m. (local time)
on the Honor Date, such Issuer will promptly notify the Administrative Agent and
the Administrative Agent will promptly notify each Lender thereof, and the
applicable Borrower shall be deemed to have requested that Base Rate Loans, in
the case of Letters of Credit denominated in Dollars, and Loans maintained at
the Offshore Currency Domestic Rate, in the case of the Loan Note Credit Support
and other Letters of Credit denominated in an Offshore Currency, in an amount
equal to such unreimbursed amount be made by the Lenders to be disbursed on the
Honor Date under such Letter of Credit, subject to the amount of the unutilized
portion of the (x) in the case of the Loan Note Credit Support, first, the
Sterling Term Loan Commitment until such commitment is fully utilized and
second, the Aggregate Revolving Loan Commitment, (y) in the case of the Existing
Fleet Letter of Credit, first, the NSC Term Loan Commitment until such
commitment is fully utilized and second, the Aggregate Revolving Loan Commitment
and (z) in the case of all other Letters of Credit, the Aggregate Revolving Loan
Commitment, and subject to the conditions set forth in Section 5.02(b) and (c).
Any notice given by an Issuer or the Administrative Agent pursuant to this
subsection 3.03(b) may be oral if immediately confirmed in writing (including by
facsimile); provided that the lack of such an immediate confirmation shall not
affect the conclusiveness or binding effect of such notice.

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<PAGE>

            (c)   Each Lender shall upon any notice pursuant to Section 3.03(b)
make available to the Administrative Agent for the account of the relevant
Issuer an amount in Same Day Funds equal to its Pro Rata Share of the amount of
the drawing for which they are required to provide reimbursement, whereupon each
participating Lender shall be deemed to have made a Term Loan and/or Revolving
Loan, as the case may be, consisting of a Base Rate Loan, a Loan maintained at
the Offshore Currency Domestic Rate or Offshore Rate Loan, as the case may be,
to the relevant Borrower in that amount. If any Lender so notified fails to make
available to the Administrative Agent for the account of an Issuer the amount of
such Lender's Pro Rata Share of the amount of the drawing by 3:00 p.m.
(Charlotte, North Carolina time) on the Honor Date, then interest shall accrue
on such Lender's obligation to make such payment, from the Honor Date to the
date such Lender makes such payment, at a rate per annum equal to the Federal
Funds Rate in effect from time to time during such period. The Administrative
Agent will promptly give notice of the occurrence of the Honor Date, but failure
of the Administrative Agent to give any such notice on the Honor Date or in
sufficient time to enable any Lender to effect such payment on such date shall
not relieve such Lender from its obligations under this Section 3.03(c).

            (d)   With respect to any unreimbursed drawing that is not converted
into Loans to the relevant Borrower, in whole or in part, because of a
Borrower's failure to satisfy the conditions set forth in Section 5.02(b) or
(c), the relevant Borrower shall be deemed to have incurred from the applicable
Issuer an L/C Borrowing in the amount of such drawing, which L/C Borrowing shall
be due and payable on demand (together with interest) and shall bear interest at
a rate per annum equal to (x) in the case of an L/C Borrowing denominated in
Dollars, the Base Rate, plus the Applicable Base Rate Margin for Revolving Loans
or Term Loans, as the case may be, plus 2.0% per annum, and (y) in the case of
an L/C Borrowing denominated in an Offshore Currency, the Offshore Currency
Domestic Rate, plus the Applicable Offshore Rate Margin for Term Loans, plus
2.0% per annum, and each Lender's payment to the applicable Issuer pursuant to
subsection 3.03(c) shall be deemed to be payment in respect of its participation
in such L/C Borrowing and shall constitute an L/C Advance from such Lender in
satisfaction of its participation obligation under Section 3.03(b), and (c).

            (e)   Each Lender's obligation in accordance with this Agreement to
make the Loans or L/C Advances, as contemplated by this Section 3.03, as a
result of a drawing under a Letter of Credit, shall be absolute and
unconditional and without recourse to the applicable Issuer and shall not be
affected by any circumstance, including (i) any set-off, counterclaim,
recoupment, defense or other right which such Lender may have against an Issuer,
a Borrower or any other Person for any reason whatsoever; (ii) the occurrence or
continuance of a Default, an Event of Default or a Material Adverse Effect; or
(iii) any other circumstance, happening or event whatsoever, whether or not
similar to any of the foregoing; provided, however, that each Lender's
obligation to make Loans under this Section 3.03 is subject to the conditions
set forth in Section 5.02(b) and (c).

      3.04  Repayment of Participations.

            (a)   Upon (and only upon) receipt by the Administrative Agent for
the account of the applicable Issuer of immediately available funds from the
relevant Borrower (i) in reimbursement of any payment made by such Issuer under
the Letter of Credit with respect to which any Lender has paid the
Administrative Agent for the account of such Issuer for such

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Lender's participation in the Letter of Credit pursuant to Section 3.03 or (ii)
in payment of interest thereon, the Administrative Agent will pay to each
applicable Lender in the same funds as those received by the Administrative
Agent for the account of such Issuer, the amount of such Lender's Pro Rata Share
of such funds, and such Issuer shall receive the amount of the Pro Rata Share of
such funds of any Lender that did not so pay the Administrative Agent for the
account of such Issuer.

            (b)   If the Administrative Agent or an Issuer is required at any
time to return to a Loan Party, or to a trustee, receiver, liquidator,
custodian, or any official in any Insolvency Proceeding, any portion of the
payments made by such Loan Party to the Administrative Agent for the account of
an Issuer pursuant to Section 3.04(a) in reimbursement of a payment made under
the Letter of Credit or interest or fee thereon, each Lender shall, on demand of
the Administrative Agent, forthwith return to the Administrative Agent or the
relevant Issuer the amount of its Pro Rata Share of any amounts so returned by
the Administrative Agent or the relevant Issuer plus interest thereon from the
date such demand is made to the date such amounts are returned by such Lender to
the Administrative Agent or the relevant Issuer, at a rate per annum equal to
the Federal Funds Rate in effect from time to time.

      3.05  Role of Issuers.

            (a)   Each Lender and each Borrower agree that, in paying any
drawing under a Letter of Credit, no Issuer shall have any responsibility to
obtain any document (other than any sight draft and certificates expressly
required by the Letter of Credit) or to ascertain or inquire as to the validity
or accuracy of any such document or the authority of the Person executing or
delivering any such document.

            (b)   No Agent-Related Person nor any of the respective
correspondents, participants or assignees of an Issuer shall be liable to any
Lender for: (i) any action taken or omitted in connection herewith at the
request or with the approval of the Lenders (including the Required Lenders);
(ii) any action taken or omitted in the absence of gross negligence or willful
misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any L/C-Related Document.

            (c)   The Borrowers hereby assume all risks of the acts or omissions
of any beneficiary or transferee with respect to its use of any Letter of
Credit; provided, however, that this assumption is not intended to, and shall
not, preclude any Borrower pursuing such rights and remedies as it may have
against the beneficiary or transferee at law or under any other agreement. No
Agent-Related Person, nor any of the respective correspondents, participants or
assignees of an Issuer, shall be liable or responsible for any of the matters
described in clauses (i) through (vii) of Section 3.06; provided, however,
anything in such clauses to the contrary notwithstanding, that the Borrowers may
have a claim against an Issuer, and such Issuer may be liable to the Borrowers,
to the extent, but only to the extent, of any direct, as opposed to
consequential or exemplary, damages suffered by the Borrowers which the
Borrowers prove were caused by such Issuer's bad faith, willful misconduct or
gross negligence or such Issuer's willful or grossly negligent failure to pay
under any Letter of Credit after the presentation to it by the beneficiary of a
sight draft and certificate(s) strictly complying with the terms and conditions
of a Letter of Credit. In furtherance and not in limitation of the foregoing:
(i) an Issuer may

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accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary; and (ii) no Issuer shall be responsible for the
validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or the rights or benefits
thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason.

      3.06  Obligations Absolute.

      Subject to Section 3.05(c), the obligations of the applicable Borrower
under this Agreement and any L/C-Related Document to reimburse the applicable
Issuer for a drawing under a Letter of Credit, and to repay any L/C Borrowing
and any drawing under a Letter of Credit converted into a Loan shall be
unconditional and irrevocable, and shall be paid strictly in accordance with the
terms of this Agreement and each such other L/C-Related Document under all
circumstances, including the following:

                  (i)   any lack of validity or enforceability of this Agreement
      or any L/C-Related Document;

                  (ii)  any change in the time, manner or place of payment of,
      or in any other term of, all or any of the obligations of the Borrowers in
      respect of any Letter of Credit or any other amendment or waiver of or any
      consent to departure from all or any of the L/C-Related Documents;

                  (iii) the existence of any claim, set-off, defense or other
      right that the Borrowers may have at any time against any beneficiary or
      any transferee of any Letter of Credit (or any Person for whom any such
      beneficiary or any such transferee may be acting), the Issuer or any other
      Person, whether in connection with this Agreement, the transactions
      contemplated hereby or by the L/C-Related Documents or any unrelated
      transaction;

                  (iv)  any draft, demand, certificate or other document
      presented under any Letter of Credit proving to be forged, fraudulent,
      invalid or insufficient in any respect or any statement therein being
      untrue or inaccurate in any respect; or any loss or delay in the
      transmission or otherwise of any document required in order to make a
      drawing under any Letter of Credit;

                  (v)   any payment by an Issuer under any Letter of Credit
      against presentation of a draft or certificate that does not strictly
      comply with the terms of any Letter of Credit; or any payment made by an
      Issuer under any Letter of Credit to any Person purporting to be a trustee
      in bankruptcy, debtor-in-possession, assignee for the benefit of
      creditors, liquidator, receiver or other representative of or successor to
      any beneficiary or any transferee of any Letter of Credit, including any
      arising in connection with any Insolvency Proceeding;

                  (vi)  any exchange, release or non-perfection of any
      collateral, or any release or amendment or waiver of or consent to
      departure from any other guarantee, for all or any of the obligations of
      the Borrowers in respect of any Letter of Credit; or

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<PAGE>

                  (vii) any other circumstance or happening whatsoever, whether
      or not similar to any of the foregoing, including any other circumstance
      that might otherwise constitute a defense available to, or a discharge of,
      the Borrowers or a guarantor.

      3.07  Cash Collateral Pledge.

            (a)   If any Letters of Credit for any reason remain outstanding and
partially or wholly undrawn as of the Revolving Loan Termination Date or as of
the date the Aggregate Commitment is for any reason terminated, then the
applicable Borrower shall immediately Cash Collateralize all such Letters of
Credit in an amount in Dollars (or Sterling in the case of the Loan Note Credit
Support) equal to the undrawn amount of all such Letters of Credit.

            (b)   The Company hereby grants the Collateral Agent, for the
benefit of the Administrative Agent, the Issuers and the Lenders, a security
interest in all Cash Collateral and related deposit account balances posted
hereunder or in connection herewith. Cash Collateral shall be maintained in
blocked deposit accounts at Bank of America while an Event of Default is
continuing and shall be unblocked upon the termination of such Event of Default.

      3.08  Letter of Credit Fees.

            (a)   Each Borrower shall pay to the Administrative Agent for the
account of each of the Lenders a letter of credit fee with respect to its
Letters of Credit equal to the Applicable Offshore Rate Margin per annum
specified for Revolving Loans on the daily maximum amount available to be drawn
on the outstanding Letters of Credit, computed on a quarterly basis in arrears
on the last Business Day of each March, June, September and December based upon
Letters of Credit outstanding for that quarter as calculated by the
Administrative Agent. Such letter of credit fees shall be due and payable
quarterly in arrears on the last Business Day of each calendar quarter during
which Letters of Credit are outstanding, commencing on the first such quarterly
date to occur after the Closing Date, through the Revolving Loan Termination
Date (or such later date upon which the outstanding Letters of Credit shall
expire), with the final payment to be made on the Revolving Loan Termination
Date (or such later expiration date).

            (b)   Each Borrower shall pay to the applicable Issuer for its own
account a letter of credit fronting fee in the amount of 0.25% per annum of the
Stated Amount (or any increase thereof) for each Letter of Credit issued for the
account of such Borrower by such Issuer. Such Letter of Credit fronting fee
shall be due and payable quarterly in arrears on the last Business Day of each
calendar quarter during which Letters of Credit are outstanding, commencing on
the first such quarterly date to occur after the Closing Date through the
Revolving Loan Termination Date (or such later date upon which the outstanding
Letters of Credit shall expire), with the final payment to be made on the
Revolving Loan Termination Date (or such later expiration date).

            (c)   Each Borrower shall pay to the applicable Issuer with respect
to its Letters of Credit from time to time on demand the normal issuance,
presentation, amendment and other processing fees, and other standard costs and
charges, of such Issuer relating to letters of credit as from time to time in
effect.

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      3.09  Uniform Customs and Practice.

      Unless otherwise expressly agreed by an Issuer and a Borrower when a
Letter of Credit is issued and subject to applicable laws, performance under
Letters of Credit by such Issuer, its correspondents, and beneficiaries will be
governed by (i) with respect to standby Letters of Credit, the rules of the
"International Standby Practices 1998" (ISP98) or such later revision as may be
published by the International Chamber of Commerce (the "ICC"), and (ii) with
respect to commercial Letters of Credit, the rules of the Uniform Customs and
Practice for Documentary Credits, as published in its most recent version by the
ICC on the date any commercial Letter of Credit is issued, and including the ICC
decision published by the Commission on Banking Technique and Practice on April
6, 1998 regarding the Euro.

      3.10  Existing Loan Note Credit Support.

      The Loan Note Credit Support set forth under the caption "Loan Note Credit
Support outstanding on the Closing Date" on Schedule 3.10 annexed hereto and
made a part hereof was issued pursuant to the Original U.K. Credit Facility and
remains outstanding as of the Closing Date (the "Existing Loan Note Credit
Support"). Each Loan Party, the Administrative Agent, each Issuer and each of
the Lenders hereby agree with respect to the Existing Loan Note Credit Support
that such Existing Loan Note Credit Support shall, for all purposes under this
Agreement, be deemed to be a Letter of Credit governed by the terms and
conditions of this Agreement.

      3.11  Existing Letters of Credit.

      The letter of credit set forth under the caption "Letter of Credit issued
by Fleet National Bank and Outstanding on the Closing Date" on Schedule 3.11
annexed hereto and made a part hereof were originally issued pursuant to a prior
credit facility (other than the Original U.S. Credit Agreement and the Original
U.K. Credit Agreement) and remain outstanding as of the Closing Date (the
"Existing Fleet Letter of Credit"). The Existing Fleet Letters of Credit were
deemed to be Letters of Credit pursuant to the Original UK Credit Agreement. The
letters of credit set forth under the caption "Letters of Credit issued by Bank
of America, N.A. and Outstanding on the Closing Date" on such Schedule 3.11 were
issued pursuant to either the Original U.S. Credit Agreement or the Original
U.K. Credit Agreement and remain outstanding as of the Closing Date (together
with the Existing Fleet Letter of Credit, the "Existing Letters of Credit").
Each Loan Party, the Administrative Agent, each Issuer and each of the Lenders
hereby agree with respect to the Existing Letters of Credit that such Existing
Letters of Credit shall, for all purposes under this Agreement, be deemed to be
Letters of Credit governed by the terms and conditions of this Agreement.

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                                   ARTICLE IV

                     TAXES, YIELD PROTECTION AND ILLEGALITY

      4.01  Taxes.

            (a)   Unless otherwise required by law, any and all payments by any
Loan Party to any Lending Party or the Administrative Agent under this Agreement
or any other Loan Document shall be made free and clear of, and without
deduction or withholding for, any Taxes, except as otherwise provided in
Sections 4.01(e) or (f) or 4.11. In addition, each Loan Party shall pay all
applicable Other Taxes except as otherwise provided in Section 4.01(e) or (f) or
4.11.

            (b)   Subject to Sections 4.01(e) and (f), 4.10(a) and 4.11, if any
Loan Party shall be required by law to deduct or withhold any Taxes, Other Taxes
or Further Taxes from or in respect of any sum payable hereunder to any Lending
Party or the Administrative Agent, then:

                  (i)   the sum payable shall be increased as necessary so that,
      after making all required deductions and withholdings (including
      deductions and withholdings applicable to additional sums payable under
      this Section), such Lending Party or the Administrative Agent, as the case
      may be, receives and retains an amount equal to the sum it would have
      received and retained had no such deductions or withholdings been made;

                  (ii)  such Loan Party shall make such deductions and
      withholdings;

                  (iii) such Loan Party shall pay the full amount deducted or
      withheld to the relevant taxing authority or other authority in accordance
      with applicable law; and

                  (iv)  such Loan Party shall also pay to each Lending Party or
      the Administrative Agent for the account of such Lending Party, at the
      time interest is paid, Further Taxes in the amount that the respective
      Lending Party specifies as necessary to preserve the after-tax yield such
      Lending Party would have received if such Taxes, Other Taxes or Further
      Taxes had not been imposed.

            (c)   Subject to Sections 4.01(e) and (f), 4.10(a) and 4.11, each
Loan Party agrees to indemnify and hold harmless each Lending Party and the
Administrative Agent for the full amount of (i) Taxes, (ii) Other Taxes, and
(iii) Further Taxes in the amount that the respective Lending Party or the
Administrative Agent specifies as necessary to preserve the after-tax yield such
Lending Party or the Administrative Agent would have received if such Taxes,
Other Taxes or Further Taxes had not been imposed, and any liability (including
penalties, interest, additions to tax and expenses) arising therefrom or with
respect thereto, whether or not such Taxes, Other Taxes or Further Taxes were
correctly or legally asserted. Payment under this indemnification shall be made
within 30 days after the date the applicable Lending Party or the Administrative
Agent makes written demand therefor.

            (d)   Within 30 days after the date of any payment by any Loan Party
of Taxes, Other Taxes or Further Taxes, such Loan Party shall furnish to each
Lending Party or the

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<PAGE>

Administrative Agent the original or a certified copy of a receipt evidencing
payment thereof, or other evidence of payment satisfactory to such Lending Party
or the Administrative Agent.

            (e)   If any Loan Party is required to pay any amount to any Lending
Party or the Administrative Agent pursuant to Section 4.01(b) or (c), then such
Lending Party shall use reasonable efforts (consistent with legal and regulatory
restrictions) to change the jurisdiction of its Lending Office so as to
eliminate any such additional payment by such Loan Party which may thereafter
accrue, if such change in the sole judgment of such Lending Party is not
otherwise disadvantageous to such Lending Party. In the event that any Lending
Party fails to comply with its obligations as set forth in the previous
sentence, the applicable Loan Party shall not be required to pay an amount which
would not have been payable had such Lending Party complied with its obligations
under this Section 4.01(e).

            (f)   Nothing contained in this Section 4.01 shall override any term
or provision of any Specified Swap Contract regarding withholding taxes relating
to Swap Contracts.

      4.02  Illegality

            (a)   If any Lending Party determines that the introduction of any
Requirement of Law, or any change in any Requirement of Law, or in the
interpretation or administration of any Requirement of Law, has made it
unlawful, or that any central bank or other Governmental Authority has asserted
that it is unlawful, for such Lending Party or its applicable Lending Office to
make Offshore Rate Loans (including Offshore Rate Loans in any Offshore
Currency), then, on notice thereof by such Lending Party to the Borrower
Representative through the Administrative Agent, any obligation of that Lending
Party to make Offshore Rate Loans shall be suspended until such Lending Party
notifies the Administrative Agent and the Borrowers that the circumstances
giving rise to such determination no longer exist.

            (b)   If a Lending Party determines that it is unlawful to maintain
any Offshore Rate Loan the applicable Loan Party shall, upon receipt by the
Borrower Representatives of notice of such fact and demand from such Lending
Party (with a copy to the Administrative Agent), convert such Offshore Rate Loan
of that Lending Party to Base Rate Loans, in the case of Loans denominated in
Dollars, or Loans maintained at the Offshore Currency Domestic Rate, in the case
of Loans denominated in an Offshore Currency (either on the last day of the
Interest Period thereof, if such Lending Party may lawfully continue to maintain
such Offshore Rate Loans to such day, or immediately, if such Lending Party may
not lawfully continue to maintain such Offshore Rate Loan) and shall pay or
prepay, as the case may be, all interest accrued therein together with amounts
required under Section 4.04 as a result of such conversion on the date of such
conversion.

            (c)   If the obligation of any Lender to make or maintain Offshore
Rate Loans has been so terminated or suspended, a Borrower may elect, by giving
notice to such Lender through the Administrative Agent that all Dollar
denominated Loans which would otherwise be made by such Lender as Offshore Rate
Loans shall be instead Base Rate Loans and all Offshore Currency denominated
Loans shall instead be maintained at the Offshore Currency Domestic Rate.

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<PAGE>

            (d)   Before giving any notice to the Administrative Agent under
this Section 4.02, the affected Lending Party shall designate a different
Lending Office with respect to its Offshore Rate Loans if such designation will
avoid the need for giving such notice or making such demand and will not, in the
judgment of such Lending Party, be illegal or otherwise disadvantageous to such
Lending Party.

      4.03  Increased Costs and Reduction of Return.

            (a)   If any Lending Party determines that, due to either (i) the
introduction of or any change in or in the interpretation of any law or
regulation or (ii) the compliance by such Lending Party with any guideline or
request issued after the Closing Date from any central bank or other
Governmental Authority (whether or not having the force of law), there shall be
any increase in the cost to such Lending Party of agreeing to make or making,
funding or maintaining any Offshore Rate Loans, participating in Letters of
Credit, agreeing to Issue, Issuing or maintaining any Letter of Credit or
funding any drawing under any Letter of Credit or any participation therein, as
the case may be, then the applicable Loan Party shall be liable for, and shall
from time to time, upon demand (with a copy of such demand to be sent to the
Administrative Agent), pay to such Lending Party additional amounts as are
sufficient to compensate such Lending Party for such increased costs.

            (b)   If any Lending Party shall have determined that after the
Closing Date (i) the introduction of any Capital Adequacy Regulation, (ii) any
change in any Capital Adequacy Regulation, (iii) any change in the
interpretation or administration of any Capital Adequacy Regulation by any
central bank or other Governmental Authority charged with the interpretation or
administration thereof, or (iv) compliance by such Lending Party (or its Lending
Office) or any Person controlling such Lending Party with any Capital Adequacy
Regulation, affects or would affect the amount of capital required or expected
to be maintained by such Lending Party or any Person controlling such Lending
Party and (taking into consideration such Lending Party's or such Person's
policies with respect to capital adequacy and such Lending Party's or such
Person's desired return on capital) determines that the amount of such capital
is increased as a consequence of its Commitment, Loans, Issuance of Letters of
Credit or other obligations under this Agreement, then, upon demand of such
Lending Party to the Borrowers with a copy to the Administrative Agent, the
applicable Loan Party shall pay to such Lending Party, from time to time as
specified by such Lending Party, additional amounts sufficient to compensate
such Lending Party or such Person for such increase.

      4.04  Funding Losses.

      Each Loan Party shall promptly reimburse each Lending Party and hold each
Lending Party harmless from any loss or expense which such Lending Party may
sustain or incur as a consequence of:

            (a)   the failure of such Loan Party to make on a timely basis any
payment of principal of any Offshore Rate Loan;

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<PAGE>

            (b)   the failure of such Loan Party to borrow, continue or convert
a Loan after such Loan Party has given (or is deemed to have given) a Notice of
Borrowing or a Notice of Conversion/Continuation;

            (c)   in the case of any Borrower, the failure of such Borrower to
make any prepayment in accordance with any notice delivered under Section 2.07;

            (d)   the prepayment (including pursuant to Sections 2.08 and 2.09)
or other payment (including after acceleration thereof) of an Offshore Rate Loan
on a day that is not the last day of the relevant Interest Period; or

            (e)   in the case of a Borrower, the automatic conversion under
Section 2.04 of any Offshore Rate Loan to a Base Rate Loan on a day that is not
the last day of the relevant Interest Period.

including any such loss or expense arising from the liquidation or reemployment
of funds obtained by it to maintain its Offshore Rate Loans or from fees payable
to terminate the deposits from which such funds were obtained. For purposes of
calculating amounts payable by such Loan Party to the Lending Parties under this
Section 4.04 and under Section 4.03(a), each Offshore Rate Loan made by a Lender
(and each related reserve, special deposit or similar requirement) shall be
conclusively deemed to have been funded at the Offshore Rate for such Offshore
Rate Loan by a matching deposit or other borrowing in the interbank eurocurrency
market for a comparable amount, comparable currency and for a comparable period,
whether or not such Offshore Rate Loan is in fact so funded.

      4.05  Inability to Determine Rates.

      If the Administrative Agent determines that for any reason adequate and
reasonable means do not exist for determining the Spot Rate with respect to the
Offshore Rate for any requested Interest Period with respect to a proposed
Offshore Rate Loan, or that the Offshore Rate applicable pursuant to Section
2.10 for any requested Interest Period with respect to a proposed Offshore Rate
Loan does not adequately and fairly reflect the cost to the Lenders of funding
such Loan, the Administrative Agent will promptly so notify the Borrower
Representatives and each Lending Party. Thereafter, the obligation of each
Lending Party to make or maintain Offshore Rate Loans hereunder shall be
suspended until the Administrative Agent revokes such notice in writing. Upon
receipt of such notice, any Loan Party may revoke any applicable Notice of
Borrowing or Notice of Conversion/Continuation then submitted by it. If any such
Loan Party does not revoke any such Notice, such Lending Party shall make,
convert or continue the Offshore Rate Loans, in the amount specified in the
applicable notice submitted by such Loan Party, but such Offshore Rate Loans
shall be made, converted or continued as (x) in the case of Loans to be
denominated in Dollars, Base Rate Loans instead of Offshore Rate Loans or (y) in
the case of Loans to be denominated in an Offshore Currency, Loans maintained at
the Offshore Currency Domestic Rate instead of Offshore Rate Loans.

      4.06  Reserves on Offshore Rate Loans.

      Each Loan Party shall pay to each Lending Party, as long as such Lending
Party shall be required under regulations of the FRB to maintain reserves with
respect to liabilities or assets

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<PAGE>

consisting of or including Eurocurrency funds or deposits (currently known as
"Eurocurrency liabilities"), and, in respect of Loans denominated in an Offshore
Currency under any applicable regulations of the relevant Governmental Authority
of the jurisdiction in which the Offshore Currency circulates, additional costs
on the unpaid principal amount of each Offshore Rate Loan equal to the actual
costs of such reserves allocated to such Loan by such Lending Party (as
reasonably determined by such Lending Party in good faith, which determination
shall be conclusive), payable on each date on which interest is payable on such
Loan. The Administrative Agent shall provide a notice of any such reserve in
effect on the date hereof and of any change thereof after the date hereof, and
any such additional costs shall be included in the definition of "Offshore Rate"
and be payable on the next date upon which interest is payable or otherwise on
demand.

      4.07  Exchange Controls.

      If the imposition of exchange controls by any Governmental Authority shall
impair the ability of any Lender to receive payments (other than relating to any
Existing Sterling Term Loan or Sterling Term Loan) in the Applicable Currency,
all such payments shall be made in Dollars to an office specified by such Lender
to the extent possible or otherwise as directed by such Lender.

      4.08  Certificates of Lending Party.

      Any Lending Party claiming reimbursement or compensation under this
Article IV shall deliver to the Borrower Representatives (with a copy to the
Administrative Agent) a certificate setting forth in reasonable detail the
amount payable to such Lending Party hereunder and such certificate shall be
conclusive and binding on the Loan Parties in the absence of manifest error.

      4.09  Substitution of Lenders.

      Upon (x) the receipt by a Borrower of a claim for compensation under
Sections 4.01, 4.02, 4.03 or 4.04 from any Lender or (y) a demand from the
Administrative Agent under Section 2.14(a) regarding any Lender or (z) a notice
from a Lender to the Administrative Agent pursuant to Section 2.16(b) or (c) (in
either case such Lender being an "Affected Lender"), the Borrower Representative
may, with the Administrative Agent's assistance: (i) obtain a replacement bank
or financial institution satisfactory to the Borrower Representative and to the
Administrative Agent (a "Replacement Lender") to acquire and assume all or a
ratable part of all of such Affected Lender's Commitments, Loans and other
rights and obligations under this Agreement (collectively such Lender's
"Assignable Credit Exposure"), and if such Affected Lender or any Affiliate
thereof is a Swap Provider, all Specified Swap Contracts of such Affected Lender
and Affiliate; or (ii) request one or more of the other Lenders (which shall be
under no obligation) to acquire and assume all or part of such Affected Lender's
Assignable Credit Exposure. Any such designation of a Replacement Lender under
clause (i) shall be subject to the prior written consent of the Administrative
Agent (which consent shall not be unreasonably withheld). Before the acquisition
and assumption by a Replacement Lender or existing Lender of an Affected
Lender's Assignable Credit Exposure can be effective, the Loan Parties must pay
to the Affected Lender any costs and expenses due to it under Section 4.04.

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      4.10  Withholding Tax.

            (a)   (i)   Each Lender that is not a "United States person" within
the meaning of Section 7701(a)(30) of the Code (a "Foreign Lender") shall
deliver to the Administrative Agent, prior to receipt of any payment subject to
withholding under the Code (or upon accepting an assignment of an interest
herein), two duly signed completed copies of either IRS Form W-8BEN or any
successor thereto (relating to such Foreign Lender and entitling it to an
exemption from, or reduction of, withholding tax on all payments to be made to
such Foreign Lender by the Borrower pursuant to this Agreement) or IRS Form
W-8ECI or any successor thereto (relating to all payments to be made to such
Foreign Lender by the Borrower pursuant to this Agreement) or such other
evidence satisfactory to the Borrower and the Administrative Agent that such
Foreign Lender is entitled to an exemption from, or reduction of, U.S.
withholding tax, including any exemption pursuant to Section 881(c) of the Code.
Thereafter and from time to time, each such Foreign Lender shall (A) promptly
submit to the Administrative Agent such additional duly completed and signed
copies of one of such forms (or such successor forms as shall be adopted from
time to time by the relevant United States taxing authorities) as may then be
available under then current United States laws and regulations to avoid, or
such evidence as is satisfactory to the Borrower and the Administrative Agent of
any available exemption from or reduction of, United States withholding taxes in
respect of all payments to be made to such Foreign Lender by the Borrower
pursuant to this Agreement, (B) promptly notify the Administrative Agent of any
change in circumstances which would modify or render invalid any claimed
exemption or reduction, and (C) take such steps as shall not be materially
disadvantageous to it, in the reasonable judgment of such Lender, and as may be
reasonably necessary (including the re-designation of its Lending Office) to
avoid any requirement of applicable Laws that the Borrower make any deduction or
withholding for taxes from amounts payable to such Foreign Lender.

            (ii)  Each Foreign Lender, to the extent it does not act or ceases
to act for its own account with respect to any portion of any sums paid or
payable to such Lender under any of the Loan Documents (for example, in the case
of a typical participation by such Lender), shall deliver to the Administrative
Agent on the date when such Foreign Lender ceases to act for its own account
with respect to any portion of any such sums paid or payable, and at such other
times as may be necessary in the determination of the Administrative Agent (in
the reasonable exercise of its discretion), (A) two duly signed completed copies
of the forms or statements required to be provided by such Lender as set forth
above, to establish the portion of any such sums paid or payable with respect to
which such Lender acts for its own account that is not subject to U.S.
withholding tax, and (B) two duly signed completed copies of IRS Form W-8IMY (or
any successor thereto), together with any information such Lender is required to
transmit with such form, and any other certificate or statement of exemption
required under the Code, to establish that such Lender is not acting for its own
account with respect to a portion of any such sums payable to such Lender.

            (iii) The Borrower shall not be required to pay any additional
amount to any Foreign Lender under Section 4.01 (A) with respect to any Taxes
required to be deducted or withheld on the basis of the information,
certificates or statements of exemption such Lender transmits with an IRS Form
W-8IMY pursuant to this Section 4.10(a) or (B) if such Lender shall have failed
to satisfy the foregoing provisions of this Section 4.10(a); provided that if
such

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Lender shall have satisfied the requirement of this Section 4.10(a) on the date
such Lender became a Lender or ceased to act for its own account with respect to
any payment under any of the Loan Documents, nothing in this Section 4.10(a)
shall relieve the Borrower of its obligation to pay any amounts pursuant to
Section 4.01 in the event that, as a result of any change in any applicable law,
treaty or governmental rule, regulation or order, or any change in the
interpretation, administration or application thereof, such Lender is no longer
properly entitled to deliver forms, certificates or other evidence at a
subsequent date establishing the fact that such Lender or other Person for the
account of which such Lender receives any sums payable under any of the Loan
Documents is not subject to withholding or is subject to withholding at a
reduced rate.

            (iv)  The Administrative Agent may, without reduction, withhold any
Taxes required to be deducted and withheld from any payment under any of the
Loan Documents with respect to which the Borrower is not required to pay
additional amounts under this Section 4.10(a).

            (v)   If any Lender claims exemption from, or reduction of,
withholding tax by providing IRS Form W-8BEN, W-8ECI or W-8IMY and such Lender
sells, assigns, or (other than pursuant to clause (b) below) otherwise transfers
all or part of the Obligations of the Borrowers to such Lender, such Lender
agrees to notify the Administrative Agent of the percentage amount in which it
is no longer the owner of Obligations of the Borrowers to another Lender. To the
extent of such percentage amount, the Administrative Agent will treat such
Lender's IRS Form W-8BEN, W-8ECI or W-8IMY (or any successor form), as the case
may be, as no longer valid.

            (vi)  If any Lender claims an exemption from, or reduction of,
withholding tax by providing IRS Form W-8BEN, W-8ECI or W-8IMY (or any successor
form) and such Lender grants a participation in the Obligations of a Borrower to
such Lender, such Lender agrees to notify the Administrative Agent of the
percentage amount in which it is no longer the beneficial owner of Obligations
of a Borrower to another Lender, and such Lender agrees to undertake
responsibility to provide to the Borrower Representatives and the Administrative
Agent such forms and documentation (including IRS Form W-8IMY and forms and
documentation provided by such participant to the extent required by the IRS)
from such participant to enable the Borrowers to comply with the withholding tax
requirements imposed by Sections 1441 and 1442 of the Code.

            (vii) If any Lender is entitled to a reduction in the applicable
withholding tax, the Administrative Agent may withhold from any interest payment
to such Lender an amount equivalent to the applicable withholding tax after
taking into account such reduction. However, if the forms or other documentation
required by this Section 4.01(a) are not delivered to the Administrative Agent,
then the Administrative Agent may withhold from any interest payment to such
Lender not providing such forms or other documentation an amount equivalent to
the applicable withholding tax imposed by Sections 1441 and 1442 of the Code,
without reduction.

            (b)   Upon the request of the Administrative Agent, each Lender that
is a "United States person" within the meaning of Section 7701(a)(30) of the
Code shall deliver to the Administrative Agent two duly signed completed copies
of IRS Form W-9. If such Lender

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fails to deliver such forms, then the Administrative Agent may withhold from any
interest payment to such Lender an amount equivalent to the applicable back-up
withholding tax imposed by the Code, without reduction.

            (c)   If the IRS or any Governmental Authority asserts that the
Administrative Agent did not properly withhold or backup withhold, as the case
may be, any tax or other amount from payments made to or for the account of any
Lender, such Lender shall indemnify the Administrative Agent therefor, including
all penalties and interest, any taxes imposed by any jurisdiction on the amounts
payable to the Administrative Agent under this Section, and costs and expenses
(including Attorney Costs) of the Administrative Agent. The obligation of the
Lenders under this Section shall survive the termination of the Aggregate
Commitments, repayment of all other Obligations hereunder and the resignation of
the Administrative Agent.

      4.11  U.K. Tax Matters.

      Each Lender holding a Loan to the Company and KAB Seating represents to
the Borrowers and the Administrative Agent that, in the case of a Lender which
is a Lender on the Closing Date and, in the case of a Lender which becomes a
Lender after the Closing Date, on the date it becomes a Lender it is:

                  (A)   either:

                        (1)   not resident in the United Kingdom for United
Kingdom tax purposes and is entitled to receive any payments under this
Agreement without any withholding or deduction for or on account of Taxes under
a double taxation agreement in force on the date when a payment falls due
(subject to the completion of any necessary procedural formalities); or

                        (2)   a "bank" as defined in section 349 of the Income
and Corporation Taxes Act 1988 and resident in the United Kingdom and is within
the charge to United Kingdom corporation tax as respects any payment of interest
paid under this Agreement; and

                  (B)   beneficially entitled to the principal and interest
payable by the Borrowers to it under this Agreement,

and shall forthwith notify the Borrower Representatives and the Administrative
Agent if either representation ceases to be correct.

      Each Lender that is not funding its Loans to the Company and KAB Seating
out of a Lending Office in the United Kingdom shall promptly submit a duly
completed Form FD13 double tax treaty form to the U.S. Internal Revenue Service
(or the comparable form for its jurisdiction to its jurisdiction's tax
authorities) seeking exemption from United Kingdom income tax on interest
payable under the Loan Documents by the Company and KAB Seating.

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      4.12  Survival.

      The agreements and obligations of the Loan Parties in this Article IV
shall survive the payment of all other Obligations.

                                    ARTICLE V
                              CONDITIONS PRECEDENT

      5.01  Conditions to Effectiveness of Amendment and Restatement.

      The effectiveness of this amendment and restatement of the Original U.S
Credit Agreement and the Original U.K. Credit Agreement, and the obligation of
each Lender to make its initial Credit Extension hereunder, is subject to the
condition that the Administrative Agent shall have received each of the
following, in form and substance satisfactory to the Administrative Agent, and
in sufficient copies for each Lender:

            (a)   Amended and Restated Credit Agreement. This Agreement duly
executed by each party hereto;

            (b)   Resolutions; Incumbency. With respect to each Borrower and
each Guarantor:

                  (i)   copies of the resolutions of the board of directors of
      such Person authorizing the execution and delivery of the Transaction
      Documents to which it is a party and the transactions contemplated
      thereby, certified by the Secretary or an Assistant Secretary of such
      Person; and

                  (ii)  a certificate of the Secretary or Assistant Secretary of
      such Person, dated as of the Closing Date, and certifying the names and
      true signatures of the officers of such Person authorized to execute,
      deliver and perform, as applicable, this Agreement and all other Loan
      Documents to be delivered by it hereunder;

            (c)   Organization Documents; Good Standing. Each of the following
documents with respect to each Borrower and each Guarantor:

                  (i)   articles or certificate of incorporation, memorandum and
      articles of association, bylaws and board of directors resolutions of such
      Person as then in effect, certified by the Secretary or Assistant
      Secretary of such Person; and

                  (ii)  a good standing certificate for such Person from the
      Secretary of State (or similar, applicable Governmental Authority) of its
      state of incorporation and each state where such Person is qualified to do
      business as a foreign corporation as of a recent date, together with a
      bring-down certificate by facsimile;

            (d)   Borrower Certificates. A certificate signed by a Responsible
Officer of each Borrower, dated as of the Closing Date:

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                  (i)   stating that the representations and warranties
      contained in Article VI are true and correct in all material respects on
      and as of such date, as though made on and as of such date (except to the
      extent such representations and warranties expressly refer to an earlier
      date, in which case they shall be true and correct as of such earlier
      date); and

                  (ii)  stating that no Default or Event of Default exists or
      would result from the Credit Extension to be made on the Closing Date;

            (e)   BHI Certificate. A certificate signed by a Responsible Officer
of BHI, dated as of the Closing Date:

                  (i)   stating that the representations and warranties
      contained in Article VI are true and correct in all material respects on
      and as of such date, as though made on and as of such date (except to the
      extent such representations and warranties expressly refer to an earlier
      date, in which case they shall be true and correct as of such earlier
      date); and

                  (ii)  stating that no Default or Event of Default exists or
      would result from the Credit Extension to be made on the Closing Date; and

                  (iii) stating that there has occurred since December 31, 2001,
      no event or circumstance that has resulted or would reasonably be expected
      to result in a materially adverse effect on the business, assets,
      liabilities (actual or contingent), operations, condition (financial or
      otherwise) or prospects of BHI or any of its Subsidiaries, except as
      disclosed in financial statements referred to in Section 6.11(a) and on
      Schedule 6.11;

            (f)   Environmental Review. Such environmental site assessments with
respect to the real property of BHI or any of its Subsidiaries as shall be
requested by the Administrative Agent; provided, that the Administrative Agent
agrees that it will not request as a condition to the effectiveness of this
Agreement any such site assessment with regard to property over which a mortgage
has been filed in favor of the Administrative Agent prior to the Closing Date
and provided further that any such site assessment for the Vonore, Tennessee
property shall not be required to be delivered until 120 days after the date
hereof.

            (g)   Financials.

      A copy of the audited consolidated financial statements of CVS Holdings,
Inc. and its Subsidiaries for the fiscal year ended December 31, 2002;

            (h)   Reaffirmations of Collateral Documents. A fully executed copy
of the Reaffirmation Agreement, a fully executed copy of the Deed of
Confirmation and such other reaffirmations or confirmations of existing
Collateral Documents, executed by the applicable Loan Parties, as the
Administrative Agent may reasonably request.

            (i)   Collateral Documents. Collateral Documents executed by each
Loan Party in appropriate form for recording, where necessary, together with:

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                  (i)    evidence satisfactory to the Administrative Agent that
      there has been or will be filed, registered or recorded all filings,
      registrations, recordings and UCC financing statements (including in-lieu
      UCC financing statements), necessary and advisable to perfect the Liens of
      the Administrative Agent for the benefit of the Administrative Agent, the
      Issuers and the Lenders in accordance with applicable law;

                  (ii)   a duly completed perfection certificate from each Loan
      Party, in the form attached hereto as Exhibit I;

                  (iii)  in the case of each U.K. Subsidiary of BHI that is a
      Loan Party, searches from Companies House showing no encumbrances on the
      charges registered with respect to such Person and in the case of each
      U.S. Subsidiary of BHI, written advice relating to such Lien and judgment
      searches as the Administrative Agent shall have requested, and such
      termination statements or other documents as may be necessary to confirm
      that the Collateral is subject to no other Liens in favor of any Person
      (other than Permitted Liens);

                  (iv)   all certificates and instruments representing the
      Pledged Collateral and stock transfer powers executed in blank as the
      Administrative Agent or the Lenders may specify;

                  (v)    to the extent requested by the Administrative Agent,
      funds sufficient to pay any filing or recording tax or fee in connection
      with any and all UCC financing statements;

                  (vi)   evidence that the Collateral Agent has been named as
      loss payee under all policies of casualty insurance, and as additional
      insured under all policies of liability insurance;

                  (vii)  such consents, estoppels, subordination agreements,
      waivers and other documents and instruments executed by landlords,
      tenants, bailees, warehousemen and other Persons party to material
      contracts relating to any Collateral located in the United States, except
      Collateral constituting Excluded Offsite Inventory and Equipment
      (including, without limitation, a duly executed landlord waiver with
      respect to each parcel of leased real property of BHI and its Subsidiaries
      located in the United States, in form and substance satisfactory to the
      Administrative Agent) to which the Collateral Agent shall be granted a
      Lien for the benefit of the Administrative Agent, the Issuers and the
      Lenders, as reasonably requested by the Administrative Agent;

                  (viii) evidence that all other actions necessary or, in the
      opinion of the Administrative Agent, desirable to perfect and protect the
      first priority Liens (subject to Permitted Liens) created by the
      Collateral Documents, and to enhance the Administrative Agent's ability to
      preserve and protect its interests in and access to the Collateral, have
      been taken; and

                  (ix)   a fully executed First Amendment to Deed of Trust,
      Security Agreement, Assignment of Leases and Rents and financing
      statement, dated as of the date hereof, regarding the Deed of Trust,
      Security Agreement, Assignment of Leases and

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      Rents and Financing Statement dated as of March 31, 2000 and recorded on
      April 6, 2000 as Document No. 2000-022116 in the Office of the County
      Clerk of Clackamas County, Oregon;

            (j)   Legal Opinions. An opinion addressed to the Administrative
Agent and the Lenders, dated as of the Closing Date, (i) of Kirkland & Ellis, as
special U.S. counsel to BHI, the Company, CVS Holdings Ltd., Bostrom Ltd.,
Bostrom International, KAB Seating, NSC, CVS Holdings, Inc. and CVS, Inc., (iii)
of Kirkland & Ellis, as special English counsel to the Company, KAB Seating, CVS
Holdings Ltd., Bostrom Ltd. and each other U.K. Subsidiary of BHI that is a
Guarantor; (iv) of Howes Percival, as special English counsel to the Company,
KAB Seating, CVS Holdings Ltd., Bostrom Ltd. and each other U.K. Subsidiary of
BHI that is a Guarantor, and (v) of Mayer, Brown, Rowe & Maw, special English
counsel to the Administrative Agent, each in form and substance reasonably
satisfactory to the Administrative Agent;

            (k)   Solvency Certificates. A written solvency certificate from the
chief financial officer of BHI in the form of Exhibit F-1, dated as of the
Closing Date, with respect to the Solvency of BHI, and a written solvency
certificate dated as of the Closing Date with respect to the Company, KAB
Seating, NSC, and CVS, Inc., each on a stand-alone basis, certified by the chief
financial officer of each such Borrower, in the form of Exhibit F-2, Exhibit
F-3, Exhibit F-4 and Exhibit F-5, respectively;

            (l)   Completion of the Merger. The Administrative Agent shall have
received a certificate executed by a Responsible Officer of BHI certifying that
the Merger has been completed;

            (m)   Management Agreement. The Administrative Agent shall have
received a true and correct copy of the Management Agreement as in effect on the
Closing Date, certified as such by a Responsible Officer of BHI; and

            (n)   Payment of Fees. The Administrative Agent shall have received
evidence of payment (in the form of a check or wire transfer confirmation
number) by BHI and the Company of all accrued and unpaid fees, costs and
expenses to the extent then due and payable, together with Attorney Costs of
Bank of America to the extent invoiced prior to or on the Closing Date,
including any such costs, fees and expenses arising under or referenced in
Sections 2.11 and 11.04.

      5.02  Conditions to All Credit Extensions.

      The obligation of each Lender to make any Loan to be made by it (including
its initial Loan) and the obligation of an Issuer to Issue, renew or amend any
Letter of Credit (including the existing Letters of Credit) is subject to the
satisfaction of the following conditions precedent on the relevant Borrowing
Date or Issuance Date:

            (a)   Notice, Application. The Administrative Agent shall have
received (with, in the case of the initial Loans only, a copy for each Lender) a
Notice of Borrowing or, in the case of any Issuance of any Letter of Credit, the
applicable Issuer and the Administrative Agent

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shall have received an L/C Application or L/C Amendment Application, as required
under Section 3.02.

            (b)   Continuation of Representations and Warranties. The
representations and warranties in Article VI shall be true and correct in all
material respects on and as of such Borrowing Date or Issuance Date with the
same effect as if made on and as of such Borrowing Date or Issuance Date (except
to the extent such representations and warranties expressly refer to an earlier
date, in which case they shall be true and correct as of such earlier date); and

            (c)   No Existing Default. No Default or Event of Default shall
exist or shall result after giving effect to such Borrowing, continuation,
conversion or Issuance.

            Each Notice of Borrowing, L/C Application or L/C Amendment
Application submitted by, or on behalf of, a Borrower shall constitute a
representation and warranty by such Borrower, as of the date of each such notice
and as of each Borrowing Date or Issuance Date, as applicable, that the
conditions in this Section 5.02 are satisfied.

                                   ARTICLE VI

                         REPRESENTATIONS AND WARRANTIES

      BHI and each Borrower represent and warrant to the Administrative Agent,
the Collateral Agent and each Lender that:

      6.01  Corporate Existence and Power.

      Each Loan Party:

            (a)   is a corporation, company or limited partnership, limited
liability company or unlimited liability company, as the case may be, duly
organized or formed, validly existing and in good standing under the laws of the
jurisdiction of its incorporation, formation or organization;

            (b)   has the power and authority and all governmental licenses,
authorizations, consents and approvals to own its assets, to carry on its
business in all material respects and to execute, deliver, and perform its
obligations under the Transaction Documents to which it is a party;

            (c)   is duly qualified as a foreign or extra provincial corporation
and is licensed and in good standing under the laws of each jurisdiction where
failure to be so qualified or licensed would reasonably be expected to have a
Material Adverse Effect; and

            (d)   is in compliance with all Requirements of Law; except, in each
case referred to in clause (c) or clause (d), to the extent that the failure to
do so would not reasonably be expected to have a Material Adverse Effect.

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      6.02  Corporate Authorization; No Contravention.

      The execution, delivery and performance by BHI and its Subsidiaries of
this Agreement and each other Transaction Document to which such Person is
party, have been duly authorized by all necessary corporate or partnership or
similar action, and do not and will not:

            (a)   contravene the terms of any of that Person's Organization
Documents;

            (b)   conflict with or result in any breach or contravention of, or
the creation of any Lien under, any document evidencing any material Contractual
Obligation to which such Person is a party or any order, injunction, writ or
decree of any Governmental Authority to which such Person or its property is
subject; or

            (c)   violate any Requirement of Law.

      6.03  Governmental Authorization.

      No material approval, consent, exemption, authorization, or other action
by, or notice to, or filing with, any Governmental Authority (except those that
have been obtained and remain in effect and for recordings or filings in
connection with the Liens granted to the Collateral Agent under the Collateral
Documents, compliance with securities laws and other laws regarding disposition
of collateral or releases of Liens) is necessary or required in connection with
the execution, delivery or performance by, or enforcement against, BHI or any of
its Subsidiaries of the Agreement or any other Transaction Document other than
those approvals, consents, exemptions and authorizations which have already been
obtained, other than the registration of certain of the Collateral Documents as
required by Section 395 of the Companies Act.

      6.04  Binding Effect.

      This Agreement and each other Loan Document to which BHI or any of its
Subsidiaries is a party constitute the legal, valid and binding obligations of
BHI and any of its Subsidiaries to the extent it is a party thereto, enforceable
against such Person in accordance with their respective terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, or similar
laws affecting the enforcement of creditors' rights generally or by equitable
principles relating to enforceability.

      6.05  Litigation.

            (a)   There are no actions, suits, proceedings, claims or disputes
pending, or to the best knowledge of BHI or any Borrower, threatened or
contemplated, at law, in equity, in arbitration or before any Governmental
Authority, against BHI or any of its Subsidiaries or any of their respective
properties:

                  (i)   which purport to affect or pertain to this Agreement,
      any other Transaction Document or the Merger, or any of the transactions
      contemplated hereby or thereby; or

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<PAGE>

                  (ii)  if determined adversely to BHI or any of its
      Subsidiaries would reasonably be expected to have a Material Adverse
      Effect.

            (b)   No injunction, writ, temporary restraining order or any order
of any nature has been issued by any court or other Governmental Authority
purporting to enjoin or restrain the execution, delivery or performance of this
Agreement, any other Transaction Document or the Merger, or directing that the
transactions provided for herein or therein not be consummated as herein or
therein provided.

      6.06  No Default.

      No Default or Event of Default exists or would result from the incurring
of any Obligations by any Loan Party or from the grant or perfection of the
Liens of the Collateral Agent and the Lenders on the Collateral. As of the
Closing Date, no Loan Party nor any of their Subsidiaries is in default under or
with respect to any Contractual Obligation or any Transaction Document in any
respect which, individually or together with all such defaults, could reasonably
be expected to have a Material Adverse Effect, or that would, if such default
had occurred after the Closing Date, create an Event of Default under Section
9.01(e).

      6.07  ERISA Compliance.

      Except as specifically disclosed in Schedule 6.07:

            (a)   Each Plan is in compliance in all material respects with the
applicable provisions of ERISA, the Code and other federal or state law. Each
Plan which is intended to qualify under Section 401(a) of the Code has received
a favorable determination letter from the IRS and to the best knowledge of the
Company, nothing has occurred which would cause the loss of such qualification.
BHI and each ERISA Affiliate has made all required contributions to any Plan
subject to Section 412 of the Code, and no application for a funding waiver or
an extension of any amortization period pursuant to Section 412 of the Code has
been made with respect to any Plan.

            (b)   There are no pending or, to the best knowledge of BHI,
threatened claims, actions or lawsuits, or action by any Governmental Authority,
with respect to any Plan which has resulted or would reasonably be expected to
result in a Material Adverse Effect. There has been no prohibited transaction or
violation of the fiduciary responsibility rules with respect to any Plan which
has resulted or would reasonably be expected to result in a Material Adverse
Effect.

            (c)   (i) No ERISA Event has occurred or is reasonably expected to
occur; (ii) no Pension Plan has any Unfunded Pension Liability; (iii) neither
BHI nor any ERISA Affiliate has incurred, or reasonably expects to incur, any
liability under Title IV of ERISA with respect to any Pension Plan (other than
premiums due and not delinquent under Section 4007 of ERISA); (iv) neither BHI
nor any ERISA Affiliate has incurred, or reasonably expects to incur, any
liability (and no event has occurred which, with the giving of notice under
Section 4219 of ERISA, would result in such liability) under Section 4201 or
4243 of ERISA with respect to a Multiemployer Plan; and (v) neither BHI nor any
ERISA Affiliate has engaged in a transaction that could be subject to Section
4069 or 4212(c) of ERISA.

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            (d)   Each Non-U.S. Pension Plan has been maintained in substantial
compliance with its terms and with the requirements of any and all applicable
laws, statutes, rules, regulations and orders and has been maintained, where
required, in good standing with applicable regulatory authorities. Neither BHI
nor any of its Subsidiaries has incurred any obligation in connection with the
termination of or withdrawal from any Non-U.S. Pension Plan. The present value
of the accumulated benefit obligations (whether or not vested) under each
Non-U.S. Pension Plan, determined as of the end of BHI's most recently ended
fiscal year on the basis of actuarial assumptions, each of which is reasonable,
did not exceed the current value of the assets of such Non-U.S. Pension Plan
allocable to such benefit liabilities by more than 2,500,000 Sterling.

      6.08  Use of Proceeds; Margin Regulations.

      The proceeds of the Loans are to be used solely for the purposes set forth
in and permitted by Section 7.12 and Section 8.07. Neither BHI nor any
Subsidiary is generally engaged in the business of purchasing or selling Margin
Stock or extending credit for the purpose of purchasing or carrying Margin
Stock.

      6.09  Title to Properties.

      BHI and each of its Subsidiaries have good record and marketable title in
fee simple to, or valid leasehold interests in, all real property necessary or
used in the ordinary conduct of their respective businesses, except for such
defects in title as would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. As of the Closing Date, the property
of BHI and its Subsidiaries is subject to no Liens, other than Permitted Liens.

      6.10  Taxes.

      BHI and its Subsidiaries have filed all U.S. federal and other material
tax returns and reports required to be filed, and have paid, collected,
withheld, deducted and remitted to the appropriate governmental authority all
U.S. and other material taxes, assessments, fees and other governmental charges
levied or imposed upon them or their properties, income or assets or otherwise
due and payable, or required to be collected, withheld, deducted or remitted
when due and payable except those which are being contested in good faith by
appropriate proceedings and for which adequate reserves have been provided in
accordance with GAAP. There is no proposed tax assessment against BHI, the
Company or any Subsidiary that would, if made, have a Material Adverse Effect.

      6.11  Financial Condition.

            (a)   (i)    Attached hereto as Schedule 6.11 is a true and correct
copy of the audited consolidated financial statements of CVS Holdings, Inc. and
its Subsidiaries for the fiscal year ended December 31, 2002, together with the
opinion thereon of Deloitte Touche Tohmatsu, independent certified public
accountants, a copy of which is contained in Schedule 6.11(a), and, to the
knowledge of BHI and the Borrowers, such financial statements fairly present in
all material respects the financial condition of BHI and its Subsidiaries as at
such date and of the profit and cash flows of BHI and its Subsidiaries for the
period then ended and have been properly prepared in accordance with GAAP.

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<PAGE>

                  (ii)  Attached hereto as Schedule 6.11 is a true and correct
copy of (x) the audited consolidated financial statements of CVS Holdings Ltd.,
for the fiscal year ended December 31, 2001, together with the opinion thereon
of Deloitte Touche Tohmatsu, independent certified public accountants, a copy of
which is contained in Schedule 6.11(a)(iii), and (y) unaudited consolidated
financial statements of such Person for each of the first three fiscal quarters
of 2002 and, to the knowledge of BHI and the Borrowers, such financial
statements fairly present in all material respects the financial condition of
CVS Holdings Ltd. and its Subsidiaries as at such date and of the profit and
cash flows of CVS Holdings Ltd. and its Subsidiaries for the period then ended
and have been properly prepared in accordance with GAAP.

            (b)   Except as reflected in the financial statements and the notes
related thereto delivered pursuant to Section 6.11(a) and on Schedule 6.11 there
were as of the Closing Date (and after giving effect to the Transaction and the
other transactions contemplated hereby) no liabilities or obligations with
respect to BHI and its Subsidiaries of any nature whatsoever (whether absolute,
accrued, contingent or otherwise and whether or not due) which, either
individually or in aggregate, would be material to BHI and its Subsidiaries. As
of the Closing Date (and after giving effect to the Transaction and the other
transactions contemplated hereby), the Company does not know of any basis for
the assertion against BHI or any of its Subsidiaries of any liability or
obligation of any nature whatsoever that is not reflected in the financial
statements or the notes related thereto delivered pursuant to Section 6.11(a) or
on Schedule 6.11 which, either individually or in the aggregate, could be
material to BHI and its Subsidiaries.

            (c)   Since December 31, 2001, there has been no Material Adverse
Effect except as disclosed in financial statements referred to in Section
6.11(a) and on Schedule 6.11 hereto.

            (d)   Since December 31, 2001, there has been (a) no material
adverse change in, or material adverse effect upon, the operations, business,
properties or condition (financial or otherwise) of CVS Holdings Ltd. and its
Subsidiaries taken as a whole; or (b) a material impairment of the ability of
CVS Holdings Ltd. and its Subsidiaries taken as a whole to perform any material
obligation under any Loan Document and to avoid any Event of Default.

            (e)   Since December 31, 2002, there has been (a) no material
adverse change in, or material adverse effect upon, the operations, business,
properties or condition (financial or otherwise) of CVS Holdings, Inc. and its
Subsidiaries taken as a whole; or (b) a material impairment of the ability of
CVS Holdings, Inc. and its Subsidiaries taken as a whole to perform any material
obligation under any Loan Document and to avoid any Event of Default.

      6.12  Environmental Matters.

            (a)   The on-going operations of BHI and each of its Subsidiaries
comply in all respects with all Environmental Laws, except such non-compliance
which would not (if enforced in accordance with applicable law) reasonably be
expected to have a Material Adverse Effect.

            (b)   BHI and each of its Subsidiaries have obtained all licenses,
permits, authorizations and registrations required under any Environmental Law
("Environmental

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Permits") and necessary for their respective ordinary course operations, all
such Environmental Permits are in good standing, and BHI and each of its
Subsidiaries are in compliance with all material terms and conditions of such
Environmental Permits except such failure to obtain or to comply with such
Environmental Permits which would not reasonably be expected to have a Material
Adverse Effect.

            (c)   Neither BHI, nor any of its Subsidiaries or any of their
respective present property or operations, is subject to any outstanding written
order from or agreement with any Governmental Authority, nor subject to (i) any
judicial or docketed administrative proceeding, in each case, respecting any
Environmental Law, Environmental Claim or Hazardous Material or (ii) any claim,
proceeding or written notice from any Person, in each case regarding any
Environmental Law, Environmental Claim or Hazardous Material, except for any of
the foregoing which would not reasonably be expected to have a Material Adverse
Effect.

            (d)   There are no Hazardous Materials or other conditions or
circumstances existing with respect to any property of BHI or any of its
Subsidiaries, or arising from operations prior to the Closing Date, of BHI or
any of its Subsidiaries that would reasonably be expected to give rise to
Environmental Claims that would reasonably be expected to have a Material
Adverse Effect. In addition, (i) neither BHI nor any of its Subsidiaries has any
underground storage tanks (x) that are not properly registered or permitted
under applicable Environmental Laws, or (y) that are leaking or disposing of
Hazardous Materials off-site, which in any such case would reasonably be
expected to have a Material Adverse Effect, and (ii) BHI and its Subsidiaries
have met all notification requirements under applicable Environmental Laws where
the failure to comply with such notification would reasonably be expected to
result in liability to BHI and its Subsidiaries of $1,000,000 or more in the
aggregate at any time during the term of this Agreement.

      6.13  Collateral Documents.

            (a)   The provisions of each of the Collateral Documents are
effective to create in favor of the Collateral Agent for the benefit of the
Administrative Agent, the Issuers and the Lenders, a legal, valid and
enforceable first priority security interest in all right, title and interest of
BHI and its Subsidiaries in the collateral described therein, subject only to
any Permitted Liens. As of the Closing Date, the Collateral Agent will have a
first priority (subject only to Permitted Liens) perfected security interest,
for the benefit of the Administrative Agent, the Issuers and the Lenders, in all
Collateral in which a security interest may be perfected by means of the filing
of a financing statement pursuant to the UCC.

            (b)   Each Mortgage, if any, when executed and delivered will be
effective to grant to the Collateral Agent for the benefit of the Administrative
Agent, the Issuers and the Lenders a legal, valid and enforceable lien on all
the right, title and interest of the mortgagor under such Mortgage in the
mortgaged property described therein. When each such Mortgage is duly recorded
in the offices specified in or listed on the schedule to such Mortgage and the
mortgage recording fees and taxes in respect thereof are paid and compliance is
otherwise had with the formal requirements of state law applicable to the
recording of real estate mortgages generally, each such mortgaged property,
subject to the encumbrances and exceptions to title set forth therein and any
Permitted Liens and except as noted in the title policies delivered to the

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Administrative Agent, is subject to a legal, valid, enforceable and perfected
first priority lien; and when financing statements have been filed in the
offices specified in such Mortgage, such Mortgage also creates a legal, valid,
enforceable and perfected first lien on, and security interest in, all right,
title and interest of BHI or its Subsidiary under such Mortgage in all personal
property and fixtures covered by such Mortgage, subject to no other Liens,
except the encumbrances and exceptions to title set forth therein and except as
noted in the title policies delivered to the Administrative Agent and Permitted
Liens.

      6.14  Regulated Entities.

      None of BHI, the Company, any Person controlling BHI, or any Subsidiary,
is an "Investment Company" within the meaning of the Investment Company Act of
1940. None of BHI, the Company, any Person controlling BHI, or any Subsidiary is
subject to regulation under the Public Utility Holding Company Act of 1935, the
Federal Power Act, the Interstate Commerce Act, any state public utilities code,
or any other Federal or state statute or regulation limiting its ability to
incur Indebtedness.

      6.15  No Burdensome Restrictions.

      Neither BHI nor any of its Subsidiaries is a party to or bound by any
Contractual Obligation, or subject to any restriction in any Organization
Document, or any Requirement of Law, which would reasonably be expected to have
a Material Adverse Effect.

      6.16  Copyrights, Patents, Trademarks and Licenses, etc.

      BHI and its Subsidiaries own or are licensed or otherwise have the right
to use all of the patents, trademarks, service marks, trade names, copyrights,
and other rights that are reasonably necessary for the operation of their
respective businesses, without, to BHI's or any Subsidiary's knowledge, conflict
with the rights of any other Person, which conflict would reasonably be expected
to have a Material Adverse Effect. To the best knowledge of BHI and each Loan
Party, no slogan or other advertising device, product, process, method,
substance, part or other material now employed, or now contemplated to be
employed, by BHI or any Subsidiary infringes upon any rights held by any other
Person, which infringement would reasonably be expected to have a Material
Adverse Effect. Except as disclosed in Schedule 6.05, no claim or litigation
regarding any of the foregoing is pending or, to the knowledge of BHI or any
Loan Party, threatened.

      6.17  Capitalization; Subsidiaries.

      As of the Closing Date, no Loan Party has any Subsidiaries other than
those specifically disclosed in part (a) of Schedule 6.17 hereto and has no
equity investments in any other corporation or entity other than those
specifically disclosed in part (b) of Schedule 6.17. All of the issued and
outstanding capital stock of each Loan Party and each of its Subsidiaries is
owned by each of the stockholders named on Schedule 6.17. Except as set forth on
Schedule 6.17, there are no outstanding rights to purchase, options, warrants or
similar rights or agreements pursuant to which a Loan Party may be required to
issue or sell any capital stock or other equity security.

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      6.18  Insurance.

      Except as disclosed in Schedule 6.18, the properties of BHI and its
Subsidiaries are insured with financially sound and reputable insurance
companies not Affiliates of BHI, in such amounts, with such deductibles and
covering such risks as are customarily carried by companies engaged in similar
businesses and are similarly situated.

      6.19  Swap Obligations.

      Neither BHI nor any of its Subsidiaries has incurred any outstanding
obligations under any Swap Contracts, other than Permitted Swap Obligations. BHI
has undertaken its own independent assessment of its consolidated assets,
liabilities and commitments and has considered appropriate means of mitigating
and managing risks associated with such matters and has not relied on any swap
counterparty or any Affiliate of any swap counterparty in determining whether to
enter into any Swap Contract.

      6.20  Consummation of Transaction.

      The Company has delivered to the Administrative Agent true, complete and
correct copies of the Merger Documents (including all schedules, exhibits,
annexes, amendments, supplements, modifications and all other documents
delivered pursuant thereto or in connection therewith). The Merger Documents as
originally executed and delivered by the parties thereto have not been amended,
waived, supplemented or modified except as permitted by this Agreement. The
representations and warranties of the parties set forth therein (with respect to
any party other than BHI and its Subsidiaries, to the best knowledge of BHI) are
true and correct in all material respects as of the date thereof. On the date of
this Agreement, neither BHI nor any other party to any of the Merger Documents
is in default in the performance of or compliance with any material provisions
under the Merger Documents. The Merger is being consummated contemporaneously
with the Closing Date in accordance with the Merger Documents and applicable
laws and regulations.

      6.21  Solvency.

      BHI and its Subsidiaries, on a consolidated basis and, in the case of its
Subsidiaries incorporated in England and Wales, on an individual basis, are
Solvent.

      6.22  Location of Real Property.

            (a)   Schedule 6.22(a) sets forth completely and correctly as of the
Closing Date all real property owned by BHI or any of its Subsidiaries, the
applicable owner thereof, the addresses thereof and the county or counties in
which such properties are situated. All of the real property set forth on
Schedule 6.22(a) is owned in fee by BHI or one of its Subsidiaries.

            (b)   Schedule 6.22(b) sets forth completely and correctly as of the
Closing Date all real property leased by BHI or any of its Subsidiaries, the
applicable lessee thereof, the addresses thereof and the county or counties in
which such properties are situated. BHI or one of its Subsidiaries has a valid
lease in all of the real property set forth on such Schedule 6.22(b).

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      6.23  Full Disclosure.

      None of the representations or warranties made by any Loan Party in the
Loan Documents as of the date such representations and warranties are made or
deemed made, and none of the statements when taken as a whole contained in any
exhibit, report, statement or certificate furnished by or on behalf of BHI or
any Subsidiary in connection with the Loan Documents (including the offering and
disclosure materials delivered by or on behalf of any Loan Party to the Lenders
prior to the Closing Date), contains any untrue statement of a material fact or
omits any material fact required to be stated therein or necessary to make the
statements made therein, in light of the circumstances under which they are
made, not materially misleading as of the time when made or delivered.

                                   ARTICLE VII

                              AFFIRMATIVE COVENANTS

      So long as any Lender shall have any Commitment hereunder, or any Loan or
other Obligation (other than Obligations with respect to indemnification
hereunder not due and payable) shall remain unpaid or unsatisfied, or any Letter
of Credit shall remain outstanding, unless the Required Lenders waive compliance
in writing:

      7.01  Financial Statements.

      BHI shall deliver, or cause to be delivered, to the Administrative Agent
(with sufficient copies for each Lender):

            (a)   as soon as available, but not later than 90 days after the end
of each fiscal year (commencing with the fiscal year ended December 31, 2003), a
copy of the audited consolidated balance sheet of BHI and its Subsidiaries as at
the end of such year and the related consolidated statements of income,
shareholders' equity and cash flows for such year, setting forth, commencing
January 1, 2004, in each case in comparative form the figures for the previous
fiscal year, and accompanied by the opinion of Deloitte Touche Tohmatsu or
another nationally-recognized independent public accounting firm ("Independent
Auditor") which report shall state that such consolidated financial statements
present fairly in all material respects the financial position for the periods
indicated in conformity with GAAP applied on a basis consistent with prior
years;

            (b)   as soon as available, but not later than 45 calendar days
after the end of each of the first three fiscal quarters of each fiscal year
(commencing with the fiscal quarter ended March 31, 2003), a copy of the
unaudited consolidated balance sheet of BHI and its Subsidiaries as of the end
of such fiscal quarter and the related consolidated statements of income,
shareholders' equity and cash flows for the period commencing on the first day
and ending on the last day of such fiscal quarter, and certified by a
Responsible Officer of BHI as fairly presenting in all material respects, in
accordance with GAAP (subject to ordinary, good faith year-end audit adjustments
and the absence of footnotes), the financial position and the results of
operations of BHI and its Subsidiaries; provided, that the financial statements
to be

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delivered pursuant to this clause (b) for the fiscal quarter ended March 31,
2003 shall consist of a balance sheet only; and

            (c)   as soon as available, but not later than 20 days after the end
of each calendar month (excluding the calendar month ended December 31 of each
calendar year), a consolidating monthly income statement and a consolidated
monthly balance sheet for BHI and its Subsidiaries for such month, certified by
a Responsible Officer of the Company and prepared in accordance with GAAP
(subject to ordinary, good faith adjustments and absence of footnotes), together
with a management performance overview and discussion, a comparison to plan and
forecast of operations and cash flow for the remainder of the fiscal year.

      7.02  Certificates; Other Information.

      BHI shall furnish to the Administrative Agent (with sufficient copies for
each Lender):

            (a)   concurrently with the delivery of the financial statements
referred to in subsection 7.01(a), a certificate of the Independent Auditor
stating that in making the examination necessary therefor no knowledge was
obtained of any Default or Event of Default, except as specified in such
certificate (it being understood that such certificate may be limited to
accounting matters and disclaim responsibility for legal interpretation);

            (b)   concurrently with the delivery of the financial statements
referred to in subsections 7.01(a) and (b), a Compliance Certificate executed by
a Responsible Officer of BHI;

            (c)   concurrently with the delivery of the financial statements
referred to in subsection 7.01(a), (1) a consolidating balance sheet and income
statement for such year (which need not be audited) and, in the case of such
income statement, setting forth in comparative form the figures for the previous
fiscal year, and (ii) projections (in form and substance reasonably satisfactory
to the Administrative Agent) covering the quarterly periods from the beginning
of such fiscal year through the end of such fiscal year, prepared in reasonable
detail, with appropriate presentation and discussion of the principal
assumptions upon which such projections are based;

            (d)   promptly, copies of all financial statements and reports that
BHI or any of its Subsidiaries send to their respective shareholders, generally,
and copies of all financial statements and regular, periodic or special reports
(including Forms 10K, 10Q and 8K, if appropriate) that BHI or any of its
Subsidiaries may make to, or file with, the SEC;

            (e)   promptly after the end of each calendar month, but in no case
more than twenty calendar days after the end of each calendar month, and at such
times during the occurrence of an Event of Default as shall reasonably be
requested by the Administrative Agent, a Borrowing Base Certificate; provided
that, with regard to December of each year, BHI shall only be obligated to
deliver the Borrowing Base Certificate within 45 calendar days after the end of
such month;

            (f)   by the twentieth calendar day after the end of each calendar
month of 2003, and at such times during the occurrence of an Event of Default as
shall reasonably be requested by the Administrative Agent, an EBITDA
Certificate, which EBITDA Certificate shall

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state EBITDA for the month most recently ended and EBITDA for the period from
January 1 of the current calendar year to the last day of the calendar month
then most recently ended; provided that, with regard to December of each year,
BHI shall only be obligated to deliver the EBITDA Certificate within 45 calendar
days after the end of such month; and

            (g)   promptly such additional information regarding the business,
financial or corporate affairs of BHI or any of its Subsidiaries as the
Administrative Agent, at the request of any Lender, may from time to time
reasonably request.

      7.03  Notifications.

BHI shall promptly notify the Administrative Agent (with sufficient copies for
each Lender)

            (a)   upon a Responsible Officer of BHI or any Loan Party obtaining
knowledge of the occurrence of any Default or Event of Default;

            (b)   of any matter that has resulted or would reasonably be
expected to result in a Material Adverse Effect, including, to the extent so
applicable, (i) any breach or non-performance of, or any default under, a
Contractual Obligation of BHI or any of its Subsidiaries; (ii) any dispute,
litigation, investigation, proceeding or suspension between BHI or any of its
Subsidiaries and any Governmental Authority; or (iii) the commencement of, or
any material development in, any litigation or proceeding affecting BHI or any
of its Subsidiaries including pursuant to any applicable Environmental Laws;

            (c)   of the occurrence of any of the following events affecting any
Loan Party or any ERISA Affiliate (but in no event more than 10 days after such
event becomes known to an officer of such Loan Party), and deliver to the
Administrative Agent and each Lender a copy of any notice with respect to such
event that is filed with a Governmental Authority and any notice delivered by a
Governmental Authority to any Loan Party or any ERISA Affiliate with respect to
such event:

                  (i)   an ERISA Event;

                  (ii)  a material increase in the Unfunded Pension Liability of
      any Pension Plan;

                  (iii) the adoption of, or the commencement of contributions
      to, any Plan subject to Section 412 of the Code or any Non-U.S. Pension
      Plan by any Loan Party or any ERISA Affiliate resulting in a material
      contribution obligation; or

                  (iv)  the adoption of any amendment to a Non-U.S. Pension Plan
      or a Plan subject to Section 412 of the Code, if such amendment results in
      a material increase in contributions or Unfunded Pension Liability.

            (d)   of any material change in accounting policies or financial
reporting practices by BHI or any of its consolidated Subsidiaries; and

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            (e)   upon, but in no event later than 15 days after, any officer of
any Loan Party becoming aware of (i) any and all enforcement, investigation,
cleanup, removal or other governmental or regulatory actions instituted,
completed or threatened against or any Loan Party or any of their respective
properties pursuant to any applicable Environmental Laws, and all other
Environmental Claims which would reasonably be expected to result in potential
liability of BHI or any of its Subsidiaries of $1,000,000 or more, and (ii) any
environmental condition on any real property adjoining or in the vicinity of the
property of BHI or any of its Subsidiaries that would reasonably be expected to
cause such property of such Person or any part thereof to be subject to any
material restrictions on the ownership, occupancy, transferability or use of
such property under any Environmental Laws.

            Each notice under this Section shall be accompanied by a written
statement by a Responsible Officer of BHI setting forth details of the
occurrence referred to therein, and stating what action BHI or any affected
Subsidiary of BHI proposes to take with respect thereto and at what time.

      7.04  Preservation of Corporate Existence, Etc.

      Except for any merger or amalgamation permitted under Section 8.03, BHI
shall, and shall cause each of its Subsidiaries to:

            (a)   preserve and maintain in full force and effect its corporate,
partnership, limited liability company or other existence and good standing
under the laws of its state or jurisdiction of incorporation, organization or
formation, except to the extent otherwise expressly permitted herein;

            (b)   preserve and maintain in full force and effect all material
governmental rights, privileges, qualifications, permits, licenses and
franchises necessary in the normal conduct of its business except in connection
with transactions permitted by Section 8.03 and sales of assets permitted by
Section 8.02; and

            (c)   preserve or renew all of its registered patents, trademarks,
trade names and service marks, the non-preservation of which would reasonably be
expected to have a Material Adverse Effect.

Each Loan Party shall cause each of its Subsidiaries which is a Wholly-Owned
Subsidiary as of the date hereof to continue to exist as a Wholly-Owned
Subsidiary so long as it shall be a Subsidiary.

      7.05  Maintenance of Property.

      Each Loan Party shall maintain, and shall cause each of their respective
Subsidiaries to maintain, and preserve all its property which is used or useful
in its business in good working order and condition, ordinary wear and tear and
damage by casualty excepted, and make all necessary repairs thereto and renewals
and replacements thereof except where the failure to do so would not reasonably
be expected to have a Material Adverse Effect.

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      7.06  Insurance.

      In addition to insurance requirements set forth in the Collateral
Documents, each Loan Party shall maintain, and shall cause each of its
Subsidiaries to maintain, with financially sound and reputable independent
insurers, insurance with respect to its properties and business against loss or
damage of the kinds customarily insured against by Persons engaged in the same
or similar business, of such types and in such amounts as are customarily
carried under similar circumstances by such other Persons including workers'
compensation insurance, public liability and property and casualty insurance
which amount shall not be materially reduced by such Loan Party in the absence
of 30 days' prior written notice to the Administrative Agent. All casualty
insurance maintained by each Loan Party shall name the Collateral Agent or
Administrative Agent as loss payee and all liability insurance shall name the
Collateral Agent or Administrative Agent as additional insured for the benefit
of the Administrative Agent, the Issuers and the Lenders, as their interests may
appear. Upon request of the Administrative Agent or any Lender, each Loan Party
shall furnish the Administrative Agent, with sufficient copies for each Lender,
at reasonable intervals (but not more than once per calendar year) a certificate
of a Responsible Officer of such Loan Party (and, if requested by the
Administrative Agent, any insurance broker of such Loan Party) setting forth the
nature and extent of all insurance maintained by such Loan Party and its
Subsidiaries in accordance with this Section 7.06 or any Collateral Documents
(and which, in the case of a certificate of a broker, were placed through such
broker).

      7.07  Payment of Obligations.

      Each Loan Party shall, and shall cause each of its Subsidiaries to, pay
and discharge as the same shall become due and payable:

            (a)   all federal and other material tax liabilities, assessments
and governmental charges or levies upon it or its properties or assets, unless
the same are being contested in good faith by appropriate proceedings and
adequate reserves in accordance with GAAP are being maintained by such Loan
Party or such Subsidiary;

            (b)   all lawful claims which, if unpaid, would by law become a Lien
upon its property in violation of Section 8.01 unless the same are being
contested in good faith by appropriate proceedings diligently pursued and
adequate reserves in accordance with GAAP are being maintained by such Loan
Party or such Subsidiary; and

            (c)   all other obligations and liabilities which, if unpaid, would
have a Material Adverse Effect.

      7.08  Compliance with Laws.

      Each Loan Party shall comply, and shall cause each of its Subsidiaries to
comply, with all Requirements of Law of any Governmental Authority having
jurisdiction over it or its business (including the Federal Fair Labor Standards
Act), except to the extent that the failure to do so would not reasonably be
expected to have a Material Adverse Effect.

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      7.09  Compliance with ERISA.

      Each Loan Party shall, and shall cause each of its ERISA Affiliates to (if
applicable): (a) maintain each Plan and Non-U.S. Pension Plan in compliance in
all material respects with applicable law; (b) cause each Plan which is
qualified under Section 401(a) of the Code to maintain such qualification; and
(c) make all required contributions to any Plan subject to Section 412 of the
Code and any Non-U.S. Pension Plan; to the extent that any failure to comply
with any such provision would reasonably be expected to result in liabilities in
excess of $1,000,000 for all such failures in the aggregate.

      7.10  Inspection of Property and Books and Records.

      Each Loan Party shall maintain and shall cause each of its Subsidiaries to
maintain proper books of record and account, in which full, true and correct
entries in conformity with GAAP consistently applied shall be made of all
financial transactions and matters involving the assets and business of such
Loan Party and such Subsidiary. Each Loan Party shall permit, and shall cause
each of its Subsidiaries to permit, representatives and independent contractors
of the Administrative Agent or any Lender to visit and inspect any of their
respective properties, to examine their respective inventory, to examine their
respective corporate, financial and operating records, including records of all
receivables, and to make copies thereof or abstracts therefrom, and to discuss
their respective affairs, finances and accounts with their respective directors,
officers, and independent public accountants, all at such reasonable times
during normal business hours and as often as may be reasonably desired, upon
reasonable advance notice to Person; provided, that so long as no Event of
Default exists and is continuing, Administrative Agent may perform no more than
one field audit each fiscal year; provided, further, that at all times that an
Event of Default exists, (i) each Loan Party shall permit, and shall cause each
of its Subsidiaries to permit, representatives and independent contractors of
the Administrative Agent or any Lender to visit and inspect, in addition to the
above, any of their manufacturing facilities, and to discuss their respective
affairs, finances, operations and facilities with their respective directors,
officers, and independent public accountants and (ii) the Administrative Agent
or any Lender may take any of the actions set forth in this proviso at any time
during normal business hours and without advance notice. Any visit or inspection
made pursuant to this Section 7.10 at any time that any Event of Default exists
shall be made at the expense of the Loan Party whose property is being
inspected.

      7.11  Environmental Laws.

            (a)   Each Loan Party shall, and shall cause each of its
Subsidiaries to, conduct its operations and keep and maintain its property in
compliance with all Environmental Laws, except such noncompliance which would
not reasonably be expected to have a Material Adverse Effect.

            (b)   Upon the written request of the Administrative Agent or any
Lender, a Loan Party shall submit and cause each of its Subsidiaries to submit,
to the Administrative Agent with sufficient copies for each Lender, at such Loan
Party's sole cost and expense, at reasonable intervals, a report providing an
update of the status of any environmental, health or safety compliance, hazard
or liability issue identified in any notice or report required pursuant to

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subsection 7.03(e), that could individually or in the aggregate, result in
liability in excess of $1,000,000 (net of any payments under insurance policies
or indemnity agreements which the Loan Party or such Subsidiary reasonably
expects to receive).

      7.12  Use of Proceeds.

            (a)   Proceeds of the Revolving Loans and Swing Line Loans shall be
utilized (i) to continue the Revolving Loans outstanding on the Closing Date
under the Original U.S. Credit Agreement and the Original UK Credit Agreement,
(ii) for working capital and other general corporate purposes (other than for
the purpose of financing any Acquisition, unless the Required Lenders shall have
given their prior written consent thereto) and (iii) to repay any drawing under
a Letter of Credit, in each case not in contravention of any Requirement of Law
or of any Loan Document.

            (b)   Proceeds of all Existing Term Loans shall be utilized to
continue the Term Loans outstanding on the Closing Date under the Original U.S.
Credit Agreement and the Original UK Credit Agreement.

            (c)   Proceeds of all NSC Term Loans shall be utilized to repay any
drawing under the Existing Fleet Letter of Credit.

            (d)   Proceeds of all Sterling Term Loans shall be utilized (i) to
repay any drawing under the Loan Note Credit Support and (ii) to repay any Loan
Notes to the extent the holder thereof has demanded payment or payment is
otherwise due.

      7.13  Further Assurances; Additional Pledge; Additional Collateral
            Documents.

            (a)   Each Loan Party shall ensure that all written information,
exhibits and reports furnished to the Administrative Agent or the Lenders, taken
as a whole, do not and will not contain any untrue statement of a material fact
and do not and will not omit to state any material fact or any fact necessary to
make the statements contained therein not misleading in any material respect in
light of the circumstances in which made, and upon learning thereof, a
Responsible Officer of such Loan Party will promptly disclose to the
Administrative Agent and the Lenders and correct any defect or error that may be
discovered therein or in any Loan Document or in the execution, acknowledgment
or recordation thereof.

            (b)   Effective upon any Person becoming a Subsidiary of a Loan
Party (other than a Foreign 956 Subsidiary), the shareholder or shareholders
thereof shall pledge the stock or other equity interests thereof to the
Collateral Agent pursuant to documentation reasonably acceptable to the
Collateral Agent, to the extent permitted by applicable law.

            (c)   Subject to Sections 7.14 and 7.15, promptly upon request by
the Administrative Agent or the Required Lenders, each Loan Party, to the extent
permitted by applicable law, shall do, execute, acknowledge, deliver, record,
re-record, file, re-file, register and re-register, any and all such further
acts, deeds, conveyances, security agreements, mortgages, assignments, estoppel
certificates, financing statements and continuations thereof, termination
statements, notices of assignment, transfers, certificates, assurances and other
instruments the Administrative Agent or such Lenders, as the case may be, may
reasonably

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require from time to time in order (i) to carry out more effectively the
purposes of this Agreement or any other Loan Document, (ii) to subject to the
Liens created by any of the Collateral Documents any of the properties, rights
or interests covered by any of the Collateral Documents, (iii) to perfect and
maintain the validity, effectiveness and priority of any of the Collateral
Documents and the Liens intended to be created thereby and (iv) to better
assure, convey, grant, assign, transfer, preserve, protect and confirm to the
Administrative Agent, the Issuers and Lenders the rights granted or now or
hereafter intended to be granted to the Lenders under any Loan Document or under
any other document executed in connection therewith.

            (d)   In addition to any documents delivered in connection with the
other provisions of this Section 7.13, within 120 calendar days after the
Closing Date, CVS, Inc. shall deliver or cause to be delivered to the
Administrative Agent one or more fully executed Mortgages in favor of the
Collateral Agent, in form and substance satisfactory to the Administrative Agent
and the Collateral Agent, over all real property owned by CVS, Inc., including
the real property owned by CVS, Inc. in Vonore, Tennessee, together with all
surveys, title policies and other documents related thereto as the
Administrative Agent may request.

            (e)   In addition to any documents delivered in connection with the
other provisions of this Section 7.13, within 30 calendar days after the Closing
Date, CVS, Inc. shall deliver or cause to be delivered to the Administrative
Agent (i) a title policy, or a date-down of a title policy previously delivered
to the Administrative Agent, in form and substance satisfactory to the
Administrative Agent, relating to the property encumbered by the Deed of Trust,
Security Agreement, Assignment of Leases and Rents and Financing Statement dated
as of March 31, 2000 and recorded on April 6, 2000 as Document No. 2000-022116
in the Office of the County Clerk of Clackamas County, Oregon, as amended,
showing no liens or encumbrances other than Permitted Liens, (ii) the results of
searches made in each county in which each item of real property located in the
United States owned by any Loan Party is located, showing all fixture filings
that are on record in such county naming such Loan Party, (iii) a deposit
account control agreement, in form and substance satisfactory to the
Administrative Agent, executed by each bank at which any Loan Party organized in
the United States has an account, and each bank at which any Loan Party
organized in the United Kingdom has an account located in the United States and
(iv) evidence that each of the UCC financing statements identified with an
asterisk on Schedule 8.01 have been terminated.

      7.14  Additional Guaranties and Personal Property Pledge.

      Effective upon any Person becoming a Subsidiary of a Loan Party (other
than a Foreign 956 Subsidiary) and subject to compliance with applicable law,
such Person shall join as a guarantor under the Collateral Documents pursuant to
amendments thereto in form and substance acceptable to the Administrative Agent
and any intercompany note issued to any Loan Party shall be pledged to the
Collateral Agent pursuant to a Pledge Agreement. The Borrower Representative
shall promptly notify the Administrative Agent at any time at which, in
accordance with this Section 7.14, any Subsidiary shall be required to join as a
guarantor under the Collateral Documents.

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      7.15  Additional Real Property.

      Concurrent with (a) the acquisition of a fee simple ownership interest by
a Loan Party of any parcel of real property which has a fair market value in
excess of $1,000,000 or (b) the acquisition or lease by a Loan Party of any
parcel of property which, in the Administrative Agent's reasonable
determination, is otherwise of significant value to the operations of such
Person, unless the Required Lenders shall otherwise direct, such Loan Party
shall, to the extent permitted under the terms of such lease or financing, or
shall cause such Subsidiary to, execute and deliver to the Administrative Agent
a Mortgage on such parcel or leasehold substantially in form and substance
reasonably acceptable to the Administrative Agent, together with such other
customary closing items as are requested by the Administrative Agent such as
surveys, title insurance and local counsel opinions, in each case in form and
substance reasonably acceptable to the Administrative Agent.

      7.16  Additional Capital. In the event that BHI is not in compliance with
Sections 8.15 and 8.16 for any fiscal quarter ending after the Closing Date,
within ten days after delivery by BHI of its Compliance Certificate for such
fiscal quarter, together with the financial statements to which such certificate
relates pursuant to Section 7.02(b), BHI shall use its best efforts to obtain
cash proceeds ("Additional Capital") from the issuance of unsecured
Indebtedness; provided that any such unsecured Indebtedness shall be issued on
terms substantially similar to the subordinated promissory notes issued by BHI
on September 30, 2002. To the extent such Additional Capital is raised, such
Additional Capital shall be in an amount sufficient to bring BHI into compliance
with Sections 8.15 and 8.16 for such fiscal quarter (but in any event shall be
issued in a minimum amount of not less than $250,000) and shall be evidenced by
a revised Compliance Certificate executed by a Responsible Officer of BHI and
delivered within such ten day period, together with such other documents as the
Administrative Agent may reasonably request in connection therewith. Such
revised Compliance Certificate shall also be accompanied by a statement of the
amount of such Additional Capital and the applicable fiscal quarter for which
such Additional Capital applies.

                                  ARTICLE VIII

                               NEGATIVE COVENANTS

      So long as any Lender shall have any Commitment hereunder, or any Loan or
other Obligation (other than Obligations with respect to indemnification
hereunder not due and payable) shall remain unpaid or unsatisfied, or any Letter
of Credit shall remain outstanding, unless the Required Lenders waive compliance
in writing:

      8.01  Limitation on Liens.

      BHI shall not, nor shall it suffer or permit any of its Subsidiaries to,
directly or indirectly, make, create, incur, assume or suffer to exist any Lien
upon or with respect to any part of its property, whether now owned or hereafter
acquired, other than the following ("Permitted Liens"):

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            (a)   any Lien existing on property of BHI or any Subsidiary on the
Closing Date and set forth in Schedule 8.01 securing Indebtedness outstanding on
such date and any Lien arising out of the refinancing, extension, renewal or
refunding of any Indebtedness secured by any Lien permitted by this clause (a)
but only if the principal amount of the Indebtedness secured thereby is not
increased and such Liens do not extend to or cover any other property or assets;
provided that any Lien identified on Schedule 8.01 that is marked with an
asterisk shall not be a Permitted Lien;

            (b)   any Lien created under any Loan Document;

            (c)   Liens for taxes, fees, assessments or other governmental
charges which are not delinquent or remain payable without penalty, or to the
extent that non-payment thereof is permitted by Section 7.07, provided that no
notice of lien has been filed or recorded under the Code;

            (d)   carriers', warehousemen's, mechanics', landlords',
materialmen's, repairmen's or other similar Liens arising in the ordinary course
of business which are not delinquent or remain payable without penalty or which
are being contested in good faith and by appropriate proceedings, which
proceedings have the effect of preventing the forfeiture or sale of the property
subject thereto;

            (e)   Liens (other than any Lien imposed by ERISA) consisting of
pledges or deposits required in the ordinary course of business in connection
with workers' compensation, unemployment insurance and other social security
legislation;

            (f)   Liens on the property of BHI or its Subsidiaries securing (i)
the non-delinquent performance of bids, trade contracts (other than for borrowed
money), leases, statutory obligations, (ii) contingent obligations on surety or
appeal bonds, and (iii) other non-delinquent obligations of a like nature, in
each case, incurred in the ordinary course of business; provided that all such
Liens in the aggregate would not (taking into account the probable likelihood of
their being enforced) reasonably be expected to cause a Material Adverse Effect;

            (g)   Liens consisting of judgment or judicial attachment liens,
provided that the enforcement of such Liens is effectively stayed and the
obligations secured by all such Liens in the aggregate at any time outstanding
for BHI and its Subsidiaries do not exceed the Equivalent Amount of $1,500,000;

            (h)   easements, rights-of-way, restrictions and other similar
encumbrances incurred in the ordinary course of business which, in the
aggregate, are not substantial in amount, and which do not in any case
materially detract from the value of the property subject thereto or materially
interfere with the ordinary conduct of the businesses of BHI and its
Subsidiaries except for such easements, rights-of-way, restrictions and other
similar encumbrances on property which existed at the time of acquisition by BHI
or its Subsidiaries of such property and were not created in anticipation
thereof and which do not interfere with the ordinary conduct of business by BHI
and its Subsidiaries;

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            (i)   (a) Liens (including Liens under Capitalized Leases) in
respect of property or assets acquired or constructed by BHI or a Subsidiary
after the date hereof, which Liens are created at the time of acquisition or
completion of construction of such property or asset or within 20 days
thereafter, to secure Indebtedness assumed or incurred to finance all or any
part of the purchase price or cost of construction of such property or asset,
(b) in the case of any Person that hereafter becomes a Subsidiary or is
consolidated with or merged with or into BHI or a Subsidiary, Liens existing at
the time such Person becomes a Subsidiary or is so consolidated or merged (and
not incurred in anticipation thereof), and (c) in the case of any property or
asset acquired by BHI or any Subsidiary after the Closing Date (other than in
connection with the Transaction), Liens existing on such property or asset at
the time of acquisition thereof (and not incurred in anticipation thereof),
whether or not the Indebtedness secured thereby is assumed by BHI or a
Subsidiary; provided, that in any such case:

                  (x)   no such Lien shall extend to or cover any other property
            or assets of BHI or of such Subsidiary, as the case may be, and

                  (y)   the aggregate principal amount of the Indebtedness
            secured by all such Liens in respect of any such property or assets
            shall not exceed 100% of the fair market value of such property or
            assets at the time of such acquisition;

and any extension, renewal or replacement thereof but only if the principal
amount of the Indebtedness secured thereby is not increased and such Liens do
not extend to or cover any other property or assets, provided further, that the
aggregate principal amount of Indebtedness secured by Liens permitted by this
Section 8.01(i) together with (but without double counting) the aggregate
principal amount of Indebtedness permitted by Section 8.05(e) does not exceed at
any one time outstanding the Equivalent Amount of $6,000,000;

            (j)   Liens arising solely by virtue of any statutory or common law
provision relating to banker's liens, rights of set-off or similar rights and
remedies as to deposit accounts or other funds maintained with a creditor
depository institution; provided that (i) such deposit account is not a
dedicated cash collateral account and is not subject to restrictions against
access by BHI or any of its Subsidiaries in excess of those set forth by
regulations promulgated by the FRB, and (ii) such deposit account is not
intended by BHI or any of its Subsidiaries to provide collateral to the
depository institution;

            (k)   Liens of any landlord with respect to leased real property of
BHI or any of its Subsidiaries arising in the ordinary course of business for
sums not overdue or being contested in good faith by appropriate proceedings and
for which adequate reserves in accordance with GAAP shall have been set aside on
the books of BHI or such Subsidiary, as the case may be;

            (l)   Licenses, leases or subleases granted to third Persons in the
ordinary course of the business not interfering in any material respect with the
business of BHI or any of its Subsidiaries;

            (m)   Liens arising from precautionary UCC financing statements
regarding operating leases not constituting Indebtedness or consignments;

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            (n)   Liens securing Indebtedness evidenced by Intercompany Notes
issued by NSC pursuant to Section 8.05(f), provided, that the documentation
evidencing any such Lien shall be in form and substance satisfactory to the
Administrative Agent; and

            (o)   Liens securing obligations (other than Indebtedness) of BHI
and its Subsidiaries not to exceed in the aggregate at any one time outstanding
the Equivalent Amount of $1,000,000.

      8.02  Disposition of Assets.

      BHI shall not, nor shall it suffer or permit any of its Subsidiaries to,
directly or indirectly, (x) issue any equity interests of any Subsidiary to any
Person which is not BHI or one of its Wholly-Owned Subsidiaries or (y) sell,
assign, lease, convey, transfer or otherwise dispose of (whether in one or a
series of transactions) any property, including accounts and notes receivable,
with or without recourse (each, an "Asset Disposition"), or enter into any
agreement to do any of the foregoing, except:

            (a)   dispositions of used, worn-out or surplus equipment or unused
intellectual property, all in the ordinary course of business;

            (b)   the sale of equipment to the extent that such equipment is
exchanged for credit against the purchase price of replacement equipment, or the
proceeds of such sale are within 180 days of receipt thereof applied to the
purchase price of such replacement equipment;

            (c)   Asset Dispositions by any Subsidiary to any Wholly-Owned
Subsidiary that is a Loan Party;

            (d)   BHI or any Subsidiary may enter into operating leases and
licenses as lessor in the ordinary course of business which are not
substantially equivalent to sales;

            (e)   BHI or any Subsidiary may enter into assignments and licenses
of intellectual property in the ordinary course of business; and

            (f)   dispositions by BHI and its Subsidiaries not otherwise
permitted hereunder which are made for fair market value; provided, that (i) at
the time of any disposition, no Event of Default shall exist or shall result
from such disposition, (ii) at least 75% of the aggregate sales price from such
dispositions shall be paid in cash, and (iii) the aggregate value of all assets
so sold by BHI and its Subsidiaries in any fiscal year shall not exceed the
Equivalent Amount of $2,000,000;

            (g)   sale or discounts of accounts receivable by BHI or any of its
Subsidiaries in the ordinary course of collection;

            (h)   sell Investments permitted under Section 8.04(a);

            (i)   transactions permitted under Section 8.03; and

            (j)   dispositions of inventory in the ordinary course of business.

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            In the event any Collateral is sold as permitted by this Section
8.02, such Collateral shall be sold free and clear of the Liens created by the
Collateral Documents and the Collateral Agent shall be authorized to take any
actions and execute and deliver any lien release documents as may be necessary
in order to effect the foregoing.

      8.03  Consolidations and Mergers.

      BHI shall not, nor shall it suffer or permit any of its Subsidiaries to,
merge, consolidate with or into, or convey, transfer, lease or otherwise dispose
of (whether in one transaction or in a series of transactions) all or
substantially all of its assets (whether now owned or hereafter acquired) to or
in favor of any Person, except for the following but only so long as the
corporate existence of BHI is continued:

            (a)   any Subsidiary may merge with BHI (provided that BHI shall be
the continuing or surviving corporation), or with any one or more Subsidiaries
(provided that if any such Subsidiary is a Guarantor, the surviving corporation
shall be a Guarantor, and if any transaction shall be between a Subsidiary and a
Wholly-Owned Subsidiary, the continuing or surviving corporation shall be a
Wholly-Owned Subsidiary);

            (b)   another Person organized under the laws of the jurisdiction of
the Loan Party may merge with or consolidate into such Loan Party so long as (i)
such Acquisition is a Permitted Acquisition, (ii) such surviving Person is a
Loan Party, and (iii) all applicable legal requirements have been satisfied;

            (c)   any Subsidiary may sell all or substantially all of its assets
(upon voluntary liquidation or otherwise), to BHI or a Wholly-Owned Subsidiary
that is a Loan Party; and

            (d)   any transaction permitted under Section 8.02.

      8.04  Loans and Investments.

      BHI shall not, nor shall it suffer or permit any of its Subsidiaries to,
purchase or acquire, or make any commitment therefor, any capital stock, equity
interest, or any obligations or other securities of, or any interest in, any
Person, or make or commit to make any Acquisitions, or make or commit to make
any advance, loan, extension of credit or capital contribution to or any other
investment in, any Person (excluding commission, travel, relocation and similar
advances to officers and employees made in the ordinary course of business)
including any Affiliate of the Company (together, "Investments"), except for:

            (a)   Investments held by BHI or its Subsidiaries in the form of
cash equivalents or short term marketable securities;

            (b)   extensions of credit in the nature of accounts receivable or
notes receivable arising from the sale or lease of goods or services in the
ordinary course of business;

            (c)   Investments by BHI or any of its Subsidiaries in BHI or one or
more Wholly-Owned Subsidiaries that is a Loan Party or unsecured loans made by
any such Subsidiary to BHI;

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            (d)   Permitted Acquisitions and Investments incurred in order to
consummate Permitted Acquisitions;

            (e)   Investments constituting Permitted Swap Obligations or
payments or advances under Swap Contracts relating to Permitted Swap
Obligations;

            (f)   loans and advances to officers, directors and employees of BHI
and its Subsidiaries, the proceeds of which are used to purchase Capital Stock
of BHI;

            (g)   Investments consisting of Capital Stock of BHI purchased from
officers, directors, consultants, and employees of BHI and its Subsidiaries
pursuant to subsection 8.09(c);

            (h)   Investments (including debt obligations) received in
connection with the bankruptcy or reorganization of suppliers and customers and
in settlement of delinquent obligations of, and other disputes with, customers
and suppliers arising in the ordinary course of business;

            (i)   Investments that are outstanding as of the Closing Date and
set forth in Schedule 8.04 hereto;

            (j)   other Investments, including in Joint Ventures or other
Persons with business reasonably related to the business of BHI and its
Subsidiaries, of up to the Equivalent Amount of $2,000,000 in the aggregate;

            (k)   Investments incurred in connection with transactions described
in Section 8.02(f); provided, that such Investments shall be limited to 25% of
the aggregate sale price from such dispositions and shall be evidenced by
promissory notes issued to BHI or any of its Subsidiaries, as applicable, and
pledged and delivered to the Collateral Agent to the extent required by the
Collateral Documents;

            (l)   Contingent Obligations permitted under Section 8.08;

            (m)   BHI and its Subsidiaries may make pledges and deposits
permitted under Section 8.01;

            (n)   Investments constituting Permitted Earn-Out Debt permitted
pursuant to Section 8.05(l); and

            (o)   BHI and its Subsidiaries may make intercompany loans permitted
by Section 8.05

      Notwithstanding the above, the aggregate amount of Investments made to, in
or in respect of Foreign 956 Subsidiaries or any Subsidiaries not organized
under the laws of the United States or the United Kingdom shall not at any time
in the aggregate exceed the Equivalent Amount of $3,000,000.

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      8.05  Limitation on Indebtedness.

      BHI shall not, nor shall it suffer or permit any Subsidiary to, create,
incur, assume, suffer to exist, or otherwise become or remain directly or
indirectly liable with respect to, any Indebtedness, except:

            (a)   Indebtedness incurred pursuant to this Agreement or the Loan
Documents;

            (b)   Indebtedness of BHI or its Subsidiaries consisting of
Contingent Obligations permitted pursuant to Section 8.08 (other than
subparagraph (d) thereof);

            (c)   Indebtedness of BHI or its Subsidiaries existing on the
Closing Date and set forth in Schedule 8.05;

            (d)   Indebtedness of BHI or its Subsidiaries secured by Liens which
are permitted pursuant to Section 8.01(i) in an aggregate amount at any one time
outstanding not to exceed the Equivalent Amount of $5,000,000;

            (e)   Indebtedness of a Subsidiary of BHI (or related to an asset)
issued and outstanding on or prior to the date on which such Subsidiary (or
asset) was acquired by BHI or a Subsidiary of BHI in a transaction constituting
a Permitted Acquisition (other than Indebtedness issued as consideration in, or
to provide all or any portion of the funds utilized to consummate such Permitted
Acquisition); provided that the aggregate amount of such Indebtedness
outstanding at any time, together with Indebtedness outstanding and permitted by
Section 8.05(d) (without double counting) does not exceed the Equivalent Amount
of $5,000,000;

            (f)   unsecured Indebtedness (except as permitted pursuant to
Section 8.01(n)) of (x) BHI to a Borrower to the extent the proceeds thereof are
promptly utilized to pay costs permitted pursuant to Section 8.09(d), (y) a
Borrower to any Guarantor or another Borrower or (z) any Guarantor to a Borrower
or any other Guarantor, provided that such Indebtedness shall be evidenced by a
promissory note (each such promissory note, an "Intercompany Note") which,
together with any related security interests, shall be pledged to the Collateral
Agent pursuant to a Pledge Agreement;

            (g)   Indebtedness of BHI and its Subsidiaries resulting from the
refinancing of Indebtedness permitted by clauses (c) and (d) above; provided,
however, that the principal amount of any such refinancing Indebtedness (as
determined as of the date of the incurrence of such refinancing Indebtedness in
accordance with GAAP), does not exceed the principal amount of the Indebtedness
refinanced thereby on such date;

            (h)   unsecured Indebtedness of BHI which is subordinated to the
Obligations on terms reasonably satisfactory to the Administrative Agent and the
Required Lenders incurred in connection with Permitted Acquisitions or
Investments permitted by subsection 8.04; provided that the terms and conditions
of such Indebtedness shall be satisfactory to the Administrative Agent and the
principal amount thereof (together with the unsecured Indebtedness issued
pursuant to Section 8.13) shall not exceed the Equivalent Amount of $10,000,000
in the aggregate at any one time outstanding;

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            (i)   unsecured Indebtedness of BHI which is subordinated to the
Obligations on terms reasonably satisfactory to the Administrative Agent and the
Required Lenders incurred in connection with Investments permitted by subsection
8.04(g), all on terms and conditions satisfactory to the Administrative Agent;

            (j)   Indebtedness under the Loan Notes owing to former shareholders
of Bostrom International and secured by the Loan Note Credit Support;

            (k)   intercompany Indebtedness permitted by Sections 8.04(c), (j)
and (o);

            (l)   Permitted Earn-Out Debt, provided that the maximum potential
liability of BHI or any of its Subsidiaries with respect to any such Permitted
Earn-Out Debt shall not exceed at any time an amount equal to 25% of the
aggregate consideration paid by BHI or such Subsidiary in connection with the
related Permitted Acquisition;

            (m)   other unsecured Indebtedness of BHI or its Subsidiaries at any
time outstanding as long as such Indebtedness when aggregated with Contingent
Obligations which are permitted to be outstanding solely under subsection
8.08(j) does not exceed the Equivalent Amount of $2,000,000; and

            (n)   unsecured Indebtedness pursuant to Section 7.16; provided,
that (i) the terms and conditions of such unsecured Indebtedness shall be
reasonably satisfactory to the Administrative Agent (and, to the extent such
Indebtedness provides for interest payments, such interest payments shall be
payments-in-kind), and (ii) such unsecured Indebtedness shall be subordinated to
the Obligations on terms reasonably satisfactory to the Administrative Agent and
the Required Lenders; provided, that the parties hereto hereby agree that if the
terms and conditions of such unsecured Indebtedness are substantially similar to
the subordinated promissory notes issued by the Company on September 30, 2002,
such unsecured Indebtedness shall be deemed to have met the standards set forth
in the preceding proviso.

      8.06  Transactions with Affiliates.

      No Loan Party shall, nor shall it suffer or permit any of its Subsidiaries
to, enter into any transaction with any Affiliate of such Loan Party, except
upon fair and reasonable terms no less favorable to such Loan Party or such
Subsidiary than would be obtainable in a comparable arm's-length transaction
with a Person not an Affiliate of such Loan Party or such Subsidiary and except
for the following:

            (a)   transactions between or among a Loan Party and/or its
Subsidiaries;

            (b)   payments permitted pursuant to Section 8.09 and transactions
permitted pursuant to Section 8.04 or Section 8.08;

            (c)   the provision of officers' and directors' indemnification and
insurance in the ordinary course of business to the extent permitted by
applicable law; and

            (d)   payments pursuant to that certain Amended and Restated
Management Agreement, dated as of the date hereof, by and among BHI, CVS
Holdings, Inc., CVS Holdings

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Ltd., CVS, Inc. and Hidden Creek as in effect on the Closing Date (the
"Management Agreement") and as amended in a manner permitted under Section 8.13.

      8.07  Use of Proceeds.

            (a)   No Loan Party shall, nor shall suffer or permit any of its
Subsidiaries to, use any portion of the Loan proceeds or any Letter of Credit,
directly or indirectly, (i) to purchase or carry Margin Stock, (ii) to repay or
otherwise refinance indebtedness of the Company or others incurred to purchase
or carry Margin Stock, (iii) to extend credit for the purpose of purchasing or
carrying any Margin Stock, (iv) to acquire any security in any transaction that
is subject to Section 13 or 14 of the Exchange Act or (v) to make Acquisitions
other than Permitted Acquisitions.

            (b)   None of the proceeds of any Loans may be used in any way which
infringes Section 151 of the Companies Act or any similar or other statutory
obligation whether in the United Kingdom or elsewhere.

      8.08  Contingent Obligations.

      BHI shall not, nor shall it suffer or permit any of its Subsidiaries to,
create, incur, assume or suffer to exist any Contingent Obligations except:

            (a)   (i) endorsements for collection or deposit in the ordinary
course of business, and (ii) standard contractual indemnities in the ordinary
course of business;

            (b)   Permitted Swap Obligations;

            (c)   Contingent Obligations of BHI and its Subsidiaries existing as
of the Closing Date and listed in Schedule 8.08;

            (d)   Contingent Obligations with respect to Indebtedness permitted
by Section 8.05;

            (e)   Contingent Obligations with respect to Surety Instruments
incurred by BHI and its Subsidiaries (including on behalf of third parties) in
the ordinary course of business;

            (f)   Contingent Obligations of BHI or any Subsidiary of BHI
consisting of a guarantee of obligations of a Wholly-Owned Subsidiary under any
lease or other agreement entered into in the ordinary course of business not
constituting Indebtedness and for which the liability with respect thereto is
not required to be reflected on a balance sheet prepared in accordance with
GAAP;

            (g)   ordinary course indemnity provisions in any agreement,
undertaking, contract, indenture, mortgage, deed of trust or other instrument,
document or agreement to which BHI or any of its Subsidiaries is a party;

            (h)   BHI and its Subsidiaries may become and remain liable with
respect to Contingent Obligations in the form of customary and reasonable
indemnification provisions or

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customary purchase price adjustments (based on post-closing audit adjustments)
incurred in connection with Permitted Acquisitions or sales of assets permitted
under this Agreement to be made by BHI or any Subsidiary;

            (i)   BHI and its Subsidiaries may incur Contingent Obligations in
respect of employment arrangements and other compensation arrangements entered
into in connection with Permitted Acquisitions; and

            (j)   Contingent Obligations not exceeding at any time the
Equivalent Amount of $2,000,000 in the aggregate less the amount of unsecured
Indebtedness which is permitted to be outstanding solely under subsection
8.05(m).

      8.09  Restricted Payments.

      BHI shall not, nor shall it suffer or permit any of its Subsidiaries to,
declare or make any dividend payment, other payment or other distribution of
assets, properties, cash, rights, obligations or securities on account of any
shares of any class of its capital stock or purchase, redeem or otherwise
acquire for value any shares of its capital stock or any warrants, rights or
options to acquire such shares, now or hereafter outstanding (collectively,
"Restricted Payments"), except that:

            (a)   BHI may declare and make dividend payments or other
distributions payable solely in its Capital Stock and in cash to the extent
permitted by clauses (c) and (d) below;

            (b)   Subsidiaries of BHI may make Restricted Payments to BHI and
other Wholly-Owned Subsidiaries of BHI;

            (c)   so long as no Default or Event of Default shall then exist and
be continuing or would result after giving effect thereto, any Subsidiary of BHI
may declare and make dividend payments or other distributions payable to BHI (x)
to enable BHI to repurchase Capital Stock owned by its officers, directors,
consultants, and employees, or former officers, directors, consultants and
employees, or their respective estates or spouses or former spouses, of BHI or
any of its Subsidiaries in an amount not exceeding during the term of this
Agreement $500,000 plus the amount of proceeds received by BHI in cash (or
forgiveness of Indebtedness) (or the principal amount of promissory notes) after
the Closing Date from the purchase of Capital Stock of BHI by (i) officers,
directors, consultants, and employees of BHI and its Subsidiaries and (ii)
holders of Capital Stock of BHI as of the Closing Date and their Related
Parties; provided that any such repurchase for cash or forgiveness of
Indebtedness shall not exceed the aggregate amount of all such proceeds received
in cash (or forgiveness of Indebtedness) after the Closing Date, and (y) to
enable BHI to make scheduled payments of interest on subordinated Indebtedness
incurred by BHI pursuant to Section 8.05(h) or (i) or to make scheduled payments
of interest on other subordinated Indebtedness; provided that the aggregate
principal amount of subordinated Indebtedness of BHI shall not at any time
exceed the amount permitted to be incurred by BHI pursuant to Section 8.05(g) or
(h)); and

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            (d)   distributions to BHI to the extent necessary to permit BHI to
pay federal, state and other taxes and other administrative costs applicable to
the operations of BHI and its Subsidiaries.

      8.10  ERISA.

      BHI shall not, nor shall it suffer or permit any of its ERISA Affiliates
to: (a) engage in a prohibited transaction or violation of the fiduciary
responsibility rules with respect to any Plan or (b) engage in a transaction
that could be subject to Section 4069 or 4212(c) of ERISA which has resulted or
could reasonably expected to result in liability of BHI in an aggregate amount
in excess of $2,000,000.

      8.11  Change in Business.

            (a)   No Loan Party shall, nor shall any such Loan Party suffer or
permit any of its Subsidiaries to, engage in any material line of business
substantially different from those lines of business carried on by a Loan Party
and its Subsidiaries on the Closing Date and lines of business reasonably
ancillary or complementary to such current lines of business.

            (b)   BHI will not engage in any business activities other than in
connection with its ownership interest in the Loan Parties and its other
Subsidiaries and the execution, delivery and performance of the Transaction
Documents to which it is a party and to engage in other actions expressly
permitted by this Agreement (including, without limitation, incurring certain
Indebtedness and making certain loans). Notwithstanding the foregoing, BHI may
engage in those activities that are incidental to (x) the maintenance of its
corporate existence in compliance with applicable law and (y) legal, tax and
accounting matters in connection with any of the foregoing activities.

      8.12  Accounting Changes.

      BHI shall not, nor shall it suffer or permit any of its Subsidiaries to,
(a) make any significant change in accounting treatment or reporting practices,
except (i) as required by GAAP and (ii) any other change which does not affect
the calculations required to determine compliance with Section 8.14 through
8.18, or (b) change the fiscal year of BHI or any of its Subsidiaries to make
the fiscal year of such Subsidiary different than that of BHI.

      8.13 Amendments to Organizational Documents or Management Agreement;
Preferred Stock.

      BHI shall not, nor shall it permit any of its Subsidiaries to, (a) make
any amendment or modification to the Organizational Documents of BHI or any Loan
Party, or to any terms or provisions of any other Organizational Documents which
is materially adverse to the Administrative Agent or the Lenders without the
prior written consent of the Required Lenders, (b) make any amendment or
modification to the Management Agreement which is materially adverse to the
Administrative Agent or the Lenders without the prior written consent of the
Required Lenders or (c) issue any preferred stock, other than preferred stock
which is subordinated to the Obligations on terms reasonably satisfactory to the
Administrative Agent and the Required Lenders incurred in connection with
Permitted Acquisitions or Investments

                                      106
<PAGE>

permitted by Section 8.04; provided that the terms and conditions of such
preferred stock shall be satisfactory to the Administrative Agent and the
liquidation preference with respect thereto (together with the principal amount
of Indebtedness outstanding and permitted pursuant to subsection 8.05(g)) shall
not exceed $20,000,000 in the aggregate at any time outstanding.

      8.14  Net Worth.

      BHI shall not permit its consolidated Net Worth on the last day of any
fiscal quarter to be less than the sum of (a) $35,000,000, plus (b) 75% of
consolidated Net Income of BHI and its Subsidiaries (excluding (a) gains and
losses with respect to foreign exchange and/or interest rate protection
adjustments reflected in the consolidated balance sheet of BHI, (b) previously
capitalized costs and expenses related to the incurrence of indebtedness and
costs and expenses related to the execution and delivery of this Agreement, not
to exceed $3,250,000 in the aggregate and (c) adjustments with respect to
goodwill made in accordance with Financial Accounting Standard 142) for each
fiscal quarter after the Closing Date; provided, however, that, in the event Net
Income of BHI and its Subsidiaries is less than zero for any fiscal quarter, Net
Income for purposes only of this Section 8.14 shall be deemed to be zero for
such fiscal quarter.

      8.15  Total Leverage Ratio.

      BHI shall not permit the Total Leverage Ratio, as determined as of the
last day of each fiscal quarter for the four fiscal quarter period then ended,
to be greater than the ratio set forth below for such period:

<TABLE>
<CAPTION>
  QUARTER ENDING                RATIO
  --------------                -----
<S>                           <C>
March 31, 2003                3.80 to 1
June 30, 2003                 4.50 to 1
September 30, 2003            4.40 to 1
December 31, 2003             3.50 to 1
March 31, 2004                3.00 to 1
June 30, 2004                 2.75 to 1
and thereafter
</TABLE>

; provided, however, that for purposes of calculating the Total Leverage Ratio
hereunder "Funded Indebtedness" shall exclude any Additional Capital to the
extent the proceeds thereof are applied to reduce the Revolving Loans and such
application shall be reflected on a pro forma basis as if such reduction in the
Revolving Loans had occurred at the beginning of the four quarter period then
ended.

      8.16  Fixed Charge Coverage Ratio.

      BHI shall not permit the Fixed Charge Coverage Ratio, as determined as of
the last day of each fiscal quarter for the four fiscal quarter period then
ended, to be less than the ratio set forth below for such period:

                                      107
<PAGE>

<TABLE>
<CAPTION>
  QUARTER ENDING                RATIO
  --------------                -----
<S>                           <C>
March 31, 2003                1.00 to 1
June 30, 2003                  .85 to 1
September 30, 2003             .85 to 1
December 31, 2003              .95 to 1
March 31, 2004
and thereafter                1.00 to 1
</TABLE>

      8.17  Minimum EBITDA.

      BHI shall not permit EBITDA, calculated on a cumulative basis from January
1, 2003 to each of the dates set forth below, to be less than the amounts set
forth below for each such period:

<TABLE>
<CAPTION>
Fiscal period ending on or about:             EBITDA
---------------------------------             ------
<S>                                        <C>
March 31, 2003                             $  3,667,000

April 30, 2003                             $  4,991,000

May 31, 2003                               $  6,654,000

June 30, 2003                              $  8,765,000

July 31, 2003                              $  9,785,000

August 31, 2003                            $ 11,769,000

September 30, 2003                         $ 14,358,000

October 31, 2003                           $ 17,003,000

November 30, 2003                          $ 19,335,000

December 31, 2003                          $ 20,805,000
</TABLE>

      8.18  Capital Expenditures.

      Neither BHI nor any of its Subsidiaries shall make or commit to make
Capital Expenditures in an aggregate amount exceeding the Equivalent Amount of
$10,000,000 in any fiscal year; provided, that up to the Equivalent Amount of
$2,500,000 of the amount of Capital Expenditures permitted hereunder (including
for purposes hereof amounts carried forward from the previous year, if any)
which are not applied in any fiscal year may be carried forward and applied in
the next succeeding fiscal year. For the purpose of this Section 8.18 only,
"Equivalent Amount" for computations in Sterling shall be calculated at the
exchange rate of $1.50 to (pound)1.

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<PAGE>

      8.19  Restrictive Agreements.

      Neither BHI, nor the Company shall, nor shall they permit any of their
Subsidiaries to, enter into any indenture, agreement, instrument or other
arrangement which directly or indirectly prohibits or restrains, or has the
direct effect of prohibiting or restraining, or imposes materially adverse
conditions upon, the ability of any of its Subsidiaries to (a) pay dividends or
make other distributions (i) on its Capital Stock or (ii) with respect to any
other interest or participation in, or measured by, its profits, (b) make loans
or advances to BHI or any of its Subsidiaries, (c) repay loans or advances from
BHI or any of its Subsidiaries or (d) transfer any of its properties or assets
to BHI or any of its Subsidiaries; provided, however, the provisions of this
Section 8.19 shall not apply with respect to clause (d) above, to Permitted
Liens or other restrictions contained in security agreements securing
Indebtedness permitted hereby to the extent such restrictions restrict the
transfer of property subject to such Permitted Lien or any encumbrance or
restriction consisting of customary non-assignment provisions in Contractual
Obligations entered into in the ordinary course of business to the extent such
provisions restrict the transfer or assignment of such agreement.

                                   ARTICLE IX

                                EVENTS OF DEFAULT

      9.01  Event of Default.

      Any of the following shall constitute an "Event of Default":

            (a)   Non-Payment. Any Borrower fails to pay, (i) when and as
required to be paid herein, any amount of principal of any Loan or of any L/C
Obligation, or (ii) within three (3) Business Days after the same becomes due,
any interest, fee or any other amount payable hereunder or under any other Loan
Document; or

            (b)   Representation or Warranty. Any representation or warranty by
any Loan Party made or deemed made herein or in any other Loan Document, or
contained in any certificate, document or financial or other statement by a Loan
Party, or any Responsible Officer, furnished at any time under this Agreement,
or in or under any other Loan Document, is incorrect in any material respect on
or as of the date made or deemed made; or

            (c)   Specific Defaults. BHI or any Borrower fails to perform or
observe any term, covenant or agreement contained in any of Section 7.01, 7.02,
7.03(a) - (d), 7.04(a), 7.09, 7.13(d) or (e) or in Article VIII; or

            (d)   Other Defaults. Any Loan Party fails to perform or observe any
other term or covenant contained in this Agreement or any other Loan Document,
and such default shall continue unremedied for a period of 30 days after the
date upon which written notice thereof is given to the Company by the
Administrative Agent or any Lender; or

            (e)   Cross-Default. (i) Any Loan Party (A) fails to make any
payment in respect of any Indebtedness (other than in respect of Swap
Contracts), having an aggregate principal amount (including undrawn committed or
available amounts and including amounts

                                      109
<PAGE>

owing to all creditors under any combined or syndicated credit arrangement) of
more than $2,000,000 when due (whether by scheduled maturity, required
prepayment, acceleration, demand, or otherwise) and such failure continues after
the applicable grace or notice period, if any, specified in the relevant
document on the date of such failure; or (B) fails to perform or observe any
other condition or covenant, or any other event shall occur or condition exist,
under any agreement or instrument relating to any such Indebtedness or in
respect of any Contingent Obligation having an aggregate maximum amount of more
than $2,000,000 when due, and such failure continues after the applicable grace
or notice period, if any, specified in the relevant document on the date of such
failure if the effect of such failure, event or condition is to cause, or to
permit the holder or holders of such Indebtedness or beneficiary or
beneficiaries of such Indebtedness (or a trustee or agent on behalf of such
holder or holders or beneficiary or beneficiaries) to cause such Indebtedness to
be declared to be due and payable, or to be required to be repurchased, prior to
its stated maturity, or such Contingent Obligation to become payable or cash
collateral in respect thereof to be demanded; (ii) there occurs under any Swap
Contract an Early Termination Date (as defined in such Swap Contract) resulting
from (1) any event of default under such Swap Contract as to which any Loan
Party is the Defaulting Party (as defined in such Swap Contract) or (2) any
Termination Event (as so defined) arising due to a "Tax Event Upon Merger" or a
"Credit Event Upon Merger" as to which the Company or any Subsidiary is an
Affected Party (as so defined) and, in either event, the Swap Termination Value
owed by such Loan Party as a result thereof is greater than $1,000,000; or (iii)
such Loan Party fails to perform or observe any condition or covenant under any
contract providing for the issuance of, or reimbursement of amounts in respect
of, Surety Instruments (other than Non-Surety L/Cs), which in such event
requires the making of payments in excess of $1,000,000 in the aggregate, net of
the proceeds of insurance policies and indemnity agreements in favor of such
Loan Party and received or reasonably expected to be received thereby.

            (f)   Insolvency; Voluntary Proceedings. Any Loan Party (i) ceases
or fails to be solvent, or generally fails to pay, or admits in writing its
inability to pay, its debts as they become due, subject to applicable grace
periods, if any, whether at stated maturity or otherwise; (ii) voluntarily
ceases to conduct its business in the ordinary course; (iii) commences any
Insolvency Proceeding with respect to itself; (iv) in relation to a Loan Party
incorporated in England and Wales makes an application to strike that Loan Party
off the register pursuant to Section 652A of the Companies Act 1985 of the
United Kingdom or (iv) takes any action to effectuate or authorize any of the
foregoing including, without limitation, the calling of any creditors or
shareholders meeting to effect the same; or

            (g)   Involuntary Proceedings. (i) Any involuntary Insolvency
Proceeding is commenced or filed against any Loan Party, or any writ, judgment,
warrant of attachment, execution or similar process, is issued or levied against
a substantial part of any Loan Party's properties, and any such proceeding or
petition shall not be dismissed, or such writ, judgment, warrant of attachment,
execution or similar process shall not be released, vacated or fully bonded
within 60 days after commencement, filing or levy; (ii) any Loan Party admits in
writing the material allegations of a petition against it in any Insolvency
Proceeding, or an order for relief (or similar order under non-U.S. law) is
ordered in any Insolvency Proceeding; or (iii) any Loan Party acquiesces in
writing to the appointment of a receiver, trustee, custodian, conservator,
liquidator, mortgagee in possession (or agent therefor), administrator or other
similar Person for itself or a substantial portion of its property or business;
or (iv) in relation to a Loan Party

                                      110
<PAGE>

incorporated in England and Wales the registrar of companies takes any steps in
contemplation of striking that Loan Party off the register pursuant to Section
652 of the Companies Act 1985 of the United Kingdom; or

            (h)   ERISA. (i) An ERISA Event shall occur with respect to a
Pension Plan or Multiemployer Plan which has resulted or would reasonably be
expected to result in liability of BHI or any ERISA Affiliate under Title IV of
ERISA to such Pension Plan or Multiemployer Plan or to the PBGC in an aggregate
amount for all such Pension Plans and Multiemployer Plans in excess of
$2,000,000; (ii) the aggregate amount of Unfunded Pension Liability among all
Pension Plans and Multiemployer Plans at any time exceeds $2,000,000
(determined, in respect of Multiemployer Plans, by reference to the Unfunded
Person Liability for which BHI or any ERISA Affiliate may be liable); or (iii)
BHI or any ERISA Affiliate shall fail to pay when due, after the expiration of
any applicable grace period, any installment payment with respect to its
withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in
an aggregate amount in excess of $2,000,000; or

            (i)   Monetary Judgments. One or more non-interlocutory judgments,
noninterlocutory orders, decrees or arbitration awards is entered against one or
more Loan Parties involving in the aggregate a liability (to the extent not
covered by independent third-party insurance as to which the insurer does not
dispute coverage) as to any single or related series of transactions, incidents
or conditions, of $2,000,000 or more, and the same shall remain unsatisfied,
unvacated and unstayed pending appeal for a period of 10 days after the entry
thereof; or

            (j)   Non-Monetary Judgments. Any non-monetary judgment, order or
decree is entered against any Loan Party which does or would reasonably be
expected to have a Material Adverse Effect, and there shall be any period of 20
consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, shall not be in effect; or

            (k)   Change of Control. There occurs any Change of Control; or

            (l)   Guarantor Defaults. Any Guarantor fails in any material
respect to perform or observe any material term, covenant or agreement in the
BHI Guaranty or the Subsidiary Guaranty, as applicable; or the BHI Guaranty or
the Subsidiary Guaranty is for any reason partially (including with respect to
future advances) or wholly revoked or invalidated, or otherwise ceases to be in
full force and effect, or any Guarantor contests in writing in any manner the
validity or enforceability thereof or denies in writing that it has any further
liability or obligation thereunder; or any event described at subsection (f) or
(g) of this Section occurs with respect to any Guarantor; or

            (m)   Collateral.

                  (i) any provision of any Collateral Document shall for any
            reason cease to be valid and binding on or enforceable against the
            Loan Party thereto or any Loan Party shall so state in writing or
            bring an action to limit or deny any obligation or liability
            thereunder; or

                                      111
<PAGE>

                  (ii) any Collateral Document shall for any reason (other than
            pursuant to the terms thereof) cease to create a valid security
            interest in the Collateral purported to be covered thereby having a
            fair market value of $100,000 or more or such security interest
            shall for any reason cease to be a perfected and first priority
            security interest subject only to Permitted Liens.

      9.02  Remedies.

      Subject to Section 5.02, if any Event of Default has occurred and is
continuing, the Administrative Agent and/or the Collateral Agent shall, at the
request of, or may, with the consent of, the Required Lenders:

            (a)   declare the Commitment of each Lender to make Loans and any
obligation of the Issuer to Issue Letters of Credit to be terminated, whereupon
such Commitments and obligation shall be terminated;

            (b)   declare the maximum aggregate amount that is or at any time
thereafter may become available for drawing under any outstanding Letters of
Credit (whether or not any beneficiary shall have presented, or shall be
entitled at such time to present, the drafts or other documents required to draw
under such Letters of Credit) to be immediately due and payable, and declare the
unpaid principal amount of all outstanding Loans, all interest accrued and
unpaid thereon, and all other amounts owing or payable hereunder or under any
other Loan Document to be immediately due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly
waived by the Company; and

            (c)   exercise on behalf of itself and the Lenders all rights and
remedies available to it and the Lenders under the Loan Documents or applicable
law;

provided, however, that upon the occurrence of any event specified in subsection
(f) or (g) of Section 9.01 (in the case of subclause (i) of clause (g) upon the
expiration of the sixty day period described therein), the obligation of each
Lender to make Loans and any obligation of an Issuer to Issue Letters of Credit
shall automatically terminate and the unpaid principal amount of all outstanding
Loans and all interest and other amounts as aforesaid shall automatically become
due and payable without further act of the Administrative Agent, the Collateral
Agent, any Issuer or any Lender.

      9.03  Rights Not Exclusive.

      The rights provided for in this Agreement and the other Loan Documents are
cumulative and are not exclusive of any other rights, powers, privileges or
remedies provided by law or in equity, or under any other instrument, document
or agreement now existing or hereafter arising.

                                      112
<PAGE>

                                    ARTICLE X

                                   THE AGENTS

      10.01 Appointment and Authorization.

            (a)   Each Lender hereby irrevocably designates and appoints Bank of
America as the Administrative Agent and Collateral Agent, and under this
Agreement and the other Loan Documents, and each Lender irrevocably authorizes
the Administrative Agent and the Collateral Agent to take such action on its
behalf under the provisions of this Agreement and each other Loan Document and
to exercise such powers and perform such duties as are expressly delegated to
the Administrative Agent and the Collateral Agent, by the terms of this
Agreement or any other Loan Document, together with such powers as are
reasonably incidental thereto. Notwithstanding any provision to the contrary
contained elsewhere in this Agreement or in any other Loan Document, neither the
Administrative Agent nor the Collateral Agent shall have any duties or
responsibilities, except those expressly set forth herein, nor shall the
Administrative Agent or the Collateral Agent have or be deemed to have any
fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the
Administrative Agent or the Collateral Agent. Without limiting the generality of
the foregoing sentence, the use of the term "agent" in this Agreement with
reference to the Administrative Agent and the Collateral Agent is not intended
to connote any fiduciary or other implied (or express) obligations arising under
agency doctrine of any applicable law. Instead, such term is used merely as a
matter of market custom, and is intended to create or reflect only an
administrative relationship between independent contracting parties.

            (b)   The Issuer shall act on behalf of the Lenders with respect to
any Letters of Credit Issued by the Issuer and the documents associated
therewith; provided, however, that the Issuer shall have all of the benefits and
immunities (i) provided to the Administrative Agent in this Article X with
respect to any acts taken or omissions suffered by the Issuer in connection with
Letters of Credit Issued by it or proposed to be Issued by it and the
application and agreements for letters of credit pertaining to the Letters of
Credit as fully as if the term "Administrative Agent," as used in this Article
X, included the Issuer with respect to such acts or omissions, and (ii) as
additionally provided in this Agreement with respect to the Issuer.

      10.02 Delegation of Duties.

      The Administrative Agent and the Collateral Agent may execute any of their
respective duties under this Agreement or any other Loan Document by or through
agents, employees or attorneys-in-fact and shall be entitled to advice of
counsel concerning all matters pertaining to such duties. Neither the
Administrative Agent nor the Collateral Agent shall be responsible for the
negligence or misconduct of any agent or attorney-in-fact that it selects with
reasonable care.

      10.03 Liability of Agents.

      No Agent-Related Person (in such capacities) shall (a) be liable for any
action taken or omitted to be taken by any of them under or in connection with
this Agreement or any other

                                      113
<PAGE>

Loan Document or the transactions contemplated hereby (except for its own gross
negligence or willful misconduct), or (b) be responsible in any manner to any of
the Lenders for any recital, statement, representation or warranty made by BHI
or any Subsidiary or Affiliate of BHI, or any officer thereof, contained in this
Agreement or in any other Loan Document, or in any certificate, report,
statement or other document referred to or provided for in, or received by the
Administrative Agent or the Collateral Agent under or in connection with, this
Agreement or any other Loan Document, or for the value of or title to any
Collateral, or the validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement or any other Loan Document, or for any failure of
BHI or any other party to any Loan Document to perform its obligations hereunder
or thereunder. No Agent-Related Person shall be under any obligation to any
Lender to ascertain or to inquire as to the observance or performance of any of
the agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect the properties, books or records of BHI or any of BHI's
Subsidiaries or Affiliates.

      10.04 Reliance by Agents.

            (a)   Each of the Administrative Agent and the Collateral Agent
shall be entitled to rely, and shall be fully protected in relying, upon any
writing, resolution, notice, consent, certificate, affidavit, letter, telegram,
facsimile, telex or telephone message, statement or other document or
conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person or Persons, and upon advice and statements of
legal counsel (including counsel to BHI), independent accountants and other
experts selected by it. Each of the Administrative Agent and the Collateral
Agent shall be fully justified in failing or refusing to take any action under
this Agreement or any other Loan Document unless it shall first receive such
advice or concurrence of the Required Lenders as it deems appropriate and, if it
so requests, it shall first be indemnified to its satisfaction by the Lenders
against any and all liability and expense which may be incurred by it by reason
of taking or continuing to take any such action. Each of the Administrative
Agent and the Collateral Agent shall in all cases be fully protected in acting,
or in refraining from acting, under this Agreement or any other Loan Document in
accordance with a request or consent of the Required Lenders and such request
and any action taken or failure to act pursuant thereto shall be binding upon
all of the Lenders.

            (b)   For purposes of determining compliance with the conditions
specified in Sections 5.01 and, with regard to the initial Credit Extension,
5.02, each Lender that has executed this Agreement shall be deemed to have
consented to, approved or accepted or to be satisfied with, each document or
other matter either sent by the Administrative Agent to such Lender for consent,
approval, acceptance or satisfaction, or required thereunder to be consented to
or approved by or acceptable or satisfactory to such Lender unless the
Administrative Agent shall have received notice from such Lender prior to the
proposed Closing Date specifying its objection thereto.

      10.05 Notice of Default.

      Neither the Administrative Agent nor the Collateral Agent shall be deemed
to have knowledge or notice of the occurrence of any Default or Event of
Default, except with respect to defaults in the payment of principal, interest
and fees required to be paid to the Administrative Agent for the account of the
Lenders, unless the Administrative Agent shall have received

                                      114
<PAGE>

written notice from a Lender or BHI referring to this Agreement, describing such
Default or Event of Default and stating that such notice is a "notice of
default." The Administrative Agent will notify the Lenders of its receipt of any
such notice. The Administrative Agent and the Collateral Agent shall take such
action with respect to such Default or Event of Default as may be requested by
the Required Lenders in accordance with Article IX; provided, however, that,
subject to the provisions of Section 9.02 requiring the consent of Required
Lenders to certain remedies, unless and until the Administrative Agent and the
Collateral Agent has received any such request, the Administrative Agent and the
Collateral Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of
Default as they shall deem advisable or in the best interest of the Lenders.

      10.06 Credit Decision.

      Each Lender acknowledges that none of the Agent-Related Persons has made
any representation or warranty to it, and that no act by the Administrative
Agent or the Collateral Agent, hereinafter taken, including any review of the
affairs of BHI and its Subsidiaries, shall be deemed to constitute any
representation or warranty by any Agent-Related Person to any Lender. Each
Lender represents to the Administrative Agent and the Collateral Agent that it
has, independently and without reliance upon any Agent-Related Person and based
on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, prospects, operations,
property, financial and other condition and creditworthiness of BHI and its
Subsidiaries, the value of and title to any Collateral, and all applicable bank
regulatory laws relating to the transactions contemplated hereby, and made its
own decision to enter into this Agreement and to extend credit to the Borrowers
hereunder. Each Lender also represents that it will, independently and without
reliance upon any Agent-Related Person and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis, appraisals and decisions in taking or not taking action under
this Agreement and the other Loan Documents, and to make such investigations as
it deems necessary to inform itself as to the business, prospects, operations,
property, financial and other condition and creditworthiness of BHI and its
Subsidiaries. Except for notices, reports and other documents expressly herein
required to be furnished to the Lenders by the Administrative Agent or the
Collateral Agent, neither the Administrative Agent nor the Collateral Agent
shall have any duty or responsibility to provide any Lender with any credit or
other information concerning the business, prospects, operations, property,
financial and other condition or creditworthiness of BHI or any of its
Subsidiaries which may come into the possession of any of the Agent-Related
Persons.

      10.07 Indemnification of Agents.

      Whether or not the transactions contemplated hereby are consummated, the
Lenders shall indemnify upon demand the Agent-Related Persons (to the extent not
reimbursed by or on behalf of the Borrowers and without limiting the obligation
of the Borrowers to do so), in accordance with such Lender's Pro Rata Share of
all Loans and Commitments, from and against any and all Indemnified Liabilities;
provided, however, that no Lender shall be liable for the payment to the
Agent-Related Persons of any portion of such Indemnified Liabilities resulting
from such Person's gross negligence, bad faith or willful misconduct. Without
limitation of the foregoing, each Lender shall reimburse the Administrative
Agent and the Collateral Agent upon demand for

                                      115
<PAGE>

its respective ratable share of any costs or out-of-pocket expenses (including
Attorney Costs and all goods and services, value added, consumption, sales, use
or similar taxes applicable to such costs or expenses) incurred by the
Administrative Agent or the Collateral Agent in connection with the preparation,
execution, delivery, administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement, any other
Loan Document, or any document contemplated by or referred to herein, to the
extent that the Administrative Agent or the Collateral Agent is not reimbursed
for such expenses by or on behalf of the Borrowers. The undertaking in this
Section shall survive the termination of the Aggregate Commitment, the payment
of all Obligations hereunder and the resignation or replacement of the
Administrative Agent or any Agent-Related Person.

      10.08 Agent in Individual Capacity.

      Bank of America and its Affiliates may make loans to, issue letters of
credit for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting
or other business with BHI and its Subsidiaries and Affiliates as though Bank of
America were not the Administrative Agent or the Collateral Agent or the Issuer
hereunder, in each case without notice to or consent of the Lenders. The Lenders
acknowledge that, pursuant to such activities, Bank of America or its Affiliates
may receive information regarding BHI or its Affiliates (including information
that may be subject to confidentiality obligations in favor of BHI or such
Subsidiary) and acknowledge that the Administrative Agent and the Collateral
Agent shall be under no obligation to provide such information to them. With
respect to its Loans, Bank of America shall have the same rights and powers
under this Agreement as any other Lender and may exercise the same as though it
were not the Administrative Agent, the Collateral Agent or an Issuer, and the
terms "Lender" and "Lenders" include Bank of America in its individual capacity.

      10.09 Successor Administrative Agent.

      The Administrative Agent may, and at the request of the Required Lenders
shall, resign as Administrative Agent upon thirty (30) days' notice to the
Lenders, provided that such resignation by Bank of America shall also constitute
its resignation as the Collateral Agent, as an Issuer and as Swing Line Lender.
If the Administrative Agent resigns under this Agreement, the Required Lenders
shall appoint from among the Lenders a successor Administrative Agent,
Collateral Agent, Issuer and Swing Line Lender subject to the consent of the
Borrowers at all times other than during the existence of an Event of Default,
which shall not be unreasonably withheld or delayed. If no successor
Administrative Agent, Collateral Agent, Issuer and Swing Line Lender is
appointed prior to the effective date of the resignation of the Administrative
Agent, the Administrative Agent may appoint, after consulting with the Lenders
and the Borrowers at all times other than during the existence of an Event of
Default, a successor Administrative Agent from among the Lenders. Upon the
acceptance of its appointment as successor Administrative Agent, Collateral
Agent, Issuer and Swing Line Lender hereunder, such successor Administrative
Agent, Collateral Agent, Issuer and Swing Line Lender shall succeed to all the
respective rights, powers and duties of the retiring Administrative Agent,
Collateral Agent, Issuer and Swing Line Lender and the respective terms
"Administrative Agent," "Collateral Agent," "Issuer" and "Swing Line Lender"
shall mean such successor

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Administrative Agent, Collateral Agent, Issuer and Swing Line Lender and the
retiring Administrative Agent's and Collateral Agent's respective appointment,
powers and duties as Administrative Agent and Collateral Agent shall be
terminated and the retiring Issuer's and Swing Line Lender's rights, powers and
duties as such shall be terminated, without any other or further act or deed on
the part of such retiring Administrative Agent, Collateral Agent, Issuer and
Swing Line Lender or any other Lender; provided, that any resignation of Bank of
America as Administrative Agent shall not automatically constitute a resignation
of Bank of America as guarantor under the Loan Note Credit Support and the above
provisions, as they apply to Bank of America as an Issuer, shall not apply to
Bank of America as guarantor under the Loan Note Credit Support. Upon any such
assignment and acceptance, any successor Issuer shall be obligated to issue
letters of credit in substitution for the Letters of Credit issued by the
retiring Issuer, if any, outstanding at the time of such succession or to make
other arrangements satisfactory to the retiring Issuer to effectively assume the
obligations of the retiring Issuer with respect to such Letters of Credit. After
any retiring Administrative Agent's resignation hereunder as Administrative
Agent, the provisions of this Article X and Sections 11.04 and 11.05 shall inure
to its benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement. If no successor Administrative Agent
has accepted appointment as Administrative Agent by the date which is thirty
(30) days following a retiring Administrative Agent's notice of resignation, the
retiring Administrative Agent's resignation shall nevertheless thereupon become
effective and the Lenders shall perform all of the duties of the Administrative
Agent hereunder until such time, if any, as the Required Lenders and the
Borrowers (at all times other than during the existence of an Event of Default)
appoint a successor Administrative Agent as provided for above; provided that,
in such event, the Lenders shall not be obligated to perform the duties of the
Collateral Agent, the Issuer or the Swing Line Lender, and the Collateral Agent,
the Issuer and the Swing Line Lender shall not be permitted to resign until such
time as an assignee assumes such roles or accepts an appointment by the Lenders
in each such capacity. Notwithstanding the foregoing, however, Bank of America
may not be removed as the Administrative Agent at the request of the Required
Lenders unless Bank of America shall also simultaneously be replaced as the
Issuer, as Collateral Agent and as Swing Line Lender under the Loan Documents
pursuant to documentation in form and substance reasonably satisfactory to Bank
of America.

      10.10 Administrative Agent May File Proofs of Claim. In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to any Loan Party, the Administrative Agent (irrespective of
whether the principal of any Loan or L/C Obligation shall then be due and
payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on any Loan Party)
shall be entitled and empowered, by intervention in such proceeding or
otherwise:

            (a)   to file and prove a claim for the whole amount of the
principal and interest owing and unpaid in respect of the Loans, L/C Obligations
and all other Obligations that are owing and unpaid and to file such other
documents as may be necessary or advisable in order to have the claims of the
Lenders, the Issuers and the Administrative Agent (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Lenders,
the Issuers and the Administrative Agent and their respective agents and counsel
and all other

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amounts due the Lenders, the Issuers and the Administrative Agent hereunder)
allowed in such judicial proceeding; and

            (b)   to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Lender and Issuer to make such payments to the Administrative Agent and, in
the event that the Administrative Agent shall consent to the making of such
payments directly to the Lenders and Issuers, to pay to the Administrative Agent
any amount due for the reasonable compensation, expenses, disbursements and
advances of the Administrative Agent and its agents and counsel, and any other
amounts due the Administrative Agent and Issuers hereunder.

      Nothing contained herein shall be deemed to authorize the Administrative
Agent to authorize or consent to or accept or adopt on behalf of any Issuer or
Lender any plan of reorganization, arrangement, adjustment or composition
affecting the Obligations or the rights of any Issuer or Lender or to authorize
the Administrative Agent to vote in respect of the claim of any Issuer or Lender
in any such proceeding.

      10.11 Collateral Matters.

            (a)   The Collateral Agent is authorized on behalf of all the
Lenders, without the necessity of any notice to or further consent from the
Lenders, from time to time to take any action with respect to any Collateral or
the Collateral Documents which may be necessary to perfect and maintain
perfected the security interest in and Liens upon the Collateral granted
pursuant to the Collateral Documents.

            (b)   The Lenders irrevocably authorize the Collateral Agent, and
the Collateral Agent hereby agrees, upon request of the Borrower Representative,
to release any Lien granted to or held by the Collateral Agent upon any
Collateral (i) upon termination of the Aggregate Commitments, expiration or
termination of all Letters of Credit and payment in full of all Loans and all
other Obligations known to the Administrative Agent or the Collateral Agent and
payable under this Agreement or any other Loan Document; (ii) constituting
property sold or disposed of as part of or in connection with any disposition
permitted hereunder; (iii) constituting property in which BHI or any Subsidiary
owned no interest at the time the Lien was granted or at any time thereafter;
(iv) constituting property leased to BHI or any Subsidiary under a lease which
has expired or been terminated in a transaction permitted under this Agreement
or is about to expire and which has not been, and is not intended by BHI or such
Subsidiary to be, renewed or extended; (v) consisting of an instrument
evidencing Indebtedness or other debt instrument, if the indebtedness evidenced
thereby has been paid in full; (vi) acquired by BHI or any Subsidiary of BHI
after the Closing Date and at least 75% of the purchase price therefor is within
20 days of the acquisition thereof financed with Indebtedness secured by a Lien
permitted by Section 8.01(i); or (vii) if approved, authorized or ratified in
writing by the Required Lenders or all the Lenders, as the case may be, as
provided in Section 11.01. Upon request by the Collateral Agent at any time, the
Lenders will confirm in writing the Collateral Agent's authority to release
particular types or items of Collateral pursuant to this subsection 10.11(b),
provided that the

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absence of any such confirmation for whatever reason shall not affect the
Collateral Agent's rights under this Section 10.11.

            (c)   Each Lender agrees with and in favor of each other (which
agreement shall not be for the benefit of BHI or any Subsidiary) that the
Borrowers' obligations to such Lender under this Agreement and the other Loan
Documents is not and shall not be secured by any real property collateral now or
hereafter acquired by such Lender other than the real property described in any
Mortgages entered into from time to time.

      10.12 Administrative Agent as English Trustee.

            (a)   (a)   The Administrative Agent in its capacity as trustee or
otherwise under the Loan Documents governed by English law:

                  (i)   is not liable for any failure, omission, or defect in
      perfecting or registering the security constituted or created by any Loan
      Document;

                  (ii)  may accept without inquiry such title as any Loan Party
      or any of its Subsidiaries may have to any asset secured by any Loan
      Document; and

                  (iii) is not under any obligation to hold any Loan Document or
      any other document in connection with the Loan Documents or the assets
      secured by any Loan Document (including title deeds) in its own possession
      or take any steps to protect or preserve the same. The Administrative
      Agent may permit any Loan Party or any of its Subsidiaries to retain any
      Loan Document or other document in its possession.

            (b)   Except as otherwise provided in the Loan Documents governed by
English law, all moneys which under the trusts contained in the Loan Documents
are received by the Administrative Agent in its capacity as trustee or otherwise
may be invested in the name of or under the control of the Administrative Agent
in any investment authorized by English law for the investment by trustee of
trust money or in any other investments which may be selected by the
Administrative Agent. Additionally, the same may be placed on deposit in the
name or under the control of the Administrative Agent or such Lender or
institution (including the Administrative Agent itself) and upon such terms as
the Administrative Agent may think fit.

                                   ARTICLE XI

                                  MISCELLANEOUS

      11.01 Amendments, Etc.

No amendment, modification, supplement, termination or waiver of or to any
provision of this Agreement, nor consent to any departure by any Loan Party
therefrom, shall be effective unless the same shall be in writing and signed by
or on behalf of the Required Lenders and the applicable Loan Party, and a
written copy thereof shall have been delivered to the Administrative Agent, and
each such waiver or consent shall be effective only in the specific instance and
for the specific purpose for which given; provided, however, that no such
amendment, modification, supplement, termination, waiver or consent, as the case
may be, shall: (i) reduce the rate of

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interest or extend the final scheduled maturity of any Loan, or the stated
maturity of any Letter of Credit beyond the Revolving Loan Termination Date, or
the date for payment of any fees or interest on any Loan, or waive or excuse any
such payment or any part thereof, or decrease the rate of interest on any Loan,
or reduce the principal amount thereof, in each case without the prior written
consent of each Lender affected thereby, (ii) release all or substantially all
of the Collateral (except as expressly provided in the Collateral Documents or
in connection with the release of a Guaranty) under the Collateral Documents,
without the prior written consent of each Lender, (iii) amend, modify or waive
any provision of this Section 11.01, without the prior written consent of each
Lender, (iv) reduce the percentage specified in the definition of Required
Lenders without the prior written consent of each Lender, (v) consent to the
assignment or transfer by any Loan Party of any of its rights and obligations
under this Agreement without the prior written consent of each Lender, or (vi)
release all or substantially all of the Guarantors from their respective
Guaranty, without the prior written consent of each Lender (unless such release
is in connection with a transaction permitted herein); provided, further, that
no such amendment, modification, supplement, termination, waiver or consent
shall (1) increase the Commitments of any Lender over the amount thereof then in
effect without the prior written consent of such Lender (it being understood
that waivers or modifications of conditions precedent, covenants, Defaults or
Events of Default shall not constitute an increase of the Commitment of any
Lender, and that an increase in the available portion of any Commitment of any
Lender shall not constitute an increase in the Commitment of such Lender), (2)
amend, modify or waive any provision of this Agreement or any other Loan
Document which affects the rights or obligations of the Issuer or the Swing Line
Lender, as the case may be, without the prior written consent of the Issuer or
the Swing Line Lender, as the case may be, (3) amend, modify or waive any
provision of Article X as same applies to the Administrative Agent or the
Collateral Agent or any other provisions as same relates to the rights or
obligations of the Administrative Agent or the Collateral Agent, without the
prior written consent of the Administrative Agent or the Collateral Agent, as
the case may be, or (4) amend, modify or waive any provisions relating to the
rights or obligations of the Administrative Agent or the Collateral Agent under
the other Loan Documents, without the prior written consent of the
Administrative Agent or the Collateral Agent, as the case may be.

      11.02 Notices.

            (a)   Except where telephonic notices are specifically authorized
herein, all notices, requests, consents, approvals, waivers and other
communications made in connection with or pursuant to the Transaction Documents
shall be in writing (including, unless the context expressly otherwise provides,
by facsimile transmission, provided that any matter transmitted by any Loan
Party by facsimile (i) shall be immediately confirmed by a telephone call to the
recipient at the number specified on Schedule 11.02, and (ii) shall be followed
promptly by delivery of a hard copy original thereof) and mailed, faxed or
delivered, to the address, facsimile number or (subject to subsection (d) below)
electronic mail address specified for notices on Schedule 11.02; or, as directed
to the Company or the Administrative Agent, to such other address as shall be
designated by such party in a written notice to the other parties, and as
directed to any other party, at such other address as shall be designated by
such party in a written notice to the Company and the Administrative Agent.

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            (b)   All such notices, requests and communications shall, when
transmitted by overnight delivery, or faxed, be effective when delivered for
overnight (next-day) delivery, or transmitted in legible form by facsimile
machine, respectively, or if mailed or delivered, upon delivery; except that
notices pursuant to Article II, III or X to the Administrative Agent shall not
be effective until actually received by the Administrative Agent, and notices
pursuant to Article II or III to the Issuer or the Swing Line Lender shall not
be effective until actually received by such Person at the address specified on
Schedule 11.02 or to such other address, facsimile number, electronic mail
address or telephone number as shall be designated by such party in a notice to
the other parties.

            (c)   Any agreement of the Administrative Agent and the Lenders
herein to receive certain notices by telephone or facsimile is solely for the
convenience and at the request of the Loan Parties. The Administrative Agent and
the Lenders shall be entitled to rely on the authority of any Person identifying
himself or herself as, and reasonably appearing to be, a Person authorized by a
Loan Party to give such notice and the Administrative Agent and the Lenders
shall not have any liability to any Loan Party or other Person on account of any
action taken or not taken by the Administrative Agent or the Lenders in good
faith in reliance upon such telephonic or facsimile notice. The obligation of
the Loan Parties to repay the Loans and L/C Obligations shall not be affected in
any way or to any extent by any failure by the Administrative Agent and the
Lenders to receive written confirmation of any telephonic or facsimile notice or
the receipt by the Administrative Agent and the Lenders of a confirmation which
is at variance with the terms understood by the Administrative Agent and the
Lenders to be contained in the telephonic or facsimile notice. In no event shall
a voicemail message be effective as a notice, communication or confirmation
hereunder.

            (d)   Electronic mail and Internet and intranet websites may be used
for notices, requests, consents, approvals, waivers and other communications
made in connection with or pursuant to the Transaction Documents only to
distribute routine communications, such as financial statements and other
information as provided in Section 7.02, and to distribute Loan Documents for
execution by the parties thereto, and may not be used for any other purpose.

      11.03 No Waiver; Cumulative Remedies.

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

      11.04 Costs and Expenses. The Borrowers, jointly and severally, shall:

            (a)   whether or not the transactions contemplated hereby are
consummated, pay or reimburse Bank of America (including in its capacity as
Administrative Agent, Collateral Agent and Issuer) and the Arranger within 10
Business Days after demand for all reasonable costs and expenses incurred by
Bank of America (including in its capacity as Administrative Agent, Collateral
Agent and Issuer) and the Arranger in connection with the development,

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preparation, delivery, administration, syndication and execution of, and any
amendment, supplement, waiver or modification to (in each case, whether or not
consummated), this Agreement, any Loan Document and any other documents prepared
in connection herewith or therewith, and the consummation of the transactions
contemplated hereby and thereby, including reasonable Attorney Costs incurred by
Bank of America (including in its capacity as Administrative Agent, Collateral
Agent and Issuer) and the Arranger with respect thereto;

            (b)   pay or reimburse the Administrative Agent, the Collateral
Agent, the Issuer, the Arranger and each Lender within 10 Business Days after
demand for all costs and expenses (including reasonable Attorney Costs) incurred
by them in connection with the enforcement, attempted enforcement, or
preservation of any rights or remedies under this Agreement or any other Loan
Document during the existence of an Event of Default or after acceleration of
the Loans (including in connection with any "workout" or restructuring regarding
the Loans, and including in any Insolvency Proceeding or appellate proceeding);
provided that in the case of reimbursement with respect to Attorney Costs for
the Lenders, in the absence of a conflict, such reimbursement shall be limited
to one counsel selected by the Administrative Agent; and

            (c)   whether or not the transactions contemplated hereby are
consummated, pay or reimburse Bank of America (including in its capacity as
Administrative Agent and the Collateral Agent) within 10 Business Days after
demand for all reasonable appraisal (including the allocated cost of internal
appraisal services), audit, environmental inspection and review (including the
allocated cost of such internal services), search and filing costs, fees and
expenses, incurred or sustained by Bank of America (including in its capacity as
Administrative Agent and Collateral Agent) in connection with the matters
referred to under subsections (a) and (b) of this Section.

            (d)   The agreements in this Section 11.04 shall survive the
termination of the Aggregate Commitments and repayment of all other Obligations.

      11.05 Borrower Indemnification.

            (a)   The Borrowers, jointly and severally, shall indemnify, defend
and hold the Agent-Related Persons, and each Lender and each of its respective
officers, directors, employees, counsel, agents and attorneys-in-fact (each, an
"Indemnified Person") harmless from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
charges, expenses and disbursements (including Attorney Costs) of any kind or
nature whatsoever which may at any time (including at any time following
repayment of the Loans, the termination of the Letters of Credit and the
termination, resignation or replacement of the Administrative Agent or
replacement of any Lender or assignment by any Lender of its Loans or
Commitments) be imposed on, incurred by or asserted against any Indemnified
Person arising out of this Agreement or any document contemplated by or referred
to herein, or the transactions contemplated hereby, or any action taken or
omitted by any such Person under or in connection with any of the foregoing,
including with respect to any investigation, litigation or proceeding (including
any Insolvency Proceeding or appellate proceeding) related to or arising out of
this Agreement or the Loans or Letters of Credit or the use of the proceeds
thereof (including any refusal by the Issuer to honor a demand for payment under
a Letter of Credit if the documents

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presented in connection with such demand do not strictly comply with the terms
of such Letter of Credit), whether or not any Indemnified Person is a party
thereto (all the foregoing, collectively, the "Indemnified Liabilities");
provided, that the Borrowers shall have no obligation hereunder to any
Indemnified Person with respect to Indemnified Liabilities resulting from (i)
the bad faith, gross negligence or willful misconduct of such Indemnified Person
or (ii) any proceeding initiated by the Administrative Agent or the Collateral
Agent against any Lender (except to the extent arising from a breach by such
Lender of its obligations hereunder) or by any Lender against the Administrative
Agent, Collateral Agent or any other Lender (except to the extent arising from a
breach by the Administrative Agent, Collateral Agent or such Lender, as the case
may be, of its obligations hereunder). The agreements in this Section shall
survive payment of all other Obligations.

            (b)   The Borrowers, jointly and severally, shall indemnify, defend
and hold harmless each Indemnified Person, from and against any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, charges, expenses or disbursements (including Attorney Costs), which may
be incurred by or asserted against such Indemnified Person in connection with or
arising out of any pending or threatened investigation, litigation or
proceeding, or any action taken by any Person, with respect to any Environmental
Claim arising out of or related to any property, whether or not subject to a
Mortgage in favor of the Administrative Agent, Collateral Agent or any Lender,
or arising out of or related to any operations of BHI or any Subsidiary (all of
the foregoing, collectively, the "Indemnified Environmental Liabilities");
provided that the Borrowers shall have no obligation hereunder to any
Indemnified Person with respect to Indemnified Environmental Liabilities to the
extent resulting from the bad faith, gross negligence or willful misconduct of
such Indemnified Person. No action taken by legal counsel chosen by the
Administrative Agent, the Collateral Agent or any Lender in defending against
any such investigation, litigation or proceeding or requested remedial, removal
or response action shall vitiate or in any way impair any Borrower's obligation
and duty hereunder to indemnify and hold harmless the Administrative Agent, the
Collateral Agent and each Lender.

            (c)   In no event shall any site visit, observation or testing by
the Administrative Agent or any Lender (or any contractee of the Administrative
Agent or any Lender) be deemed a representation or warranty that Hazardous
Materials are or are not present in, on, or under, the site, or that there has
been or shall be compliance with any Environmental Law. No Borrower nor any
other Person is entitled to rely on any site visit, observation, or testing by
the Administrative Agent or any Lender. Neither the Administrative Agent nor any
Lender owes any duty of care to protect the Borrowers or any other Person
against, or to inform the Borrowers or any other party of, any Hazardous
Materials or any other adverse condition affecting any site or property. The
Administrative Agent or any Lender shall, at the written request of the
applicable Borrower Representative, disclose to the Borrowers any report or
findings made as a result of, or in connection with, any site visit,
observation, or testing by the Administrative Agent or any Lender. The Borrowers
understand and agree that the Administrative Agent and the Lenders make no
warranty or representation to the Borrowers or any other Person regarding the
truth, accuracy or completeness of any such report or findings that may be
disclosed. The Borrowers also understand that, depending upon the results of any
site visit, observation or testing by the Administrative Agent or any Lender and
disclosed to the Borrowers, the Borrowers may have a legal obligation to notify
one or more environmental

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agencies of the results and that such reporting requirements are site-specific
and are to be evaluated by the Borrowers without advice or assistance from the
Administrative Agent or any Lender.

            (d)   The obligations in this Section shall survive payment of all
other Obligations. At the election of any Indemnified Person, the Borrowers
shall defend such Indemnified Person using legal counsel satisfactory to such
Indemnified Person in such Person's sole discretion, at the sole cost and
expense of the Borrowers. All amounts owing under this Section shall be paid
within 30 days after demand.

      11.06 Marshalling; Payments Set Aside.

      Neither the Administrative Agent, the Collateral Agent nor the Lenders
shall be under any obligation to marshall any assets in favor of the Borrowers
or any other Person or against or in payment of any or all of the Obligations.
To the extent that the Borrowers make a payment to the Administrative Agent, the
Collateral Agent or the Lenders, or the Administrative Agent, the Collateral
Agent or the Lenders enforce their liens, or exercise their right of set-off,
and such payment or the proceeds of such set-off or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside
or required (including pursuant to any settlement entered into by the
Administrative Agent, the Collateral Agent or such Lender in its discretion) to
be repaid to a trustee, receiver or any other party, in connection with any
Insolvency Proceeding or otherwise, then (a) to the extent of such recovery the
obligation or part thereof originally intended to be satisfied shall be revived
and continued in full force and effect as if such payment had not been made or
such set-off had not occurred, and (b) each Lender severally agrees to pay to
the Administrative Agent upon demand its pro rata share of any amount so
recovered from or repaid by the Administrative Agent or the Collateral Agent,
plus interest thereon from the date of such demand to the date such payment is
made at a rate per annum equal to the Federal Funds Rate from time to time in
effect.

      11.07 Successors and Assigns.

      The provisions of this Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns,
except that no Loan Party may assign or transfer any of its rights or
obligations under this Agreement without the prior written consent of the
Administrative Agent, the Collateral Agent and each Lender.

      11.08 Assignments, Participations, etc.

            (a)   Any Lender may, with the written consent of the Borrower
Representatives at all times other than during the existence of an Event of
Default, and the Administrative Agent and the Issuers and the Swing Line Lender,
which consents shall not be unreasonably withheld or delayed, at any time
assign, pro rata, and delegate to one or more Eligible Assignees (each an
"Assignee") all, or any part of all, of the Loans, the Commitments, the L/C
Obligations and the other rights and obligations of such Lender hereunder, in a
minimum amount, determined as of the date the Assignment and Assumption with
respect to such assignment is delivered to the Administrative Agent or, if
"Trade Date" is specified in the Assignment and Assumption, as of the Trade
Date, of $1,000,000 or, if less, the total amount of

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such Lender's and its Affiliates outstanding Loans and/or Commitments; provided
that no written consent of the Borrower Representatives, the Administrative
Agent, the Swing Line Lender or an Issuer shall be required in connection with
any assignment and delegation by a Lender to an Eligible Assignee that is an
Affiliate of such Lender or any Approved Fund with respect to such Lender;
provided, further that no written consent of the Borrower Representatives, the
Administrative Agent, the Swing Line Lender or an Issuer shall be required in
connection with any assignment and delegation by a Lender to another Lender and
any such assignment may be in an amount less than the minimum amount specified
above; provided, still further, that the Borrower Representatives, the
Administrative Agent and the Collateral Agent may continue to deal solely and
directly with such Lender in connection with the interest so assigned to an
Assignee until (i) written notice of such assignment, together with payment
instructions, addresses and related information with respect to the Assignee,
shall have been given to the Borrower Representatives and the Administrative
Agent by such Lender and the Assignee; (ii) such Lender and its Assignee shall
have delivered to the Company and the Administrative Agent an Assignment and
Acceptance in the form of Exhibit D ("Assignment and Acceptance") and (iii) the
assignor Lender or Assignee has paid to the Administrative Agent a processing
fee in the amount of $3,500; and provided, still further, that any such
assignment by a Lender hereunder shall be of such Lender's Pro Rata share of
outstanding Loans, Commitments, and L/C Obligations to the Borrowers.

            (b)   From and after the date that the Administrative Agent notifies
the assignor Lender that it has received (and, if required, provided its consent
with respect to) an executed Assignment and Acceptance and payment of the
above-referenced processing fee, (i) the Assignee thereunder shall be a party
hereto and, to the extent that rights and obligations hereunder have been
assigned to it pursuant to such Assignment and Acceptance, shall have the rights
and obligations of a Lender under the Loan Documents, and (ii) the assignor
Lender shall, to the extent that rights and obligations hereunder and under the
other Loan Documents have been assigned by it pursuant to such Assignment and
Acceptance, relinquish its rights and be released from its obligations under the
Loan Documents.

            (c)   The Administrative Agent shall maintain a copy of each
Assignment and Acceptance delivered to it and a register for the recordation of
the names and addresses of the Lenders and the Commitments of, and principal
amount of the Loans owing to, each Lender from time to time. The entries in such
register shall be conclusive, in the absence of manifest error, and the
Borrowers, the Administrative Agent and the Lenders shall treat each person
whose name is recorded in such register as the owner of the Commitments and the
Loans recorded therein for all purposes of this Agreement. The register shall be
available for inspection by any Borrower, any Lender and their representatives,
at any reasonable time and from time to time upon reasonable prior notice.

            (d)   Any Lender may at any time sell to one or more commercial
banks or other Persons not Affiliates of BHI (a "Participant") participating
interests in any Loans, the Commitment of that Lender and the other interests of
that Lender (the "Originating Lender") hereunder and under the other Loan
Documents; provided, however, that (i) the Originating Lender's obligations
under this Agreement shall remain unchanged, (ii) the Originating Lender shall
remain solely responsible for the performance of such obligations, (iii) the
Loan Parties, the Issuer, the Administrative Agent and the Collateral Agent
shall continue to deal solely and

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directly with the Originating Lender in connection with the Originating Lender's
rights and obligations under this Agreement and the other Loan Documents, and
(iv) no Lender shall transfer or grant any participating interest under which
the Participant has rights to approve any amendment to, or any consent or waiver
with respect to, this Agreement or any other Loan Document, except to the extent
such amendment, consent or waiver would require unanimous consent of the Lenders
as described in clause (i) of the first proviso of Section 11.01 and clause (1)
of the second proviso of Section 11.01 (but only in respect of any increase of
any Commitment of any Originating Lender). In the case of any such
participation, the Participant shall be entitled to the benefit of Sections
4.01, 4.03, 4.04, 11.04 and 11.05 as though it were also a Lender hereunder (but
such Participant shall not be entitled to any amount pursuant to such Sections
in excess of the amount that would have been payable to the applicable Lender
had such participation not been sold), and if amounts outstanding under this
Agreement are due and unpaid, or shall have been declared or shall have become
due and payable upon the occurrence of an Event of Default, each Participant
shall be deemed to have the right of set-off in respect of its participating
interest in amounts owing under this Agreement to the same extent as if the
amount of its participating interest were owing directly to it as a Lender under
this Agreement.

            (e)   Notwithstanding any other provision in this Agreement, (i) any
Lender may at any time create a security interest in, or pledge, all or any
portion of its rights under and interest in this Agreement and Loans held by it
in favor of any Federal Reserve Bank in accordance with Regulation A of the FRB
or U.S. Treasury Regulations 31 CFR Section 203.14, and such Federal Reserve
Bank may enforce such pledge or security interest in any manner permitted under
applicable law.

      11.09 Confidentiality.

            (a)   The parties hereto hereby agree that each party hereto (and
each of their respective, and their respective affiliates', employees, officers,
directors, agents and advisors) is, and has been from the commencement of
discussions with respect to this credit facility, permitted to disclose to any
and all Persons, without limitation of any kind, the tax structure and tax
aspects (as such terms are used in Internal Revenue Code Sections 6011, 6111 and
6112 and the regulations promulgated thereunder) of this credit facility, and
all materials of any kind (including tax opinions or other tax analyses) that
are or have been provided to such parties related to such tax structure and tax
aspects. Each party hereto further acknowledges and agrees that its disclosure
of the tax structure or tax aspects of this credit facility is not limited in
any way by any express or implied understanding or agreement, oral or written
(whether or not such understanding or agreement is legally binding).
Furthermore, each of the parties hereto acknowledges and agrees that it does not
know or have reason to know that its use or disclosure of information relating
to the tax structure or tax aspects of this credit facility is limited in any
other manner (such as where this Agreement is claimed to be proprietary or
exclusive with respect to the tax treatment or tax aspects of this credit
facility) for the benefit of any other Person. To the extent that disclosure of
the tax structure or tax aspects of this credit facility by any party hereto is
limited by any existing agreement between such parties, such limitation is
agreed to be void ab initio and such agreement is hereby amended to permit
disclosure of the tax structure and tax aspects of this credit facility as
provided in this paragraph (a).

                                      126
<PAGE>

            (b)   Subject to paragraph (a) above, each Lender agrees to take and
to cause its Affiliates to take normal and reasonable precautions and exercise
due care to maintain the confidentiality of all information provided to it by
BHI, the Company or any Subsidiary, or by the Administrative Agent on BHI's, the
Company's or such Subsidiary's behalf, under this Agreement or any other Loan
Document, and neither it nor any of its Affiliates shall use any such
information other than in connection with or in enforcement of this Agreement
and the other Loan Documents or in connection with other business now or
hereafter existing or contemplated with BHI, the Company or any Subsidiary;
except to the extent such information (i) was or becomes generally available to
the public other than as a result of disclosure by the Lender or its Affiliates,
or (ii) was or becomes available on a non-confidential basis from a source other
than the Company, provided that such source is not bound by a confidentiality
agreement with the Company known to the Lender; provided, however, that any
Lender may disclose such information (A) at the request or pursuant to any
requirement of any Governmental Authority to which the Lender is subject or in
connection with an examination of such Lender by any such authority; (B)
pursuant to subpoena or other court process; (C) when required to do so in
accordance with the provisions of any applicable Requirement of Law; (D) to the
extent reasonably required in connection with any litigation or proceeding
involving BHI or any Subsidiary to which the Administrative Agent, the
Collateral Agent, any Lender or their respective Affiliates may be party; (E) to
the extent reasonably required in connection with the exercise of any remedy
hereunder or under any other Loan Document; (F) to such Lender's independent
auditors and other professional advisors; (G) to any Participant or Assignee,
actual or potential, provided that such Person agrees in writing to keep such
information confidential to the same extent required of the Lenders hereunder;
(H) as to any Lender or its Affiliate, as expressly permitted under the terms of
any other document or agreement regarding confidentiality to which BHI or any
Subsidiary is party or is deemed party with such Lender or such Affiliate; (I)
to its Affiliates, provided that each such Affiliate is advised of and agrees to
be bound by the confidentiality requirements set forth herein; and (J) to the
National Association of Insurance Commissioners or any similar organization or
any nationally recognized rating agency that requires access to information
about such Lender's investment portfolio in connection with ratings issued with
respect to such Lender. In addition, the Administrative Agent, the Collateral
Agent and the Lenders may disclose the existence of this Agreement to gold
sheets and any similar trade publications, together with any other information
typically disclosed to, or customarily found in, such publications.

      11.10 Set-off.

      In addition to any rights and remedies of the Lenders provided by law, if
(i) the Loans have been accelerated or (ii) an Event of Default has occurred and
is continuing and such Lender has obtained the consent of the Required Lenders,
each Lender is authorized at any time and from time to time, without prior
notice to the Company or BHI, any such notice being waived by the Company or BHI
to the fullest extent permitted by law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time
held by, and other indebtedness at any time owing by, such Lender to or for the
credit or the account of the Company or BHI against any and all Obligations
owing to such Lender, now or hereafter existing, irrespective of whether or not
the Administrative Agent or such Lender shall have made demand under this
Agreement or any Loan Document and although such Obligations may be contingent
or unmatured. Each Lender agrees promptly to notify the Borrower Representatives

                                      127
<PAGE>

and the Administrative Agent after any such set-off and application made by such
Lender; provided, however, that the failure to give such notice shall not affect
the validity of such set-off and application.

      11.11 Automatic Debits of Fees.

      With respect to any commitment fee, arrangement fee, Continuation Fee,
letter of credit fee or other fee, or any other cost or expense (including
Attorney Costs) due and payable to the Administrative Agent, the Collateral
Agent, the Issuer or the Arranger under the Loan Documents, each Borrower hereby
irrevocably authorizes Bank of America to debit any deposit account of such
Borrower with Bank of America in an amount such that the aggregate amount
debited from all such deposit accounts does not exceed such fee or other cost or
expense. If there are insufficient funds in such deposit accounts to cover the
amount of the fee or other cost or expense then due, such debits will be
reversed so as not to create an overdraft (in whole or in part, in Bank of
America's sole discretion) and such amount not debited shall be deemed to be
unpaid. No such debit under this Section shall be deemed a set-off.

      11.12 Notification of Addresses, Lending Offices, Etc.

      Each Lender shall notify the Administrative Agent in writing of any
changes in the address to which notices to the Lender should be directed, of
addresses of any Lending Office, of payment instructions in respect of all
payments to be made to it hereunder and of such other administrative information
as the Administrative Agent shall reasonably request.

      11.13 Counterparts.

      This Agreement may be executed in any number of separate counterparts,
each of which, when so executed, shall be deemed an original, and all of said
counterparts taken together shall be deemed to constitute but one and the same
instrument.

      11.14 Severability.

      The illegality or unenforceability of any provision of this Agreement or
any instrument or agreement required hereunder shall not in any way affect or
impair the legality or enforceability of the remaining provisions of this
Agreement or any instrument or agreement required hereunder.

      11.15 No Third Parties Benefited.

      This Agreement is made and entered into for the sole protection and legal
benefit of BHI, each Borrower, the Lenders, the Administrative Agent and the
Agent-Related Persons, and their permitted successors and assigns, and no other
Person shall be a direct or indirect legal beneficiary of, or have any direct or
indirect cause of action or claim in connection with, this Agreement or any of
the other Loan Documents.

                                      128
<PAGE>

      11.16 GOVERNING LAW AND JURISDICTION.

                  (A)   THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAW OF THE STATE OF ILLINOIS (WITHOUT
REGARD TO CONFLICT OF LAWS PROVISIONS THEREOF); PROVIDED THAT THE BORROWERS,
BHI, THE ADMINISTRATIVE AGENT AND THE LENDERS SHALL RETAIN ALL RIGHTS ARISING
UNDER FEDERAL LAW.

                  (B)   ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE
OF ILLINOIS OR OF THE UNITED STATES FOR THE NORTHERN DISTRICT OF ILLINOIS, AND
BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF BHI, EACH BORROWER, THE
ADMINISTRATIVE AGENT, THE COLLATERAL AGENT AND EACH LENDER CONSENTS, FOR ITSELF
AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE
COURTS. EACH OF BHI, EACH BORROWER, THE ADMINISTRATIVE AGENT, THE COLLATERAL
AGENT AND EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION
TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT
MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH
JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. BHI,
EACH BORROWER, THE ADMINISTRATIVE AGENT, THE COLLATERAL AGENT AND THE LENDERS
EACH WAIVE PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH
MAY BE MADE BY ANY OTHER MEANS PERMITTED BY ILLINOIS LAW.

      11.17 WAIVER OF JURY TRIAL.

      BHI, EACH BORROWER, EACH LENDER, THE ADMINISTRATIVE AGENT AND THE
COLLATERAL AGENT EACH WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY
CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS
AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY
ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR ANY AGENT-RELATED PERSON,
PARTICIPANT OR ASSIGNEE, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS,
OR OTHERWISE. BHI, EACH BORROWER, THE LENDERS, THE ADMINISTRATIVE AGENT AND THE
COLLATERAL AGENT EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE
TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE
PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED
BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING
WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF
THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR ANY PROVISION HEREOF OR THEREOF.
THIS WAIVER SHALL

                                      129
<PAGE>

APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO
THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

      11.18 Judgment.

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

      11.19 Intercreditor Agreement.

            (a)   Each Lender, the Collateral Agent, the Administrative Agent,
the Swing Line Lender and each Issuer hereby acknowledge that prior to the date
hereof the Hedge Counterparty entered into the Hedge Agreement with the Company,
pursuant to which the Company may in the future be obligated to pay certain
amounts to the Hedge Counterparty. Each such party hereby further acknowledges
that such obligations of the Company to the Hedge Counterparty are secured
pursuant to the Collateral Documents, and each such party, by executing this
Agreement, hereby agrees that such obligations shall be secured on a pari passu
basis with the Obligations and that the Hedge Counterparty shall be entitled to
share in the proceeds of the Collateral, on a pari passu basis, with the Lenders
as if the Hedge Counterparty were a Lender hereunder with outstanding Loans with
a principal amount equal to the outstanding obligations owing by the Company to
the Hedge Counterparty under the Hedge Agreement at such time; provided that
this Section 11.19 shall not apply to any obligations under the Hedge Agreement
that arise pursuant to any amendment or extension to the Hedge Agreement
executed or effective after the Closing Date unless all of the Lenders shall
have consented to such amendment.

                                      130
<PAGE>

            (b)   Each Lender, the Swing Line Lender and each Issuer hereby
acknowledge and agree that the Collateral Documents and the Collateral shall
secure the Obligations owing to such parties hereunder on a pari passu basis.

      11.20 Entire Agreement.

      This Agreement, together with the other Loan Documents, embodies the
entire agreement and understanding among the Loan Parties, the Lenders, the
Administrative Agent and the Collateral Agent and supersedes all prior or
contemporaneous agreements and understandings of such Persons, verbal or
written, relating to the subject matter hereof and thereof.

                                   ARTICLE XII

                          GUARANTIES OF U.S. GUARANTORS

      12.01 The Guaranties.

            (a)   In order to induce the Administrative Agent and the Lenders to
enter into this Agreement and to extend credit hereunder and in recognition of
the direct benefits to be received by each of the U.S. Guarantors and their
respective Affiliates and Subsidiaries, each of the U.S. Guarantors hereby,
jointly and severally, absolutely, irrevocably and unconditionally guarantees
the full and prompt payment when due, whether by acceleration or otherwise, and
at all times thereafter, all of the Guaranteed Obligations, whether direct or
indirect, absolute or contingent, or now or hereafter existing, or due or to
become due, and each of the U.S. Guarantors further agrees, jointly and
severally, to pay all expenses (including reasonable attorneys' fees and legal
expenses) paid or incurred by any holder of any Guaranteed Obligations in
endeavoring to collect the Guaranteed Obligations, or any part thereof, and in
enforcing this Agreement; provided, however, that the U.S. Guarantors shall each
only be liable under this Article XII for the maximum amount of such liability
that can be hereby incurred without rendering the agreements set forth in this
Article XII, as it relates to the U.S. Guarantors, as applicable, voidable under
any applicable law relating to fraudulent conveyance or fraudulent transfer, and
not for any greater amount. This Guaranty constitutes a guaranty of payment when
due and not of collection, and each of the U.S. Guarantors specifically agrees
that it shall not be necessary or required that any Guaranteed Creditor exercise
any right, assert any claim or demand, or enforce any remedy whatsoever against
any Borrower (or any other Person or any other Guarantor) before or as a
condition to the obligations of the U.S. Guarantors hereunder.

            (b)   Each U.S. Guarantor agrees that, in the event of the
dissolution or insolvency of any Borrower or any Subsidiary, or the inability of
any Borrower or any Subsidiary to pay debts as they mature, or an assignment by
any Borrower or any Subsidiary for the benefit of creditors, or the institution
of any proceeding by or against any Borrower or any Subsidiary alleging that any
Borrower or any Subsidiary is insolvent or unable to pay its debts as they
mature (subject to any applicable cure period provided herein), and if such
event shall occur at a time when an Event of Default has occurred and is
continuing, but any or all of the Guaranteed Obligations may not then be due and
payable, each U.S. Guarantor will pay, on a joint and several basis, to the
relevant Guaranteed Creditor forthwith the full amount that would

                                      131
<PAGE>

be payable hereunder by each of the U.S. Guarantors, on a joint and several
basis, if all Guaranteed Obligations were then due and payable.

            (c)   The joint and several obligations of each U.S. Guarantor under
this Article XII shall in all respects be a continuing, absolute and
unconditional guaranty, and shall remain in full force and effect
(notwithstanding, without limitation, the dissolution of any U.S. Guarantor or
that at any time or from time to time all Guaranteed Obligations may have been
paid in full), subject to discontinuance as to any U.S. Guarantor only upon
execution by the Administrative Agent of a written notice, delivered in
accordance with the terms of the Agreement, acknowledging the termination of all
obligations of such U.S. Guarantor, as the case may be, arising hereunder.

      12.02 Returned Payments.

      Each U.S. Guarantor further agrees that, if at any time all or any part of
any payment theretofore applied by any Guaranteed Creditor to any of the
Guaranteed Obligations is or must be rescinded or returned by such Guaranteed
Creditor for any reason whatsoever (including, without limitation, the
insolvency, bankruptcy or reorganization of any Loan Party), such Guaranteed
Obligations shall, for the purposes of this Guaranty, to the extent that such
payment is or must be rescinded or returned, be deemed to have continued in
existence, notwithstanding such application by such Guaranteed Creditor, and
this Guaranty shall continue to be effective or be reinstated, as the case may
be, as to such Guaranteed Obligations, all as though such application by such
Guaranteed Creditor had not been made.

      12.03 Authorization.

      Any Guaranteed Creditor may, from time to time, whether before or after
any discontinuance of the agreement set forth in this Article XII, at its sole
discretion and without notice to any U.S. Guarantor, take any or all of the
following actions: (i) retain or obtain a security interest in any property of
any third party to secure any of the Guaranteed Obligations or any obligation
hereunder; (ii) retain or obtain the primary or secondary obligation of any
obligor or obligors, in addition to the U.S. Guarantors, with respect to any of
the Guaranteed Obligations; (iii) extend or renew for one or more periods
(whether or not longer than the original period), alter, amend or exchange any
of the Guaranteed Obligations or any of the documentation pertaining thereto, or
release or compromise any obligation of any U.S. Guarantor hereunder or any
obligation of any nature of any other obligor with respect to any of the
Guaranteed Obligations; (iv) release its security interest in, or surrender,
release or permit any substitution or exchange for, all or any part of any
property securing any of the Guaranteed Obligations or any obligation hereunder,
or extend or renew for one or more periods (whether or not longer than the
original period) or release, compromise, alter or exchange any obligations of
any nature of any obligor with respect to any such property; and (v) resort to
any U.S. Guarantor for payment of any of the Guaranteed Obligations, whether or
not such Guaranteed Creditor (x) shall have resorted to any property securing
any of the Guaranteed Obligations or any obligation hereunder or (y) shall have
proceeded against any other obligor primarily or secondarily obligated with
respect to any of the Guaranteed Obligations (all of the actions referred to in
preceding clauses (x) and (y) being hereby expressly waived by each of the U.S.
Guarantors).

                                      132
<PAGE>

Nothing in this Article XII shall in any way modify the respective rights and
obligations of the Lenders amongst themselves as otherwise provided in this
Agreement.

      12.04 Miscellaneous.

            (a)   Any amounts received by a Guaranteed Creditor from whatsoever
source on account of the Guaranteed Obligations may be applied by it toward the
payment of such of the Guaranteed Obligations, and in such order of application,
as set forth in the Collateral Documents.

            (b)   Each U.S. Guarantor hereby expressly waives: (i) notice of the
acceptance by any Guaranteed Creditor of this Agreement, (ii) notice of the
existence or creation or nonpayment of all or any of the Guaranteed Obligations,
(iii) presentment, demand, notice of dishonor, protest, and all other notices
whatsoever, and (iv) all diligence in collection or protection of or realization
upon the Guaranteed Obligations or any thereof, any obligation hereunder, or any
security for or guaranty of any of the foregoing.

            (c)   Until the irrevocable payment in full of all of the Guaranteed
Obligations (other than Guaranteed Obligations under the relevant agreement with
a Guaranteed Creditor which expressly survive the termination of such agreement)
and termination of the Aggregate Commitment, (i) each U.S. Guarantor waives any
right of subrogation, reimbursement, indemnification and contribution
(contractual, statutory or otherwise), including any claim or right of
subrogation under the Bankruptcy Code or any successor statute, against any
Borrower arising from the existence or performance of this Agreement and (ii)
each U.S. Guarantor waives any right to enforce any remedy which any Guaranteed
Creditor now has or may hereafter have against the Company, and waives any
benefit of, and any right to participate in, any security now or hereafter held
by a Guaranteed Creditor securing the Guaranteed Obligations.

            (d)   Any Guaranteed Creditor may, from time to time, whether before
or after any discontinuance of this Agreement, without notice to any U.S.
Guarantor, assign or transfer any or all of the Guaranteed Obligations or any
interest therein as provided in this Agreement; and, notwithstanding any such
assignment or transfer or any subsequent assignment or transfer thereof, such
Guaranteed Obligations shall be and remain Guaranteed Obligations for the
purposes of this Agreement, and each and every immediate and successive assignee
or transferee of any of the Guaranteed Obligations or of any interest therein
shall, to the extent of the interest of such assignee or transferee in the
Guaranteed Obligations, be entitled to the benefits of this Guaranty to the same
extent as if such assignee or transferee were a Guaranteed Creditor.

            (e)   Each U.S. Guarantor hereby warrants to each Guaranteed
Creditor that each U.S. Guarantor, as applicable, now has and will continue to
have independent means of obtaining information concerning the affairs,
financial condition and business of the Borrowers. No Guaranteed Creditor shall
have any duty or responsibility to provide any U.S. Guarantor with any credit or
other information concerning the affairs, financial condition or business of any
Borrower that may come into the possession of such Guaranteed Creditor.

                  [Remainder of page intentionally left blank.]

                                      133
<PAGE>

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

                                 COMMERCIAL VEHICLE SYSTEMS LIMITED

                                 By: /s/ MERVIN DUNN
                                     -------------------------------------------
                                 Name: _________________________________________
                                 Title: ________________________________________

                                 KAB SEATING LIMITED

                                 By: /s/ MERVIN DUNN
                                     -------------------------------------------
                                 Name: _________________________________________
                                 Title: ________________________________________

                                 NATIONAL SEATING COMPANY

                                 By: /s/ MERVIN DUNN
                                     -------------------------------------------
                                 Name: _________________________________________
                                 Title: ________________________________________

                                 COMMERCIAL VEHICLE SYSTEMS, INC.

                                 By: /s/ MERVIN DUNN
                                     -------------------------------------------
                                 Name: _________________________________________
                                 Title: ________________________________________

                                 BOSTROM HOLDING, INC.

                                 By: /s/ MERVIN DUNN
                                     -------------------------------------------
                                 Name: _________________________________________
                                 Title: ________________________________________

                                                            AMENDED AND RESTATED
                                                                CREDIT AGREEMENT

                                       S-1

<PAGE>

                                 CVS HOLDINGS, INC.

                                 By: /s/ MERVIN DUNN
                                     -------------------------------------------
                                 Name: _________________________________________
                                 Title: ________________________________________

                                 BANK OF AMERICA, N.A.,
                                 As Administrative Agent and Collateral Agent

                                 BY: /s/ DAVID PRICE
                                     -------------------------------------------
                                 Name: DAVID PRICE
                                       -----------------------------------------
                                 Title: VICE PRESIDENT
                                        ----------------------------------------

                                 BANK OF AMERICA, N.A., individually as a
                                 Lender, Issuer and as Swing Line Lender

                                 By: /s/ [ILLEGIBLE]
                                     -------------------------------------------
                                 Name:  [ILLEGIBLE]
                                       -----------------------------------------
                                 Title: Managing Director
                                        ----------------------------------------

                                 U.S. BANK NATIONAL ASSOCIATION

                                 By: /s/ Robert A. Rosati
                                     -------------------------------------------
                                 Name: Robert A. Rosati
                                       -----------------------------------------
                                 Title: Vice President
                                        ----------------------------------------

                                 COMERICA BANK

                                 By: /s/ JAMES POLLARD
                                     -------------------------------------------
                                 Name: JAMES POLLARD
                                       -----------------------------------------
                                 Title: CORPORATE LOAN OFFICER
                                        ----------------------------------------

                                                            Amended and Restated
                                                                Credit Agreement

                                       S-2
<PAGE>

                                 BANK ONE N.A.

                                 By: /s/ Andrew D. MacIver
                                     -------------------------------------------
                                 Name: Andrew D. MacIver
                                       -----------------------------------------
                                 Title: V.P.
                                        ----------------------------------------

                                 JPMORGAN CHASE BANK

                                 By: /s/ KAREN M. SHARF
                                     -------------------------------------------
                                 Name: KAREN M. SHARF
                                       -----------------------------------------
                                 Title: VICE PRESIDENT
                                        ----------------------------------------

                                 FLEET NATIONAL BANK

                                 By: /s/ KEVIN O'KEETE
                                     -------------------------------------------
                                 Name: KEVIN O'KEETE
                                       -----------------------------------------
                                 Title: VICE PRESIDENT
                                        ----------------------------------------

                                 BARCLAYS BANK PLC

                                 By: /s/ ARTHUR J. OLSEN
                                     -------------------------------------------
                                 Name: ARTHUR J. OLSEN
                                       -----------------------------------------
                                 Title: DIRECTOR
                                        ----------------------------------------

                                 THE BANK OF NOVA SCOTIA

                                 By: /s/ MARK SPARROW
                                     -------------------------------------------
                                 Name: MARK SPARROW
                                       -----------------------------------------
                                 Title: DIRECTOR
                                        ----------------------------------------

                                                            Amended and Restated
                                                                Credit Agreement

                                      S-3<PAGE>
                                                                   EXHIBIT 10.2

-------------------------------------------------------------------------------

                    REVOLVING CREDIT AND TERM LOAN AGREEMENT

                          DATED AS OF OCTOBER 29, 1998

                            COMERICA BANK, AS AGENT

                THE FIRST NATIONAL BANK OF CHICAGO, AS CO-AGENT

                  U.S. BANK NATIONAL ASSOCIATION, AS CO-AGENT

-------------------------------------------------------------------------------

                                                                  Execution Copy
<PAGE>
                               TABLE OF CONTENTS

                                                                            Page

1.   DEFINITIONS..............................................................1

2.   REVOLVING CREDIT.........................................................22
          2.1   Revolving Credit Commitment...................................22
          2.2   Accrual of Interest and Maturity..............................22
          2.3   Requests for Advances and Requests for Refundings and
                Conversions of Revolving Credit Advances......................23
          2.4   Disbursement of Revolving Credit Advances.....................24
          2.5   Prime-based Advance in Absence of Election or Upon Default....25
          2.6   Revolving Credit Commitment Fee...............................26
          2.7   Reduction of Indebtedness; Revolving Credit
                Aggregate Commitment..........................................26
          2.8   Optional Reduction or Termination of Revolving Credit
                Aggregate Commitment..........................................26
          2.9   Extension of Revolving Credit Maturity Date...................27
          2.10  Administrative Fee............................................27

3.   LETTERS OF CREDIT........................................................28
          3.1   Letters of Credit.............................................28
          3.2   Conditions to Issuance........................................28
          3.3   Notice........................................................29
          3.4   Letter of Credit Fees.........................................29
          3.5   Facing Fees...................................................30
          3.6   Draws and Demands for Payment Under Letters of Credit.........30
          3.7   Obligations Irrevocable.......................................32
          3.8   Risk Under Letters of Credit..................................33
          3.9   Indemnification...............................................34
          3.10  Right of Reimbursement........................................34

4A.  TERM LOANS-A.............................................................35
          4A.1  Term Loan.....................................................35
          4A.2  Term Loan Notes...............................................35
          4A.3  Term Loan Rate Requests; Refundings and Conversions of
                Advances of Term Loans........................................36
          4A.4  Failure to Refund or Convert..................................37

4B.  TERM LOANS-B.............................................................37
          4B.1  Term Loan.....................................................37
          4B.2  Term Loan Notes...............................................37

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                                  (Continued)

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<S>       <C>   <C>                                                                 <C>
          4B.3  Term Loan Rate Requests; Refundings and Conversions of Advances
                of Term Loans......................................................  38
          4B.4  Failure to Refund or Convert.......................................  39

5.   INTEREST PAYMENTS.............................................................  39
          5.1   Prime-based Interest Payments......................................  39
          5.2   Eurocurrency-based Interest Payments...............................  40
          5.3   Margin Adjustments.................................................  40
          5.4   Interest Payments on Conversions...................................  40
          5.5   Interest on Default................................................  40
          5.6   Prepayment of Advances.............................................  40
          5.7   Optional Prepayment of Term Loans..................................  41
          5.8   Mandatory Prepayment of Terms Loans................................  41

6.   CONDITIONS....................................................................  42
          6.1   Execution of Notes and this Agreement..............................  42
          6.2   Borrowing Authority................................................  42
          6.3   Collateral Documents...............................................  43
          6.4   Acquisition Documents..............................................  44
          6.5   Equity.............................................................  44
          6.6   Insurance..........................................................  44
          6.7   Compliance with Certain Documents and Agreements...................  44
          6.8   Opinion of Counsel.................................................  44
          6.9   Borrowers' Certificate.............................................  45
          6.10  Payment of Fees....................................................  45
          6.11  Pro Forma Balance Sheet............................................  45
          6.12  Existing Credit Facilities.........................................  45
          6.14  Real Estate Documentation..........................................  45
          6.15  Other Documents and Instruments....................................  46
          6.16  Continuing Conditions..............................................  46

7.   REPRESENTATIONS AND WARRANTIES................................................  47
          7.1   Corporate Authority................................................  47
          7.2   Due Authorization -- Borrowers.....................................  47
          7.3   Due Authorization -- Guarantors....................................  47
          7.4   Liens..............................................................  47
          7.5   Taxes..............................................................  48
          7.6   No Defaults........................................................  48
          7.7   Enforceability of Agreement and Loan Documents -- Borrowers........  48
          7.8   Enforceability of Loan Documents -- Guarantors.....................  48
</Table>

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                               TABLE OF CONTENTS
                                  (Continued)

<Table>
<Caption>
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          7.9     Compliance with Laws ....................................  48
          7.10    Non-contravention -- Borrowers ..........................  49
          7.11    Non-contravention -- Guarantors .........................  49
          7.12    No Litigation ...........................................  49
          7.13    Consents, Approvals and Filings, Etc. ...................  49
          7.14    No Investment Company or Margin Stock ...................  50
          7.15    ERISA ...................................................  50
          7.16    Environmental and Safety Matters ........................  50
          7.17    Subsidiaries ............................................  51
          7.18    Accuracy of Information .................................  51
          7.19    Labor Relations .........................................  51
          7.20    Existing Debt ...........................................  52
          7.21    Solvency ................................................  52
          7.22    Capitalization ..........................................  52
          7.23    Year 2000 Requirement ...................................  52

8.   AFFIRMATIVE COVENANTS ................................................  53
          8.1     Financial Statements ....................................  53
          8.2     Certificates; Other Information .........................  53
          8.3     Conduct of Business and Maintenance of Existence.........  54
          8.4     Maintenance of Property; Insurance ......................  54
          8.5     Inspection of Property; Books and Records, Discussions...  55
          8.6     Notices .................................................  55
          8.7     Hazardous Material Laws .................................  56
          8.8     Maintain Consolidated Net Worth .........................  56
          8.9     Maintain Funded Debt to EBITDA ..........................  56
          8.10    Maintain Fixed Charge Coverage Ratio ....................  57
          8.11    Taxes ...................................................  57
          8.12    Governmental and Other Approvals ........................  57
          8.13    Compliance with ERISA ...................................  57
          8.14    ERISA Notices ...........................................  57
          8.15    Security ................................................  58
          8.16    Use of Proceeds .........................................  58
          8.17    Future Subsidiaries .....................................  58
          8.18    Bank Accounts ...........................................  58
          8.19    Further Assurances ......................................  58

9.   NEGATIVE COVENANTS ...................................................  58
          9.1     Limitation on Debt ......................................  59
          9.2     Limitation on Liens .....................................  60
</Table>

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                                  (Continued)

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          9.3  Limitation on Guarantee Obligations............................61
          9.4  Acquisitions...................................................61
          9.5  Limitation on Mergers, or Sale of Assets.......................61
          9.6  Restricted Payments............................................62
          9.7  Limitation on Capital Expenditures.............................63
          9.8  Limitation on Investments, Loans and Advances..................63
          9.9  Transactions with Affiliates...................................64
          9.10 Sale and Leaseback.............................................64
          9.11 Limitation on Negative Pledge Clauses..........................64
          9.12 Prepayment of Debts............................................65
          9.13 Subordinated Debt..............................................65
          9.14 Modification of Certain Agreements.............................65
          9.15 Sale of Accounts...............................................65

10.   DEFAULTS................................................................65
          10.1 Events of Default..............................................65
          10.2 Exercise of Remedies...........................................67
          10.3 Rights Cumulative..............................................68
          10.4 Waiver by Borrowers of Certain Laws............................68
          10.5 Waiver of Defaults.............................................68
          10.6 Set Off........................................................68

11.   PAYMENTS, RECOVERIES AND COLLECTIONS....................................69
          11.1 Payment Procedure..............................................69
          11.2 Application of Proceeds of Collateral..........................70
          11.3 Pro-rata Recovery..............................................71

12.   CHANGES IN LAW OR CIRCUMSTANCES; INCREASED COSTS........................71
          12.1 Reimbursement of Prepayment Costs..............................71
          12.2 Agent's Eurocurrency Lending Office............................72
          12.3 Circumstances Affecting Eurocurrency-based Rate Availability...72
          12.4 Laws Affecting Eurocurrency-based Advance Availability.........72
          12.5 Increased Cost of Eurocurrency-based Advances..................72
          12.6 [Intentionally Left Blank].....................................73
          12.7 Other Increased Costs..........................................73
          12.8 Substitution of Banks..........................................74

13.   AGENT...................................................................75
          13.1 Appointment of Agent...........................................75
          13.2 Deposit Account with Agent.....................................75

</Table>

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                                TABLE OF CONTENTS
                                -----------------
                                   (Continued)

<Table>
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          13.3    Scope of Agent's Duties ..............................  75
          13.4    Successor Agent ......................................  76
          13.5    Agent in its Individual Capacity......................  76
          13.6    Credit Decisions......................................  76
          13.7    Co-Agents.............................................  77
          13.8    Authority of Agent to Enforce Notes and This Agreement  77
          13.9    Indemnification.......................................  77
          13.10   Knowledge of Default..................................  78
          13.11   Agent's Authorization; Action by Banks................  78
          13.12   Enforcement Actions by the Agent......................  78

14.  MISCELLANEOUS......................................................  78
          14.1    Accounting Principles.................................  78
          14.2    Consent to Jurisdiction...............................  79
          14.3    Law of Michigan.......................................  79
          14.4    Interest..............................................  79
          14.5    Closing Costs and Other Costs; Indemnification........  79
          14.6    Notices...............................................  80
          14.7    Further Action........................................  81
          14.8    Successors and Assigns; Participations; Assignments...  81
          14.9    Indulgence............................................  84
          14.10   Counterparts..........................................  84
          14.11   Amendment and Waiver..................................  84
          14.12   Confidentiality.......................................  85
          14.13   Withholding Taxes.....................................  85
          14.14   Taxes and Fees........................................  85
          14.15   WAIVER OF JURY TRIAL..................................  85
          14.16   Complete Agreement; Conflicts.........................  86
          14.17   Severability..........................................  86
          14.18   Table of Contents and Headings........................  86
          14.19   Construction of Certain Provisions....................  86
          14.20   Independence of Covenants.............................  86
          14.21   Reliance on and Survival of Various Provisions........  86
          14.22   Joint and Several Liability...........................  87

</Table>

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                               TABLE OF CONTENTS
                                  (Continued)

SCHEDULES

     Schedule 1.1        Pricing Matrix
     Schedule 1.2        Percentages
     Schedule 1.3        Account Debtors
     Schedule 1.4        Liens
     Schedule 6.2        List of Jurisdictions in which Company and/or
                         Subsidiaries do business
     Schedule 6.3        List of Jurisdictions in which to file financing
                         statements
     Schedule 6.13       Lease Property
     Schedule 7.9        Compliance with Laws
     Schedule 7.12       Litigation
     Schedule 7.15       Employee Pension Benefit Plans
     Schedule 7.16       Environmental Matters
     Schedule 7.17       Subsidiaries
     Schedule 7.18       Contingent Obligations
     Schedule 7.20       Existing Debt
     Schedule 7.22       Capitalization
     Schedule 7.23(a)    Year 2000 Compliance Program
     Schedule 7.23(b)    Year 2000 Compliance Hardware and Software
     Schedule 9.1(b)     Existing Debt
     Schedule 9.1(c)     Debt Incurred to Finance Fixed or Capital Assets
     Schedule 9.8        Permitted Investments
     Schedule 9.9        Affiliate Transactions
     Schedule 14.6       Notices

EXHIBITS

     A    FORM OF REQUEST FOR REVOLVING CREDIT ADVANCE
     B    FORM OF REVOLVING CREDIT NOTE
     C    FORM OF NOTICE OF LETTERS OF CREDIT
     D    FORM OF TERM NOTE
     E    FORM OF COVENANT COMPLIANCE REPORT
     F    FORM OF ASSIGNMENT AGREEMENT
     G    FORM OF GUARANTY (including Exhibit "A" - Joinder Agreement)
     H    FORM OF SECURITY AGREEMENT
     I    FORM OF TERM LOAN RATE REQUEST
     J    FORM OF BORROWING BASE CERTIFICATE
     K    FORM OF PLEDGE AGREEMENT (HOLDINGS)
     L    FORM OF PLEDGE AGREEMENT (PARENT)
     M    FORM OF ASSIGNMENT AS COLLATERAL SECURITY

                                     - vi -
<PAGE>

                    REVOLVING CREDIT AND TERM LOAN AGREEMENT

         This Revolving Credit and Term Loan Agreement ("Agreement") is made as
of the 29th day of October, 1998, by and among the financial institutions from
time to time signatory hereto (individually a "Bank," and any and all such
financial institutions collectively the "Banks"), Comerica Bank, as agent for
the Banks (in such capacity, "Agent"), Trim Systems Operating Corp, a Delaware
corporation ("Holdings"), Tempress, Inc., a Washington corporation ("Tempress")
and Trim Systems, LLC, a Delaware limited liability company ("Trim").

                                    RECITALS

         A. Trim and Comerica Bank entered into a Credit Agreement dated October
10, 1997, as amended as of November 4, 1997 (the "Prior Credit Agreement").

         B. Pursuant to Assignment Agreements dated as of the date hereof,
Comerica Bank has assigned a portion of its interest in the credit facilities
extended pursuant to the Prior Credit Agreement to the other Banks.

         C. Trim, Agent and the Banks desire to amend and restate the Prior
Credit Agreement in its entirety.

         NOW, THEREFORE, BORROWERS, AGENT AND BANKS AGREE that the Prior Credit
Agreement is amended and restated in its entirety as follows:

1. DEFINITIONS

         For the purposes of this Agreement the following terms will have the
following meanings:

         "Account" shall have the meaning assigned to it in the Michigan Uniform
Commercial Code on the date of this Agreement.

         "Account Debtor" shall mean the party who is obligated on or under any
account.

         "Account Party(ies)" shall mean, with respect to any Letter of Credit,
the account party or parties (which shall be the Borrowers, jointly and
severally, or a Subsidiary of Holdings which is a Guarantor jointly and
severally with the Borrowers) named in an application to the Issuing Bank for
the issuance of such Letter of Credit.

         "Acquisition" shall mean the acquisition by pursuant to the terms and
conditions of the Stock Purchase Agreement, of all of the issued and outstanding
shares of stock of Tempress by Holdings.

<PAGE>
         "Acquisition Documents" shall mean the Stock Purchase Agreement
together with all other documents and instruments executed and delivered in
connection with the Acquisition.

         "Advance(s)" shall mean, as the context may indicate, a borrowing
requested by Borrowers, and made by the Banks under Section 2.1 hereof or
requested by the Borrowers and made by the Banks under Section 4A.1 hereof, or
requested by the Borrowers and made by the Banks under Section 4B.1 hereof,
including without limitation any readvance, refunding or conversion of such
borrowing pursuant to Section 2.3, 4A.3 or 4B.3 hereof, any advance in respect
of a Letter of Credit under Section 3.6 hereof (including without limitation the
unreimbursed amount of any draws under any Letters of Credit), and shall
include, as applicable, a Eurocurrency-based Advance and a Prime-based Advance.

         "Affected Lender" shall have the meaning set forth in Section 12.8.

         "Affiliate" shall mean, with respect to any Person, any other Person or
group acting in concert in respect of the first Person that, directly or
indirectly, through one or more intermediaries, controls, or is controlled by,
or is under common control with such first Person. For purposes of this
definition, "control" (including, with correlative meanings, the terms
"controlled by" and "under common control with"), as used with respect to any
Person or group of Persons, shall mean the possession, directly or indirectly,
of the power to direct or cause the direction of management and policies of such
Person, whether through the ownership of voting securities or by contract or
otherwise. Unless otherwise specified to the contrary herein, or the context
requires otherwise, Affiliate shall refer to Holdings' Affiliates.

         "Agent" shall mean Comerica Bank, in its capacity as agent for the
Banks hereunder, or any successor agent appointed in accordance with Section
13.4 hereof

         "Alternate Base Rate" shall mean, for any day, an interest rate per
annum equal to the Federal Funds Effective Rate in effect on such day, plus one
half of one percent (1/2%).

         "Applicable Commitment Fee Percentage" shall mean, as of any date of
determination thereof, the applicable percentage used to calculate the
Commitment Fees due and payable hereunder, determined (based upon the Funded
Debt to EBITDA Ratio) by reference to the appropriate columns in the pricing
matrix attached to this Agreement as Schedule 1.1.

         "Applicable L/C Fee Percentage" shall mean, as of any date of
determination thereof, the applicable percentage used to calculate the Letter of
Credit Fees due and payable hereunder, determined (based upon the Funded Debt to
EBITDA Ratio) by reference to the appropriate columns in the pricing matrix
attached to this Agreement as Schedule 1.1.

         "Applicable Interest Rate" shall mean the Eurocurrency-based Rate or
the Prime-based Rate, as selected by Borrowers from time to time subject to the
terms and conditions of this Agreement.

                                       2
<PAGE>

         "Asset Sale" shall mean the sale, transfer or other disposition by the
Borrowers or any Subsidiary of any asset to any Person.

         "Assignment" shall mean the Assignment as Collateral Security dated
October 29, 1998 by Holdings in favor of Agent in the form attached as
Exhibit M.

         "Banks" shall mean Comerica Bank and such other financial institutions
from time to time parties hereto as lenders and any assignee which becomes a
Bank pursuant to Section 14.8 hereof

         "Borrowers" shall mean Holdings, Trim and Tempress and "Borrower" shall
mean each of them.

         "Borrowing Base" shall mean, as of any date of determination, an amount
equal to the sum of (x) eighty percent (80%) of Eligible Accounts, and (y) fifty
percent (50%) of Eligible Inventory.

         "Borrowing Base Certificate" shall mean a borrowing base certificate,
substantially in the form of Exhibit J, with appropriate insertions and executed
by a Responsible Officer.

         "Borrowing Base Obligors" shall mean each Borrower and each Subsidiary
of Holdings which becomes a Guarantor pursuant to and in accordance with the
provisions of this Agreement.

         "Business Day" shall mean any day on which commercial banks are open
for domestic and international business in Detroit, London and New York.

         "CapEx Limit" shall mean $5,000,000 for each fiscal year.

         "Capital Expenditures" shall mean, without duplication, any amounts
accrued in respect of a period in respect of any purchase or other acquisition
for value of property, plant, equipment or leasehold improvements; provided
that, in no event shall Capital Expenditures include amounts expended in respect
of repair and maintenance of plant facilities, machinery, fixtures and other
like capital assets utilized in the ordinary conduct of business (to the extent
such amounts would not be capitalized in preparing a balance sheet determined in
accordance with GAAP).

         "Capitalized Lease" shall mean, as applied to any Person, any lease of
any property (whether real, personal or mixed) with respect to which the
discounted present value of the rental obligations of such Person as lessee
thereunder, in conformity with GAAP, is required to be capitalized on the
balance sheet of that Person.

         "Co-Agents" shall mean The First National Bank of Chicago and U.S. Bank
National Association.

         "Collateral" shall mean all property or rights in which a security
interest, mortgage, lien or other encumbrance for the benefit of the Banks is or
has been granted or arises or has arisen, under or in connection with this
Agreement, the other Loan Documents, or otherwise.

                                       3
<PAGE>
         "Collateral Documents" shall mean the Security Agreements, the
Guaranty, the Mortgages, the Pledge Agreements and all of the other
acknowledgments, certificates, stock powers, financing statements, instruments
and other security documents executed by Parent, Borrowers or any Subsidiary in
favor of the Agent for the benefit of the Banks and delivered to the Agent, as
security for the Indebtedness, in each case as of the Effective Date or, from
time to time subsequent thereto, in each case, as such collateral documents may
be amended or otherwise modified from time to time.

         "Comerica Bank" shall mean Comerica Bank, a Michigan banking
corporation, its successors or assigns.

         "Commonly Controlled Entity" shall mean an entity, whether or not
incorporated, which is under common control with the Borrowers within the
meaning of Section 4001 of ERISA or which is part of a group which includes the
Borrowers and which is treated as a single employer under Section 414 of the
Internal Revenue Code.

         "Consolidated" or "Consolidating" shall mean, when used with reference
to any financial term in this Agreement, the aggregate for two or more Persons
of the amounts signified by such term for all such Persons determined, subject
to the provisions of Section 14.1, on a consolidated basis in accordance with
GAAP. Unless otherwise specified herein, references to Consolidated financial
statements or data of Holdings includes consolidation with its Subsidiaries in
accordance with GAAP.

         "Consolidated Base Net Worth" shall initially mean $12,450,000. On the
last day of each fiscal year of Holdings, Consolidated Base Net Worth shall be
adjusted to an amount equal to the greater of (i) the Consolidated Base Net
Worth from the prior year and (ii) an amount equal to ninety five percent (95%)
of Consolidated Net Worth as of the applicable fiscal year end.

         "Consolidated Debt" shall mean as of any date of determination, Debt of
Holdings and its consolidated Subsidiaries as of such date.

         "Consolidated EBITDA" shall mean for any period of determination,
Consolidated Net Income for such period, plus the aggregate amounts deducted in
determining Consolidated Net Income in respect of (a) income taxes for such
period, (b) interest expense for such period, and (c) depreciation and
amortization expense and other non-cash charges for such period, plus any
minority interest in the earnings of Trim for such period and minus any minority
interest in losses of Trim for such period, in each case determined on a
Consolidated basis in accordance with GAAP.

         "Consolidated Net Worth" shall mean, as of any date of determination,
the net worth of Company and its Consolidated Subsidiaries as determined in
accordance with GAAP, plus the amount of ASC, Inc.'s minority interest in Trim
as of such date.

         "Consolidated Net Income" shall mean, for any period of determination,
the net income of Holdings and its consolidated Subsidiaries as determined in
accordance with GAAP; provided, however, in determining Consolidated Net Income,
(a) any unrealized gains or losses from the

                                       4
<PAGE>
marking to market of Interest Rate Protection Agreements shall be excluded, (b)
any one-time write-off of deferred financing costs incurred in connection with
the Prior Credit Agreement shall be excluded and (c)(i) the net income (or loss)
of any Person, business, property or asset acquired during such period and not
subsequently sold or disposed of by Parent or one of its Subsidiaries during
such period (each such Person, business, property or asset acquired, an
"Acquired Entity") in each case based on the actual net income (or loss) of such
Acquired Entity for the entire period (including the portion thereof occurring
prior to such acquisition) and (ii) an adjustment for factually supportable and
identifiable pro forma cost savings for such period that are directly
attributable to the acquisition of the Acquired Entity in an amount approved by
the Agent (such approval not to unreasonably be withheld), it being understood
that Borrowers shall deliver to the Agent a certificate of a Responsible Officer
demonstrating in reasonable detail such factually supportable and identifiable
costs savings.

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

         "Covenant Compliance Report" shall mean the report to be furnished by
Borrowers to the Agent pursuant to Section 8.2(a) hereof, in the form of
attached Exhibit H and certified by a Responsible Officer, in which report
Borrowers shall set forth, among other things, detailed calculations and the
resultant ratios or financial tests with respect to the financial covenants
contained in Sections 8.8 through 8.10 and Sections 9.1(c) and (i), 9.5(g) and
9.7 of this Agreement.

         "De Minimis Matters" shall mean environmental or other matters, the
existence of which and any liability which may result therefrom, would not,
individually or in the aggregate, reasonably be expected to have a material
adverse effect on the financial condition or businesses of Holdings and its
Subsidiaries (taken as a whole) or on the ability of Holdings and its
Subsidiaries (taken as a whole) to pay their debts, as such debts become due.

         "Debt" shall mean, as of any applicable date of determination, all
items of indebtedness, obligation or liability of a Person, whether matured or
unmatured, liquidated or unliquidated, direct or indirect, absolute or
contingent, joint or several, that should be classified as liabilities in
accordance with GAAP, including without limitation, any items so classified on a
balance sheet and any reimbursement obligations in respect of letters of credit,
obligations in respect of bankers acceptances, provided; however that for
purposes of calculating the aggregate Debt of such Person and its Subsidiaries
(if any), the direct and indirect and absolute and contingent obligations of
such Person (whether direct or contingent) shall be determined without
duplication and if any contingent obligations are not stated or determined, such
amounts will be determined to equal the reasonably anticipated amount as
determined by such Person in good faith.

         "Default" shall mean any event which with the giving of notice or the
passage of time, or both, would constitute an Event of Default under this
Agreement.

         "Dollars" and the sign "$" shall mean lawful money of the United States
of America.

                                       5
<PAGE>
         "Domestic Subsidiaries" shall mean those Subsidiaries of Holdings
incorporated under the laws of the United States of America, or any state
thereof

         "Effective Date" shall mean the date on which all the conditions
precedent set forth in Sections 6.1 through 6.16 have been satisfied or waived
by the Agent or the Banks, as applicable.

         "Eligible Account" shall mean an Account which has been included in a
Borrowing Base Certificate to determine the Borrowing Base, and as to which
Account the following is true and accurate as of the time it was utilized to
determine the Borrowing Base and as of the time Borrowers have requested a
Revolving Credit Advance based in part thereon:

         (a)      it is not owing more than ninety (90) days (or, in the case of
                  the Account Debtors identified on Schedule 1.3 annexed hereto,
                  one hundred twenty days) after the date of the invoice
                  evidencing such Account;

         (b)      it is not owing by an Account Debtor who has failed to pay
                  twenty five percent (25%) or more of the aggregate amount of
                  its Accounts owing to the applicable Borrowing Base Obligor
                  within ninety (90) days (or one hundred twenty days, as
                  applicable) after the date of the respective invoices or other
                  writings evidencing such Accounts;

         (c)      it arises from the sale or lease of goods and such goods have
                  been shipped or delivered to the Account Debtor under such
                  Account; or it arises from services rendered and such services
                  have been performed;

         (d)      it is evidenced by an invoice, dated not later than three (3)
                  days after the date of shipment or performance, rendered to
                  such Account Debtor or some other evidence of billing
                  acceptable to Agent and is not evidenced by any instrument or
                  chattel paper;

         (e)      it is a valid, legally enforceable obligation of the Account
                  Debtor thereunder, and is not, to the knowledge of any
                  Borrowing Base Obligor, subject to any offset, counterclaim or
                  other defense on the part of such Account Debtor with respect
                  to the entire Account or to any claim on the part of such
                  Account Debtor denying liability thereunder in whole;
                  provided, however, an Account which qualifies as an Eligible
                  Account but which is subject to any offset, counterclaim or
                  defense on the part of the Account Debtor in part, but not in
                  whole, or to any claim on the part of the Account Debtor
                  denying liability thereunder in part, but not in whole, shall
                  be an Eligible Account only to the extent not subject to such
                  offset, counterclaim, defense or denial of liability and in
                  such case only if the amount of such offset; counterclaim,
                  defense or denial of liability can be determined to Agent's
                  sole but reasonable satisfaction;

         (f)      it is subject to a perfected security interest in favor of the
                  Banks prior to all other Persons or entities and it is not
                  subject to any sale of accounts, any rights of offset,

                                       6
<PAGE>
                  assignment, lien or security interest whatsoever other than to
                  Agent for the benefit of the Banks and except for subordinate
                  security interests therein to the extent permitted pursuant to
                  the terms of this Agreement;

         (g)      it is not owing by a subsidiary or Affiliate of any Borrowing
                  Base Obligor, nor by an Account Debtor which (i) does not
                  maintain its chief executive office in the United States of
                  America or is not organized under the laws of the United
                  States of America, or any state thereof, unless such Account
                  Debtor is identified on Schedule 1.3 annexed hereto, (ii) is
                  not an Account owing by the United States or any state or
                  political subdivision thereof, or by any department, agency,
                  public body corporate or other instrumentality of any of the
                  foregoing, unless all necessary steps are taken to comply with
                  the Federal Assignment of Claims Act of 1940, as amended, or
                  with any comparable state law, if applicable, and all other
                  necessary steps are taken to perfect Agent's security interest
                  in such Account, or (iii) is the government of any foreign
                  country or sovereign state, or of any state, province,
                  municipality or other instrumentality thereof; unless with
                  respect to any of the above, the payment of the Account is
                  secured by a letter of credit in form and substance and issued
                  by a financial institution acceptable to Agent;

         (h)      it is not an Account billed in advance, payable on delivery,
                  for consigned goods, for guaranteed sales, for unbilled sales,
                  for progress billings, payable at a future date in accordance
                  with its terms, subject to a retainage or holdback by the
                  Account Debtor or insured by a surety company; and

         (i)      it is not owing by any Account Debtor whose obligations Agent,
                  acting in its sole, but reasonable, discretion (based on a
                  good faith belief that the payment of the Account is
                  materially impaired), shall have notified Borrowers are not
                  deemed to constitute Eligible Accounts.

An Account which is at any time an Eligible Account, but which subsequently
fails to meet any of the foregoing requirements, shall forthwith cease to be an
Eligible Account.

         "Eligible Inventory" shall mean Inventory which has been included in a
Borrowing Base Certificate to determine the Borrowing Base and as to which
Inventory the following is true and accurate as of the time it was utilized to
determine the Borrowing Base and as of the time the Borrowers have requested a
Revolving Credit Advance based in part thereon:

                  (a) such item of Inventory is of merchantable quality aid
         is usable or salable by a Borrowing Base Obligor in the ordinary course
         of its business;

                  (b) the applicable Borrowing Base Obligor, has granted to
         the Banks a perfected security interest in such item of Inventory prior
         in right to all other persons or entities and such item of Inventory
         has not been sold, transferred or otherwise assigned by the applicable

                                       7
<PAGE>

         Borrowing Base Obligor, to any person other than the Banks or, to the
         extent permitted by this Agreement, to another Borrowing Base Obligor;

                  (c) such item of Inventory is located at premises leased
         by a Borrowing Base Obligor and for which Agent has received a lessor's
         acknowledgement and subordination in form satisfactory to Agent (unless
         receipt of such agreement has been waived by Agent);

                  (d) such item of Inventory is located within the continental
         United States of America at such location or locations as Borrowers
         shall have represented in the Loan Documents, relating to Inventory;

                  (e) the value of each item of Inventory utilized to
         determine the Borrowing Base was determined in accordance with GAAP
         utilizing "first in, first out";

                  (f) such Inventory is not held by a Borrowing Base Obligor on
         consignment and is not Inventory transferred by a Borrowing Base
         Obligor to a customer on a consignment basis unless (i) a valid
         consignment agreement is in effect with such customer, (ii) the
         Borrowing Base Obligor has taken such action as is required in order to
         maintain its interest in such Inventory free and clear of the interests
         of any creditor of the customer and (iii) the security interest of the
         Agent in such Inventory remains a perfected first priority security
         interest;

                  (g) such Inventory was not produced in violation of the
         Fair Labor Standards Act and is not subject to the so-called "hot
         goods" provisions contained in Title 29 U.S.C. 215(a)(i);

                  (h) such item of Inventory is not being held for return
         to the supplier thereof.

Any inventory which is at any time Eligible Inventory, but which subsequently
fails to meet any of the foregoing requirements, shall forthwith cease to be
Eligible Inventory.

         "Equity Interests" means, with respect to any Person, any and all
shares, share capital, interests, participations, warrants, options or other
equivalents (however designated) of capital stock of a corporation and any and
all equivalent ownership interests in a Person (other than a corporation).

         "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as amended, or any successor act or code and the regulations in effect from time
to time thereunder.

         "Eurocurrency-based Advance" shall mean an Advance which bears interest
at the Eurocurrency-based Rate.

         "Eurocurrency-based Rate" shall mean, with respect to any
Eurocurrency-Interest Period, the per annum interest rate which is equal to the
sum of the Margin plus the quotient of:

                                       8
<PAGE>
         (A)      the per annum interest rate at which deposits in eurodollars
                  are offered to Agent's Eurocurrency Lending Office by other
                  prime banks in the eurodollar market in an amount comparable
                  to the relevant Eurocurrency-based Advance and for a period
                  equal to the relevant Eurocurrency-Interest Period at
                  approximately 11:00 a.m. Detroit time two (2) Business Days
                  prior to the first day of such Eurocurrency-Interest Period,
                  divided by

         (B)      an amount equal to one minus the stated maximum rate
                  (expressed as a decimal) of all reserve requirements
                  (including, without limitation, any marginal, emergency,
                  supplemental, special or other reserves) that is specified on
                  the first day of such Eurocurrency-Interest Period by the
                  Board of Governors of the Federal Reserve System (or any
                  successor agency thereto) for determining the maximum reserve
                  requirement with respect to eurodollar funding (currently
                  referred to as "eurocurrency liabilities" in Regulation D of
                  such Board) maintained by a member bank of such System,

all as conclusively determined (absent manifest error) by the Agent.

         "Eurocurrency-Interest Period" shall mean the Interest Period
applicable to a Eurocurrency-based Advance.

         "Eurocurrency Lending Office" shall mean, (a) with respect to the
Agent, Agent's office located at Grand Cayman, British West Indies or such other
branch or branches of Agent, domestic or foreign, as it may hereafter designate
as a Eurocurrency Lending Office by notice to Borrowers and the Banks, and (b)
as to each of the Banks, its office, branch or affiliate located at its address
set forth in Agent's administrative questionnaire completed by such Bank (or
identified thereon as a Eurocurrency Lending Office), or at such other office,
branch or affiliate of such Bank as it may hereafter designate as its
Eurocurrency Lending Office by notice to Borrowers and Agent.

         "Event of Default" shall mean each of the Events of Default specified
in Section 10.1 hereof

         "Excess Cash Flow" shall mean, as of the end of any fiscal year of
Holdings, Consolidated Net Income for such fiscal year, plus to the extent
deducted in determining Consolidated Net Income, depreciation, amortization and
non-cash interest expense for such fiscal year, minus the sum of(i) reductions
in the purchase accounting reserve from cash payments during such fiscal year,
(ii) Capital Expenditures made by Holdings and its consolidated Subsidiaries
during such fiscal year and any Rollover Amount for such period to be carried
forward to the next period less the Rollover Amount, if any, for the preceding
period carried forward to the current period that was not spent during such
current period, (iii) the amount of all payments of principal made on
Consolidated Funded Debt during such fiscal year (excluding any payments on
Revolving Credit Advances and payments by Holdings and its Consolidated
Subsidiaries under any other revolving credit facility to the extent the
Revolving Credit Aggregate Commitment or availability under such other facility,
as the case may be, is not permanently reduced in connection therewith), (iv)
any non-cash credits included in determining Consolidated Net Income for such
period, (v) non-cash gains from sales of

                                       9
<PAGE>
assets included in Consolidated Net Income for such period, (vi) non-cash
charges added back in a previous period to the extent any such charge has become
a cash item in the current period, (vii) any cash disbursement to Sellers
required pursuant to the Stock Purchase Agreement for purchase price adjustments
or tax obligations, (viii) any cash disbursements made during such period
against non-current liabilities to the extent not deducted in determining
Consolidated Net Income, and (ix) any cash restructuring expenditures incurred
during such period to the extent not deducted in determining Consolidated Net
Income for such period and to the extent not exceeding $3,000,000.

         "Federal Funds Effective Rate" shall mean, for any day, a fluctuating
interest rate per annum equal to the weighted average of the rates on overnight
Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers, as published for such day (or, if such day is not a
Business Day, for the next preceding Business Day) by the Federal Reserve Bank
of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations for such day on such transactions
received by Agent from three Federal funds brokers of recognized standing
selected by it, all as conclusively determined by the Agent, such sum to be
rounded upward, if necessary, to the nearest whole multiple of 1/16th of 1%.

         "Fees" shall mean the Revolving Credit Facility Fee, the Letter of
Credit Fees and the other fees and charges payable by Borrowers to the Banks or
Agent hereunder.

         "Financial Statements" shall mean all those balance sheets, earnings
statements, statements of cash flow and other financial data (whether of
Holdings, any Borrower or the Subsidiaries) which have been furnished to the
Agent or the Banks for the purposes of, or in connection with, this Agreement
and the transactions contemplated hereby.

         "Fixed Charge Coverage Ratio" shall mean, as of any date of
determination, a ratio, the numerator of which shall equal Consolidated EBITDA
for the four preceding fiscal quarters ending on such date less a forty percent
(40%) reserve for income tax on Consolidated Net Income for such period, and the
denominator of which shall equal the scheduled payments of principal and cash
interest (excluding prepayments) during such period on Holdings' and its
Consolidated Subsidiaries' indebtedness for borrowed money (including all
capital leases, and all indebtedness under the Term Notes as of such date) all
as determined in accordance with GAAP.

         "Foreign Subsidiaries" shall mean all of Holdings' Subsidiaries other
than the Domestic Subsidiaries.

         "Funded Debt" shall mean for any Person as of any date of determination
the sum of, without duplication, (i) all indebtedness of such Person as of such
date for borrowed money or for the deferred purchase price of property or
services (other than deferred rent as determined in accordance with GAAP, trade
liabilities incurred in the ordinary course of business and payable in
accordance with customary practices and accrued expenses) or which is evidenced
by a note, bond debenture or similar instrument, (ii) all obligations of such
Person as of such date under capital leases, (iii) all obligations of such
Person as of such date in respect of letters of credit, acceptances or similar
obligations issued or created for the account of the such Person, (iv) all
liabilities of a Person as of

                                       10
<PAGE>
such date which are secured by a lien or property owned by such Person even
though such Person may not have assumed or otherwise become liable for payment
thereof and (v) all Guarantee Obligations of such Person as of such date.

         "Funded Debt to EBITDA Ratio" shall mean, as of any date of
determination, a ratio, the numerator of which shall equal Funded Debt of
Holdings and its Consolidated Subsidiaries as of such date and the denominator
of which shall equal Consolidated EBITDA for the four preceding fiscal quarters
ending on such date.

         "GAAP" shall, subject to the provisions of Section 14.1, mean generally
accepted accounting principles in the United States of America, as in effect on
the date hereof, consistently applied.

         "Governmental Obligations" means noncallable direct general obligations
of the United States of America or obligations the payment of principal of and
interest on which is unconditionally guaranteed by the United States of America.

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

                                       11
<PAGE>
         "Guarantor(s)" shall mean Parent and each Person becoming a Domestic
Subsidiary of a Borrower subsequent to the date hereof or otherwise entering
into a Guaranty (by joinder agreement or otherwise) from time to time.

         "Guaranty" shall mean the Guaranty to be made by each of the Guarantors
(whether by execution thereof, or by execution of the Joinder Agreement attached
as "Exhibit A" to the form of such Guaranty) in favor of the Agent for the
ratable benefit of the Banks, substantially in the form of Exhibit G, as amended
or otherwise modified from time to time.

         "Hazardous Material" shall mean and include any hazardous, toxic or
dangerous waste, substance or material defined as such in (or for purposes of)
the Hazardous Material Laws.

         "Hazardous Material Law(s)" shall mean all laws, codes, ordinances,
rules, regulations, orders, decrees and directives issued by any federal, state,
provincial, local, foreign or other governmental or quasi-governmental authority
or body (or any agency, instrumentality or political subdivision thereof)
pertaining to any hazardous, toxic or dangerous waste, substance or material on
or about any facilities owned, leased or operated by either Borrower or any of
its Subsidiaries, or any portion thereof including, without limitation, those
relating to soil, surface, subsurface ground water conditions and the condition
of the ambient air; and any state and local laws and regulations pertaining to
any hazardous, toxic or dangerous waste, substance or material and/or asbestos;
any so-called "superfund" or "superlien" law; and any other federal, state,
provincial, foreign or local statute, law, ordinance, code, rule, regulation,
order or decree regulating, relating to, or imposing liability or standards of
conduct concerning, any hazardous, toxic or dangerous waste, substance or
material, as now or at any time hereafter in effect.

         "Hedging Transaction" means each interest rate swap transaction, basis
swap transaction, forward rate transaction, commodity swap transaction, equity
transaction; equity index transaction, foreign exchange transaction, cap
transaction, floor transaction (including any option with respect to any of
these transactions and any combination of any of the foregoing) entered into by
the Borrowers from time to time pursuant to an Interest Rate Protection
Agreement; provided that such transaction is entered into for risk management
purposes and not for speculative purposes.

         "Hereof", "hereto", "hereunder" and similar terms shall refer to this
Agreement and not to any particular paragraph or provision of this Agreement.

         "Holdings" is defined in the Preamble.

         "Holdings Pledge Agreement" shall mean the Pledge Agreement executed
and delivered by Holdings in favor of Agent substantially in the form of Exhibit
K, as amended or otherwise modified from time to time.

         "Indebtedness" shall mean all indebtedness and liabilities (including
without limitation interest, fees and other charges) arising under this
Agreement or any of the other Loan Documents; whether direct or indirect,
absolute or contingent, of Borrowers or any Subsidiary to any of the

                                       12
<PAGE>
Banks or to the Agent, in any manner and at any time, (whether evidenced by the
Notes; arising under any Guaranty or any of the other Loan Documents, due or
hereafter to become due, now owing or that may hereafter be incurred by
Borrowers or any Subsidiary to, any of the Banks or the Agent, and any judgments
that may hereafter be rendered on such indebtedness or any part thereof, with
interest according to the rates and terms specified, or as provided by law, any
payment obligations, if any, under Hedging Transactions evidenced by Interest
Rate Protection Agreements, and any and all consolidations, amendments,
renewals, replacements, substitutions or extensions of any of the foregoing;
provided, however that for purposes of calculating the Indebtedness outstanding
under the Notes or any of the other Loan Documents, the direct and indirect and
absolute and contingent obligations of Borrowers and the Subsidiaries (whether
direct or contingent) shall be determined without duplication.

         "Intercompany Loan" shall mean any loan (or advance in the nature of a
loan) by Holdings or any other Subsidiary to Holdings or any other Subsidiary,
provided that each such loan or advance is subordinated in right of payment and
priority to the Indebtedness on terms and conditions satisfactory to Agent and
the Majority Banks.

         "Intercompany Loans, Advances or Investments" shall mean any
Intercompany Loan, and any advance or investment by Holdings or any Subsidiary
(including without limitation any guaranty of obligations or indebtedness to
third parties and any investment consisting of the transfer of assets from
Holdings or any Subsidiary to another Subsidiary) to or in another Subsidiary.

         "Intercompany Notes" shall mean the promissory notes issued or to be
issued by Holdings or any Subsidiary to evidence an Intercompany Loan.

         "Interest Period" shall mean with respect to a Eurocurrency-based
Advance, two (2) weeks, one (1), two (2), three (3), six (6) or twelve (12)
months (or any lesser or greater number of days agreed to in advance by
Borrowers, Agent and the Banks) as selected by Borrowers pursuant to Section
2.3, Section 4A.3 or Section 4B.3, provided, however, that any
Eurocurrency-Interest Period which commences on the last Business Day of a
calendar month (or on any day for which there is no numerically corresponding
day in the appropriate subsequent calendar month) shall end on the last Business
Day of the appropriate subsequent calendar month. Each Interest Period which
would otherwise end on a day which is not a Business Day shall end on the next
succeeding Business Day or, if such next succeeding Business Day falls in the
next succeeding calendar month, on the next preceding Business Day, and no
Interest Period which would end after the Revolving Credit Maturity Date, the
Term Loan-A Maturity Date, or Term Loan-B Maturity Date, as applicable, shall be
permitted with respect to any Advance.

         "Interest Rate Protection Agreement" means any interest rate swap, cap,
floor, collar, forward rate agreement foreign currency agreement or other rate
protection transaction, or any combination of such transaction or agreements or
any option with respect to any such transactions or agreements now existing or
hereafter entered into between a Borrower and any Bank or an Affiliate of a
Bank.

                                       13
<PAGE>
         "Internal Revenue Code" shall mean the Internal Revenue Code of 1986,
as amended from time to time, and the regulations promulgated thereunder.

         "Inventory" shall have the meaning ascribed to such term in the Uniform
Commercial Code.

         "Investment" shall mean, when used with respect to any Person, (a) any
loan, investment or advance made by such Person to any other Person (including,
without limitation, any contingent obligation) in respect of any capital stock,
Debt, obligation or liability of such other Person and (b) any other investment
made by such Person (however acquired) in stock or other ownership interests in
any other Person, including, without limitation, any investment made in exchange
for the issuance of shares of stock of such Person.

         "Issuing Bank" shall mean Comerica Bank in its capacity as issuer of
one or more Letters of Credit hereunder.

         "Issuing Office" shall mean Issuing Bank's office located at One
Detroit Center, 500 Woodward Avenue, Detroit, Michigan 48226-3289 or such other
office as Issuing Bank shall designate as its Issuing Office.

         "Joinder Agreement (Guaranty)" shall mean a joinder agreement in the
form attached as "Exhibit A" to the form of the Guaranty (Exhibit G to this
Agreement), to be executed and delivered by any Person required to be a
Guarantor pursuant to Section 8.19 of this Agreement.

         "Letter of Credit Agreement" shall mean, in respect of each Letter of
Credit, the application and related documentation satisfactory to the Issuing
Bank of an Account Party or Account Parties requesting Issuing Bank to issue
such Letter of Credit, as amended from time to time.

         "Letter of Credit Fees" shall mean the fees payable to Agent for the
accounts of the Banks in connection with Letters of Credit pursuant to Section
3.4 hereof.

         "Letter of Credit Maximum Amount" shall mean as of any date of
determination Three Million Dollars ($3,000,000).

         "Letter of Credit Obligations" shall mean at any date of determination,
the sum of (a) the aggregate undrawn amount of all Letters of Credit then
outstanding, (b) the aggregate face amount of all Letters of Credit requested
and for which issuance has been approved but for which issuance has not yet
occurred as of such date and (c) the aggregate amount of Reimbursement
Obligations which have not been reimbursed by Borrowers as of such date.

         "Letter of Credit Payment" shall mean any amount paid or required to be
paid by the Issuing Bank in its capacity hereunder as issuer of a Letter of
Credit as a result of a draft or other demand for payment under any Letter of
Credit.

                                       14
<PAGE>

         "Letter(s) of Credit" shall mean any standby or trade letters of credit
issued by Issuing Bank at the request of or for the account of an Account Party
or Account Parties pursuant to Article 3 hereof.

         "Lien" shall mean any pledge, assignment, hypothecation, mortgage,
security interest, trust receipt, conditional sale or title retaining contract,
sale and leaseback transaction, financing statement or comparable notice or
other filing or recording, subordination or any claim or right, or any other
type of lien, charge, encumbrance, preferential or priority arrangement or other
claim or right, whether based on common law or statute.

         "Loan Documents" shall mean, collectively, this Agreement, the Notes,
the Letter of Credit Agreements, the Letters of Credit, the Guaranty(ies), the
Collateral Documents, any Interest Rate Protection Agreement and any other
documents, certificates, instruments or agreements executed pursuant to or in
connection with any such document or this Agreement, as such documents may be
amended from time to time.

         "Majority Banks" shall mean at any time Banks holding 66-2/3% of the
aggregate principal amount of the Indebtedness then outstanding under the Notes
or, if no Indebtedness is then outstanding, Banks holding 66-2/3% of the
Percentages; provided, however, so long as there are only three Banks holding
the same Percentages as set forth on Schedule 1.2 on the Effective Date,
Majority Banks shall mean all of the Banks.

         "Margin" shall mean as of any date of determination, the applicable
interest rate margin component of the Prime-based Rate or Eurocurrency-based
Rate, determined in accordance with the provisions of Section 5.3 hereof (based
on the Funded Debt to EBITDA Ratio) by reference to the appropriate columns in
the pricing matrix attached to this Agreement as Schedule 1.1; provided, however
that on the date of this Agreement "Margin" shall mean (i) with respect to
Prime-based Revolving Credit Advances or that portion of the Term Loan-A which
bears interest at the Prime-based Rate, three quarters of one percent (3/4%),
(ii) with respect to that portion of Term Loan-B which bears interest at the
Prime-based Rate, one and one quarter percent (1 1/4%), (iii) with respect to
Eurocurrency-based Revolving Credit Advances and that portion of Term Loan-A
which bears interest at the Eurocurrency-based Rate, two and three quarters
percent (2 3/4%), and (iv) with respect to that portion of the Term Loan-B which
bears interest at the Eurocurrency-based Rate, three and one quarter percent (3
1/4%).

         "Material Adverse Effect" shall mean a material adverse effect on (a)
the business or financial condition of the Holdings and its Subsidiaries taken
as a whole, (b) the ability of the Borrowers to perform their respective
obligations under this Agreement, the Notes or any Collateral Documents to
which any of them is a party, or (c) the validity or enforceability of this
Agreement, any of the Notes or any of the Collateral Documents or the rights or
remedies of the Agent or the Banks hereunder or thereunder.

         "Mortgages" shall mean the Amended and Restated Open End Mortgage and
the Deed of Trust, Assignment of Rents, Security Agreement and Fixtures Filing,
executed and delivered by

                                       15
<PAGE>

Trim and Tempress, respectively, in favor of Agent, as amended or otherwise
modified from time to time.

         "Multiemployer Plan" shall mean a Pension Plan which is a multiemployer
plan as defined in Section 4001(a)(3) of ERISA.

         "Net Cash Proceeds" shall mean, with respect to any Asset Sale, the
aggregate cash payments received by either Borrower and/or any Subsidiary, as
the case may be, from such Asset Sale, net of the reasonable expenses of sale
such as commissions and pro rated property taxes and net of any taxes payable or
paid by the Borrowers in respect of such sales, taking into account Borrowers'
losses, if any, which are available under applicable law to reduce such gains.

         "Notes" shall mean the Revolving Credit Notes and the Term Notes.

         "Parent" shall mean Trim Systems, Inc., a Delaware corporation.

         "Parent Pledge Agreement" shall mean the Pledge Agreement executed and
delivered by Parent in favor of Agent substantially in the form of Exhibit L, as
amended or otherwise modified from time to time.

         "Pension Plan(s)" shall mean all employee pension benefit plans of any
Borrower or any ERISA Affiliate, as defined in Section 3(2) of ERISA, to the
extent such Person is subject to ERISA, as provided in Section 4 of ERISA, which
is subject to Section 412 of the Code or Section 302 of ERISA.

         "Percentage" shall mean, with respect to any Bank, its percentage
share, as set forth on Schedule 1.2 hereto, of the Revolving Credit Aggregate
Commitment, Letters of Credit and the Term Loans, as the context indicates, as
such Exhibit may be revised from time to time by Agent in accordance with
provisions of Section 14.8.

         "Permitted Acquisition" shall mean the Acquisition, the R2 Acquisition
and any acquisition by the Borrowers or any of their Subsidiaries of assets,
businesses or business interests or shares of stock or other ownership interests
of or in any Person conducted in accordance with the following requirements:

                  (a) not more than five (5) days after the signing of any
         letter of intent for such proposed acquisition, the Borrowers shall
         have provided a copy of such letter of intent to the Agent and promptly
         upon signing the definitive acquisition documents, Borrowers shall have
         provided copies thereof to the Agent;

                  (b) on the date of any such acquisition, all necessary or
         appropriate governmental, quasi-governmental, agency, regulatory or
         similar approvals of applicable jurisdictions (or the respective
         agencies, instrumentalities or political subdivisions, as applicable,
         of such jurisdictions) and all necessary or appropriate
         non-governmental and

                                       16
<PAGE>

         other third-party approvals which, in each case, are material to such
         acquisition have been obtained and are in effect, and the Borrowers and
         their Subsidiaries are in full compliance therewith, and all necessary
         or appropriate declarations, registrations or other filings with any
         court, governmental or regulatory authority, securities exchange or any
         other person have been made;

                  (c) the aggregate value of all of such acquisitions, including
         the value of any proposed new acquisition, conducted while this
         Agreement remains in effect as Permitted Acquisitions (but excluding
         any acquisition conducted with the specific written approval of the
         Majority Banks, and not as a Permitted Acquisition hereunder) computed
         on the basis of total acquisition consideration paid or incurred, or to
         be paid or incurred, by the Borrowers or their Subsidiaries with
         respect thereto, including all indebtedness which is assumed or to
         which such assets, businesses or business or ownership interests or
         shares, or any Person so acquired, is subject, shall not exceed Five
         Million Dollars ($5,000,000), determined as of the date of such
         acquisition and the aggregate value for each such acquisition (computed
         as aforesaid) shall not exceed Ten Million Dollars ($10,000,000);

                  (d) within thirty (30) days after any such acquisition has
         been completed the Borrowers shall deliver to the Agent executed copies
         of all material documents pertaining to such acquisition, and the
         Borrowers, their Subsidiaries and any of the corporate entities
         involved in such acquisition shall execute or cause to be executed, and
         provide or cause to be provided to Agent, for the Banks, such documents
         and instruments (including without limitation, the Joinder Agreement
         (Guaranty) and Security Agreement as required by Section 8.17 hereof,
         and opinions of counsel, amendments, acknowledgments, consents and
         evidence of approvals or filings) as reasonably requested by Agent, if
         any; and

                  (e) both immediately before and after such acquisition, no
         Default or Event of Default (whether or not related to such
         acquisition), has occurred and is continuing and on the date of
         consummation of such acquisition, Borrowers shall have provided to the
         Agent a certificate of a Responsible Officer as to such effect.

         "Permitted Liens" shall mean with respect to any Person:

                           (a) the liens and encumbrances granted under or
established by this Agreement or the other Loan Documents for the equal and
ratable benefit of the Banks;

                           (b) liens for taxes not yet delinquent or which are
being contested in good faith by appropriate proceedings diligently pursued,
provided that provision for the payment of all such taxes has been made on the
books of such Person as may be required by GAAP;

                           (c) mechanics', materialmen's, banker's,
carriers', warehousemen's and similar liens and encumbrances arising in the
ordinary course of business and securing obligations of such Person that are
being contested in good faith by appropriate proceedings diligently pursued,
provided that in the case of any such contest (i) any proceedings commenced for
the enforcement

                                       17
<PAGE>

of such liens and encumbrances shall have been duly suspended; and (ii) such
provision for the payment of such liens and encumbrances has been made on the
books of such Person as may be required by GAAP;

                           (d) liens arising in connection with worker's
compensation, unemployment insurance, old age pensions and social security
benefits and similar statutory obligations which are not overdue or are being
contested in good faith by appropriate proceedings diligently pursued, provided
that in the case of any such contest (i) any proceedings commenced for the
enforcement of such liens shall have been duly suspended; and (ii) such
provision for the payment of such liens has been made on the books of such
Person as may be required by GAAP;

                           (e)(i) liens incurred in the ordinary course of
business to secure the performance of statutory obligations arising in
connection with progress payments or advance payments due under contracts with
the United States government or any agency thereof entered into in the ordinary
course of business and (ii) liens incurred or deposits made in the ordinary
course of business to secure the performance of statutory obligations, bids,
leases, fee and expense arrangements with trustees and fiscal agents and other
similar obligations (exclusive of obligations incurred in connection with the
borrowing of money, any lease-purchase arrangements or the payment of the
deferred purchase price of property), provided that full provision for the
payment of all such obligations set forth in clauses (i) and (ii) has been made
on the books of such Person as may be required by GAAP; and

                           (f) minor survey exceptions or minor encumbrances,
easements or reservations, or rights of others for rights-of-way, utilities and
other similar purposes, or zoning or other restrictions as to the use of real
properties, which do not materially interfere with the business of such Person,
including, without limitation the matters disclosed in the surveys and title
policies relating to the properties subject to the Mortgages accepted by Banks
as of the date of this Agreement;

                           (g) any lien arising out of the filing of a
precautionary financing statement by a lessor of property pursuant to an
operating lease;

                           (h) the Liens, if any, shown on Schedule 1.4 annexed
hereto; and

                           (i) any other Liens consented to in writing by the
Majority Banks.

         "Permitted Merger(s)" shall mean any merger of (i) any Subsidiary or
any Person which is being acquired pursuant to a Permitted Acquisition into a
Borrower or any Guarantor or (ii) the merger of any Subsidiary or any Person
which is being acquired pursuant to a Permitted Acquisition into any other
Subsidiary or any Person which is being acquired pursuant to a Permitted
Acquisition, which, in each case satisfies and/or is conducted in accordance
with the following requirements:

                           (a) not less than five (5) days after signing any
                  agreement and plan of merger, Company provides written notice
                  thereof to Agent and promptly after

                                       18
<PAGE>

                  signing any material documents pertaining to such proposed
                  merger Borrowers shall have provided copies thereof to Agent;

                           (b) immediately following and as the direct result of
                  any such merger, the surviving or successor entity has
                  succeeded by operation of applicable law (as confirmed, if
                  requested by the Agent, by an opinion(s) of counsel in form
                  and substance satisfactory to the Majority Banks) to all of
                  the obligations of the non-surviving entity under this
                  Agreement and the other Loan Documents, and to all of the
                  property rights of such non-surviving entity subject to the
                  applicable Loan Documents;

                           (c) concurrently with such proposed merger, the
                  surviving entity involved in such merger shall execute or
                  cause to be executed, and provide or cause to be provided to
                  Agent, for the Banks, such documents and instruments
                  (including without limitation opinions of counsel, amendments,
                  acknowledgments and consents), if any, as reasonably requested
                  by the Agent; and

                           (d) both immediately before and immediately after
                  such merger, no Default or Event of Default (whether or not
                  related to such merger), has occurred and is continuing.

         "Person" shall mean a natural person, corporation, limited liability
company, partnership, limited liability partnership, trust, incorporated or
unincorporated organization, joint venture, joint stock company, or a government
or any agency or political subdivision thereof or other entity of any kind.

         "Pledge Agreements" shall mean the Parent Pledge Agreement and the
Holdings Pledge Agreement.

         "Prime-based Advance" shall mean an Advance which bears interest at the
Prime-based Rate.

         "Prime-based Rate" shall mean, for any day, that rate of interest
which is equal to the sum of the Margin plus the greater of (i) the Prime Rate,
and (ii) the Alternate Base Rate.

         "Prime Rate" shall mean the per annum rate of interest announced by the
Agent, at its main office from time to time as its "prime rate" (it being
acknowledged that such announced rate may not necessarily be the lowest rate
charged by the Agent to any of its customers), which Prime Rate shall change
simultaneously with any change in such announced rate.

         "Purchasing Lender" shall have the meaning set forth in Section 12.8.

         "R2 Acquisition" shall mean the acquisition of all or substantially all
of the stock or assets of R-Squared, Inc. by Holdings or its Subsidiaries for a
purchase price not to exceed $100,000.

                                       19
<PAGE>
         "Reimbursement Obligation(s)" shall mean the obligation of an Account
Party or Account Parties under each Letter of Credit Agreement to reimburse the
Issuing Bank for each payment made by the Issuing Bank under the Letter of
Credit issued pursuant to such Letter of Credit Agreement, together with all
other sums, fees, charges and amounts which may be owing to the Issuing Bank
under such Letter of Credit Agreement.

         "Request for Revolving Credit Advance" shall mean a Request for
Revolving Credit Advance issued by Borrowers under Section 2.3 of this Agreement
in the form annexed hereto as Exhibit A, as amended or otherwise modified.

         "Requirement of Law" shall mean as to any Person, the certificate of
incorporation and bylaws, the partnership agreement or other organizational or
governing documents of such Person and any law, treaty, rule or regulation or
determination of an arbitration or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its property or to
which such Person or any of its property is subject.

         "Responsible Officer" shall mean the chief executive officer, the
president, any vice president or secretary of Borrowers, or any other officer
having substantially the same authority and responsibility; or with respect to
compliance with financial covenants, the chief financial officer or the
treasurer of Holdings, or any other officer having substantially the same
authority and responsibility.

         "Revolving Credit" shall mean the revolving credit loan to be advanced
to Borrowers by the Banks pursuant to Article 2 hereof; in an aggregated amount
(subject to the terms hereof), not to exceed, at any one time outstanding, the
Revolving Credit Aggregate Commitment.

         "Revolving Credit Advance" shall mean a borrowing requested by
Borrowers and made by the Banks under Section 2.1 of this Agreement, including
without limitation any readvance, refunding or conversion of such borrowing
pursuant to Section 2.3 hereof and any advance in respect of a Letter of Credit
under Section 3.6 hereof, and shall include, as applicable, a Eurocurrency-based
Advance and/or a Prime-based Advance.

         "Revolving Credit Aggregate Commitment" shall mean Twenty Million
Dollars ($20,000,000), subject to reduction or termination under Section 2.8 or
10.2 hereof.

         "Revolving Credit Commitment Fee" shall mean the fees payable to Agent
for distribution to the Banks pursuant to Section 2.6 hereof.

         "Revolving Credit Maturity Date" shall mean the earlier to occur of (i)
November 1, 2004, as such date may be extended from time to time pursuant to
Section 2.9 hereof, and (ii) the date on which the Revolving Credit Aggregate
Commitment shall be terminated pursuant to Section 2.8 or Section 10.2 hereof.

                                       20
<PAGE>
         "Revolving Credit Notes" shall mean the revolving credit notes
described in Section 2.1 hereof, made by Borrowers to each of the Banks in the
form annexed to this agreement as Exhibit B, as such notes may be amended or
supplemented from time to time, and any other notes issued in substitution,
replacement or renewal thereof from time to time.

         "Rollover Amount" shall mean the aggregate amount of unutilized Capital
Expenditures carried forward from one fiscal year to the next fiscal year to the
extent permitted pursuant to the provisions of Section 9.7; provided, however,
in no event shall any Rollover Amount include any unutilized Capital
Expenditures from fiscal year 1998.

         "Security Agreements" shall mean the Security Agreements executed and
delivered by Borrowers and each Domestic Subsidiary in favor of the Agent
substantially in the form of Exhibit H, as amended or otherwise modified from
time to time.

         "Seller" shall mean collectively, Ray Aspiri, Thomas C.L. Rogers,
Steven P. Cedergreen, Kim R. Hunter, Christopher L. Hain, Mark L. Vermilion,
Fletcher E. Newland II and John R. Post.

         "Stock Purchase Agreement" shall mean the Stock Purchase Agreement
dated as of October 7, 1998 between Holdings and Seller.

         "Subordinated Debt" shall mean Debt of a Borrower which has been
subordinated in right of payment and priority to the Indebtedness, all on terms
and conditions satisfactory to the Majority Banks.

         "Subordinated Debt Documents" shall mean any documents evidencing
Subordinated Debt, in each case, as the same may be amended, modified or
supplemented from time to time in compliance with the terms of this Agreement.

         "Subsidiary(ies)" shall mean any other corporation, association, joint
stock company, business trust, limited liability company or any other business
entity of which more than fifty percent (50%) of the outstanding voting stock,
share capital, membership or other interests, as the case may be, is owned
either directly or indirectly by any Person or one or more of its Subsidiaries,
or the management of which is otherwise controlled, directly, or indirectly
through one or more intermediaries, or both, by any Person and/or its
Subsidiaries. Unless otherwise specified to the contrary herein, Subsidiary(ies)
shall refer to the Subsidiaries of Holdings. In addition the term
Subsidiary(ies) shall include Trim as a Subsidiary of Holdings.

         "Tempress" is defined in the Preamble.

         "Tempress Non-Core Businesses" shall mean those lines of business (and
related assets) conducted by Tempress not related to the manufacturing or sale
of parts, systems and components for use in the heavy truck or off-road
equipment industry.

                                       21
<PAGE>
         "Term Loan-A" shall mean the term loan to be made to Borrowers by the
Banks pursuant to Section 4A.1 hereof, in the aggregate amount of Thirty Million
Dollars ($30,000,000).

         "Term Loan-A Maturity Date" shall mean November 1, 2004.

         "Term Loan-B" shall mean the term loan to be made to Borrowers by the
Banks pursuant to Section 4B.1 hereof, in the aggregate amount of Twenty Million
Dollars ($20,000,000).

         "Term Loan-B Maturity Date" shall mean November 1, 2005.

         "Term Loan Rate Request" shall mean a Term Loan Rate Request issued by
Borrowers under this Agreement in the form attached to this Agreement as
Exhibit I.

         "Term Loans" shall mean Term Loan-A and Term Loan-B.

         "Term Notes" shall mean the term notes described in Section 4A.2(a) and
Section 4B.2(a) made by Borrowers to each of the Banks in the form attached as
Exhibit D to this Agreement, as such notes may be amended or supplemented from
time to time, and any notes issued in substitution, renewal or replacement
thereof from time to time.

         "Trim" is defined in the Preamble.

         "Uniform Commercial Code" or "UCC" shall mean the Uniform Commercial
Code of any applicable state, and, unless specified otherwise the Uniform
Commercial Code as in effect in the State of Michigan.

2. REVOLVING CREDIT

         2.1 Revolving Credit Commitment. Subject to the terms and conditions of
this Agreement (including Section 2.3 hereof), each Bank severally and for
itself alone agrees to make Advances of the Revolving Credit to Borrowers from
time to time on any Business Day during the period from the Effective Date
hereof until (but excluding) the Revolving Credit Maturity Date in an aggregate
amount not to exceed at any one time outstanding each such Bank's Percentage of
the Revolving Credit Aggregate Commitment. All of such Advances hereunder shall
be evidenced by the Revolving Credit Notes, under which advances, repayments and
readvances may be made, subject to the terms and conditions of this Agreement.

         2.2 Accrual of Interest and Maturity. The Revolving Credit Notes, and
all principal and interest outstanding thereunder, shall mature and become due
and payable in full on the Revolving Credit Maturity Date, and each Advance
evidenced by the Revolving Credit Notes from time to time outstanding hereunder
shall, from and after the date of such Advance, bear interest at its Applicable
Interest Rate. The amount and date of each Revolving Credit Advance, its
Applicable Interest Rate, its Interest Period, and the amount and date of any
repayment shall be noted on Agent's records, which records may be kept
electronically and which will be conclusive evidence thereof, absent

                                       22
<PAGE>

manifest error; provided, however, that any failure by the Agent to record any
such information shall not relieve Borrowers of their respective obligations to
repay the outstanding principal amount of such Advance, all interest accrued
thereon and any amount payable with respect thereto in accordance with the terms
of this Agreement and the Loan Documents.

          2.3 Requests for Advances and Requests for Refundings and Conversions
of Revolving Credit Advances. Borrowers may request a Revolving Credit Advance,
refund any Revolving Credit Advance in the same type of Revolving Credit Advance
or convert any Revolving Credit Advance to any other type of Revolving Credit
Advance only after delivery to Agent of a Request for Revolving Credit Advance
executed by a person authorized by Borrowers to make such requests on behalf of
Borrowers or by telephone request as described in subclause (e) below, subject
to the following and to the remaining provisions hereof:

                  (a) each such Request for Revolving Credit Advance shall set
         forth the information required on the Request for Revolving Credit
         Advance including without limitation:

               (i)   the proposed date of Revolving Credit Advance, which must
                     be a Business Day;

               (ii)  whether the Revolving Credit Advance is a refunding or
                     conversion of an outstanding Revolving Credit Advance; and

               (iii) whether such Revolving Credit Advance is to be a
                     Prime-based Advance or a Eurocurrency-based Advance, and,
                     except in the case of a Prime-based Advance, the Interest
                     Period applicable thereto;

                  (b) each such Request for Revolving Credit Advance shall be
         delivered to Agent by 11:00 a.m. (Detroit time) three (3) Business Days
         prior to the proposed date of Revolving Credit Advance, except in the
         case of a Prime-based Advance, for which the Request for Revolving
         Credit Advance must be delivered by 12:00 noon (Detroit time) on such
         proposed date and except for the initial Revolving Credit Advance if at
         least three Business Days prior to the Effective Date Borrowers have
         requested a Eurocurrency-based Advance as provided below;

                  (c) the principal amount of such requested Revolving Credit
         Advance, plus the principal amount of all other Advances then
         outstanding hereunder, plus the Letter of Credit Obligations, less the
         principal amount of any outstanding Revolving Credit Advance to be
         refunded by the requested Revolving Credit Advance shall not exceed the
         lesser of the then applicable (i) Revolving Credit Aggregate Commitment
         and (ii) Borrowing Base;

                  (d) the principal amount of such Revolving Credit Advance,
         plus the amount of any other outstanding Indebtedness under this
         Agreement to be then combined therewith having the same Applicable
         Interest Rate and Interest Period, if any, shall be (i) in the case

                                       23
<PAGE>

         of a Prime-based Advance at least Three Hundred Thousand Dollars
         ($300,000) and (ii) in the case of a Eurocurrency-based Advance at
         least Seven Hundred Fifty Thousand Dollars ($750,000) and at any one
         time there shall not be in effect more than five (5) Interest Periods
         with respect to the Revolving Credit;

                  (e) each Request for Revolving Credit Advance shall constitute
         and include a certification by Borrowers as of the date thereof that:

               (i)   to the best knowledge of Borrowers all conditions to
                     Advances of the Revolving Credit have been satisfied or
                     waived;

               (ii)  there is no Default or Event of Default in existence, and
                     none will exist upon the making of the Advance; and

               (iii) the representations and warranties contained in this
                     Agreement and the other Loan Documents are true and correct
                     in all material respects and shall be true and correct in
                     all material respects as of and immediately after the
                     making of the Advance, except to the extent a
                     representation or warranty is made as of a specific date.

         Agent, acting on behalf of the Banks, may, at its option, lend under
this Section 2 upon the telephone request of an authorized officer of a Borrower
and, in the event Agent, acting on behalf of the Banks, makes any such Advance
upon a telephone request, the requesting officer shall, if so requested by
Agent, fax to Agent, within one (1) Business Day of such telephone request, a
Request for Advance. Borrowers hereby authorize Agent to disburse Advances under
this Section 2.3 pursuant to the telephone instructions of any person purporting
to be a person identified by name on a written list of persons authorized by the
Borrowers to make Requests for Advance on behalf of the Borrowers.
Notwithstanding the foregoing, the Borrowers acknowledge that Borrowers shall
bear all risk of loss resulting from disbursements made upon any telephone
request, unless the Agent disburses Advances on the instructions of a person
not purporting to be a person in the aforementioned list or the Agent otherwise
acts with bad faith or gross negligence or acts in a manner which constitutes
willful misconduct. Each telephone request for an Advance shall constitute a
certification of the matters set forth in the Request for Advance form as of the
date of such requested Advance.

         2.4 Disbursement of Revolving Credit Advances.

                  (a) Upon receiving any Request for a Revolving Credit Advance
         from Borrowers under Section 2.3 hereof, Agent shall promptly notify
         each Bank by wire, telecopy, telex or by telephone (confirmed by wire,
         telecopy or telex) of the amount of such Revolving Credit Advance to be
         made and the date such Advance is to be made by said Bank pursuant to
         its Percentage of the Revolving Credit Advance. Unless such Bank's
         commitment to make Revolving Credit Advances hereunder shall have been
         suspended or terminated in accordance with this Agreement, each Bank
         shall send the amount of its Percentage of the

                                       24
<PAGE>

         Advance in same day funds in Dollars to Agent at the office of Agent
         located at One Detroit Center, 500 Woodward Avenue, Detroit, Michigan
         48226-3289 not later than 3:00 p.m. (Detroit time) on the date of such
         Advance.

                  (b) Subject to submission of a Request for Revolving Credit
         Advance delivered in accordance with Section 2.3 hereof by Borrowers
         without exceptions noted in the compliance certification therein and to
         the other terms and conditions hereof, Agent shall make available to
         Borrowers the aggregate of the amounts so received by it from the Banks
         under this Section 2.4, in like funds, not later than 4:00 p.m.
         (Detroit time) on the date of such Revolving Credit Advance by credit
         to an account of Borrowers maintained with Agent or to such other
         account or third party as Borrowers may reasonably direct.

                  (c) Unless Agent shall have been notified by any Bank prior to
         the date of any proposed Revolving Credit Advance that such Bank does
         not intend to make available to Agent such Bank's Percentage of the
         Revolving Credit Advance, Agent may assume that such Bank has made such
         amount available to Agent on such date, as aforesaid and may, in its
         sole discretion and without obligation to do so, in reliance upon such
         assumption, make available to Borrowers a corresponding amount. If such
         amount is not in fact made available to Agent by such Bank in
         accordance with Section 2.4(a), as aforesaid, Agent shall be entitled
         to recover such amount on demand from such Bank. If such Bank does not
         pay such amount forthwith upon Agent's demand therefor, the Agent shall
         promptly notify Borrowers, and Borrowers shall pay such amount to
         Agent. Agent shall also be entitled to recover from such Bank or from
         Borrowers, as the case may be but without duplication, interest on such
         amount in respect of each day from the date such amount was made
         available by Agent to Borrowers to the date such amount is recovered by
         Agent, at a rate per annum equal to:

               (i)   in the case of such Bank, the Federal Funds Effective Rate
                     for the first two (2) Business Days such amount remains
                     unpaid and at the rate of interest applicable to the
                     Revolving Credit Advances thereafter; or

               (ii)  in the case of Borrowers, the rate of interest then
                     applicable to the Revolving Credit Advance.

         The obligation of any Bank to make any Revolving Credit Advance
         hereunder shall not be affected by the failure of any other Bank to
         make any Revolving Credit Advance hereunder, and no Bank shall have any
         liability to Borrowers, the Agent, any other Bank, or any other party
         for another Bank's failure to make any loan or Revolving Credit Advance
         hereunder.

         2.5 Prime-based Advance in Absence of Election or Upon Default. If, as
to any outstanding Eurocurrency-based Advance, Agent has not received payment on
the last day of the Interest Period applicable thereto, or does not receive a
timely Request for Revolving Credit Advance meeting the requirements of Section
2.3 hereof with respect to the refunding or conversion of such Advance, or,
subject to Section 5.6 hereof, if on such day a Default or Event of Default
shall

                                       25
<PAGE>
exist, the principal amount thereof which is not then prepaid shall be converted
automatically to a Prime-based Advance and the Agent shall thereafter promptly
notify Borrowers of said action.

         2.6 Revolving Credit Commitment Fee. From the Effective Date to the
Revolving Credit Maturity Date, the Borrowers shall pay to the Agent for
distribution to the Banks pro-rata in accordance with their respective
percentages, a Revolving Credit Commitment Fee quarterly in arrears commencing
January 1, 1999 (in respect of the prior fiscal quarter or portion thereof), and
on the first day of each fiscal quarter thereafter. The Revolving Credit
Commitment Fee shall be equal to the sum of the Applicable Commitment Fee
Percentage times the daily amount by which the Revolving Credit Aggregate
Commitment then in effect less the aggregate daily undrawn amount of any Letters
of Credit exceeds the principal amount of Advances outstanding from time to time
under the Revolving Credit computed on a daily basis. The Revolving Credit
Commitment Fee shall be computed on the basis of a year of three hundred sixty
(360) days and assessed for the actual number of days elapsed. Whenever any
payment of the Revolving Credit Commitment Fee shall be due on a day which is
not a Business Day, the date for payment thereof shall be extended to the next
Business Day. Upon receipt of such payment, Agent shall make prompt payment to
each Bank of its share of the Revolving Credit Commitment Fee based upon its
respective Percentage. It is expressly understood that the Revolving Credit
Commitment Fees described in this Section are not refundable under any
circumstances.

         2.7 Reduction of Indebtedness; Revolving Credit Aggregate Commitment.
If at any time and for any reason the aggregate principal amount of Revolving
Credit Advances hereunder to Borrowers, plus the Letter of Credit Obligations
which shall be outstanding at such time, shall exceed the lesser of the then
applicable (i) Revolving Credit Aggregate Commitment and (ii) Borrowing Base,
the Borrowers shall immediately reduce any pending request for an Advance on
such day by the amount of such excess and, to the extent any excess remains
thereafter, immediately repay an amount of the Indebtedness equal to such excess
and, to the extent such Indebtedness consists of Letter of Credit Obligations,
provide cash collateral on the basis set forth in Section 10.2 hereof. Borrowers
acknowledge that, in connection with any repayment required hereunder, it shall
also be responsible for the reimbursement of any prepayment or other costs
required under Section 12.1 hereof; provided, however, that Borrowers may, in
their discretion, in order to reduce any such prepayment costs and expenses,
first prepay such portion of the Indebtedness then carried as a Prime-based
Advance, if any.

         2.8 Optional Reduction or Termination of Revolving Credit Aggregate
Commitment. The Borrowers may, upon at least five (5) Business Days' prior
written notice to Agent, permanently reduce the Revolving Credit Aggregate
Commitment in whole at any time, or in part from time to time, without premium
or penalty, provided that: (i) each partial reduction of the Revolving Credit
Aggregate Commitment shall be in an aggregate amount equal to at least One
Million Dollars ($1,000,000) or a larger integral multiple of One Million
Dollars ($1,000,000); (ii) each reduction shall be accompanied by the payment of
the Revolving Credit Commitment Fee, if any, accrued to the date of such
reduction; (iii) the Borrowers shall prepay in accordance with the terms hereof
the amount, if any, by which the sum of the aggregate unpaid principal amount of
Revolving Credit Advances, plus the Letter of Credit Obligations, exceeds the
then applicable Revolving Credit

                                       26
<PAGE>
Aggregate Commitment, taking into account the aforesaid reductions thereof,
together with accrued but unpaid interest on the principal amount of such
prepaid Advances to the date of prepayment; and (iv) no reduction shall reduce
the amount of the Revolving Credit Aggregate Commitment to an amount which is
less than the Letter of Credit Obligations at such time. Reductions of the
Revolving Credit Aggregate Commitment and any accompanying prepayments of the
Revolving Credit Notes shall be distributed by Agent to each Bank in accordance
with such Bank's Percentage thereof, and will not be available for reinstatement
by or readvance to Borrowers. Any reductions of the Revolving Credit Aggregate
Commitment hereunder shall reduce each Bank's portion thereof proportionately
(based upon the applicable Percentages), and shall be permanent and irrevocable.
Any payments made pursuant to this Section shall be applied first to outstanding
Prime-based Advances under the Revolving Credit.

         2.9 Extension of Revolving Credit Maturity Date. (a) Provided that no
Default or Event of Default has occurred and is continuing, Borrowers may, by
written notice to Agent (with sufficient copies for each Bank) (which notice
shall be irrevocable and which shall not be deemed effective unless actually
received by Agent) prior to October 1, but not before August 1, of each fiscal
year (beginning with the fiscal year ending December 31, 1999), request that the
Banks extend the then applicable Revolving Credit Maturity Date to a date that
is one year later than the Revolving Credit Maturity Date then in effect (each
such request, a "Request"). Each Bank shall, not later than November 1 of such
fiscal year, give written notice to the Agent stating whether such Bank is
willing to extend the Revolving Credit Maturity Date as requested. If Agent has
received the aforesaid written approvals of such Request from each of the Banks,
then, effective upon the date of Agent's receipt of all such written approvals
from the Banks, as aforesaid, the Revolving Credit Maturity Date shall be so
extended for an additional one year period, the term Revolving Credit Maturity
Date shall mean such extended date and Agent shall promptly notify the Borrowers
that such extension has occurred.

                  (b) If (i) any Bank gives the Agent written notice that it is
unwilling to extend the Revolving Credit Maturity Date as requested or (ii) any
Bank fails to provide written approval to Agent of such a Request on or before
the November 1 of such fiscal year, then (w) the Banks shall be deemed to have
declined to extend the Revolving Credit Maturity Date, (x) the then-current
Revolving Credit Maturity Date shall remain in effect (with no further right on
the part of Borrowers to request extensions thereof under this Section 2.9), and
(y) the commitments of the Banks to make Advances of the Revolving Credit
hereunder shall terminate on the Revolving Credit Maturity Date then in effect,
and Agent shall promptly notify Borrowers thereof.

         2.10 Administrative Fee. On the Effective Date and on each anniversary
of the Effective Date, Borrowers shall pay to Agent for its own account an
annual non-refundable agency fee in the amount of Ten Thousand Dollars ($10,000)
plus an amount equal to Five Thousand Dollars ($5,000) multiplied by the number
of Banks (other than the Bank acting as Agent) who are signatories hereto on the
applicable payment date.

                                       27
<PAGE>
3. LETTERS OF CREDIT

         3.1 Letters of Credit. Subject to the terms and conditions of this
Agreement, Issuing Bank shall through its Issuing Office, at any time and from
time to time from and after the date hereof until thirty (30) days prior to the
Revolving Credit Maturity Date, upon the written request of an Account Party
accompanied by a duly executed Letter of Credit Agreement, and such other
documentation related to the requested Letter of Credit as the Issuing Bank may
reasonably require, issue Letters of Credit for the account of such Account
Party, in an aggregate amount for all Letters of Credit issued hereunder at any
one time outstanding not to exceed an amount equal to the lesser of (i) the
Letter of Credit Maximum Amount and (ii) the then applicable Revolving Credit
Aggregate Commitment minus the aggregate principal amount of Revolving Credit
Advances at such time outstanding. Each Letter of Credit shall be in a minimum
face amount of Ten Thousand Dollars ($10,000) (or such lesser amount as the
Issuing Bank, in its reasonable discretion, may permit) and shall have an
expiration date not later than the earlier of (i) one (1) year from the date of
issuance thereof, and (ii) ten (10) Business Days prior to the Revolving Credit
Maturity Date. The submission of all applications and the issuance of each
Letter of Credit hereunder shall be subject in all respects to applicable
provisions of U.S. law and regulations, including without limitation, the
Trading With the Enemy Act, Export Administration Act, International Emergency
Economic Powers Act, and the Regulations of the Office of Foreign Assets Control
of the U.S. Department of the Treasury.

         3.2 Conditions to Issuance. No Letter of Credit shall be issued at the
request and for the account of any Account Party unless, as of the date of
issuance of such Letter of Credit:

                  (a) the face amount of the Letter of Credit requested, plus
         the Letter of Credit Obligations, plus the aggregate amount of
         Revolving Credit Advances does not exceed an amount equal to the lesser
         of the then applicable (i) Revolving Credit Aggregate Commitment and
         (ii) Borrowing Base;

                  (b) both immediately before and immediately after issuance of
         the Letter of Credit requested, no Default or Event of Default exists;

                  (c) the representations and warranties contained in this
         Agreement and the other Loan Documents are true in all material
         respects as if made on such date, except to the extent a representation
         or warranty is made as of a specific date;

                  (d) the Account Party requesting the Letter of Credit shall
         have delivered to Issuing Bank at its Issuing Office (with a copy sent
         by Account Party to the Agent), not less than three (3) Business Days
         prior to the requested date for issuance (or such shorter time as the
         Issuing Bank, in its reasonable discretion, may permit), the Letter of
         Credit Agreement related thereto, together with such other documents
         and materials as may be required pursuant to the terms thereof, and the
         terms of the proposed Letter of Credit shall be satisfactory to Issuing
         Bank and its Issuing Office;

                                       28
<PAGE>
                  (e) no order, judgment or decree of any court, arbitrator or
         governmental authority shall purport by its terms to enjoin or restrain
         Issuing Bank from issuing the requested Letter of Credit, or any Bank
         from taking an assignment of its Percentage thereof pursuant to Section
         3.6 hereof, and no law, rule, regulation, request or directive (whether
         or not having the force of law) shall prohibit or request that Issuing
         Bank refrain from issuing, or any Bank refrain from taking an
         assignment of its Percentage of, the Letter of Credit requested or
         letters of credit generally;

                  (f) there shall have been no introduction of or change in the
         interpretation of any law or regulation that would make it unlawful or
         unduly burdensome for the Issuing Bank to issue or for any Bank to take
         an assignment of its Percentage of the requested Letter of Credit, no
         declaration of a general banking moratorium by banking authorities in
         the United States, Michigan or the respective jurisdictions in which
         the Banks, the applicable Account Party and the beneficiary of the
         requested Letter of Credit are located (each a "Banking Authority"),
         and no establishment of any new material restrictions by any Banking
         Authority on transactions involving letters of credit or on banks
         materially affecting the issuance of letters of credit by banks; and

                  (g) Issuing Bank shall have received the issuance fee required
         in connection with the issuance of such Letter of Credit pursuant to
         Section 3.5 hereof.

Each Letter of Credit Agreement submitted to Issuing Bank pursuant hereto shall
constitute the certification by the Borrowers and the Account Party of the
matters set forth in this Section 3.2 (a) through (f). The Issuing Bank shall be
entitled to rely on such certification without any duty of inquiry.

         3.3 Notice. The Issuing Bank will deliver to the Agent, concurrently or
promptly following its delivery of any Letter of Credit, a true and complete
copy of each Letter of Credit. Promptly upon its receipt thereof, Agent shall
give notice, substantially in the form attached as Exhibit C, to each Bank of
the issuance of each Letter of Credit, specifying the amount thereof and the
amount of such Bank's Percentage thereof.

         3.4 Letter of Credit Fees. Borrowers shall pay to the Agent for
distribution to the Issuing Bank and the Banks in accordance with the
Percentages, Letter of Credit Fees as follows:

                  (a) A per annum Letter of Credit Fee with respect to the
         undrawn amount of each Letter of Credit issued pursuant hereto in the
         amount of the Applicable L/C Fee Percentage, exclusive of the facing
         fee to be paid to Issuing Bank under Section 3.5 hereof.

                  (b) If any change in any law or regulation or in the
         interpretation thereof by any court or administrative or governmental
         authority charged with the administration thereof shall either (i)
         impose, modify or cause to be deemed applicable any reserve, special
         deposit, limitation or similar requirement against letters of credit
         issued by or participated in, or assets held by, or deposits in or for
         the account of, Issuing Bank or any Bank or (ii) impose

                                       29

<PAGE>

         on Issuing Bank or any of the Banks any other condition regarding this
         Agreement or the Letters of Credit, and the result of any event
         referred to in clause (i) or (ii) above shall be to increase in an
         amount deemed material by Issuing Bank or such Bank the cost or expense
         to Issuing Bank or the Banks of issuing or maintaining or participating
         in any of the Letters of Credit (which increase in cost or expense
         shall be determined by the Issuing Bank's or such Bank's reasonable
         allocation of the aggregate of such cost increases and expense
         resulting from such events), then, upon demand by the Issuing Bank or
         such Bank, as the case may be, the Borrowers shall, within thirty days
         following demand for payment, pay to Issuing Bank or such Bank, as
         the case may be, from time to time as specified by the Issuing Bank or
         such Bank, additional amounts which shall be sufficient to compensate
         the Issuing Bank or such Bank for such increased cost and expense,
         together with interest on each such amount from thirty days after the
         date demanded until payment in full thereof at the Prime-based Rate. A
         certificate as to such increased cost or expense incurred by the
         Issuing Bank or such Bank, as the case may be, as a result of any event
         mentioned in clause (i) or (ii) above, shall be promptly submitted to
         the Borrowers and shall be conclusive evidence, absent manifest error,
         as to the amount thereof.

                  (c) All payments by the Borrowers to the Agent for
         distribution to the Issuing Bank or the Banks under this Section 3.4
         shall be made in Dollars and in immediately available funds at the
         principal office of the Agent or such other office of the Agent as may
         be designated from time to time by written notice to the Borrowers by
         the Agent. The fees described in clause (a) above shall be
         nonrefundable under all circumstances and shall be payable quarterly in
         advance (or such lesser period, if applicable, for Letters of Credit
         issued with stated expiration dates of less than one year) upon the
         issuance of each such Letter of Credit, and shall be calculated on the
         basis of a 360 day year and assessed for the actual number of days from
         the date of the issuance thereof to the stated expiration thereof

         3.5 Facing Fees. In connection with the Letters of Credit, and in
addition to the Letter of Credit Fees (excluding a letter of credit facing fee
of the greater of (i) one tenth percentage point (1/10%) per annum on the
undrawn amount of each Letter of Credit and (ii) $250.00 to be paid by Agent to
Issuing Bank for its own account), the Borrowers and the applicable Account
Party shall pay, for the sole account of the Issuing Bank, standard
documentation, administration, payment and cancellation charges assessed by
Issuing Bank or its Issuing Office, at the times, in the amounts and on the
terms set forth or to be set forth from time to time in the standard fee
schedule of Issuing Office in effect from time to time.

         3.6 Draws and Demands for Payment Under Letters of Credit.

                  (a) The Borrowers and each applicable Account Party agree to
         pay to the Agent for the account of the Issuing Bank, on the day on
         which the Issuing Bank shall honor a draft or other demand for payment
         presented or made under any Letter of Credit, an amount equal to the
         amount paid by the Issuing Bank in respect of such draft or other
         demand under such Letter of Credit and all reasonable expenses paid or
         incurred by the Issuing Bank relative thereto. Unless the Borrowers or
         the applicable Account Party shall have made such payment

                                       30

<PAGE>

         to the Agent for the account of the Issuing Bank on such day, upon each
         such payment by the Issuing Bank, the Agent shall be deemed to have
         disbursed to the Borrowers, and the Borrowers shall be deemed to have
         elected to substitute for their Reimbursement Obligation, a Prime-based
         Advance from the Banks in an amount equal to the amount so paid by the
         Issuing Bank in respect of such draft or other demand under such Letter
         of Credit. Such Prime-based Advance shall be disbursed notwithstanding
         any failure to satisfy any conditions for disbursement of any Advance
         set forth in Article 2 hereof and, to the extent of the Prime-based
         Advance so disbursed, the Reimbursement Obligation of the Borrowers or
         the applicable Account Party to the Agent under this Section 3.6 shall
         be deemed satisfied.

                  (b) If the Issuing Bank shall honor a draft or other demand
         for payment presented or made under any Letter of Credit, the Issuing
         Bank shall provide notice thereof to the Borrowers and the applicable
         Account Party on the date such draft or demand is honored, and to each
         Bank on such date unless the Borrowers or applicable Account Party
         shall have satisfied its Reimbursement Obligation under Section 3.6(a)
         by payment to the Agent on such date. The Issuing Bank shall further
         use reasonable efforts to provide notice to the Borrowers or applicable
         Account Party prior to honoring any such draft or other demand for
         payment, but such notice, or the failure to provide such notice, shall
         not affect the rights or obligations of the Issuing Bank with respect
         to any Letter of Credit or the rights and obligations of the parties
         hereto, including without limitation the obligations of the Borrowers
         or applicable Account Party under Section 3.6(a) hereof.

                  (c) Upon issuance by the Issuing Bank of each Letter of Credit
         hereunder, each Bank shall automatically acquire a pro rata risk
         participation interest in such Letter of Credit and related Letter of
         Credit Payment based on its respective Percentage. Each Bank, on the
         date a draft or demand under any Letter of Credit is honored, shall
         make its Percentage share of the amount paid by the Issuing Bank, and
         not reimbursed by the Borrowers or applicable Account Party by payment
         to the Agent on such day, available in immediately available funds at
         the principal office of the Agent for the account of the Issuing Bank.
         If and to the extent such Bank shall not have made such pro rata
         portion available to the Agent, such Bank, the Borrowers and the
         applicable Account Party severally agree to pay to the Issuing Bank
         forthwith on demand such amount together with interest thereon, for
         each day from the date such amount was paid by the Issuing Bank until
         such amount is so made available to the Agent for the account of the
         Issuing Bank at a per annum rate equal to the interest rate applicable
         during such period to the related Advance disbursed under Section
         3.6(a) in respect of the Reimbursement Obligation of the Borrowers and
         the applicable Account Party. If such Bank shall pay such amount to the
         Agent for the account of the Issuing Bank together with such interest,
         such amount so paid shall constitute a Prime-based Advance by such Bank
         disbursed in respect of the Reimbursement Obligation of the Borrowers
         or applicable Account Party under Section 3.6(a) for purposes of this
         Agreement, effective as of the date such amount was paid by the Issuing
         Bank. The failure of any Bank to make its pro rata portion of any such
         amount paid by the Issuing Bank available to the Agent for the account
         of the Issuing Bank shall not relieve any other Bank of its obligation
         to make available its

                                       31

<PAGE>

         pro rata portion of such amount, but no Bank shall be responsible for
         failure of any other Bank to make such pro rata portion available to
         the Agent for the account Issuing Bank.

                  (d) Nothing in this Agreement shall be construed to require or
         authorize any Bank other than the Issuing Bank to issue any Letter of
         Credit, it being recognized that the Issuing Bank shall be the sole
         issuer of Letters of Credit under this Agreement.

         3.7 Obligations Irrevocable. The obligations of Borrowers and any
Account Party to make payments to Agent for the account of the Issuing Bank or
of the Banks with respect to Reimbursement Obligations under Section 3.6 hereof,
shall be unconditional and irrevocable and not subject to any qualification or
exception whatsoever, including, without limitation:

                  (a) Any lack of validity or enforceability of any Letter of
         Credit or any documentation relating to any Letter of Credit or to any
         transaction related in any way to such Letter of Credit (the "Letter
         of Credit Documents");

                  (b) Any amendment, modification, waiver, consent, or any
         substitution, exchange or release of or failure to perfect any interest
         in collateral or security, with respect to any of the Letter of Credit
         Documents;

                  (c) The existence of any claim, setoff, defense or other right
         which either Borrower or any Account Party may have at any time against
         any beneficiary or any transferee of any Letter of Credit (or any
         persons or entities for whom any such beneficiary or any such
         transferee may be acting), the Agent, the Issuing Bank or any other
         Bank or any other person or entity, whether in connection with any of
         the Letter of Credit Documents, the transactions contemplated herein or
         therein or any unrelated transactions;

                  (d) Any draft or other statement or document presented under
         any Letter of Credit proving to be forged, fraudulent or invalid in any
         respect or any statement therein being untrue or inaccurate in any
         respect;

                  (e) Absent gross negligence or willful misconduct on the part
         of the Issuing Bank or Banks, any failure, omission, delay or lack on
         the part of the Agent, the Issuing Bank or any other Bank or any party
         to any of the Letter of Credit Documents to enforce, assert or exercise
         any right, power or remedy conferred upon the Agent, the Issuing Bank,
         any other Bank or any such party under this Agreement, any of the Loan
         Documents or any of the Letter of Credit Documents, or any other acts
         or omissions on the part of the Agent, the Issuing Bank, any other Bank
         or any such party; or

                  (f) Absent gross negligence or willful misconduct on the part
         of the Issuing Bank or Banks, any other event or circumstance that
         would, in the absence of this Section 3.7, result in the release or
         discharge by operation of law or otherwise of either Borrower or any
         Account Party from the performance or observance of any obligation,
         covenant or agreement contained in Section 3.6.

                                       32

<PAGE>

No setoff, counterclaim, reduction or diminution of any obligation or any
defense of any kind or nature which either Borrower or any Account Party has or
may have against the beneficiary of any Letter of Credit shall be available
hereunder to Borrowers or any Account Party against the Agent, the Issuing Bank
or any other Bank. Nothing contained in this Section 3.7 shall be deemed to
prevent the Borrowers or the Account Parties, after satisfaction in full of the
absolute and unconditional obligations of the Borrowers and the Account Parties
hereunder from asserting in a separate action any claim, defense, set off or
other right which they (or any of them) may have against Agent or any Bank.

         3.8 Risk Under Letters of Credit. (a) In the handling of Letters of
Credit and any security therefor, or any documents or instruments given in
connection therewith, and notwithstanding the granting of risk participation
hereunder, the Issuing Bank shall have the sole right to take or refrain from
taking any and all actions under or upon the Letters of Credit

                  (b) Subject to other terms and conditions of this Agreement,
         Issuing Bank shall issue the Letters of Credit and shall hold the
         documents related thereto in its own name and shall make all
         collections thereunder and otherwise administer the Letters of Credit
         in accordance with Issuing Bank's regularly established practices and
         procedures and, Issuing Bank will have no further obligation with
         respect thereto. In the administration of Letters of Credit, Issuing
         Bank shall not be liable for any action taken or omitted on the advice
         of counsel, accountants, appraisers or other experts selected by
         Issuing Bank with due care and Issuing Bank may rely upon any notice,
         communication, certificate or other statement from any Borrower, any
         Account Party, beneficiaries of Letters of Credit, or any other Person
         which Issuing Bank believes to be authentic. Issuing Bank, will, upon
         request, furnish the Banks with copies of Letter of Credit Agreements,
         Letters of Credit and documents related thereto.

                  (c) In connection with the issuance and administration of
         Letters of Credit and the assignments hereunder, Issuing Bank makes no
         representation and shall, subject to Section 3.7 hereof, have no
         responsibility with respect to (i) the obligations of Borrowers or any
         Account Party or, the validity, sufficiency or enforceability of any
         document or instrument given in connection therewith, (ii) the
         financial condition of, any representations made by, or any act or
         omission of Borrowers, the applicable Account Party or any other
         Person, or (iii) any failure or delay in exercising any rights or
         powers possessed by Issuing Bank in its capacity as issuer of Letters
         of Credit, in the absence of its gross negligence or willful
         misconduct. Each of the Banks expressly acknowledge that they have made
         and will continue to make their own evaluations of Borrowers'
         creditworthiness without reliance on any representation of Issuing Bank
         or Issuing Bank's officers, agents and employees.

                  (d) If at any time Agent or the Issuing Bank shall recover any
         part of any unreimbursed amount for any draw or other demand for
         payment under a Letter of Credit, or any interest thereon, Agent or the
         Issuing Bank, as the case may be, shall receive same for the pro rata
         benefit of the Banks in accordance with their respective Percentage
         interests therein and shall promptly deliver to each Bank its share
         thereof, less such Bank's pro rata

                                       33

<PAGE>

         share of the costs of such recovery, including court costs and
         attorney's fees. If at any time any Bank shall receive from any source
         whatsoever any payment on any such unreimbursed amount or interest
         thereon in excess of such Bank's Percentage share of such payment, such
         Bank will promptly pay over such excess to Agent, for redistribution in
         accordance with this Agreement.

         3.9 Indemnification. (a) Each Borrower and each Account Party hereby
indemnifies and agrees to hold harmless the Banks, the Issuing Bank and the
Agent, and their respective officers, directors, employees and agents, from and
against any and all claims, damages, losses, liabilities, costs or expenses of
any kind or nature whatsoever which the Banks, the Issuing Bank or the Agent or
any such Person may incur or which may be claimed against any of them by reason
of or in connection with any Letter of Credit, and none of the Issuing Bank, any
Bank or the Agent or any of their respective officers, directors, employees or
agents shall be liable or responsible for: (i) the use which may be made of any
Letter of Credit or for any acts or omissions of any beneficiary in connection
therewith; (ii) the validity, sufficiency or genuineness of documents or of any
endorsement thereon, even if such documents should in fact prove to be in any or
all respects invalid, insufficient, fraudulent or forged; (iii) payment by the
Issuing Bank to the beneficiary under any Letter of Credit against presentation
of documents which do not strictly comply with the terms of any Letter of Credit
(unless such payment resulted from the bad faith, gross negligence or willful
misconduct of the Issuing Bank), including failure of any documents to bear any
reference or adequate reference to such Letter of Credit; (iv) any error,
omission, interruption or delay in transmission, dispatch or delivery of any
message or advice, however transmitted, in connection with any Letter of Credit;
or (v) any other event or circumstance whatsoever arising in connection with any
Letter of Credit; provided, however, that with respect to this Section 3.9(a),
Borrowers and Account Parties shall not be required to indemnify the Issuing
Bank, the other Banks and the Agent and such other persons to the extent that
damages resulted from the bad faith, gross negligence or willful misconduct of
the party seeking indemnification. The Issuing Bank shall be liable to Borrowers
and the Account Parties to the extent, but only to the extent, of any direct, as
opposed to consequential or incidental, damages suffered by Borrowers and the
Account Parties which were caused by the Issuing Bank's (i) wrongful dishonor of
any Letter of Credit after the presentation to it by the beneficiary thereunder
of a draft or other demand for payment and other documentation strictly
complying with the terms and conditions of such Letter of Credit, (ii) bad
faith, (iii) gross negligence or (iv) willful misconduct.

         (b) It is understood that in making any payment under a Letter of
Credit the Issuing Bank will rely on documents presented to it under such Letter
of Credit as to any and all matters set forth therein without further
investigation and regardless of any notice or information to the contrary.

         3.10 Right of Reimbursement. Each Bank agrees to reimburse the Issuing
Bank on demand (by payment to the Agent for the account of the Issuing Bank),
pro rata in accordance with their Percentages, for (i) the reasonable
out-of-pocket costs and expenses of the Issuing Bank to be reimbursed by
Borrowers or any Account Party pursuant to any Letter of Credit Agreement or any
Letter of Credit, to the extent not reimbursed by Borrowers or Account Party and
(ii) any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, fees, expenses or

                                       34

<PAGE>

disbursements of any kind and nature whatsoever which may be imposed on,
incurred by or asserted against Issuing Bank (in its capacity as issuer of any
Letter of Credit) in any way relating to or arising out of this Agreement, any
Letter of Credit, any documentation or any transaction relating thereto, or any
Letter of Credit Agreement, except to the extent that such liabilities, losses,
costs or expenses were incurred by Issuing Bank as a result of Issuing Bank's
(i) bad faith, (ii) gross negligence, (iii) willful misconduct or (iv) wrongful
dishonor of any Letter of Credit.

4A. TERM LOANS-A

         4A.1 Term Loan. Subject to the terms and conditions hereof, each Bank,
severally and for itself alone, agrees to lend to the Borrowers in a single
disbursement on the Effective Date an amount equal to such Bank's Percentage of
the Term Loan-A.

         4A.2 Term Loan Notes.

         (a) Each Bank's portion of the Term Loan-A shall be evidenced by a
promissory note of the Borrowers, substantially in the form of Exhibit D hereof,
with appropriate insertions as to payee, date and principal amount, payable to
the order of such Bank, and in a principal amount equal to such Bank's
Percentage of the Term Loan-A made by such Bank.

         (b) Each Advance of the Term Loan-A evidenced by the Term Notes from
time to time outstanding hereunder shall, from and after the Effective Date
until the Term Loan-A Maturity Date, bear interest at its Applicable Interest
Rate. The amount and date of each Advance, its Applicable Interest Rate, its
Interest Period, and the amount and date of any repayment shall be noted on
Agent's records, which records may be kept electronically and which will be
conclusive evidence thereof, absent manifest error; provided, however, that any
failure by the Agent to record any such information shall not relieve the
Borrowers of their respective obligations to repay the outstanding principal
amount of such Advance, all interest accrued thereon and any amount payable with
respect thereto in accordance with the terms of this Agreement and the other
Loan Documents.

         (c) Subject to the terms hereof until the Term Loan-A Maturity Date,
when all unpaid principal plus accrued interest thereon shall be paid in full,
the outstanding principal under the Term Loan shall be repaid, in quarterly
principal installments, commencing on January 1, 1999 each in the amount set
forth below:

<Table>
<Caption>
                    Installment No.                       Amount
                    ---------------                     ----------
<S>                                                     <C>
                         1-4                            $  750,000
                         5-8                            $1,000,000
                         9-12                           $1,250,000
                        13-16                           $1,250,000
                        17-20                           $1,500,000
                        21-24                           $1,750,000
</Table>

                                       35

<PAGE>

         4A3. Term Loan Rate Requests: Refundings and Conversions of Advances of
Term Loans. The Term Loan-A advanced by the Banks pursuant to Section 4A.1
hereof shall be initially carried at the Prime-based Rate unless at least three
Business Days prior to the Effective Date Borrowers have requested a
Eurocurrency-based Advance as provided below. Thereafter, the Borrowers may
convert all or any portion of any Advance of the Term Loan-A as a
Eurocurrency-based Advance or a Prime-based Advance, as the case may be, and may
refund all or any portion of any Advance of the Term Loan-A as an Advance with a
like Interest Period or convert any Advance of a Term Loan-A to an Advance with
a different Interest Period, but only after delivery to Agent of a Term Loan
Rate Request executed by an authorized officer of the Borrowers and subject to
the terms hereof and to the following:

         (a)      each such Term Loan Rate Request shall set forth the
                  information required on the Term Loan Rate Request form
                  attached hereto as Exhibit I with respect to such Term Loan,
                  including without limitation:

                           (i)      whether the Advance is a refunding or
                                    conversion of an outstanding Advance;

                           (ii)     the proposed date of such refunding or
                                    conversion, which must be a Business Day;
                                    and

                           (iii)    Whether such Advance (or any portion
                                    thereof) is to be a Prime-based Advance or a
                                    Eurocurrency-based Advance, and, except in
                                    the case of a Prime-based Advance, the
                                    Interest Period(s) applicable thereto.

         (b)      each such Term Loan Rate Request shall be delivered to Agent
                  by 11:00 a.m. (Detroit time) three (3) Business Days prior to
                  the proposed date of Advance, except in the case of a
                  Prime-based Advance, for which the Term Loan Rate Request must
                  be delivered by 10 a.m. on the proposed date of Advance;

         (c)      the principal amount of such Advance of a Term Loan, plus the
                  amount of any other Advance of such Term Loan to be then
                  combined therewith having the same Applicable Interest Rate
                  and Interest Period, if any, shall be (i) in the case of a
                  Prime-based Advance at least Five Hundred Thousand Dollars
                  ($500,000), or the remaining principal balance outstanding
                  under such Term Loan, whichever is less, and (ii) in the case
                  of a Eurocurrency based Advance at least Seven Hundred Fifty
                  Thousand Dollars ($750,000) or the remaining principal balance
                  outstanding under such Term Loan, whichever is less, or in
                  each case a larger integral multiple of Fifty Thousand Dollars
                  ($50,000);

         (d)      no Advance shall have an Interest Period ending after the
                  applicable Term Loan Maturity Date, and, notwithstanding any
                  provision hereof to the contrary, the Borrowers shall select
                  Interest Periods (or the Prime-based Rate) for sufficient
                  portions of the Term Loan such that the Borrowers may make its
                  required principal

                                       36

<PAGE>

                  payments hereunder on a timely basis and otherwise in
                  accordance with Section 4A.2 or Section 5.8;

         (e)      upon completion of the Advance there shall be no more than
                  four (4) Interest Periods in effect for Advances of the Term
                  Loan-A;

         (f)      a Term Loan Rate Request, once delivered to Agent, shall not
                  be revocable by the Borrowers unless the Borrowers have
                  received a notice from the Agent of the type specified in
                  Section 12.3 or Section 12.4; and

         (g)      in connection with the initial Advance of the Term Loan-A, the
                  Borrowers shall have executed and delivered the Term Notes
                  applicable to such Term Loan.

Each selection of an Interest Period under this Section 4A.3, and the amount and
date of any repayment, shall be noted on Agent's records, which records will be
conclusive evidence thereof, absent manifest error.

         4A.4 Failure to Refund or Convert. In the event the Borrowers shall
fail with respect to any Eurocurrency-based Advance of a Term Loan to timely
exercise its option to refund or convert such Advance in accordance with Section
4A.3 hereof (and such Advance has not been paid in full on the last day of the
Interest Period applicable thereto according to the terms hereof), or, subject
to Section 5.6 hereof, if on such day a Default or Event of Default shall exist,
the principal amount of such Advance which has not been prepaid shall be
automatically converted to a Prime-based Advance and the Agent shall thereafter
promptly notify the Borrowers thereof.

4B. TERM LOANS-B

         4B.1 Term Loan. Subject to the terms and conditions hereof, each Bank,
severally and for itself alone, agrees to lend to the Borrowers in a single
disbursement on the Effective Date an amount equal to such Bank's Percentage of
the Term Loan-B.

         4B.2 Term Loan Notes.

         (a) Each Bank's portion of the Term Loan-B shall be evidenced by a
promissory note of the Borrowers, substantially in the form of Exhibit D hereof,
with appropriate insertions as to payee, date and principal amount, payable to
the order of such Bank, and in a principal amount equal to such Bank's
Percentage of the Term Loan-B made by such Bank.

         (b) Each Advance of the Term Loan-B evidenced by the Term Notes from
time to time outstanding hereunder shall, from and after the Effective Date
until the Term Loan-B Maturity Date, bear interest at its Applicable Interest
Rate. The amount and date of each Advance, its Applicable Interest Rate, its
Interest Period, and the amount and date of any repayment shall be noted on
Agent's records, which records may be kept electronically and which will be
conclusive evidence thereof, absent manifest error; provided, however, that any
failure by the Agent to record any such

                                       37

<PAGE>

information shall not relieve the Borrowers of their respective obligations to
repay the outstanding principal amount of such Advance, all interest accrued
thereon and any amount payable with respect thereto in accordance with the terms
of this Agreement and the other Loan Documents.

         (c) Subject to the terms hereof until the Term Loan-B Maturity Date,
when all unpaid principal plus accrued interest thereon shall be paid in full,
the outstanding principal under the Term Loan shall be repaid, in quarterly
principal installments, commencing on January 1, 1999 each in the amount set
forth below:

<Table>
<Caption>
                      Installment No.                        Amount
                      ---------------                      ----------
<S>                                                        <C>
                            1-20                           $  150,000
                           21-24                           $1,250,000
                           25-28                           $3,000,000
</Table>

         4B.3 Term Loan Rate Requests: Refundings and Conversions of Advances of
Term Loans. The Term Loan-B advanced by the Banks pursuant to Section 4B.1
hereof shall be initially carried at the Prime-based Rate unless at least three
Business Days prior to the Effective Date Borrowers have requested a
Eurocurrency-based Advance as provided below. Thereafter, the Borrowers may
convert all or any portion of any Advance of the Term Loan-B as a
Eurocurrency-based Advance or a Prime-based Advance, as the case may be, and may
refund all or any portion of any Advance of the Term Loan-B as an Advance with a
like Interest Period or convert any Advance of a Term Loan-B to an Advance with
a different Interest Period, but only after delivery to Agent of a Term Loan
Rate Request executed by an authorized officer of the Borrowers and subject to
the terms hereof and to the following:

         (a)      each such Term Loan Rate Request shall set forth the
                  information required on the Term Loan Rate Request form
                  attached hereto as Exhibit I with respect to such Term Loan,
                  including without limitation:

                           (i)      whether the Advance is a refunding or
                                    conversion of an outstanding Advance;

                           (ii)     the proposed date of such refunding or
                                    conversion, which must be a Business Day;
                                    and

                           (iii)    whether such Advance (or any portion
                                    thereof) is to be a Prime-based Advance or a
                                    Eurocurrency-based Advance, and, except in
                                    the case of a Prime-based Advance, the
                                    Interest Period(s) applicable thereto.

         (b)      each such Term Loan Rate Request shall be delivered to Agent
                  by 11:00 a.m. (Detroit time) three (3) Business Days prior to
                  the proposed date of Advance, except in the case of a
                  Prime-based Advance, for which the Term Loan Rate Request must
                  be delivered by 10 a.m. on the proposed date of Advance;

                                       38

<PAGE>

         (c)      the principal amount of such Advance of a Term Loan, plus the
                  amount of any other Advance of such Term Loan to be then
                  combined therewith having the same Applicable Interest Rate
                  and Interest Period, if any, shall be (i) in the case of a
                  Prime-based Advance at least Fifty Thousand Dollars ($50,000),
                  or the remaining principal balance outstanding under such Term
                  Loan, whichever is less, and (ii) in the case of a
                  Eurocurrency-based Advance at least Seven Hundred Fifty
                  Thousand Dollars ($750,000) or the remaining principal balance
                  outstanding under such Term Loan, whichever is less, or in
                  each case a larger integral multiple of Fifty Thousand Dollars
                  ($50,000);

         (d)      no Advance shall have an Interest Period ending after the
                  applicable Term Loan Maturity Date, and, notwithstanding any
                  provision hereof to the contrary, the Borrowers shall select
                  Interest Periods (or the Prime-based Rate) for sufficient
                  portions of the Term Loan such that the Borrowers may make its
                  required principal payments hereunder on a timely basis and
                  otherwise in accordance with Section 4B.2 or Section 5.8;

         (e)      upon completion of the Advance there shall be no more than
                  four (4) Interest Periods in effect for Advances of the Term
                  Loan-B;

         (f)      a Term Loan Rate Request, once delivered to Agent, shall not
                  be revocable by the Borrowers unless the Borrowers have
                  received a notice from the Agent of the type specified in
                  Section 12.3 or Section 12.4; and

         (g)      in connection with the initial Advance of the Term Loan-B, the
                  Borrowers shall have executed and delivered the Term Notes
                  applicable to such Term Loan.

Each selection of an Interest Period under this Section 4B.3, and the amount and
date of any repayment, shall be noted on Agent's records, which records will be
conclusive evidence thereof, absent manifest error.

         4B.4 Failure to Refund or Convert. In the event the Borrowers shall
fail with respect to any Eurocurrency-based Advance of a Term Loan to timely
exercise its option to refund or convert such Advance in accordance with Section
4B.3 hereof (and such Advance has not been paid in full on the last day of the
Interest Period applicable thereto according to the terms hereof), or, subject
to Section 5.6 hereof, if on such day a Default or Event of Default shall exist,
the principal amount of such Advance which has not been prepaid shall be
automatically converted to a Prime-based Advance and the Agent shall thereafter
promptly notify the Borrowers thereof.

5. INTEREST PAYMENTS

         5.1 Prime-based Interest Payments. Interest on the unpaid balance of
all Prime-based Advances from time to time outstanding that accrue until paid at
a per annum interest rate equal to the Prime-based Rate, and shall be payable in
immediately available funds quarterly commencing

                                       39

<PAGE>

on the first day of the fiscal quarter next succeeding the fiscal quarter during
which the initial Advance is made and on the first day of each fiscal quarter
thereafter. Interest accruing at the Prime-based Rate shall be computed on the
basis of a 360 day year and assessed for the actual number of days elapsed, and
in such computation effect shall be given to any change in the interest rate
resulting from a change in the Prime-based Rate on the date of such change in
the Prime-based Rate.

         5.2 Eurocurrency-based Interest Payments. Interest on each
Eurocurrency-based Advance having a related Eurocurrency-Interest Period of 3
months or less shall accrue at its Eurocurrency-based Rate and shall be payable
in immediately available funds on the last day of the Interest Period applicable
thereto. Interest shall be payable in immediately available funds on each
Eurocurrency-based Advance outstanding from time to time having a
Eurocurrency-Interest Period of 6 months or longer, at intervals of 3 months
after the first day of the applicable Interest Period, and shall also be payable
on the last day of the Interest Period applicable thereto. Interest accruing at
the Eurocurrency-based Rate shall be computed on the basis of a 360 day year and
assessed for the actual number of days elapsed from the first day of the
Interest Period applicable thereto to, but not including, the last day thereof

         5.3 Margin Adjustments: Adjustments in the Margin applicable to
Eurodollar-based Advances and Prime-based Advances, the Applicable L/C Fee
Percentage and the Applicable Commitment Fee Percentage based on the Funded Debt
to EBITDA Ratio, as reflected on the financial statements finished Agent and the
Banks pursuant to Section 8.1 hereof, shall be given prospective effect only,
effective upon the first day of January, April, July and October of each year,
commencing April 1, 1999. Such Margin and other adjustments under this Section
5.3 shall be made irrespective of, and in addition to, any other interest rate
adjustment hereunder.

         5.4 Interest Payments on Conversions. Notwithstanding anything to the
contrary in Sections 5.1 and 5.2, all accrued and unpaid interest on any Advance
refunded or converted pursuant to Section 2.3, Section 4A.3 or Section 4B.3
hereof shall be due and payable in full on the date such Advance is refunded or
converted.

         5.5 Interest on Default. Notwithstanding anything to the contrary set
forth in Sections 5.1 and 5.2, in the event and so long as any Event of Default
shall exist under this Agreement, at the election of the Majority Banks interest
shall be payable daily on the principal amount of all Advances from time to time
outstanding (and, to the extent delinquent, on all other monetary obligations of
Borrowers hereunder and under the other Loan Documents) at a per annum rate
equal to the Applicable Interest Rate (calculated on the basis of the maximum
Margins) in respect of each such Advance, plus, in the case of
Eurocurrency-based Advances, two percent (2%) per annum for the remainder of the
then existing Interest Period, if any, and at all other such times and for all
Prime-based Advances, at a per annum rate equal to the Prime-based Rate, plus
two percent (2%).

         5.6 Prepayment of Advances. Borrowers may prepay all or part of the
outstanding balance of any Prime-based Revolving Credit Advance(s) or
Eurocurrency-based Advances at any time. Any prepayment made in accordance with
this Section shall be without premium, penalty (except as provided in Section
12.1) or prejudice to the right to reborrow under the terms of this

                                       40

<PAGE>
Agreement. Any other prepayment of all or any portion of the Revolving Credit,
whether by acceleration, mandatory or required prepayment or otherwise, shall be
subject to Section 12.1 hereof, but otherwise without premium, penalty or
prejudice. All prepayments of Revolving Credit Advances shall be made to the
Agent for distribution ratably to the Banks.

         5.7 Optional Prepayment of Term Loans.

         (a) At its option and upon one (1) Business Day's notice to the Agent
by wire, telecopy, telex or by telephone (confirmed by wire, telecopy or telex),
the Borrowers may prepay any portion of the Term Loan bearing interest at the
Prime-based Rate or the Eurocurrency-based Rate, in whole at any time or in part
from time to time, with accrued interest on the principal being prepaid to the
date of such prepayment. Any prepayment of a portion of a Term Loan as to which
the Applicable Interest Rate is the Prime-based Rate shall be without premium or
penalty. Any other prepayment shall be subject to the provisions of Section
12.1.

         (b) Each partial prepayment of a Term Loan under this Section 5.7 shall
be applied to the principal payments due thereunder in the direct order of their
maturities as follows: first to that portion of the applicable Term Loan
outstanding as a Prime-based Advance, second to that portion of the applicable
Term Loan outstanding as Eurocurrency-based Advances which have Interest Periods
ending on the date of payment, and last to any remaining Advances of the
applicable Term Loan being carried at the Eurocurrency-based Rate. All
prepayments of a Term Loan shall be made to the Agent for distribution ratably
to the Banks in accordance with their respective Percentages.

         5.8 Mandatory Prepayment of Term Loans.

         (a) The Term Loans shall be subject to required principal reductions in
the amount of fifty percent (50%) of Excess Cash Flow, payable in respect of
each fiscal year (or portion thereof) from and including 1999 through the Term
Loan-B Maturity Date, on April 30 of the year following the applicable fiscal
year. Provided no Event of Default has occurred and is then continuing, such
Excess Cash Flow prepayments shall be applied as between Term Loan-A and Term
Loan-B as the Borrowers shall direct the Agent in writing.

         (b) Immediately upon receipt by a Borrower or any Subsidiary of any Net
Cash Proceeds from any Asset Sale [excluding, however, any Asset Sale permitted
pursuant to the provisions of Section 9.5(a), (b), (c), (e), (f), (i) or (j)],
the Borrowers shall prepay the Term Loans by an amount equal to (i) in the case
of Net Cash Proceeds from the sale of assets pursuant to Section 9.5(d) or
9.5(g) hereof, one hundred percent (100%) of such Net Cash Proceeds; provided,
however, that (x) in the case of Asset Sales permitted under Section 9.5(g),
Borrowers may use all or any portion of the Net Cash Proceeds of such Asset Sale
to purchase replacement assets used or to be used by the Borrowers or such
Subsidiary, as the case may be, in the business as permitted under Section
8.4(a) so long as (i) no Default or Event of Default has occurred and is
continuing, (ii) each such purchase is made (or a contract to make such
purchases has been entered into) within 365 days following the date of such
Asset Sale and (iii) the Borrowers deliver to the Agent, concurrently with or
prior to the date of such Asset Sale, a certificate of an authorized officer of
the Borrowers stating that such

                                       41

<PAGE>
Net Cash Proceeds will be so used and (y) except to the extent used to purchase
replacement assets in compliance with clause (x) of this proviso, in each case,
the Borrowers shall comply with the mandatory prepayments provisions of this
Section 5.8(b) hereof. Notwithstanding the foregoing, to the extent that Net
Cash Proceeds from any Asset Sale are derived from the sale of Inventory or
Accounts, such Net Cash Proceeds, shall be applied as a prepayment of the
outstanding Revolving Credit Advances, if any, in lieu of being applied to the
Term Loans. Pending any reinvestment of Net Cash Proceeds as permitted under
this Section 5.8(b), such Net Cash Proceeds shall be applied to prepay Revolving
Credit Advances or, if not so applied and if required by the Majority Banks, the
proceeds shall be deposited with Agent to be held in a cash collateral account.

         (c) Mandatory prepayments under this Section 5.8 shall be in addition
to any scheduled installments or optional prepayments made prior thereto and
shall be subject to Section 12. Each mandatory prepayment of a Term Loan shall
be applied to the principal payments due thereunder in the inverse order of
their maturities as follows: first to any Advances of the Term Loan bearing
interest at the Prime-based Rate, next to any Advances of the Term Loan bearing
interest at the Eurocurrency-based Rate which have Interest Periods ending on
the date of payment, then to any remaining Eurocurrency-based Advances of the
Term Loan. All prepayments of the Term Loans hereunder shall be made to the
Agent for distribution ratably to the Banks.

         (d) To the extent that, on the date any mandatory prepayment of the
Term Loans under this Section 5.8 is due, the Indebtedness under the Term Notes
or any other Indebtedness to be prepaid is being carried, in whole or in part,
at the Eurocurrency-based Rate and no Default or Event of Default has occurred
and is continuing, the Borrowers may deposit the amount of such mandatory
prepayment in a cash collateral account to be held by the Agent, for and on
behalf of the Banks (which shall be an interest-bearing account), on such terms
and conditions as are reasonably acceptable to Agent and the Majority Banks.
Subject to the terms and conditions of said cash collateral account, sums on
deposit in said cash collateral account shall be applied (until exhausted) to
reduce the principal balance of the Term Loans on the last day of each Interest
Period attributable to the Eurocurrency-based Advances of the Term Loans.
Interest accruing with respect to such account shall be paid to the Borrowers on
a monthly basis.

6. CONDITIONS

         The obligations of Banks to make Advances or loans pursuant to this
Agreement and the obligation of the Issuing Bank to issue Letters of Credit are
subject to the following conditions:

         6.1 Execution of Notes and this Agreement. Borrowers shall have
executed and delivered to Agent for the account of each Bank, the Revolving
Credit Notes, the Term Notes, this Agreement and the other Loan Documents to
which they are a party (including all schedules, exhibits, certificates,
opinions, financial statements and other documents to be delivered pursuant
hereto), and such Notes, and this Agreement and the other Loan Documents shall
be in full force and effect.

         6.2 Borrowing Authority. Agent shall have received, with a counterpart
thereof for each Bank:

                                       42

<PAGE>

                  (a) For each Borrower, a certificate of Responsible Officer as
         to:

                           (i) resolutions of the board of directors or members,
                  as applicable of such Borrower evidencing approval of the
                  transactions contemplated by this Agreement and the Notes and
                  authorizing the execution and delivery thereof and the
                  borrowing of Advances and the requesting of Letters of Credit
                  hereunder,

                           (ii) the incumbency and signature of the officers or
                  members, as applicable, of such Borrower executing any Loan
                  Document,

                           (iii) a certificate of good standing or continued
                  existence (or the equivalent thereof) from the state of its
                  incorporation, and from every state or other jurisdiction
                  listed on Schedule 6.2 hereof if issued by such jurisdiction,
                  subject to the limitations (as to qualification and
                  authorization to do business) contained in Section 7.1, and

                           (iv) copies of such Borrower's articles of
                  incorporation and bylaws or other constitutional documents, as
                  in effect on the Effective Date;

                  (b) For Parent, a certificate of an officer of Parent as to:

                           (i) resolutions of the board of directors of Parent
                  evidencing approval of the transactions contemplated by this
                  Agreement and authorizing the execution and delivery of the
                  Guaranty and the Parent Pledge Agreement,

                           (ii) the incumbency and signature of the officers of
                  Parent executing any Loan Document,

                           (iii) a certificate of good standing or continued
                  existence (or the equivalent thereof) from the State of
                  Delaware, and from every state or other jurisdiction listed
                  on Schedule 6.2 hereof if issued by such jurisdiction, subject
                  to the limitations (as to qualification and authorization to
                  do business) contained in Section 7.1, and

                           (iv) copies of Parent's articles of incorporation and
                  bylaws or other constitutional documents, as in effect on the
                  Effective Date;

         6.3 Collateral Documents. (a) As security for all Indebtedness of
Borrowers to the Banks hereunder the Agent shall have received:

                           (i)      the Pledge Agreements, executed and
                                    delivered by Holdings and Parent to Agent;

                           (ii)     the Security Agreements, executed and
                                    delivered by the Borrowers;

                           (iii)    the Mortgages;

                                       43
<PAGE>

                           (iv) the Assignment; and

                           (v) the Guaranty.

                  (b) Any documents (including, without limitation, financing
         statements, amendments to financing statements and assignments of
         financing statements, and stock powers) required to be filed in
         connection with the Security Agreements, the Mortgages or the Pledge
         Agreements to create, in favor of the Agent (for and on behalf of the
         Banks), a perfected security interest in the Collateral thereunder
         shall have been delivered to the Agent in a proper form for filing or
         recording in each office in each jurisdiction listed in Schedule 6.3.

         6.4 Acquisition Documents. (i) The Agent shall have received executed
copies of the Acquisition Documents, certified by a Responsible Officer of the
Borrowers. The Acquisition Documents shall be in form and substance reasonably
satisfactory to the Agent and each of the Acquisition Documents shall have been
duly authorized, executed and delivered by each of the parties thereto and shall
be in fill force and effect. No term or provision of the Acquisition Documents
shall have been modified, and no condition to consummation of the Acquisition
shall have been waived, in either case in a manner materially detrimental to the
Borrowers, by any of the parties thereto. The Borrowers shall have in all
material respects done and performed such acts and observed such covenants which
each is required to do or perform under the Acquisition Documents and in order
to consummate the Acquisition on or prior to the Effective Date.

                           (ii) The Borrowers shall have provided evidence
                           reasonably satisfactory to the Agent that the
                           Acquisition has been consummated.

         6.5 Equity. On or before the Effective Date, the Agent shall have
received evidence that the net cash proceeds of the issuance of Equity Interests
of Holdings, in an aggregate amount not less than $6,000,000, shall have been
contributed to the Borrowers.

         6.6 Insurance. The Agent shall have received evidence reasonably
satisfactory to it that the Borrowers have obtained the insurance policies
required by Section 8.5 hereof and that such insurance policies are in full
force and effect.

         6.7 Compliance with Certain Documents and Agreements. The Borrowers
(and any of their respective Subsidiaries or Affiliates) shall have each
performed and complied in all material respects with all agreements and
conditions contained in this Agreement and the other Loan Documents, and
required to be performed or complied with by each of them (as of the applicable
date) and none of such parties shall be in material default in the performance
or compliance with any of the terms or provisions hereof or thereof.

         6.8 Opinion of Counsel. Borrowers shall furnish Agent prior to the
initial Advance under this Agreement, and with signed copies for each Bank,
opinions of counsel to the Borrowers and the

                                       44

<PAGE>

Guarantor, dated the date hereof, and covering such matters as reasonably
required by and otherwise reasonably satisfactory in form and substance to the
Agent and each of the Banks.

         6.9 Borrowers' Certificate. The Agent shall have received, with a
signed counterpart for each Bank, a certificate of a Responsible Officer of
Borrowers dated the date of the making of Advances hereunder, stating that to
the best of his or her knowledge after due inquiry, (a) the conditions of
paragraphs 6.1, 6.3, 6.4 and 6.5 hereof have been fully satisfied; (b) the
representations and warranties made by Borrowers or any other party to any of
the Loan Documents (excluding the Agent and Banks) in this Agreement or any of
the other Loan Documents, shall have been true and correct in all material
respects when made and shall be true and correct in all material respects on and
as of the Effective Date; and (c) no Default or Event of Default shall have
occurred and be continuing, and there shall have been no material adverse change
in the financial condition, properties, business, results or operations of any
Borrower from June 30, 1998 to the date of the making of the first borrowing
hereunder.

         6.10 Payment of Fees. Borrowers shall have paid to the Agent all fees,
costs and expenses required to be paid to Agent upon execution of this Agreement
under the terms of this Agreement and under the terms of the commitment letter
dated October 7, 1998 from Comerica Bank to Holdings;

         6.11 Pro Forma Balance Sheet. The Borrowers shall have delivered to the
Agent a pro forma consolidated balance sheet of Holdings and its Subsidiaries
(the "Pro Forma Balance Sheet") certified by a Responsible Officer of Holdings
that it fairly presents the pro forma adjustments reflecting the consummation of
the transactions contemplated in this Agreement, including all material fees and
expenses in connection therewith, subject to normal year end adjustments and the
absence of footnotes.

         6.12 Existing Credit Facilities. All existing Debt, other than Debt
expressly permitted hereunder, together with all interest, all prepayment
premiums and other amounts due and payable with respect thereto, shall have been
paid in full and the related commitments terminated or amounts necessary to pay
and discharge such Debt in full shall have been delivered into cash escrow
arrangements reasonably satisfactory to Banks; and all Liens securing payment of
any such Debt have been released and the Agent shall have received all Uniform
Commercial Code Form UCC-3 terminations statements or other instruments as may
be suitable or appropriate in connection therewith.

         6.13 Lessors' Acknowledgments. Agent shall have received lessors'
acknowledgments, in form and substance reasonably acceptable to the Agent and
the Banks, in connection with the leased property described in Schedule 6.13
except for those which cannot be obtained after Borrowers have used their best
efforts to obtain them.

         6.14 Real Estate Documentation. Prior to or simultaneously with the
delivery of any real estate subject to a Mortgage, Borrowers shall furnish
Agent, in form and substance reasonably satisfactory to Agent and the Banks, the
following:

                                       45

<PAGE>
         (a)      With respect to any such real estate acquired by Borrowers
                  after the date hereof and if requested by Agent or any Lender,
                  an appraisal of such real property prepared by an MAI
                  appraiser, which appraisal and appraiser shall be satisfactory
                  to Agent and the Banks. Such appraisal shall be conducted at
                  Borrowers' expense;

         (b)      An environmental assessment conducted with respect to such
                  real property by Environ Corporation or another environmental
                  consultant experienced in such matters (and reasonably
                  acceptable to Agent), which is in form and substance
                  satisfactory to Agent. The assessment shall be of a scope
                  necessary to address all concerns of Banks and may, at Banks'
                  option, require soil, air or water testing, leak testing of
                  underground storage tanks or other requirements warranted by
                  the circumstances as determined by Banks. Such assessment
                  shall be conducted at Borrowers' expense;

         (c)      A mortgage survey prepared at Borrowers' expense certified to
                  Agent and to Chicago Title Insurance Company ("Title Company")
                  from a registered land surveyor reasonably satisfactory to
                  Agent which complies with ALTA/ACSM minimum detail
                  requirements and which shows nothing reasonably objectionable
                  to Agent (other than Permitted Liens);

         (d)      A policy of mortgage title insurance at Borrowers' expense in
                  standard A.L.T.A. loan policy form issued by the Title Company
                  without standard exceptions in an amount equal to the lesser
                  of (i) the appraised value of such real property and (ii) the
                  Indebtedness, insuring that such mortgage is a first lien on
                  such real property, that the title to such real property is in
                  the applicable Borrower and that there are no other liens,
                  claims or encumbrances thereon except for the Permitted Liens.
                  The title policy shall also contain a zoning endorsement,
                  comprehensive endorsement and such other endorsements as
                  reasonably required by Agent; and

         (e)      Such other information and documentation as any Bank may
                  reasonably request.

         6.15 Other Documents and Instruments. The Agent shall have received,
with a photocopy for each Bank, such other instruments and documents as each of
the Banks may reasonably request in connection with the making of Advances or
issuance of Letters of Credit hereunder, and all such instruments and documents
shall be satisfactory in form and substance to Agent and each Bank.

         6.16 Continuing Conditions. The obligations of the Banks to make
Advances (including the initial Advance) under this Agreement and the obligation
of the Issuing Bank to issue any Letters of Credit shall be subject to the
continuing conditions that:

         (a) No Default or Event of Default shall exist as of the date of the
Advance or the request for the Letter of Credit; and

                                       46

<PAGE>
         (b) Each of the representations and warranties contained in this
Agreement and in each of the other Loan Documents shall be true and correct in
all material respects as of the date of the Advance or Letter of Credit.

7. REPRESENTATIONS AND WARRANTIES

         Borrowers represent and warrant and such representations and warranties
shall survive until the later of the Term Loan-B Maturity Date and the Revolving
Credit Maturity Date and thereafter until the expiration of all Letters of
Credit and the final payment in full of the Indebtedness (other than contingent
indemnification obligations not due and payable) and the performance by
Borrowers of all other obligations under this Agreement:

         7.1 Corporate Authority. Each Borrower is a corporation or limited
liability company, as applicable, duly organized and existing in good standing
under the laws of its state of incorporation or organization; each Subsidiary is
a corporation or other business entity duly organized and existing in good
standing under the laws of the jurisdiction of its incorporation; and each
Borrower and each Subsidiary is duly qualified and authorized to do business as
a foreign corporation in each jurisdiction where the character of its assets or
the nature of its activities makes such qualification necessary and where
failure to be so qualified would have a Material Adverse Effect.

         7.2 Due Authorization - Borrowers. Execution, delivery and performance
of this Agreement, the other Loan Documents and any other documents and
instruments required under or in connection with this Agreement or the other
Loan Documents (or to be so executed and delivered), and the issuance of the
Notes by Borrowers are within each Borrower's corporate or limited liability
company, as applicable, powers, have been duly authorized, are not in
contravention of law or the terms of any Borrower's organizational documents
and, except as have been previously obtained (or as referred to in Section 7.13
below), do not require the consent or approval, material to the transactions
contemplated by this Agreement and the other Loan Documents, of any governmental
body, agency or authority.

         7.3 Due Authorization - Guarantors. Execution, delivery and performance
of the Guaranty, the Security Agreement, and all other documents and instruments
required of Guarantors under or in connection with this Agreement and the other
Loan Documents (or to be so executed and delivered), and to which each Guarantor
is a party, are within the corporate powers or limited liability company powers
of each such Guarantor, have been duly authorized, are not in contravention of
law or the terms of such Guarantor's organizational documents, and, except as
have been previously obtained (or as referred to in Section 7.13 below), do not
require the consent or approval, material to the transactions contemplated by
this Agreement and the other Loan Documents, of any governmental body, agency or
authority.

         7.4 Liens. There are no security interests in, liens, mortgages, or
other encumbrances on and no financing statements on file with respect to any of
the property owned, pledged, mortgaged

                                       47

<PAGE>
or otherwise encumbered (or to be encumbered) by Borrowers, any of the
Guarantors or any of the Subsidiaries except for Liens permitted pursuant to
Section 9.2.

         7.5 Taxes. Each Borrower, each of the Guarantors, and each of the
Subsidiaries has filed on or before their respective due dates or within the
applicable grace periods, all federal, state and foreign tax returns which are
required to be filed or has obtained extensions for filing such tax returns and
is not delinquent in filing such returns in accordance with such extensions and
has paid all taxes which have become due pursuant to those returns or pursuant
to any assessments received by any such party, as the case may be, to the extent
such taxes have become due, except to the extent such tax payments are being
actively contested in good faith by appropriate proceedings and with respect to
which adequate provision has been made on the books of Borrowers, such Guarantor
or such Subsidiary as may be required by GAAP.

         7.6 No Defaults. There exists no material default under the provisions
of any instrument evidencing any indebtedness for borrowed money of either
Borrower, any Guarantor or any Subsidiary which is permitted hereunder or of any
agreement relating thereto.

         7.7 Enforceability of Agreement and Loan Documents -- Borrowers. This
Agreement, each of the other Loan Documents to which Borrowers are a party, and
all other certificates, agreements and documents executed and delivered by
Borrowers under or in connection herewith or therewith have each been duly
executed and delivered by their respective duly authorized officers or members,
as applicable, and constitute the valid and binding obligations of Borrowers,
enforceable in accordance with their respective terms, except as enforcement
thereof may be limited by applicable bankruptcy, reorganization, insolvency,
fraudulent conveyance, moratorium or similar laws affecting the enforcement of
creditor's rights, generally and by general principles of equity (regardless of
whether enforcement is considered in a proceeding in law or equity).

         7.8 Enforceability of Loan Documents -- Guarantors. The Loan Documents
to which each of the Guarantors is a party, and all certificates, documents and
agreements executed in connection therewith by the Guarantors have each been
duly executed and delivered by the duly authorized officers or members or
managers, as the case may be, of the Guarantors and constitute the valid and
binding obligations of such Guarantors, enforceable in accordance with their
respective terms, except as enforcement thereof may be limited by applicable
bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium or
similar laws affecting the enforcement of creditor's rights, generally and by
general principles of equity (regardless of whether enforcement is considered in
a proceeding in law or equity).

         7.9 Compliance with Laws. Except as disclosed on Schedule 7.9, each
Borrower, each of the Guarantors and each of the Subsidiaries has complied with
all applicable federal, state and local laws, ordinances, codes, rules,
regulations and guidelines (including consent decrees and administrative orders)
except to the extent that failure to comply therewith would not reasonably be
expected to have a Material Adverse Effect; and except as disclosed on Schedule
7.9 hereof and except for such matters that would not be reasonably expected to
have a Material Adverse Effect, and without limiting the generality of Section
7.12, there is (i) no pending or, to the knowledge of

                                       48

<PAGE>
Borrowers, threatened, litigation, action, proceeding or controversy affecting
any Borrower, any of the Guarantors or any of the Subsidiaries, and (ii) no
pending or, to the knowledge of Borrowers, threatened complaint, notice or
inquiry to either Borrower, any of the Guarantors or any of the Subsidiaries,
regarding potential liability of either Borrower, any of the Guarantors or any
of the Subsidiaries.

         7.10 Non-contravention -- Borrowers. The execution, delivery and
performance of this Agreement and the other Loan Documents and upon the
obtainment of any authorizations, consents, approvals, licenses, qualifications
or formal exemptions required by Section 7.13, any other documents and
instruments required under or in connection with this Agreement by Borrowers are
not in contravention of the terms of any indenture, agreement or undertaking to
which any Borrower or any of its Subsidiaries is a party or by which its or
their properties are bound or affected where such violation would reasonably be
expected to have a Material Adverse Effect.

         7.11 Non-contravention -- Guarantors. Upon the obtainment of any
authorizations, consents, approvals, licenses, qualifications or formal
exemptions required by Section 7.13, the execution, delivery and performance of
those Loan Documents signed by the Guarantors, and any other documents and
instruments required under or in connection with this Agreement or any other
Loan Document by the Guarantors are not in contravention of the terms of any
indenture, agreement or undertaking to which any Guarantor or Company is a party
or by which it or its properties are bound or affected where such violation
would reasonably be expected to have a Material Adverse Effect.

         7.12 No Litigation. Except for De Minimis Matters or as set forth on
Schedule 7.12, there is no suit, action, proceeding, including, without
limitation, any bankruptcy proceeding, or governmental investigation pending
against, or to the knowledge of Borrowers, threatened against, any Borrower, any
Guarantor or any Subsidiary (other than any suit, action or proceeding in which
a Borrower, such Guarantor or such Subsidiary is the plaintiff and in which no
counterclaim or cross-claim against a Borrower, such Guarantor or such
Subsidiary has been filed), nor has either Borrower, any Guarantor or any
Subsidiary or, to the knowledge of the Borrowers any of its or their officers,
members, managers, or directors, as the case may be, been subject to any suit,
action, proceeding or governmental investigation as a result of which any such
officer, member, manager or director is or may be entitled to indemnification by
any Borrower or a Guarantor or a Subsidiary), as applicable, which suits,
actions, proceedings or governmental investigations are reasonably likely to be
resolved adversely to Borrowers, such Guarantor or such Subsidiary, and if so
resolved are reasonably likely to have a Material Adverse Effect. Except as set
forth on Schedule 7.12, there is not outstanding against either Borrower or any
Subsidiary any judgment, decree, injunction, rule, or order of any court,
government, department, commission, agency, instrumentality or arbitrator nor is
either Borrower, any Guarantor or any Subsidiary in violation of any applicable
law, regulation, ordinance, order, injunction, decree or requirement of any
governmental body or court, where such matters would reasonably be expected to
have a Material Adverse Effect.

         7.13 Consents, Approvals and Filings, Etc. Except as have been
previously obtained from time to time prior to the making of Advances or Loans,
no authorization, consent, approval, license,

                                       49

<PAGE>

qualification or formal exemption from, nor any filing, declaration or
registration with, any court, governmental agency or regulatory authority or any
securities exchange or any other person or party (whether or not governmental)
is required in connection with the execution, delivery and performance: (i) by
Borrowers of this Agreement, any of the other Loan Documents to which they are a
party, or any other documents or instruments to be executed and or delivered by
Borrowers in connection therewith or herewith; (ii) by any Guarantor, of any of
the other Loan Documents to which such Subsidiary is a party, or (iii) by
Borrowers or any of the Guarantors, of the liens, pledges, mortgages, security
interests or other encumbrances granted, conveyed or otherwise established (or
to be granted, conveyed or otherwise established) by or under this Agreement or
the other Loan Documents, except for such filings to be made concurrently
herewith as are required by the Collateral Documents to perfect liens in favor
of the Agent. All such authorizations, consents, approvals, licenses,
qualifications, exemptions, filings, declarations and registrations which have
previously been obtained or made, as the case may be, are in full force and
effect and are not the subject of any attack, or to the knowledge of Borrowers
threatened attack (in any material respect) by appeal or direct proceeding or
otherwise.

         7.14 No Investment Company or Margin Stock. Neither any Borrower, nor
any Guarantor nor any Subsidiary is an "investment company" within the meaning
of the Investment Company Act of 1940, as amended. Neither Borrower, nor any
Guarantor nor any Subsidiary is engaged principally, or as one of its important
activities, directly or indirectly, in the business of extending credit for the
purpose of purchasing or carrying margin stock. None of the proceeds of any of
the Advances will be used by the Borrowers nor any Subsidiary to purchase or
carry margin stock or will be made available by the Borrowers or any of its
Subsidiaries in any manner to any other Person to enable or assist such Person
in purchasing or carrying margin stock. Terms for which meanings are provided in
Regulation U of the Board of Governors of the Federal Reserve System or any
regulations substituted therefor, as from time to time in effect, are used in
this paragraph with such meanings.

         7.15 ERISA. Neither any Borrower, nor any Guarantor nor any Subsidiary
maintains or contributes to any Pension Plan subject to Title IV of ERISA,
except as set forth on Schedule 7.15 hereto; and there is no accumulated funding
deficiency within the meaning of ERISA, or any existing liability with respect
to any of the Pension Plans owed to the Pension Benefit Guaranty Corporation or
any successor thereto, and no "reportable event" or "prohibited transaction", as
defined in ERISA, has occurred with respect to any Pension Plan, and all such
Pension Plans are in material compliance with the requirements of the Internal
Revenue Code and ERISA.

         7.16 Environmental and Safety Matters. Except as set forth in Schedules
7.16 and 7.12 and except for such matters as are not likely to have a Material
Adverse Effect:

                  (a) all facilities and property owned or leased by the
         Borrowers or any of their Subsidiaries, are owned or leased by the
         Borrowers and the Subsidiaries in material compliance with all
         Hazardous Material Laws;

                                       50

<PAGE>

                  (b) to the best knowledge of the Borrowers, there have been no
         past, and there are no pending or threatened

                           (i) claims, complaints, notices or requests for
                  information received by Borrowers or any of their Subsidiaries
                  with respect to any alleged violation of any Hazardous
                  Material Law, or

                           (ii) complaints, notices or inquiries to the
                  Borrowers or any of their Subsidiaries regarding potential
                  liability under any Hazardous Material Law; and

                  (c) to the knowledge of the Borrowers, no conditions exist at,
         on or under any property now or previously owned or leased by the
         Borrowers or any of their Subsidiaries which, with the passage of time,
         or the giving of notice or both, would give rise to liability of the
         Borrowers under any Hazardous Material Law.

         7.17 Subsidiaries. As of the Effective Date, and except as disclosed on
Schedule 7.17 hereto, the Borrowers have no Subsidiaries.

         7.18 Accuracy of Information. (a) Each of Holdings', Trim's and
Tempress' financial statements previously furnished to Agent and the Banks prior
to the date of this Agreement, has, to the knowledge of Borrowers' in the case
of Tempress' financial statements, been prepared in accordance with GAAP and
fairly present in all material respects (subject to year-end adjustments and the
absence of footnotes in the case of interim statements) the financial condition
of Holdings, Trim and Tempress and the results of their operations for the
periods covered thereby.

                  (b) Since June 30, 1998, there has been no material adverse
change in the financial condition of Holdings or its Subsidiaries or Tempress
taken as a whole; to the best knowledge of Borrowers, neither Holdings nor any
of its Subsidiaries nor Tempress has any contingent obligations (including any
liability for taxes) not disclosed by or reserved against in the December 31,
1997 balance sheets, as applicable, except as set forth on Schedule 7.18 hereof,
and at the present time there are no unrealized or anticipated losses from any
present commitment of Borrowers or any of their Subsidiaries which in the
aggregate is likely to have a Material Adverse Effect.

         7.19 Labor Relations. Neither the Borrowers nor any Subsidiary is
engaged in any unfair labor practice that could reasonably be expected to have a
Material Adverse Effect. There is (i) no unfair labor practice complaint pending
against the Borrowers or any Subsidiary or to the knowledge of Borrowers,
threatened against any of them, before the National Labor Relations Board, and
no grievance or arbitration proceeding arising out of or under any collective
bargaining agreement is so pending against either of them or, to the knowledge
of Borrowers, threatened against either of them, (ii) no strike, labor dispute,
slowdown or stoppage pending against the Borrowers or any Subsidiary or to the
knowledge of Borrowers, threatened against either of them and (iii) no union
representation question existing with respect to the employees of the Borrowers
or any Subsidiary.

                                       51

<PAGE>

         7.20 Existing Debt. Schedule 7.20 hereto sets forth a true and complete
list of all Debt for borrowed money (other than Indebtedness) of Holdings and
its Subsidiaries as of the Effective Date that is in excess of $25,000 for any
one issue and is to remain outstanding after giving effect to this transaction,
in each case showing the aggregate principal amount thereof and the name of the
respective borrower (or issuer) and any other entity which directly or
indirectly guaranteed such debt.

         7.21 Solvency. After giving effect to the consummation of the
transactions contemplated by this Agreement, each Borrower and its Subsidiaries
will each be solvent, able to pay its indebtedness as it matures and will have
capital sufficient to carry on its business and all business in which it is
about to engage. This Agreement is being executed and delivered by the Borrowers
to Agent and the Banks in good faith and in exchange for fair, equivalent
consideration. Neither of the Borrowers nor any Subsidiary is insolvent, nor
will either Borrower or any Subsidiary be rendered insolvent by its execution
and delivery to Agent and the Banks of this Agreement or by the consummation of
the transactions contemplated by this Agreement, and the capital and monies
remaining in the Borrowers and their Subsidiaries are not now and will not
become so unreasonably small as to preclude the Borrowers or their Subsidiaries
from carrying on their businesses. Neither of the Borrowers nor any Subsidiary
intends to nor does management of Borrowers or any Subsidiary believe it will
incur debts beyond its ability to pay as they mature. Neither of the Borrowers
nor any Subsidiary contemplates filing a petition in bankruptcy or for an
arrangement or reorganization under the Bankruptcy Code, nor does either
Borrower or any Subsidiary have any knowledge of any threatened bankruptcy or
insolvency proceedings against Borrowers or any Subsidiary.

         7.22 Capitalization. The authorized capital stock and membership
interests of Borrowers and each Subsidiary is as set forth in Schedule 7.22. All
issued and outstanding shares of capital stock and membership interests of
Borrowers are duly authorized and validly issued, fully paid, nonassessable (in
the case of outstanding shares of Capital Stock), free and clear of all Liens
and such Equity Interests were issued in compliance with all applicable state
and federal laws concerning the issuance of securities. The capital stock and
membership interests of Borrowers and each Subsidiary is owned by the
stockholders and in the amounts set forth on Schedule 7.22. No shares of the
capital stock of Borrowers or any Subsidiary, other than those described above,
are issued and outstanding. There are no preemptive or other outstanding rights,
options, warrants, conversion rights or similar agreements or understandings for
the purchase or acquisition from a Borrower or any Subsidiary, of any shares of
capital stock, membership interests or other securities of a Borrower or any
Subsidiary.

         7.23 Year 2000 Requirement. Each of the Borrowers has reviewed the
areas in their business and operations which could be adversely affected by, and
have developed or are developing a program to address on a timely basis the risk
that the software, hardware and firmware used by the Borrowers may be unable to
recognize and perform properly date-sensitive functions involving certain dates
prior to and any date after December 31, 1999. This program is outlined in
Schedule 7.26(a) and will be substantially completed by September 30, 1999. The
cost to the Borrowers of such reprogramming and testing and of the reasonably
foreseeable consequences of year 2000 to the

                                       52

<PAGE>

Borrowers (including, without limitation, reprogramming errors and the failure
of others' systems or equipment) will not result in a Default or a Material
Adverse Effect to the extent that the year 2000 compliance plan referenced in
Schedule 7.26(a) is substantially completed. Except as set forth in Schedule
7.26(b), the computer and management information systems of the Borrowers are
and, with ordinary course upgrading and maintenance, will continue for the term
of this Agreement to be, sufficient to permit the Borrowers to conduct their
business without Material Adverse Effect.

8. AFFIRMATIVE COVENANTS

         Each Borrower covenants and agrees that it will, and, as applicable, it
will cause each of its Subsidiaries, until the later of the Term Loan-B Maturity
Date and the Revolving Credit Maturity Date and thereafter until expiration of
all Letters of Credit and final payment in full of the Indebtedness (other than
contingent indemnification obligations not due and payable) and the performance
by the Borrowers of all other obligations under this Agreement and the other
Loan Documents, unless the Majority Banks shall otherwise consent in writing,
to:

         8.1 Financial Statements. Furnish to the Agent with sufficient copies
for each Bank:

                  (a) as soon as available, but in any event within 120 days
         after the end of each fiscal year of Holdings a copy of the audited
         Consolidated and unaudited Consolidating financial statements of
         Holdings as at the end of such year and the related audited statements
         of income, accumulated earnings, and cash flows for such year, setting
         forth in each case in comparative form the figures for the previous
         year (except for fiscal year 1998), certified as being fairly presented
         in all material respects by one of the "Big Five" certified public
         accounting firms or by another nationally recognized certified public
         accountant reasonably satisfactory to the Agent and the Banks;

                  (b) as soon as available, but in any event not later than 30
         days after the end of each month, the unaudited Consolidated and
         Consolidating financial statements of Holdings as at the end of such
         month and the related unaudited statements of income, accumulated
         earnings and cash flows of Holdings for the portion of the fiscal year
         through the end of such month, setting forth in each case in
         comparative form the figures for the previous year, and certified by a
         Responsible Officer as being fairly presented in all material respects;
         and

all such financial statements to be complete and correct in all material
respects and to be prepared in reasonable detail and in accordance with GAAP
throughout the periods reflected therein and consistent with prior periods,
provided however that the financial statements delivered pursuant to clause (b)
hereof will not be required to include footnotes and will be subject to year-end
adjustments.

         8.2 Certificates; Other Information. Furnish to the Agent with
sufficient copies for each Bank (except in connection with clause (b)(ii) below,
which copies shall be provided to each Bank on request):

                                       53

<PAGE>
                  (a) Within 30 days after and as the end of each fiscal quarter
         (and, in the case of the fourth quarter of each fiscal year, one
         hundred and twenty days after the end of such quarter), a Covenant
         Compliance Certificate substantially in form attached hereto as
         Exhibit E;

                  (b) Within 20 days after and as the end of each month, an
         aging of accounts receivable, an accounts payable report and a detailed
         inventory listing which reconciles to the general ledger (in form
         reasonably satisfactory to the Agent and the Banks);

                  (c) Together with the financial statements delivered pursuant
         to Section 8.1(b) for January of each year, annual projections for the
         Borrowers in form reasonably acceptable to the Agent and the Banks;

                  (d) On the twentieth (20th) day of each month, a Borrowing
         Base Certificate as of the last day of the preceding month
         substantially in the form attached as Exhibit J;

                  (e) promptly and in form to be reasonably satisfactory to
         Majority Banks, such additional financial and/or other information, or
         other reports as any Bank may from time to time reasonably request.

         8.3 Conduct of Business and Maintenance of Existence.

                  (a) Continue to engage solely in the businesses as now
         conducted by Trim and Tempress and businesses similar or related
         thereto and activities related thereto and preserve, renew and keep in
         full force and effect its existence, except as otherwise permitted
         pursuant to Section 9.4;

                  (b) take all reasonable action to maintain all rights,
         privileges and franchises necessary in the normal conduct of its
         business except as otherwise permitted pursuant to Section 9.4; and

                  (c) comply with all Contractual Obligations and Requirements
         of Law, except to the extent that failure to comply therewith could
         not, in the aggregate, reasonably be expected to have a Material
         Adverse Effect.

         8.4 Maintenance of Property; Insurance. Keep all property necessary in
its business in working order (normal wear and tear and damage by casualty or
condemnation excepted) and maintain insurance coverage on its physical assets
and against other business risks in such amounts and of such types as are
customarily carried by companies similar in size and nature (including without
limitation casualty and public liability and property damage insurance), and in
the event of acquisition of additional property, real or personal, or of
incurrence of additional risks of any nature, increase such insurance coverage
in such manner and to such extent as prudent business judgment and present
practice or any applicable Requirements of Law would dictate; and in the case of
all policies covering any Collateral, all such insurance policies shall provide
that the loss payable

                                       54

<PAGE>
thereunder shall be payable to Borrowers, and to the Agent for the benefit of
the Banks (Agent as mortgagee, or, in the case of personal property interests,
lender loss payee) as their respective interests may appear, all said policies,
copies thereof or certificates evidencing the same, including all endorsements
thereto, to be deposited with Agent.

         8.5 Inspection of Property; Books and Records, Discussions.

         Permit Agent and each Bank, through their authorized attorneys,
accountants and representatives (a) to examine each Borrower's and each
Subsidiary's books, accounts, records, ledgers and assets and properties of
every kind and description wherever located at all reasonable times during
normal business hours, upon oral or written request of Agent or such Bank; (b)
at any time and from time to time, at the request of the Majority Banks, to
conduct full or partial collateral audits of each Borrower and its Subsidiaries
to be completed by an appraiser as may be selected by Agent and the Majority
Banks, with all reasonable costs and expenses of such audits to be reimbursed by
Borrowers (provided, however, that so long as no Event of Default has occurred
and is continuing, Borrowers shall not be required to reimburse Agent and the
Banks for more than one (1) audit during each calendar year); and (c) permit
Agent and each Bank or their authorized representatives, at reasonable times and
intervals, to visit all of their respective offices, discuss their respective
financial matters with their respective officers and independent certified
public accountants, and, by this provision, Borrowers authorize such accountants
to discuss the finances and affairs of Borrowers and their Subsidiaries
(provided that Borrowers are given an opportunity to participate in such
discussions) and examine any of its or their books and other corporate records.
Notwithstanding the foregoing, all information furnished to the Agent or the
Banks hereunder shall be subject to the undertaking of the Banks set forth in
Section 14.12 hereof.

         8.6 Notices. Promptly give notice to the Agent of:

                  (a) the occurrence of any Default or Event of Default of which
         any Borrower or any Subsidiaries has knowledge;

                  (b) any (i) default or event of default under any Contractual
         Obligation of a Borrower or any Subsidiary or (ii) litigation,
         investigation or proceeding which may exist at any time between a
         Borrower or any Subsidiary and any Governmental Authority, which in
         either case, if not cured or if it is reasonably likely to be adversely
         determined, as the case may be, would have a Material Adverse Effect;

                  (c) the following events, as soon as possible and in any event
         within 30 days after the Borrowers know thereof and to the extent the
         same would have a Material Adverse Effect: (i) the occurrence of any
         "reportable event" as defined in ERISA with respect to any Pension
         Plan, or any withdrawal from or the termination, reorganization or
         insolvency of any Multiemployer Plan or (ii) the institution of
         proceedings or the taking of any other action by the Pension Benefit
         Guaranty Corporation or Borrowers or any Commonly Controlled Entity or
         any Multiemployer Plan with respect to the withdrawal from or the
         terminating, reorganization or insolvency of any Pension Plan;.

                                       55

<PAGE>
                  (d) any event which is reasonably likely to have a Material
         Adverse Effect;

                  (e) promptly after becoming aware of the taking by the
         Internal Revenue Service or any foreign taxing jurisdiction of a
         written tax position which could reasonably be expected to have a
         Material Adverse Effect upon the Borrowers (or any such tax position
         taken by the Borrowers) setting forth the details of such position and
         the financial impact thereof; and

                  (f) not less than 10 days prior to the proposed effective date
         thereof, copies of any proposed material amendments, restatements or
         other modification to the Acquisition Documents.

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

         8.7 Hazardous Material Laws.

                  (a) Use and operate all of its facilities and properties in
         material compliance with all material Hazardous Material Laws, keep all
         necessary permits, approvals, certificates, licenses and other
         authorizations relating to environmental matters ("Environmental
         Permits") in effect and remain in material compliance therewith, and
         handle all Hazardous Materials in material compliance with all
         applicable Hazardous Material Laws, except for any noncompliance or any
         failure to keep Environmental Permits that is not likely to have a
         Material Adverse Effect;

                  (b) Promptly notify Agent and provide copies upon receipt of
         all written claims, complaints, notices or inquiries received by any
         Borrower or any of its Subsidiaries of a material nature relating to
         its facilities and properties or compliance with Hazardous Material
         Laws the subject of which is reasonably likely to have a Material
         Adverse Effect, and shall promptly cure and have dismissed with
         prejudice to the reasonable satisfaction of the Majority Banks any
         actions and proceedings relating to compliance with Hazardous Material
         Laws to which either Borrower or any of its Subsidiaries is named as a
         party and which could reasonably be likely to have a Material Adverse
         Effect; and

                  (c) Provide such information and certifications which any Bank
         may reasonably request from time to time to evidence compliance with
         this Section 8.7.

         8.8 Maintain Consolidated Net Worth. Maintain as of the end of each
fiscal quarter, a Consolidated Net Worth of not less than the Consolidated Base
Net Worth.

         8.9 Maintain Funded Debt to EBITDA. Maintain as of the end of each
fiscal quarter, a Funded Debt to EBITDA Ratio of not more than the following
amounts during the periods specified below:

                                       56

<PAGE>
<Table>
<S>                                                                 <C>
     Effective Date through December 31, 1999                       3.75 to 1.0
     January 1, 2000 through December 31, 2000                      3.50 to 1.0
     January 1, 2001 through December 31, 2001                      3.25 to 1.0
     January 1, 2002 and thereafter                                 2.75 to 1.0
</Table>

         8.10 Maintain Fixed Charge Coverage Ratio. Maintain, as of the end of
each fiscal quarter, a Fixed Charge Coverage Ratio of not less than 1.45 to 1.0.

         8.11 Taxes. Pay and discharge all taxes and other governmental charges,
and all material contractual obligations calling for the payment of money,
before the same shall become overdue, unless and to the extent only that such
payment is being contested in good faith by appropriate proceedings and is
reserved for, as required by GAAP on its balance sheet, or where the failure to
pay any such matter could not have a Material Adverse Effect.

         8.12 Governmental and Other Approvals. Apply for, obtain and/or
maintain in effect, as applicable, all authorizations, consents, approvals,
licenses, qualifications, exemptions, filings, declarations and registrations
(whether with any court, governmental agency, regulatory authority, securities
exchange or otherwise) which are necessary in connection with the execution,
delivery and performance: (i) by Borrowers, of this Agreement, the other Loan
Documents, or any other documents or instruments to be executed and/or delivered
by Borrowers in connection therewith or herewith; and (ii) by each of the
Subsidiaries, of the Loan Documents to which it is a party.

         8.13 Compliance with ERISA. Comply in all material respects with all
requirements imposed by ERISA as presently in effect or hereafter promulgated or
the Internal Revenue Code, including, but not limited to, the minimum funding
requirements of any Pension Plan, except where the failure to comply could not
have a Material Adverse Effect.

         8.14 ERISA Notices. Promptly notify Agent upon the occurrence of any of
the following events:

                  (a) the termination of any Pension Plan subject to Subtitle C
         of Title IV of ERISA;

                  (b) the appointment of a trustee by a United States District
         Court to administer any Pension Plan subject to Title IV of ERISA;

                  (c) the commencement by the Pension Benefit Guaranty
         Corporation, or any successor thereto, of any proceeding to terminate
         any Pension Plan subject to Title IV of ERISA;

                  (d) the failure of a Borrower or any Subsidiary to make any
         payment in respect of any Pension Plan required under Section 412 of
         the Internal Revenue Code;

                                       57

<PAGE>
                  (e) the withdrawal of a Borrower or any Subsidiary from any
         multiemployer plan (as defined in Section 3(37) of ERISA; or

                  (f) the occurrence of a "reportable event" which is required
         to be reported by a Borrower under Section 4043 of ERISA or a
         "prohibited transaction" as defined in Section 406 of ERISA or
         Section 4975 of the Internal Revenue Code which is likely to have a
         Material Adverse Effect.

         8.15 Security. Take such actions as the Agent or the Majority Banks may
from time to time reasonably request to establish and maintain first perfected
security interests in and Liens on all of its Collateral, subject only to
Permitted Liens and other liens permitted under Section 9.2 hereof.

         8.16 Use of Proceeds. Use all Advances of the Revolving Credit and the
Term Loans for working capital financing, for Capital Expenditures, to refinance
existing debt, to finance the acquisition of Tempress, Permitted Acquisitions
and for other general corporate purposes. Borrowers shall not use any portion of
the proceeds of any such advances for the purpose of purchasing or carrying any
"margin stock" (as defined in Regulation U of the Board of Governors of the
Federal Reserve System) in any manner which violates the provisions of
Regulation T, U or X of said Board of Governors or for any other purpose in
violation of (x) any applicable statute or regulation or (y) the terms and
conditions of this Agreement.

         8.17 Future Subsidiaries. With respect to each Person which becomes a
Domestic Subsidiary subsequent to the Effective Date, on the date such new
Domestic Subsidiary is created or acquired, cause such new Domestic Subsidiary
to execute and deliver to the Agent (i) a Joinder Agreement whereby such
Domestic Subsidiary becomes obligated as a Guarantor under the Guaranty, (ii) a
joinder agreement whereby each such Domestic Subsidiary becomes obligated under
the Security Agreement, and (iii) such supporting documentation, including
without limitation corporate authority items, certificates and opinions of
counsel, as may reasonably be required by Agent.

         8.18 Bank Accounts. Maintain all of its funding and disbursement
accounts with Agent, excluding, however, payroll accounts and petty cash
accounts.

         8.19 Further Assurances. Execute and deliver or cause to be executed
and delivered to Agent within a reasonable time following Agent's request, and
at the Borrowers' expense, such other documents or instruments as Agent may
reasonably require to effectuate more fully the purposes of this Agreement or
the other Loan Documents.

9. NEGATIVE COVENANTS.

         Borrowers covenant and agree that, until the later of the Term Loan-B
Maturity Date and the Revolving Credit Maturity Date and thereafter until
expiration of all Letters of Credit and final payment in full of the
Indebtedness and the performance by Borrowers and the Subsidiaries of all

                                       58
<PAGE>

other obligations under this Agreement and the other Loan Documents, without the
prior written consent of the Majority Banks they will not, and will not permit
any of the Subsidiaries, to:

         9.1 Limitation on Debt. Create, incur, assume or suffer to exist any
Debt, except:

                  (a) Indebtedness in respect of the Notes, the Letters of
         Credit and other obligations of the Borrowers or any Subsidiary under
         this Agreement and the other Loan Documents to which they are a party;

                  (b) any Debt set forth in Schedule 9.1(b) attached hereto and
         any renewals or refinancing of such Debt in amounts not exceeding the
         scheduled amounts (less any required amortization according to the
         terms thereof), on substantially the same terms and otherwise in
         compliance with this Agreement;

                  (c) Debt of the Borrowers or a Subsidiary, other than pursuant
         to this Agreement and other than Debt set forth in Schedule 9.1(c)
         attached hereto, incurred to finance the acquisition of fixed or
         capital assets (whether pursuant to a loan or a Capitalized Lease) in
         an aggregate amount not exceeding $2,500,000 at any time outstanding,
         and any renewals or refinancing of such Debt in amounts not exceeding
         the original principal amounts (less any required amortization
         according to the terms thereof), on substantially the same terms and
         otherwise in compliance with this Agreement;

                  (d) Debt in respect of taxes, assessments or governmental
         charges to the extent that payment thereof shall not at the time be
         required to be made in accordance with Section 8.13;

                  (e) current unsecured trade, utility or nonextraordinary
         accounts payable (including without limitation, short term Debt owed to
         vendors) arising in the ordinary course of a Borrower's or such
         Subsidiary's businesses;

                  (f) Subordinated Debt;

                  (g) Indebtedness under any Interest Rate Protection
         Agreements;

                  (h) Intercompany Loans, but only to the extent permitted
         under the other applicable terms and limitations of this Agreement,
         including but not limited to Section 9.8 hereof;

                  (i) Debt assumed pursuant to a Permitted Acquisition, provided
         that such Debt was not entered into, extended or renewed in
         contemplation of such acquisition, provided that the aggregate amount
         of all such Debt shall not exceed $5,000,000;

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                  (j) Debt consisting of deferred seller financing incurred in
         connection with a Permitted Acquisition, which Debt is unsecured and
         subordinated to the Indebtedness in a manner which is acceptable to the
         Majority Banks;

                  (k) Debt of a Foreign Subsidiary for working capital purposes
         to the extent not exceeding $5,000,000 in the aggregate at any time
         outstanding;

                  (l) Debt incurred in connection with the financing of
         insurance premiums owed to the issuer of the applicable insurance
         policy;

                  (m) Debt incurred in connection wit a purchase or redemption
         of stock permitted pursuant to the terms of Section 9.6(c);

                  (n) Guarantee Obligations of a Borrower or a Subsidiary of
         Debt (which is permitted under this Agreement) of another Borrower or
         another Domestic Subsidiary;

                  (o) unsecured Guarantee Obligations of a Borrower or a
         Subsidiary of Debt (which is permitted under this Agreement) of a
         Foreign Subsidiary;

                  (p) additional Debt not exceeding $1,000,000 in aggregate
         principal amount at any one time outstanding.

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

                  (a) Permitted Liens;

                  (b) Liens securing Debt permitted by Section 9.1(c) incurred
         to finance the acquisition of fixed or capital assets, provided that
         (i) such Liens shall be created substantially simultaneously with the
         acquisition of such fixed or capital assets, (ii) such Liens do not at
         any time encumber any property other than the property financed by such
         Debt, (iii) the amount of Debt secured thereby is not increased and
         (iv) the principal amount. of Debt secured by any such Lien shall at no
         time exceed 100% of the original purchase price of such property;

                  (c) Liens in favor of Agent, as security for the Indebtedness;

                  (d) attachments, judgements and other similar Liens, for sums
         not exceeding, in the aggregate, $1,000,000 (excluding any portion
         thereof which is covered by adequate insurance with a reputable carrier
         and which insurer has accepted a tender of defense and indemnification
         without reservation of rights) arising in connection with court
         proceedings, provided that the execution or other enforcement of such
         Liens is effectively stayed and claims secured thereby are being
         actively contested in good faith and by appropriate proceedings);

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                  (e) any Lien securing indebtedness assumed pursuant to a
         Permitted Acquisition, provided that such Lien is limited to the
         property so acquired, and was not entered into, extended or renewed in
         contemplation of such acquisition;

                  (f) any Lien on the assets of a Foreign Subsidiary securing
         indebtedness permitted pursuant to the provisions of Section 9.1(k);
         and

                  (g) any Lien not permitted pursuant to the provisions of
         subclasses (a) through (f) of this Section 9.2 to the extent securing
         Debt in an aggregate amount not exceeding $500,000.

         9.3 Limitation on Guarantee Obligations. Create, incur, assume or
suffer to exist any Guarantee Obligation except pursuant to the Loan Documents
and Guarantee Obligations permitted pursuant to the provisions of Section
9.1(m). This provision shall not be deemed to prohibit the Parent from executing
any guaranty in favor of the Sellers.

         9.4 Acquisitions. Other than the Permitted Acquisitions, purchase or
otherwise acquire or become obligated for the purchase of all or substantially
all or any material portion of the assets or business interests of any Person,
firm or corporation, or any shares of stock (or other ownership interests) of
any corporation, trusteeship or association, or any business or going concern,
or in any other manner effectuate or attempt to effectuate an expansion of
present business by acquisition; provided, that the prohibitions set forth in
this Section 9.4 shall not impair the right of Holdings and its Subsidiaries to
make Capital Expenditures as permitted pursuant to the provisions of Section
9.7.

         9.5 Limitation on Mergers, or Sale of Assets. Enter into any merger or
consolidation or convey, sell, lease, assign, transfer or otherwise dispose of
any of its property, business or assets (including, without limitation,
receivables and leasehold interests), whether now owned or hereafter acquired,
except:

                  (a) inventory leased or sold in the ordinary course of
         business;

                  (b) the sale or other disposition of Accounts which are not
         Eligible Accounts in the ordinary course of business in connection with
         the collection of such Accounts;

                  (c) transfers of assets between a Borrower and another
         Borrower, between a Borrower and a Guarantor or between Guarantors in
         the ordinary course of business and provided that the Lien of the Agent
         in such assets is not impaired, as determined in the sole discretion of
         the Agent;

                  (d) the sale of the Tempress Non-Core Businesses;

                  (e) the licensing of intellectual property rights by a
         Borrower or a Guarantor provided that the Lien of the Agent in the
         property licensed is not impaired, as determined in the sole discretion
         of the Agent;

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<PAGE>

                  (f) obsolete or worn out property, property no longer useful
         in the conduct of a Borrower's or any Subsidiary's business or property
         from closed offices; and

                  (g) asset sales in which the sales price is at least the fair
         market value of the assets sold and the aggregate amount of such asset
         sales is less than $500,000 in any fiscal year;

                  (h) asset sales and other dispositions of property approved by
         the Majority Banks;

                  (i) Intercompany Loans, Advances or Investments to the extent
         permitted pursuant to the provisions of Section 9.8; and

                  (j) Permitted Mergers.

The compromise of Accounts in the ordinary course of business shall not be
deemed to be a transfer or disposition of assets for purposes of this Section
9.5.

         9.6 Restricted Payments. Declare or make, or permit any Subsidiary to,
declare or make any distributions, dividend, payment or other distribution of
assets, properties, cash, rights, obligations or securities (collectively,
"Distributions") on account of any membership interests or any shares of any
class of its capital stock, as applicable, or purchase, redeem or otherwise
acquire for value any membership interests or any shares of its capital stock,
as applicable, or any warrants, rights or options to acquire such shares or
membership interests, now or hereafter outstanding; except:

                  (a) cash dividends by any Subsidiary to Holdings or any other
         Subsidiary which has executed a Guaranty hereunder;

                  (b) so long as no Default or Event of Default has occurred and
         is continuing or would occur after giving effect thereto, dividends or
         distributions paid in cash or in kind (or recorded on the books of the
         applicable Subsidiary) by any Subsidiary which is not a wholly owned
         Subsidiary, provided that such dividends are paid to each holder of
         share capital therein (including Holdings or any of its other
         Subsidiaries) on a pro rata basis (based on the relative amounts of
         share capital held by each such holder) and provided further that such
         dividends are paid to Holdings or its other Subsidiaries on
         substantially the same terms as (and contemporaneously with) any
         dividends or distributions paid to Persons other than Holdings and its
         Subsidiaries;

                  (c) so long as no Default or Event of Default has occurred and
         is continuing or would occur after giving effect thereto, purchases of
         stock of former officers or employees of Holdings or one of its
         Subsidiaries; and

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                  (d) distributions to Parent for operational expenses incurred
         by the Parent in the ordinary course of business and which are incurred
         for the benefit of the Borrowers to the extent not exceeding $500,000
         during any single fiscal year of Holdings.

         9.7 Limitation on Capital Expenditures. Make or commit to make (by way
of the acquisition of securities of a Person or otherwise) any expenditure in
respect of the purchase or other acquisition of fixed or capital assets
(excluding any such asset acquired in connection with replacement and
maintenance programs) except expenditures in the ordinary course of business not
exceeding, in the aggregate for the Borrowers during any fiscal year, an amount
equal to the CapEx Limit, determined on a non-cumulative basis in accordance
with GAAP; except that the limit on Capital Expenditures for the last two months
of 1998 shall be $2,500,000 and except that the unused amount of the CapEx Limit
in any fiscal year (except for the 1998 fiscal year) may be carried over and
used in the next succeeding fiscal year, provided that there shall be no carry
over of such unused amount in any subsequent year and provided further that for
purposes of calculating the amount which may be carried over, all Capital
Expenditures for a fiscal year shall be first applied to the CapEx Limit for
such year.

         9.8 Limitation on Investments, Loans and Advances. Make or allow to
remain outstanding any investment (whether such investment shall be of the
character of investment in shares of stock, evidences of indebtedness or other
securities or otherwise) in, or any loans or advances to, any person, firm,
corporation or other entity or association except:

                  (a)     investments, if any, described on Schedule 9.8 hereof;

                  (b)     surplus cash deposits or investments in cash
                          equivalents for cash management purposes;

                  (c)     loans or advances to employees of a Borrower for
                          travel, moving or other business expenses not to
                          exceed $250,000 in the aggregate at any time;

                  (d)     extensions of trade credit in the ordinary course of
                          business;

                  (e)     Intercompany Loans, Advances or Investments existing
                          on or after the Effective Date to a Borrower, or by a
                          Borrower or any Guarantor to any Borrower or any
                          Guarantor, provided that at the time any such loan,
                          advance or investment is made (before and after
                          giving effect thereto) no Default or Event of Default
                          has occurred and is continuing;

                  (f)     Intercompany Loans, Advances or Investments existing
                          on or after the Effective Date by a Borrower or a
                          Guarantor to any Foreign Subsidiary (provided that
                          any Intercompany Loan covered by this clause shall be
                          evidenced by and funded under an Intercompany Note),
                          in an aggregate amount not to exceed fifteen percent
                          (15%) of Consolidated Net Worth, provided that at the
                          time any such loan, advance or investment is made

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<PAGE>

                           (before and after giving effect thereto) no Default
                           or Event of Default has occurred and is continuing;

                  (g)      Permitted Acquisitions;

                  (h)      loans (in the form of seller financing) made in
                           connection with the sale by a Borrower of any of its
                           assets permitted hereunder, which loans shall not
                           exceed $100,000 in the aggregate at any time;

                  (i)      investments in the form of securities issued to a
                           Borrower by customers or suppliers of a Borrower in
                           connection with bankruptcy proceedings for such
                           customers or suppliers;

                  (j)      deposits made in the ordinary course of business to
                           secure lease obligations;

                  (k)      Interest Rate Protection Agreements;

                  (1)      extensions of credit to management employees to
                           purchase stock in Parent; and

                  (m)      other loans, advances or investments made on or after
                           the Effective Date, in an aggregate amount not to
                           exceed $1,000,000 at any one time.

In valuing any Investments for the purpose of applying the limitations set forth
in this Section 9.8 (except as otherwise expressly provided herein), such
Investment shall be taken at the original cost thereof, without allowance for
any subsequent write-offs or appreciation or depreciation, but less any amount
repaid or recovered on account of capital or principal.

         9.9 Transactions with Affiliates. Except as set forth on Schedule 9.9,
enter into any transaction, including, without limitation, any purchase, sale,
lease or exchange of property or the rendering of any service, with any
Affiliate of a Borrower or any Subsidiary unless such transaction is otherwise
permitted under this Agreement, is in the ordinary course of a Borrower's or
such Subsidiary's business and is upon fair and reasonable terms no less
favorable to the applicable Borrower or such Subsidiary than it would obtain in
a comparable arms length transaction with a Person not a Subsidiary.

         9.10 Sale and Leaseback. Enter into any arrangement with any Person
providing for the leasing by a Borrower or any Subsidiary of real or personal
property which has been or is to be sold or transferred by a Borrower or such
Subsidiary to such Person or to any other Person to whom funds have been or are
to be advanced by such Person on the security of such property or rental
obligations of a Borrower or such Subsidiary, as the case may be.

         9.11 Limitation on Negative Pledge Clauses. Except for Permitted Liens
and any other agreements, documents or instruments pursuant to which Liens not
prohibited by the terms of this

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Agreement are created, entered into, or allow to exist, any agreement, document
or instrument which would restrict or prevent Borrowers and their Subsidiaries
from granting Agent on behalf of Banks liens upon, security interests in and
pledges of their respective assets which are senior in priority to all other
Liens.

         9.12 Prepayment of Debts. Except for refinancing of Debt permitted
pursuant to the provisions of Section 9.1, prepay, purchase, redeem or defease
any Debt for money borrowed or any capital leases excluding, subject to the
terms hereof, the Indebtedness.

         9.13 Subordinated Debt. Amend or modify in a manner materially adverse
to the Banks any document evidencing any Subordinated Debt or make any payment
with respect to the Subordinated Debt except for regularly scheduled payments of
principal and interest, subject to the blockage provisions contained in the
Subordinated Debt Documents.

         9.14 Modification of Certain Agreements. Make, permit or consent to any
amendment or other modification to the constitutional documents of Borrowers or
the Acquisition Documents, except to the extent that any such amendment (i) does
not violate the terms and conditions of this Agreement or any of the other Loan
Documents, (ii) does not adversely affect the interest of the Banks as creditor
under this Agreement, the other Loan Documents or any other document or
instrument in any respect and (iii) could not reasonably be expected to have a
Material Adverse Effect.

         9.15 Sale of Accounts. Sell, assign, transfer or confer a security
interest in any account, contract, note, trade acceptance or other receivable,
except to Agent for the benefit of the Banks.

10. DEFAULTS

         10.1 Events of Default. The occurrence of any of the following events
shall constitute an Event of Default hereunder:

                  (a) non-payment when due of (i) the principal or interest
         under any of the Notes issued hereunder in accordance with the terms
         thereof, (ii) any Reimbursement Obligation, or (iii) any Fees and, in
         the case of interest and Fees, continuance thereof for three (3)
         Business Days;

                  (b) non-payment of any money by Borrowers under this Agreement
         or by Borrowers or any Subsidiary under any of the Loan Documents to
         which it is a party, other than as set forth in subsection (a), above
         within five Business Days after notice from Agent that the same is due
         and payable;

                  (c) default in the observance or performance of any of the
         conditions, covenants or agreements of Borrowers set forth in Sections
         8.1, 8.2, 8.3(a), 8.4, 8.5, 8.6, 8.8, 8.9, 8.10, 8.16, 8:17(i),
         8.17(ii) or 8.18 or 9 (in its entirety);

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<PAGE>
                  (d) default in the observance or performance of any of the
         other conditions, covenants or agreements set forth in this Agreement
         by Borrowers and continuance thereof for a period of thirty (30)
         consecutive days after written notice from Agent;

                  (e) any representation or warranty made by Borrowers or any
         Subsidiary herein or by Borrowers, Parent or any Subsidiary in any
         instrument submitted pursuant hereto or by any other party to the Loan
         Documents proves untrue or misleading in any material adverse respect
         when made;

                  (f) default in the observance or performance of or failure to
         comply with any of the conditions, covenants or agreements of
         Borrowers, Parent, or any Subsidiary set forth in any of the other Loan
         Documents, and the continuance thereof beyond any period of grace or
         cure specified in any such document;

                  (g) default (i) in the payment of any indebtedness for
         borrowed money (other than Indebtedness hereunder) of any Borrower or
         any Subsidiary in excess of Two Hundred Fifty Hundred Thousand Dollars
         ($250,000) in the aggregate when due (whether by acceleration or
         otherwise) and continuance thereof beyond any applicable period of cure
         or (ii) failure to comply with the terms of any other obligation of
         either Borrower or any Subsidiary with respect to any indebtedness for
         borrowed money (other than Indebtedness hereunder) in excess of Two
         Hundred Fifty Hundred Thousand Dollars ($250,000) in the aggregate,
         which with the giving of notice or passage of time or both would permit
         the holder or holders thereto to accelerate such other indebtedness for
         borrowed money;

                  (h) the rendering of any judgment(s) for the payment of money
         in excess of the sum of Two Hundred Fifty Hundred Thousand Dollars
         ($250,000) individually or in the aggregate against any Borrower or any
         Subsidiary, and such judgments shall remain unpaid, unvacated, unbonded
         or unstayed by appeal or otherwise for a period of sixty (60)
         consecutive days, except as covered by adequate insurance with a
         reputable carrier;

                  (i) the occurrence of a "reportable event", as defined in
         ERISA, which is determined to constitute grounds for termination by the
         Pension Benefit Guaranty Corporation of any Pension Plan subject to
         Title IV of ERISA maintained or contributed to by or on behalf of a
         Borrower or any of its Subsidiaries for the benefit of any of its
         employees or for the appointment by the appropriate United States
         District Court of a trustee to administer such Pension Plan and such
         reportable event is not corrected and such determination is not revoked
         within sixty (60) days after notice thereof has been given to the plan
         administrator of such Pension Plan (without limiting any of Agent's or
         any Bank's other rights or remedies hereunder), or the institution of
         proceedings by the Pension Benefit Guaranty Corporation to terminate
         any such Pension Plan or to appoint a trustee by the appropriate United
         States District Court to administer any such Pension Plan, which in
         either case could reasonably be expected to have a Material Adverse
         Effect;

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<PAGE>
                  (j) any Borrower or any Subsidiary shall be dissolved or
         liquidated (or any judgment, order or decree therefor shall be entered)
         or; if a creditors' committee shall have been appointed for the
         business of any Borrower or any Subsidiary; or if any Borrower or any
         Subsidiary shall have made a general assignment for the benefit of
         creditors or shall have been adjudicated bankrupt and if not an
         adjudication based on a filing by Borrowers it shall not have been
         dismissed within sixty (60) days, or shall have filed a voluntary
         petition in bankruptcy or for reorganization or to effect a plan or
         arrangement with creditors or shall fail to pay its debts generally as
         such debts become due in the ordinary course of business (except as
         contested in good faith and for which adequate reserves are made in
         such party's financial statements); or shall file an answer to a
         creditor's petition or other petition filed against it, admitting the
         material allegations thereof for an adjudication in bankruptcy or for
         reorganization; or shall have applied for or permitted the appointment
         of a receiver or trustee or custodian for any of its property or
         assets; or such receiver, trustee or custodian shall have been
         appointed for any of its property or assets (otherwise than upon
         application or consent of a Borrower or any of its Subsidiaries) and
         shall not have been removed within sixty (60) days; or if an order
         shall be entered approving any petition for reorganization of any
         Borrower or any Subsidiary and shall not have been reversed or
         dismissed within sixty (60) days; or any Borrower or any Subsidiary
         shall take any action (corporate or other) authorizing or in
         furtherance any of the actions described above in this subsection;

                  (k) if (i) Holdings or any direct or indirect Subsidiary of
         Holdings shall fall to own 100% of the issued and outstanding shares of
         stock of Tempress, or 50% of the membership interests of Trim (ii) Onex
         Corporation and J2R Partners and their Affiliates shall cease (x) to
         own in the aggregate at least fifteen percent (15%) of the economic
         common equity interest of Parent and (y) to control in the aggregate at
         least fifteen percent (15%) of the equity interest of Parent having
         voting power for the election of a majority of the directors of Parent,
         or (iii) Parent shall fail to hold at least one hundred percent (100%)
         of the aggregate ownership interests in Holdings;

                  (l) any material provision of any Collateral Document shall at
         any time for any reason cease to be valid, binding and enforceable
         against any Borrower, Parent or any Subsidiary, as applicable, or the
         validity, binding effect or enforceability thereof shall be contested
         by any Borrower, Parent or any Subsidiary shall deny that it has any or
         further liability or obligation under any Collateral Document, or any
         such Loan Document shall be terminated, invalidated, revoked or set
         aside or in any way cease to give or provide to the Banks and the Agent
         the benefits purported to be created thereby;

                  (m) the revocation or attempted revocation of the Guaranty or
         any denial of liability thereunder by any Guarantor.

         10.2 Exercise of Remedies. If an Event of Default has occurred and is
continuing hereunder: (a) the Agent may, and shall, upon being directed to do so
by the Majority Banks, declare the Revolving Credit Aggregate Commitment
terminated; (b) the Agent may, and shall, upon being directed to do so by the
Majority Banks, declare the entire unpaid principal Indebtedness, including

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the Notes, immediately due and payable, without presentment, notice or demand,
all of which are hereby expressly waived by Borrowers; (c) upon the occurrence
of any Event of Default specified in subsection 10.1 (j), above, and
notwithstanding the lack of any declaration by Agent under preceding clause (b),
the entire unpaid principal Indebtedness, including the Notes, shall become
automatically and immediately due and payable, and the Revolving Credit
Aggregate Commitment shall be automatically and immediately terminated; (d) the
Agent shall, upon being directed to do so by the Majority Banks, demand
immediate delivery of cash collateral, and Borrowers and each Account Party
agrees to deliver such cash collateral upon demand, in an amount equal to the
maximum amount that may be available to be drawn at any time prior to the stated
expiry of all outstanding Letters of Credit, and (e) the Agent may, and shall,
if directed to do so by the Majority Banks or the Banks, as applicable (subject
to the terms hereof), exercise any remedy permitted by this Agreement, the other
Loan Documents or law.

         10.3 Rights Cumulative. No delay or failure of Agent and/or Banks in
exercising any right, power or privilege hereunder shall affect such right,
power or privilege, nor shall any single or partial exercise thereof preclude
any further exercise thereof, or the exercise of any other power, right or
privilege. The rights of Agent and Banks under this Agreement are cumulative and
not exclusive of any right or remedies which Banks would otherwise have.

         10.4 Waiver by Borrowers of Certain Laws. To the extent permitted by
applicable law, each Borrower hereby agrees to waive, and does hereby absolutely
and irrevocably waive and relinquish the benefit and advantage of any valuation,
stay, appraisement, extension or redemption laws now existing or which may
hereafter exist, which, but for this provision, might be applicable to any sale
made under the judgment, order or decree of any court, on any claim for interest
on the Notes, or any security interest or mortgage contemplated by or granted
under or in connection with this Agreement. These waivers have been voluntarily
given, with full knowledge of the consequences thereof.

         10.5 Waiver of Defaults. No Event of Default shall be waived by the
Banks except in a writing signed by an officer of the Agent in accordance with
Section 14.11 hereof. No single or partial exercise of any right, power or
privilege hereunder, nor any delay in the exercise thereof, shall preclude other
or further exercise of their rights by Agent or the Banks. No waiver of any
Event of Default shall extend to any other or further Event of Default. No
forbearance on the part of the Agent or the Banks in enforcing any of their
rights shall constitute a waiver of any of their rights. Borrowers expressly
agree that this Section may not be waived or modified by the Banks or Agent by
course of performance, estoppel or otherwise.

         10.6 Set Off.

         Upon the occurrence and during the continuance of any Event of Default,
each Bank may at any time and from time to time, without notice to the Borrowers
but subject to the provisions of Section 11.3 hereof, (any requirement for such
notice being expressly waived by the Borrowers) set off and apply against any
and all of the obligations of the Borrowers now or hereafter existing under this
Agreement, whether owing to such Bank or any other Bank or the Agent, any and
all deposits

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(general or special, time or demand, provisional or final) at any time held and
other indebtedness at any time owing by such Bank to or for the credit or the
account of either Borrower and any property of either Borrower from time to time
in possession of such Bank, irrespective of whether or not such deposits held or
indebtedness owing by such Bank may be contingent and unmatured and regardless
of whether any Collateral then held by Agent or any Bank is adequate to cover
the Indebtedness. Promptly following any such setoff, such Bank shall give
written notice to Agent and to Borrowers of the occurrence thereof. The
Borrowers hereby grant to the Banks and the Agent a lien on and security
interest in all such deposits, indebtedness and property as collateral security
for the payment and performance of all of the obligations of the Borrowers under
this Agreement. The rights of each Bank under this Section 10.6 are in addition
to the other rights and remedies (including, without limitation, other rights of
setoff) which such Bank may have.

11. PAYMENTS, RECOVERIES AND COLLECTIONS

         11.1 Payment Procedure.

                  (a) All payments by Borrowers of principal of, or interest on,
         the Notes, or of Fees, shall be made without setoff or counterclaim on
         the date specified for payment under this Agreement not later than 2:00
         p.m. (Detroit time) in immediately available funds to Agent, for the
         ratable account of the Banks, at Agent's office located at One Detroit
         Center, Detroit, Michigan 48226-3289, (care of Agent's Eurocurrency
         Lending Office, for Eurocurrency-based Advances). Upon receipt by the
         Agent of each such payment, the Agent shall make prompt payment in like
         funds received to each Bank as appropriate, or, in respect of
         Eurocurrency-based Advances, to such Bank's Eurocurrency Lending
         Office.

                  (b) Unless the Agent shall have been notified by Borrowers
         prior to the date on which any payment to be made by Borrowers is due
         that Borrowers do not intend to remit such payment, the Agent may, in
         its sole discretion and without obligation to do so, assume that the
         Borrowers have remitted such payment when so due and the Agent may, in
         reliance upon such assumption, make available to each Bank on such
         payment date an amount equal to such Bank's share of such assumed
         payment. If Borrowers have not in fact remitted such payment to the
         Agent each Bank shall forthwith on demand repay to the Agent the amount
         of such assumed payment made available or transferred to such Bank,
         together with the interest thereon, in respect of each day from and
         including the date such amount was made available by the Agent to such
         Bank to the date such amount is repaid to the Agent at a rate per annum
         equal to (i) for Prime-based Advances, the Federal Funds Effective Rate
         (daily average), as the same may vary from time to time, and (ii) with
         respect to Eurocurrency-based Advances, Agent's aggregate marginal cost
         (including the cost of maintaining any required reserves or deposit
         insurance and of any fees, penalties, overdraft charges or other costs
         or expenses incurred by Agent) of carrying such amount.

                  (c) Subject to the definition of Interest Period, whenever any
         payment to be made hereunder shall otherwise be due on a day which is
         not a Business Day, such payment shall

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<PAGE>
         be made on the next succeeding Business Day and such extension of time
         shall be included in computing interest, if any, in connection with
         such payment.

                  (d) All payments to be made by Borrowers under this Agreement
         or any of the Notes shall be made without set-off or counterclaim, as
         aforesaid, and, subject to compliance by the Banks with Section 14.13,
         without deduction for or on account of any present or future
         withholding or other taxes of any nature imposed by any governmental
         authority or of any political subdivision thereof or any federation or
         organization of which such governmental authority may at the time of
         payment be a member, unless Borrowers are compelled by law to make
         payment subject to such tax. In such event, Borrowers shall:

                           (i)      pay to the Agent for Agent's own account
                                    and/or, as the case may be, for the account
                                    of the Banks such additional amounts as may
                                    be necessary to ensure that the Agent and/or
                                    such Bank or Banks receive a net amount
                                    equal to the full amount which would have
                                    been receivable had payment not been made
                                    subject to such tax; and

                           (ii)     remit such tax to the relevant taxing
                                    authorities according to applicable law, and
                                    send to the Agent or the applicable Bank or
                                    Banks, as the case may be, such certificates
                                    or certified copy receipts as the Agent or
                                    such Bank or Banks shall reasonably require
                                    as proof of the payment by the Borrowers, of
                                    any such taxes payable by the Borrowers.

         As used herein, the terms "tax", "taxes" and "taxation" include all
existing or future income, stamp or other taxes (excluding, in the case of the
Agent and each Bank, net income and franchise taxes imposed on the Agent or such
Bank by the jurisdiction under the laws of which the Agent or such Bank is
organized or any political subdivision or taxing authority thereof or therein,
or by any jurisdiction in Which such Bank's domestic lending office or
Eurocurrency Lending Office, as the case may be, is located or any political
subdivision or taxing authority thereof or therein) levies, imposts, duties,
charges, fees, deductions and withholdings and any restrictions or conditions
resulting in a charge together with interest thereon and fines and penalties
with respect thereto which may be imposed by reason of any violation or default
with respect to the law regarding such tax, assessed as a result of or in
connection with the transactions hereunder, or the payment and or receipt of
funds hereunder, or the payment or delivery of funds into or out of any
jurisdiction other than the United States (whether assessed against Borrowers,
Agent or any of the Banks).

         11.2 Application of Proceeds of Collateral. Notwithstanding anything to
the contrary in this Agreement, after an Event of Default, the proceeds of any
Collateral, together with any offsets, voluntary payments by Borrowers or any
Subsidiary or others and any other sums received or collected in respect of the
Indebtedness, shall be applied, first, to the Notes and any Reimbursement
Obligations on a pro rata basis (or in such order and manner as determined by
the Majority Banks; subject, however, to the applicable Percentages of the loans
held by each of the Banks), next, to any other Indebtedness on a pro rata basis,
and then, if there is any excess, to Borrowers or the applicable Subsidiary, as
the case may be. The application of such proceeds and other sums to the

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Notes and the Reimbursement Obligations shall be based on each Bank's Percentage
of the aggregate of the loans.

         11.3 Pro-rata Recovery. If any Bank shall obtain any payment or other
recovery (whether voluntary, involuntary, by application of offset or otherwise)
on account of principal of, or interest on, any of the Indebtedness in excess of
its pro rata share of payments then or thereafter obtained by all Banks upon
principal of and interest on all Indebtedness, such Bank shall purchase from the
other Banks such participations in the Notes and/or Reimbursement Obligation
held by them as shall be necessary to cause such purchasing Bank to share the
excess payment or other recovery ratably in accordance with the Percentage with
each of them; provided, however, that if all or any portion of the excess
payment or other recovery is thereafter recovered from such purchasing holder,
the purchase shall be rescinded and the purchase price restored to the extent of
such recovery, but without interest.

12. CHANGES IN LAW OR CIRCUMSTANCES; INCREASED COSTS

         12.1 Reimbursement of Prepayment Costs. If Borrowers make any payment
of principal with respect to any Eurocurrency-based Advance on any day other
than the last day of the Interest Period applicable thereto (whether
voluntarily, by acceleration, or otherwise), or if Borrowers fail to borrow any
Eurocurrency-based Advance after notice has been given by Borrowers to Agent in
accordance with the terms hereof requesting such Advance, or if Borrowers fail
to make any payment of principal or interest in respect of a Eurocurrency-based
Advance when due, then Borrowers shall reimburse Agent and Banks, as the case
may be not later than five (5) Business Days after demand for any resulting
loss, cost or expense incurred (excluding any loss of the Margin) by Agent and
Banks, as the case may be as a result thereof, including, without limitation,
any such loss, cost or expense incurred in obtaining, liquidating, employing or
redeploying deposits from third parties, whether or not Agent and Banks, as the
case may be shall have funded or committed to fund such Advance. Such amount
payable by Borrowers to Agent and Banks, as the case may be may include, without
limitation, an amount equal to the excess, if any, of (a) the amount of interest
which would have accrued (without taking into account the Margin) on the amount
so prepaid, or not so borrowed, refunded or converted, for the period from the
date of such prepayment or of such failure to borrow, refund or convert, through
the last day of the relevant Interest Period, at the applicable rate of interest
for said Advance(s) provided under this Agreement, over (b) the amount of
interest (as reasonably determined by Agent and Banks, as the case may be) which
would have accrued to Agent and Banks, as the case may be on such amount by
placing such amount on deposit for a comparable period with leading banks in the
interbank eurodollar market. Calculation of any amounts payable to any Bank
under this paragraph shall be made as though such Bank shall have actually
funded or committed to fund the relevant Advance through the purchase of an
underlying deposit in an amount equal to the amount of such Advance and having a
maturity comparable to the relevant Interest Period; provided, however, that any
Bank may fund any Eurocurrency-based Advance in any manner it deems fit and the
foregoing assumptions shall be utilized only for the purpose of the calculation
of amounts payable under this paragraph. Upon the written request of Borrowers,
Agent and Banks shall promptly deliver to Borrowers a certificate setting forth
the basis for determining such losses, costs and expenses, which certificate
shall be conclusively presumed correct, absent manifest error.

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         12.2 Agent's Eurocurrency Lending Office. For any Advance to which the
Eurocurrency-based Rate is applicable, if Agent shall designate a Eurocurrency
Lending Office which maintains books separate from those of the rest of Agent,
Agent shall have the option of maintaining and carrying the relevant Advance on
the books of such Eurocurrency Lending Office.

         12.3 Circumstances Affecting Eurocurrency-based Rate Availability. If
with respect to any Interest Period, Agent or the Banks (after consultation with
Agent) shall determine that, by reason of circumstances affecting the interbank
markets generally, deposits in eurodollars in the applicable amounts are not
being offered to the Agent for such Interest Period, then Agent shall forthwith
give notice thereof to the Borrowers. Thereafter, until Agent notifies Borrowers
that such circumstances no longer exist, the obligation of the Banks to make
Eurocurrency-based Advances, and the right of Borrowers to convert an Advance to
or refund an Advance as a Eurocurrency-based Advance shall be suspended. After
receiving a notice from Agent pursuant to this Section, any outstanding
principal amount that is a Eurocurrency-based Advance shall be converted to a
Prime-based Advance as of the last day of such Interest Period.

         12.4 Laws Affecting Eurocurrency-based Advance Availability. In the
event that any applicable law, rule or regulation (whether domestic or foreign)
now or hereafter in effect and whether or not currently applicable to any Bank
or the Agent or any interpretation or administration thereof by any governmental
authority charged with the interpretation or administration thereof, or
compliance by the Agent or any of the Banks (or any of their respective
Eurocurrency Lending Offices) with any request or directive (whether or not
having the force of law) of any such authority, shall make it unlawful or
impossible for any of the Banks (or any of their respective Eurocurrency Lending
Offices) to honor its obligations hereunder to make or maintain any Advance with
interest at the Eurocurrency-based Rate, such Bank or the Agent shall forthwith
give notice thereof to Borrowers and the Agent. Thereafter the Agent shall so
notify Borrowers and the right of Borrowers to convert an Advance or refund an
Advance as a Eurocurrency-based Advance, shall be suspended and thereafter
Borrowers may select as Applicable Interest Rates only those which remain
available and which are permitted to be selected hereunder, and if any of the
Banks may not lawfully continue to maintain an Advance to the end of the then
current Interest Period applicable thereto as a Eurocurrency-based Advance,
Borrowers shall immediately prepay such Advance, together with interest to the
date of payment, and any amounts payable under Sections 12.1 or 12.6 with
respect to such prepayment and the applicable Advance shall immediately be
converted to a Prime-based Advance and the Prime-based Rate shall be applicable
thereto.

         12.5 Increased Cost of Eurocurrency-based Advances. In the event that
any change in applicable law, rule or regulation (whether domestic or foreign)
now or hereafter in effect and whether or not currently applicable to any Bank
or the Agent or any interpretation or administration thereof by any governmental
authority, central bank or comparable agency charged with the interpretation or
administration thereof, or compliance by Agent or any of the Banks (or any of
their respective Eurocurrency Lending Offices) with any request or directive
(whether or not having the force of law) made by any such authority, central
bank or comparable agency after the date hereof:

                  (a) shall subject the Agent or any of the Banks (or any of
         their respective Eurocurrency Lending Offices) to any tax, duty or
         other charge with respect to any Advance or any Note or shall change
         the basis of taxation of payments to the Agent or any of the

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         Banks (or any of their respective Eurocurrency Lending Offices) of the
         principal of or interest on any Advance or any Note or any other
         amounts due under this Agreement in respect thereof (except (i) to the
         extent such taxes may be avoided by such Bank's compliance with its
         obligations under Section 14.13 and (ii) for changes in the net income
         and franchise taxes imposed on the Agent or any Bank by the
         jurisdiction under the laws of which the Agent or such Bank is
         organized or any political subdivision or taxing authority thereof or
         therein, or by any jurisdiction in which such Bank's domestic lending
         office or Eurocurrency Lending Office, as the case may be, is located
         or any political subdivision or taxing authority thereof or therein);
         or

                  (b) shall impose, modify or deem applicable any reserve
         (including, without limitation, any imposed by the Board of Governors
         of the Federal Reserve System), special deposit or similar requirement
         against assets of, deposits with or for the account of, or credit
         extended by the Agent or any of the Banks (or any of their respective
         Eurocurrency Lending Offices) or shall impose on the Agent or any of
         the Banks (or any of their respective Eurocurrency Lending Offices) or
         the interbank markets any other condition affecting any Advance or any
         of the Notes;

and the result of any of the foregoing is to increase the costs to the Agent or
any of the Banks of making, funding or maintaining any part of the Indebtedness
hereunder as a Eurocurrency-based Advance or to reduce the amount of any sum
received or receivable by the Agent or any of the Banks under this Agreement or
under the Notes in respect of a Eurocurrency-based Advance then Agent or such
Bank, as the case may be, shall promptly notify the Borrowers of such fact and
demand compensation therefor and, within fifteen (15) Business Days after such
notice, Borrowers agree to pay to Agent or such Bank such additional amount or
amounts as will compensate Agent or such Bank or Banks for such increased cost
or reduction. A certificate of Agent or such Bank setting forth the basis for
determining such additional amount or amounts necessary to compensate such Bank
or Banks shall accompany such demand for payment and shall be conclusively
presumed to be correct save for manifest error.

         For purposes of this Section, a change in law, rule, regulation,
interpretation, administration, request or directive shall include, without
limitation, any change made or which becomes effective on the basis of a law,
rule, regulation, interpretation, administration, request or directive presently
in force, the effective date of which change is delayed by the terms of such
law, rule, regulation, interpretation, administration, request or directive.

         12.6 [Intentionally Left Blank].

         12.7 Other Increased Costs. In the event that after the date hereof the
adoption of or any change in any applicable law, treaty, rule or regulation
(whether domestic or foreign) now or hereafter in effect and whether or not
presently applicable to any Bank or Agent, or any interpretation or
administration thereof by any governmental authority charged with the
interpretation or administration thereof, or compliance by any Bank or Agent
with any guideline, request or directive of any such authority (whether or not
having the force of law), including any risk based capital guidelines, affects
or would affect the amount of capital required or expected to be maintained by
such Bank or Agent (or any corporation controlling such Bank or Agent) and such

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Bank or Agent, as the case may be, determines that the amount of such capital is
increased by or based upon the existence of such Bank's or Agent's obligations
or Advances hereunder and such increase has the effect of reducing the rate of
return on such Bank's or Agent's (or such controlling corporation's) capital as
a consequence of such obligations or Advances hereunder to a level below that
which such Bank or Agent (or such controlling corporation) could have achieved
but for such circumstances (taking into consideration its policies with respect
to capital adequacy) by an amount deemed by such Bank or Agent to be material
(collectively, "Increased Costs"), then Agent or such Bank shall notify the
Borrowers, and thereafter the Borrowers shall pay to such Bank or Agent, as the
case may be, from time to time, promptly upon request (and in any event within
fifteen (15) Business Days) by such Bank or Agent, additional amounts sufficient
to compensate such Bank or Agent (or such controlling corporation) for any
increase in the amount of capital and reduced rate of return which such Bank or
Agent reasonably determines to be allocable to the existence of such Bank's or
Agent's obligations or Advances hereunder. A statement as to the amount of such
compensation, prepared in good faith and in reasonable detail by such Bank or
Agent, as the case may be, shall be submitted by such Bank or by Agent to the
Borrowers, reasonably promptly after becoming aware of any event described in
this Section 12.7 and shall be conclusive, absent manifest error in computation.

         12.8 Substitution of Banks. If (i) the obligation of any Bank to make
Eurocurrency-based Advances has been suspended pursuant to Section 12.3 or
Section 12.4 (ii) any Bank has demanded compensation under Section 12.5, 12.7 or
3.4(b) or (iii) has wrongfully failed to fund its percentage of any requested
Advance under Section 2.4(c) or Section 3.6, (in each case, an "Affected
Lender"), Borrowers shall have the right, with the assistance of the Agent, to
seek a substitute lender or lenders (which may be one or more of the Banks (the
"Purchasing Lender" or "Purchasing Lenders") to purchase the Notes and assume
the commitment (including without limitation its participations in Letters of
Credit) under this Agreement of such Affected Lender. The Affected Lender shall
be obligated to sell its Notes and assign its commitment to such Purchasing
Lender or Purchasing Lenders within fifteen days after receiving notice from
Borrowers requiring it to do so, at an aggregate price equal to the outstanding
principal amount thereof plus unpaid interest accrued thereon up to but
excluding the date of the sale. In connection with any such sale, and as a
condition thereof, Borrowers shall pay to the Affected Lender all fees accrued
for its account hereunder to but excluding the date of such sale, plus, if
demanded by the Affected Lender at least two Business Days prior to such sale,
(i) the amount of any compensation which would be due to the Affected Lender
under Section 12.1 if Borrowers have prepaid the outstanding Eurocurrency-based
Advances of the Affected Lender on the date of such sale and (ii) any additional
compensation accrued for its account under Section 12.5, 12.7 or 3.4(b) to but
excluding said date. Upon such sale, the Purchasing Lender or Purchasing Lenders
shall assume the Affected Lender's commitment and the Affected Lender shall be
released from its obligations hereunder to a corresponding extent. If any
Purchasing Lender is not already one of the Banks, the Affected Lender, as
assignor, such Purchasing Lender, as assignee, Borrowers and the Agent, shall
enter into an Assignment Agreement pursuant to Section 14.8 hereof, whereupon
such Purchasing Lender shall be a Bank party to this Agreement, shall be deemed
to be an assignee hereunder and shall have all the rights and obligations of a
Bank with a Percentage equal to its ratable share of the Revolving Credit
Aggregate Commitment of the Affected Lender. In connection with any assignment
pursuant to this Section 12.8, Borrowers or the Purchasing Lender shall pay to
the Agent the administrative fee for processing such assignment referred to in
Section 14.8. Upon the consummation of any sale pursuant to this Section 12.8,
the

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Affected Lender, the Agent and Borrowers shall make appropriate arrangements so
that, if required, each Purchasing Lender receives new Notes, as applicable.

13. AGENT

         13.1 Appointment of Agent. Each Bank and the holder of each Note
irrevocably appoints and authorizes the Agent to act on behalf of such Bank or
holder under this Agreement and the other Loan Documents and to exercise such
powers hereunder and thereunder as are specifically delegated to Agent by the
terms hereof and thereof, together with such powers as may be reasonably
incidental thereto, including without limitation the power to execute or
authorize the execution of financing or similar statements or notices, and other
documents. In performing its functions and duties under this Agreement, the
Agent shall act solely as agent of the Banks and does not assume and shall not
be deemed to have assumed any obligation towards or relationship of agency or
trust with or for Borrowers. Each Bank agrees (which agreement shall survive any
termination of this Agreement) to reimburse Agent for all reasonable
out-of-pocket expenses (including house and outside attorneys' fees and
disbursements) incurred by Agent hereunder or in connection herewith or with an
Event of Default or in enforcing the obligations of Borrowers under this
Agreement or the other Loan Documents or any other instrument executed pursuant
hereto, and for which Agent is not reimbursed by Borrowers, pro rata according
to such Bank's Percentage, but excluding any such expense resulting from Agent's
gross negligence or willful misconduct. Agent shall not be required to take any
action under the Loan Documents, or to prosecute or defend any suit in respect
of the Loan Documents, unless indemnified to its satisfaction by the Banks
against loss, costs, liability and expense (excluding liability resulting from
its gross negligence or willful misconduct). If any indemnity furnished to Agent
shall become impaired, it may call for additional indemnity and cease to do the
acts indemnified against until such additional indemnity is given.

         13.2 Deposit Account with Agent. Borrowers hereby authorize Agent, upon
notice by Borrowers to charge their general deposit account(s), if any,
maintained with Agent for the amount of any principal, interest, or other
amounts or costs due under this Agreement when the same become due and payable
under the terms of this Agreement or the Notes or, in the event Borrowers fail
to pay such amounts when due, Agent may, in its sole discretion, change the
general deposit account(s) of Borrowers.

         13.3 Scope of Agent's Duties. The Agent shall have no duties or
responsibilities except those expressly set forth herein, and shall not, by
reason of this Agreement or otherwise, have a fiduciary relationship with any
Bank (and no implied covenants or other obligations shall be read into this
Agreement against the Agent). None of Agent, its Affiliates nor any of their
respective directors, officers, employees or agents shall be liable to any Bank
for any action taken or omitted to be taken by it or them under this Agreement
or any document executed pursuant hereto, or in connection herewith or therewith
with the consent or at the request of the Majority Banks (or all of the Banks
for those acts requiring consent of all of the Banks) (except for its or their
own willful misconduct or gross negligence), nor be responsible for or have any
duties to ascertain, inquire into or verify (a) any recitals or warranties made
by the Borrowers, or any Subsidiary or Affiliate of the Borrowers, or any
officer thereof contained herein or therein, (b) the effectiveness,
enforceability, validity or due execution of this Agreement or any document
executed pursuant hereto or any security thereunder, (c) the performance by
Borrowers of their respective obligations hereunder or

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<PAGE>

thereunder, or (d) the satisfaction of any condition hereunder or thereunder,
including without limitation the making of any Advance or the issuance of any
Letter of Credit. Agent and its Affiliates shall be entitled to rely upon any
certificate, notice, document or other communication (including any cable,
telegraph, telex, facsimile transmission or oral communication) believed by it
to be genuine and correct and to have been sent or given by or on behalf of a
proper person. Agent may treat the payee of any Note as the holder thereof.
Agent may employ agents and may consult with legal counsel (who may be counsel
for a Borrower), independent public accountants and other experts selected by it
and shall not be liable to the Banks (except as to money or property received by
them or their authorized agents), for the negligence or misconduct of any such
agent selected by it with reasonable care or for any action taken or omitted to
be taken by it in good faith in accordance with the advice of such counsel,
accountants or experts.

         13.4 Successor Agent. Agent may resign as such at any time upon at
least 30 days prior notice to Borrowers and all Banks. If Agent at any time
shall resign or if the office of Agent shall become vacant for any other reason,
Majority Banks shall, by written instrument, appoint successor agent(s)
satisfactory to such Majority Banks, and, so long as no Default or Event of
Default has occurred and is continuing, to Borrowers. Such successor agent shall
thereupon become the Agent hereunder, as applicable, and shall be entitled to
receive from the prior Agent such documents of transfer and assignment as such
successor Agent may reasonably request. Any such successor Agent shall be a
commercial bank organized under the laws of the United States or any state
thereof and shall have a combined capital and surplus of at least $500,000,000.
If a successor is not so appointed or does not accept such appointment before
the resigning Agent's resignation becomes effective, the resigning Agent may
appoint a temporary successor to act until such appointment by the Majority
Banks is made and accepted or if no such temporary successor is appointed as
provided above by the resigning Agent, the Majority Banks shall thereafter
perform all of the duties of the resigning Agent hereunder until such
appointment by the Majority Banks is made and accepted. Such successor Agent
shall succeed to all of the rights and obligations of the resigning Agent as if
originally named. The resigning Agent shall duly assign, transfer and deliver to
such successor Agent all moneys at the time held by the resigning Agent
hereunder after deducting therefrom its expenses for which it is entitled to be
reimbursed. Upon such succession of any such successor Agent, the resigning
agent shall be discharged from its duties and obligations hereunder, except for
its gross negligence or wilful misconduct arising prior to its resignation
hereunder, and the provisions of this Article 13 shall continue in effect for
the benefit of the resigning Agent in respect of any actions taken or omitted to
be taken by it while it was acting as Agent.

         13.5 Agent in its Individual Capacity. Comerica Bank, its Affiliates
and their respective successors and assigns, shall have the same rights and
powers hereunder as any other Bank and may exercise or refrain from exercising
the same as though Comerica Bank were not the Agent. Comerica Bank and its
Affiliates may (without having to account therefor to any Bank) accept deposits
from, lend money to, and generally engage in any kind of banking, trust,
financial advisory or other business with Borrowers (or their Subsidiaries) as
if Comerica Bank were not acting as Agent hereunder, and may accept fees and
other consideration therefor without having to account for the same to the
Banks.

         13.6 Credit Decisions. Each Bank acknowledges that it has,
independently of Agent and each other Bank and based on the financial statements
of Borrowers and such other documents,

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<PAGE>
information and investigations as it has deemed appropriate, made its own credit
decision to extend credit hereunder from time to time. Each Bank also
acknowledges that it will, independently of Agent and each other Bank and based
on such other documents, information and investigations as it shall deem
appropriate at any time, continue to make its own credit decisions as to
exercising or not exercising from time to time any rights and privileges
available to it under this Agreement or any document executed pursuant hereto.

         13.7 Co-Agents. The First National Bank of Chicago and U.S. Bank
National Association have been designated by the Borrowers as Co-Agents under
this Agreement. Other than their rights and remedies as Banks hereunder, such
Co-Agents shall have no administrative, collateral or other rights or
responsibilities, provided, however, that each such Co-Agent shall be entitled
to the benefits afforded to the Agent under Sections 13.5 and 13.6 hereof.

         13.8 Authority of Agent to Enforce Notes and This Agreement. Each Bank,
subject to the terms and conditions of this Agreement, authorizes the Agent with
full power and authority as attorney-in-fact to institute and maintain actions,
suits or proceedings for the collection and enforcement of the Notes and to file
such proofs of debt or other documents as may be necessary to have the claims of
the Banks allowed in any proceeding relative to Borrowers, or any of its
Subsidiaries, or their respective creditors or affecting their respective
properties, and to take such other actions which Agent considers to be necessary
or desirable for the protection, collection and enforcement of the Notes, this
Agreement or the other Loan Documents.

         13.9 Indemnification. The Banks agree to indemnify the Agent and its
Affiliates (to the extent not reimbursed by Borrowers, but without limiting any
obligation of Borrowers to make such reimbursement), ratably according to their
respective Percentages, from and against any and all claims, damages, losses,
liabilities, costs or expenses of any kind or nature whatsoever (including,
without limitation, fees and disbursements of counsel) which may be imposed on,
incurred by, or asserted against the Agent and its Affiliates in any way
relating to or arising out of this Agreement, any of the other Loan Documents or
the transactions contemplated hereby or any action taken or omitted by the Agent
and its Affiliates under this Agreement or any of the Loan Documents; provided,
however, that no Bank shall be liable for any portion of such claims, damages,
losses, liabilities, costs or expenses resulting from the Agent's or its
Affiliate's gross negligence or willful misconduct. Without limitation of the
foregoing, each Bank agrees to reimburse the Agent and its Affiliates promptly
upon demand for its ratable share of any out-of-pocket expenses (including,
without limitation, fees and expenses of counsel) incurred by the Agent and its
Affiliates in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement or any of the other Loan
Documents, to the extent that the Agent and its Affiliates is not reimbursed for
such expenses by Borrowers, but without limiting the obligation of Borrowers to
make such reimbursement. Each Bank agrees to reimburse the Agent and its
Affiliates promptly upon demand for its ratable share of any amounts owing to
the Agent and its Affiliates by the Banks pursuant to this Section, provided
that, if the Agent or its Affiliates is subsequently reimbursed by the Borrowers
for such amounts, it shall refund to the Banks on a pro rata basis the amount of
any excess reimbursement. If the indemnity furnished to the Agent and its
Affiliates under this Section shall, in the judgment of the Agent, be
insufficient

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or become impaired, the Agent may call for additional indemnity from the Banks
and cease, or not commence, to take any action until such additional indemnity
is furnished.

         13.10 Knowledge of Default. It is expressly understood and agreed that
the Agent shall be entitled to assume that no Event of Default has occurred and
is continuing, unless the officers of the Agent immediately responsible for
matters concerning this Agreement shall have been notified in a writing
specifying such Event of Default and stating that such notice is a "notice of
default" by a Bank or by Borrowers. Upon receiving such a notice, the Agent
shall promptly notify each Bank of such Event of Default and provide each Bank
with a copy of such notice and, shall endeavor to provide such notice to the
Banks within three (3) Business Days (but without any liability whatsoever in
the event of its failure to do so). Agent shall also furnish the Banks, promptly
upon receipt, with copies of all other notices or other information required to
be provided by Borrowers hereunder.

         13.11 Agent's Authorization; Action by Banks. Except as otherwise
expressly provided herein, whenever the Agent is authorized and empowered
hereunder on behalf of the Banks to give any approval or consent, or to make any
request, or to take any other action on behalf of the Banks (including without
limitation the exercise of any right or remedy hereunder or under the other Loan
Documents), the Agent shall be required to give such approval or consent, or to
make such request or to take such other action only when so requested in writing
by the Majority Banks or the Banks, as applicable hereunder. Action that may be
taken by Majority Banks or all of the Banks, as the case may be (as provided for
hereunder) may be taken (i) pursuant to a vote at a meeting (which may be held
by telephone conference call) as to which all of the Banks have been given
reasonable advance notice, or (ii) pursuant to the written consent of the
requisite Percentages of the Banks as required hereunder, provided that all of
the Banks are given reasonable advance notice of the requests for such consent.

         13.12 Enforcement Actions by the Agent. Except as otherwise expressly
provided under this Agreement or in any of the other Loan Documents and subject
to the terms hereof, Agent will take such action, assert such rights and pursue
such remedies under this Agreement and the other Loan Documents as the Majority
Banks or all of the Banks, as the case may be (as provided for hereunder), shall
direct; provided, however, that the Agent shall not be required to act or omit
to act if, in the judgment of the Agent, such action or omission may expose the
Agent to personal liability or is contrary to this Agreement, any of the Loan
Documents or applicable law. Except as expressly provided above or elsewhere in
this Agreement or the other Loan Documents, no Bank (other than the Agent,
acting in its capacity as agent) shall be entitled to take any enforcement
action of any kind under any of the Loan Documents.

14. MISCELLANEOUS

         14.1 Accounting Principles. Where the character or amount of any asset
or liability or item of income or expense is required to be determined or any
consolidation or other accounting computation is required to be made for the
purposes of this Agreement, it shall be done, unless otherwise specified herein,
in accordance with GAAP. Furthermore, all financial statements required to be
delivered hereunder, subject to year-end audit adjustments thereto and the
omission of footnote disclosure in the case of unaudited statements, shall be
prepared in accordance with GAAP.

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Notwithstanding the foregoing, with respect to any accounting computation for
the purposes of this Agreement, Trim shall be deemed to be a Consolidated
Subsidiary of Holdings and the Agent and the Banks acknowledge that the
independent certified public accountants for the Borrowers shall qualify their
audit opinion with respect to this deviation from GAAP.

         14.2 Consent to Jurisdiction. Borrowers, Agent and Banks hereby
irrevocably submit to the non-exclusive jurisdiction of any United States
Federal Court or Michigan state court sitting in Detroit, Michigan in any action
or proceeding arising out of or relating to this Agreement or any of the Loan
Documents and Borrowers, Agent and Banks hereby irrevocably agree that all
claims in respect of such action or proceeding may be heard and determined in
any such United States Federal Court or Michigan state court. Borrowers
irrevocably consent to the service of any and all process in any such action or
proceeding brought in any court in or of the State of Michigan by the delivery
of copies of such process to Borrowers at their respective addresses specified
on the signature page hereto or by certified mail directed to such address or
such other address as may be designated by Borrowers in a notice to the other
parties that complies as to delivery with the terms of Section 14.6. Nothing in
this Section shall affect the right of the Banks and the Agent to serve process
in any other manner permitted by law or limit the right of the Banks or the
Agent (or any of them) to bring any such action or proceeding against Borrowers
or any Subsidiary or any of its or their property in the courts with subject
matter jurisdiction of any other jurisdiction. Borrowers hereby irrevocably
waive any objection to the laying of venue of any such suit or proceeding in the
above described courts.

         14.3 Law of Michigan. This Agreement and the Notes have been delivered
at Detroit, Michigan, and shall be governed by and construed and enforced in
accordance with the laws of the State of Michigan (without regard to its
conflict of laws provisions). Whenever possible each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.

         14.4 Interest. In the event the obligation of Borrowers to pay interest
on the principal balance of the Notes is or becomes in excess of the maximum
interest rate which Borrowers are permitted by law to contract or agree to pay,
giving due consideration to the execution date of this Agreement, then, in that
event, the rate of interest applicable with respect to such Bank's Percentage
shall be deemed to be immediately reduced to such maximum rate and all previous
payments in excess of the maximum rate shall be deemed to have been payments in
reduction of principal and not of interest.

         14.5 Closing Costs and Other Costs; Indemnification. (a) Borrowers
agree to pay, or reimburse the Agent for payment of, on demand (i) all
reasonable closing costs and expenses, including, by way of description and not
limitation, house and outside attorney fees and advances, appraisal and
accounting fees, and lien search fees incurred by Agent in connection with the
commitment, consummation and closing of the loans contemplated hereby or in
connection with the administration of this Agreement or any amendment,
refinancing or restructuring of the credit arrangements provided under this
Agreement, (ii) all stamp and other taxes and fees payable or determined to be
payable in connection with the execution, delivery, filing, recording or
amendment of this Agreement and the Loan Documents and the consummation of the
transactions contemplated

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<PAGE>
hereby, and any and all liabilities with respect to or resulting from any delay
in paying or omitting to pay such taxes or fees, and (iii) all reasonable costs
and expenses of the Agent or any of the Banks (including reasonable fees and
expenses of outside counsel (but without duplication of fees and expenses for
the same services) in connection with any action or proceeding relating to a
court order, injunction or other process or decree restraining or seeking to
restrain the Agent or any of the Banks from paying any amount under, or
otherwise relating in any way to, any Letter of Credit and any and all costs and
expenses which any of them may incur relative to any payment under any Letter of
Credit. At Agent's option, all of said amounts required to be paid by Borrowers,
if not paid when due, may be charged by Agent as a Prime-based Advance against
the Indebtedness.

         (b) Borrowers agree to indemnify and save Agent and each of the Banks
harmless from all loss, cost, damage, liability or expenses, including
reasonable house and outside attorneys' fees and disbursements (but without
duplication of fees and expenses for the same services), incurred by Agent and
the Banks by reason of an Event of Default, or enforcing the obligations of
Borrowers or any Subsidiary under this Agreement or any of the other Loan
Documents or in the prosecution or defense of any action or proceeding
concerning any matter growing out of or connected with this Agreement or any of
the Loan Documents, excluding, however, any loss, cost, damage, liability or
expenses arising as a result of the bad faith, gross negligence or willful
misconduct of the party seeking to be indemnified under this Section 14.5(b).

         (c) Borrowers agree to defend, indemnify and hold harmless Agent and
each of the Banks, and their respective employees, agents, officers and
directors from and against any and all claims, demands, penalties, fines,
liabilities, settlements, damages, costs or expenses of whatever kind or nature
arising out of or related to (i) the presence, disposal, release or threatened
release of any Hazardous Materials on, from or affecting any premises owned or
occupied by Borrowers or any of their respective Subsidiaries, (ii) any personal
injury (including wrongful death) or property damage (real or personal) arising
out of or related to such Hazardous Materials, (iii) any lawsuit or other
proceeding brought or threatened, settlement reached or governmental order or
decree relating to such Hazardous Materials, (iv) the cost of removal of all
Hazardous Materials from all or any portion of any premises owned by Borrowers
or their respective Subsidiaries, (v) the taking of necessary precautions to
protect against the release of Hazardous Materials on or affecting any premises
owned by Borrowers or any of their respective Subsidiaries, (vi) complying with
all Hazardous Material Laws and/or (vii) any violation of Hazardous Material
Laws, including without limitation, reasonable attorneys and consultants fees,
investigation and laboratory fees, environmental studies required by Agent or
any Bank in connection with the violation of Hazardous Material Laws (whether
before or after the occurrence of any Default or Event of Default hereunder),
court costs and litigation expenses, excluding however, those arising as a
result of its or their bad faith, gross negligence or willful misconduct. The
obligations of Borrowers under this Section 14.5(c) shall be in addition to any
and all other obligations and liabilities the Borrowers may have to Agent or any
of the Banks at common law or pursuant to any other agreement.

         14.6 Notices. Except as expressly provided otherwise in this Agreement,
all notices and other communications provided to any party hereto under this
Agreement or any other Loan Document shall be in writing and shall be given by
personal delivery, by mail, by reputable overnight courier, by telex or by
facsimile and addressed or delivered to it at its address set forth on Schedule
14.6 or at such other address as may be designated by such party in a notice to
the other

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parties that complies as to delivery with the terms of this Section 14.6. Any
notice, if personally delivered or if mailed and properly addressed with postage
prepaid and sent by registered or certified mail, shall be deemed given when
received or when delivery is refused; any notice, if given to a reputable
overnight courier and properly addressed, shall be deemed given 2 Business Days
after the date on which it was sent, unless it is actually received sooner by
the named addressee; and any notice, if transmitted by telex or facsimile, shall
be deemed given when received (answer back confirmed in the case of telexes and
receipt confirmed in the case of telecopies). Agent may, but, except as
specifically provided herein, shall not be required to, take any action on the
basis of any notice given to it by telephone, but the giver of any such notice
shall promptly confirm such notice in writing or by telex or facsimile, and such
notice will not be deemed to have been received until such confirmation is
deemed received in accordance with the provisions of this Section set forth
above. If such telephonic notice conflicts with any such confirmation, the terms
of such telephonic notice shall control.

         14.7 Further Action. Borrowers, from time to time, upon written request
of Agent will make, execute, acknowledge and deliver or cause to be made,
executed, acknowledged and delivered, all such further and additional
instruments, and take all such further action as may reasonably be required to
carry out the intent and purpose of this Agreement or the Loan Documents, and to
provide for Advances under and payment of the Notes, according to the intent and
purpose herein and therein expressed.

         14.8 Successors and Assigns; Participations; Assignments.

         (a) This Agreement shall be binding upon and shall inure to the benefit
of Borrowers and the Banks and their respective successors and assigns.

         (b) The foregoing shall not authorize any assignment by Borrowers, of
their rights or duties hereunder, and, except as otherwise provided herein, no
such assignment shall be made (or effective) without the prior written approval
of the Banks.

         (c) The Borrowers and Agent acknowledge that each of the Banks may at
any time and from time to time, subject to the terms and conditions hereof,
assign or grant participations in such Bank's rights and obligations hereunder
and under the other Loan Documents to any commercial bank, savings and loan
association, insurance company, pension fund, mutual fund, loan or debt fund,
commercial finance company or other similar financial institution, the identity
of which institution is approved by Borrowers and Agent, such approval not to be
unreasonably withheld or delayed; provided, however, that (i) the approval of
Borrowers shall not be required upon the occurrence and during the continuance
of a Default or Event of Default, and (ii) the approval of Borrowers and Agent
shall not be required for any such sale, transfer, assignment or participation
to the Affiliate of an assigning Bank, any other Bank or any Federal Reserve
Bank. The Borrowers authorize each Bank to disclose to any prospective assignee
or participant, once approved by Borrowers and Agent, any and all financial
information in such Bank's possession concerning the Borrowers which has been
delivered to such Bank pursuant to this Agreement; provided that each such
prospective participant shall execute a confidentiality agreement consistent
with the terms of Section 14.12 hereof.

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         (d) Each assignment by a Bank of any portion of its rights and
obligations hereunder and under the other Loan Documents shall be made pursuant
to an Assignment Agreement substantially (as determined by Agent) in the form
attached hereto as Exhibit I (with appropriate insertions acceptable to Agent)
and shall be subject to the terms and conditions hereof, and to the following
restrictions:

         (i)      each assignment shall cover all of the Notes issued by
                  Borrowers hereunder to the assigning Bank (and not any
                  particular note or notes), and shall be for a fixed and not
                  varying percentage thereof, with the same percentage
                  applicable to each such Note;

         (ii)     each assignment shall be in a minimum amount of Ten Million
                  Dollars ($10,000,000) and to the extent the assignment is less
                  than the entire Bank's interest, the assigning Bank retains at
                  least a $10,000,000 interest;

         (iii)    no assignment shall be effective unless Agent has received
                  from the assignee (or from the assigning Bank) an assignment
                  fee of $3,500 for each such assignment.

In connection with any assignment, Borrowers and Agent shall be entitled to
continue to deal solely and directly with the assigning Bank in connection with
the interest so assigned until (x) the Agent shall have received a notice of
assignment duly executed by the assigning Bank and an Assignment Agreement (with
respect thereto) duly executed by the assigning Bank and each assignee; and (y)
the assigning Bank shall have delivered to the Agent the original of each Note
held by the assigning Bank under this Agreement. From and after the date on
which the Agent shall notify Borrowers and the assigning Bank that the foregoing
conditions shall have been satisfied and all consents (if any) required shall
have been given, the assignee thereunder shall be deemed to be a party to this
Agreement. To the extent that rights and obligations hereunder shall have been
assigned to such assignee as provided in such notice of assignment (and
Assignment Agreement), such assignee shall have the rights and obligations of a
Bank under this Agreement and the other Loan Documents (including without
limitation the right to receive fees payable hereunder in respect of the period
following such assignment). In addition, the assigning Bank, to the extent that
rights and obligations hereunder shall have been assigned by it as provided in
such notice of assignment (and Assignment Agreement), but not otherwise, shall
relinquish its rights and be released from its obligations under this Agreement
and the other Loan Documents.

Within five (5) Business Days following Borrowers' receipt of notice from the
Agent that Agent has accepted and executed a notice of assignment and the duly
executed Assignment Agreement and assuming the Borrowers have consented to such
assignment (if their consent is required), Borrowers shall, to the extent
applicable, execute and deliver to the Agent in exchange for any surrendered
Note, new Note(s) payable to the order of the assignee in an amount equal to the
amount assigned to it pursuant to such notice of assignment (and Assignment
Agreement), and with respect to the portion of the Indebtedness retained by the
assigning Bank, to the extent applicable, new Note(s) payable to the order of
the assigning Bank in an amount equal to the amount retained by such Bank
hereunder shall be executed and delivered by the Borrowers. Agent, the Banks and
the Borrowers acknowledge and agree that any such new Note(s) shall be given in
renewal and replacement of the

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surrendered Notes and shall not effect or constitute a novation or discharge of
the Indebtedness evidenced by any surrendered Note, and each such new Note may
contain a provision confirming such agreement. In addition, promptly following
receipt of such Notes, Agent shall prepare and distribute to Borrowers and each
of the Banks a revised Schedule 1.2 to this Agreement setting forth the
applicable new Percentages of the Banks (including the assignee Bank), taking
into account such assignment.

         (e) Each Bank agrees that any participation agreement permitted
hereunder shall comply with all applicable laws and shall be subject to the
following restrictions (which shall be set forth in the applicable Participation
Agreement):

         (i)      such Bank shall remain the holder of its Notes hereunder,
                  notwithstanding any such participation;

         (ii)     except as expressly set forth in this Section 14.8(e) with
                  respect to rights of setoff and the benefits of Section 12
                  hereof, a participant shall have no direct rights or remedies
                  hereunder;

         (iii)    a participant shall not reassign or transfer, or grant any
                  sub-participations in its participation interest hereunder or
                  any part thereof; and

         (iv)     such Bank shall retain the sole right and responsibility to
                  enforce the obligations of the Borrowers relating to the Notes
                  and the other Loan Documents, including, without limitation,
                  the right to proceed against any Guaranties, or cause Agent to
                  do so (subject to the terms and conditions hereof), and the
                  right to approve any amendment, modification or waiver of any
                  provision of this Agreement without the consent of the
                  participant, except for those matters covered by Section
                  14.11(a) through (e) and (h) hereof (provided that a
                  participant may exercise approval rights over such matters
                  only on an indirect basis, acting through such Bank, and
                  Borrowers, Agent and the other Banks may continue to deal
                  directly with such Bank in connection with such Bank's rights
                  and duties hereunder).

Borrowers agree that each participant shall be deemed to have the right of
setoff under Section 10.6 hereof in respect of its participation interest in
amounts owing under this Agreement and the other Loan Documents to the same
extent as if the Indebtedness were owing directly to it as a Bank under this
Agreement, shall be subject to the pro rata recovery provisions of Section 11.3
hereof and shall be entitled to the benefits of Section 12 hereof. The amount,
terms and conditions of any participation shall be as set forth in the
participation agreement between the issuing Bank and the Person purchasing such
participation, and none of the Borrowers, the Agent and the other Banks shall
have any responsibility or obligation with respect thereto, or to any Person to
whom any such participation may be issued. No such participation shall relieve
any issuing Bank of any of its obligations under this Agreement or any of the
other Loan Documents, and all actions hereunder shall be conducted as if no such
participation had been granted.

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         (f) Nothing in this Agreement, the Notes or the other Loan Documents,
expressed or implied, is intended to or shall confer on any Person other than
the respective parties hereto and thereto and their successors and assignees and
participants permitted hereunder and thereunder any benefit or any legal or
equitable right, remedy or other claim under this Agreement, the Notes or the
other Loan Documents.

         14.9 Indulgence. No delay or failure of Agent and the Banks in
exercising any right, power or privilege hereunder shall affect such right,
power or privilege nor shall any single or partial exercise thereof preclude any
further exercise thereof, nor the exercise of any other right, power or
privilege. The rights of Agent and the Banks hereunder are cumulative and are
not exclusive of any rights or remedies which Agent and the Banks would
otherwise have.

         14.10 Counterparts. This Agreement may be executed in several
counterparts, and each executed copy shall constitute an original instrument,
but such counterparts shall together constitute but one and the same instrument.

         14.11 Amendment and Waiver. No amendment or waiver of any provision of
this Agreement or any other Loan Document, nor consent to any departure by
Borrowers, the Parent or any Subsidiary therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Majority Banks
(or by the Agent at the written request of the Majority Banks) or, if this
Agreement expressly so requires with respect to the subject matter thereof, by
all Banks (and, with respect to any amendments to this Agreement or the other
Loan Documents, by Borrowers, the Parent or the Subsidiaries which are
signatories thereto), and then such waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given; provided,
however, that no amendment, waiver or consent shall, unless in writing and
signed by all the Banks, do any of the following: (a) increase any Bank's
commitments hereunder, (b) reduce the principal of, or interest on, the Notes or
any Fees or other amounts payable hereunder, (c) postpone any date fixed for any
payment of principal of, or interest on, the Notes or any Fees or other amounts
payable hereunder, (d) waive any Event of Default specified in Sections 10.1(a)
or (b) hereof, (e) except as expressly permitted hereunder, or under the
Collateral Documents, release or defer the granting or perfecting of a lien or
security interest in any Collateral or release any guaranty or similar
undertaking provided by any Person except as shall be otherwise expressly
permitted in this Agreement or any other Loan Document, provided however that
Agent shall be entitled to release any Collateral which any Borrower or any
Subsidiary is permitted to sell or transfer under the terms of this Agreement or
the other Loan Documents without notice to or any further action or consent of
the Banks; (f) terminate or modify any indemnity provided to the Banks hereunder
or under the other Loan Documents, except as shall be otherwise expressly
provided in this Agreement or any other Loan Document, (g) take any action which
requires the approval or consent of all Banks pursuant to the terms of this
Agreement or any other Loan Document, or (h) change the definition of "Majority
Banks" or this Section 14.11; provided further, that no amendment, waiver, or
consent shall, unless in writing and signed by the Agent in addition to all the
Banks, affect the rights or duties of the Agent under this Agreement or any
other Loan Document. All references in this Agreement to "Banks" or "the Banks"
shall refer to all Banks, unless expressly stated to refer to Majority Banks.

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         14.12 Confidentiality. Each Bank agrees that it will not disclose
without the prior consent of Borrowers (other than to its employees, its
Subsidiaries, its Affiliates, another Bank or to its auditors or counsel) any
information with respect to Borrowers, which is furnished pursuant to this
Agreement or any of the other Loan Documents; provided that any Bank may
disclose any such information (a) as has become generally available to the
public or has been lawfully obtained by such Bank from any third party under no
duty of confidentiality to Borrowers, (b) as may be required or appropriate in
any report, statement or testimony submitted to, or in respect to any inquiry,
by, any municipal, state or federal regulatory body having or claiming to have
jurisdiction over such Bank, including the Board of Governors of the Federal
Reserve System of the United States, the Office of the Comptroller of the
Currency or the Federal Deposit Insurance Corporation or similar organizations
(whether in the United States or elsewhere) or their successors, (c) as may be
required or appropriate in respect to any summons or subpoena or in connection
with any litigation, (d) in order to comply with any law, order, regulation or
ruling applicable to such Bank, and (e) to any permitted transferee or assignee
or to any approved participant of, or with respect to, the Notes, as aforesaid.

         14.13 Withholding Taxes. If any Bank is not incorporated under the laws
of the United States or a state thereof, such Bank shall promptly deliver to the
Agent and the Borrowers two executed copies of (a) (i) Internal Revenue Service
Form 1001, or successor applicable Form, specifying the applicable tax treaty
between the United States and the jurisdiction of such Bank's domicile which
provides for the exemption from withholding on interest payments to such Bank,
(ii) Internal Revenue Service Form 4224, or successor applicable Form,
evidencing that the income to be received by such Bank hereunder is effectively
connected with the conduct of a trade or business in the United States or (iii)
other evidence satisfactory to the Agent and Borrowers that such Bank is exempt
from United States income tax withholding with respect to such income and (b)
Internal Revenue Service Form W-8 or W-9, or successor applicable Form, as the
case may be, certifying that such Bank is entitled to an exemption from United
States backup withholding tax on any payments by the Borrowers under this
Agreement or any Notes. Such Bank shall amend or supplement any such form or
evidence as required to insure that it is accurate, complete and non-misleading
at all times. Promptly upon notice from the Agent of any determination by the
Internal Revenue Service that any payments previously made to such Bank
hereunder were subject to United States income tax withholding including,
without limitation, backup withholding when made, such Bank shall pay to the
Agent the excess of the aggregate amount required to be withheld from such
payments over the aggregate amount actually Withheld by the Agent.

         14.14 Taxes and Fees. Should any tax (other than as a result of a
Bank's failure to comply with Section 14.13 or a tax based upon the net income
or capitalization of any Bank or the Agent by any jurisdiction where a Bank or
Agent is located), recording or filing fee become payable in respect of this
Agreement or any of the other Loan Documents or any amendment, modification or
supplement hereof or thereof, the Borrowers agree to pay the same, together with
any interest or penalties thereon arising from the Borrowers' act or omission,
and agrees to hold the Agent and the Banks harmless with respect thereto.
Notwithstanding the foregoing, nothing contained in this Section 14.14 shall
affect or reduce the rights of any Bank or the Agent under Section 12.7 hereof.

         14.15 WAIVER OF JURY TRIAL. THE BANKS, THE AGENT AND THE BORROWERS
AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL,
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY

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WAIVE ANY RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION BASED
UPON OR ARISING OUT OF THIS AGREEMENT OR ANY RELATED INSTRUMENT OR AGREEMENT OR
ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY COURSE OF CONDUCT,
DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTION OF ANY OF THEM. NEITHER
THE BANKS, THE AGENT, NOR BORROWERS SHALL SEEK TO CONSOLIDATE, BY COUNTERCLAIM
OR OTHERWISE, ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY
OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. THESE
PROVISIONS SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR
RELINQUISHED BY THE BANKS AND THE AGENT OR BORROWERS EXCEPT BY A WRITTEN
INSTRUMENT EXECUTED BY ALL OF THEM.

         14.16 Complete Agreement: Conflicts. This Agreement, the Notes, any
Requests for Revolving Credit Advance and Term Loan Requests hereunder, and the
Loan Documents contain the entire agreement of the parties hereto, superseding
all prior agreements, discussions and understandings relating to the subject
matter hereof, and none of the parties shall be bound by anything not expressed
in writing. In the event of any conflict between the terms of this Agreement and
the other Loan Documents, this Agreement shall govern.

         14.17 Severability. In case any one or more of the obligations of
Borrowers under this Agreement, the Notes or any of the other Loan Documents
shall be invalid, illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining obligations of Borrowers shall not
in any way be affected or impaired thereby, and such invalidity, illegality or
unenforceability in one jurisdiction shall not affect the validity, legality or
enforceability of the obligations of Borrowers under this Agreement, the Notes
or any of the other Loan Documents in any other jurisdiction.

         14.18 Table of Contents and Headings. The table of contents and the
headings of the various subdivisions hereof are for convenience of reference
only and shall in no way modify or affect any of the terms or provisions hereof.

         14.19 Construction of Certain Provisions. If any provision of this
Agreement or any of the Loan Documents refers to any action to be taken by any
Person, or which such Person is prohibited from taking, such provision shall be
applicable whether such action is taken directly or indirectly by such Person,
whether or not expressly specified in such provision.

         14.20 Independence of Covenants. Each covenant hereunder shall be given
independent effect (subject to any exceptions stated in such covenant) so that
if a particular action or condition is not permitted by any such covenant
(taking into account any such stated exception), the fact that it would be
permitted by an exception to, or would be otherwise within the limitations of,
another covenant shall not avoid the occurrence of a Default or an Event of
Default.

         14.21 Reliance on and Survival of Various Provisions. All terms,
covenants, agreements, representations and warranties of Borrowers or any party
to any of the Loan Documents made herein

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or in any of the Loan Documents or in any certificate, report, financial
statement or other document furnished by or on behalf of Borrowers or any
Subsidiary in connection with this Agreement or any of the Loan Documents shall
be deemed to have been relied upon by the Banks, notwithstanding any
investigation heretofore or hereafter made by any Bank or on such Bank's behalf,
and those covenants and agreements of Borrowers set forth in Section 14.5 hereof
(together with any other indemnities of Borrowers or any Subsidiary contained
elsewhere in this Agreement or in any of the other Loan Documents) and of Banks
set forth in Section 13.9 hereof shall survive the repayment in full of the
Indebtedness arid the termination of the Revolving Credit Aggregate Commitment.

        14.22    Joint and Several Liability.

         (a) Trim and Tempress authorize Holdings with full power and authority
as attorney-in-fact, to execute and deliver Requests for Advances, request for
issuance of Letters of Credit and each other instrument, certificate and report
to be delivered by the Borrowers to Agent and the Banks pursuant to this
Agreement. Trim and Tempress agree that they shall be bound by any action taken
by Holdings on their behalf pursuant to such appointment.

         (b) The obligations of the Borrowers under this Agreement and the other
Loan Documents are joint and several.

         (c) Each Borrower acknowledges and agrees that it is the intent of the
parties that each Borrower be primarily liable for the obligations as a joint
and several obligor (except as specifically set forth in this Section 14.22). It
is the intention of the parties that with respect to liability of any Borrower
hereunder arising solely by reason of its being jointly and severally liable for
Advances and other extensions of credit taken by other Borrowers, the
obligations of such Borrower shall be absolute, unconditional and irrevocable
irrespective of:

                  (i) any lack of validity, legality or enforceability of this
         Agreement or any Note as to any other Borrower;

                  (ii) the failure of any Bank or any holder of any Note:

                           (A) to enforce any right or remedy against any
                  Borrower or any other Person (including any guarantor) under
                  the provisions of this Agreement, such Note, or otherwise, or

                           (B) to exercise any right or remedy against any
                  guarantor of, or collateral securing, any obligations;

                  (iii) any change in the time, manner or place of payment of,
         or in any other term of, all or any of the Indebtedness, or any other
         extension, compromise or renewal of any Indebtedness;

                  (iv) any reduction, limitation, impairment or termination of
         any Indebtedness with respect to any other Borrower for any reason,
         including any claim of waiver, release, surrender, alteration or
         compromise, and shall not be subject to (and each Borrower hereby

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         waives any right to or claim of) any defense or setoff, counterclaim,
         recoupment or termination whatsoever by reason of the invalidity,
         illegality, nongenuineness, irregularity, compromise, unenforceability
         of, or any other event or occurrence affecting, any Indebtedness with
         respect to any other Borrower;

                  (v) any addition, exchange, release, surrender or
         nonperfection of any collateral, or any amendment to or waiver or
         release or addition of, or consent to departure from, any guaranty,
         held by any Bank or any holder of the Notes securing any of the
         Indebtedness; or

                  (vi) any other circumstance which might otherwise constitute a
         defense available to, or a legal or equitable discharge of, any other
         Borrower, any surety or any guarantor.

         (d) Each Borrower agrees that its joint and several liability hereunder
shall continue to be effective or be reinstated, as the case may be, if at any
time any payment (in whole or in part) of any of the Indebtedness is rescinded
or must be restored by any Bank or any holder of any Note, upon the insolvency,
bankruptcy or reorganization of any Borrower as though such payment had not been
made.

         (e) Each Borrower hereby expressly waives: (a) notice of the Banks'
acceptance of this Agreement; (b) notice of the existence or creation or non
payment of all or any of the Indebtedness; (c) presentment, demand, notice of
dishonor, protest, and all other notices whatsoever other than notices expressly
provided for in this Agreement; and (d) all diligence in collection or
protection of or realization upon the Indebtedness or any thereof, any
obligation hereunder, or any security for or guaranty of any of the foregoing.

         (f) No delay on any of the Banks part in the exercise of any right or
remedy shall operate as a waiver thereof, and no single or partial exercise by
any of the Banks of any right or remedy shall preclude other or further exercise
thereof or the exercise of any other right or remedy. No action of any of the
Banks permitted hereunder shall in any way affect or impair any such Banks'
rights or any Borrower's Indebtedness under this Agreement.

         (g) Each Borrower hereby represents and warrants to each of the
Borrowers that it now has and will continue to have independent means of
obtaining information concerning the Borrowers, affairs, financial condition and
business. Banks shall not have any duty or responsibility to provide any
Borrower with any credit or other information concerning the Borrowers, affairs,
financial condition or business which may come into the Banks' possession.

                                     * * *

                     [Signatures follow on succeeding pages]

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         WITNESS the due execution hereof as of the day and year first above
written.

COMERICA BANK,                               TRIM SYSTEMS OPERATING CORP.
as Agent

By: /s/ (ILLEGIBLE)                          By: /s/ (ILLEGIBLE)
   -------------------------------------        -----------------------------

Its: Vice President                          Its: Vice President

                                             TRIM SYSTEMS, LLC

                                             By: /s/ (ILLEGIBLE)
                                                -----------------------------
                                             Its: Vice President

                                             TEMPRESS, INC.

                                             By: /s/ (ILLEGIBLE)
                                                -----------------------------
                                             Its: Vice President

BANKS:                                       COMERICA BANK

                                             By: /s/ (ILLEGIBLE)
                                                -----------------------------

                                             Its: Vice President

                                       89
<PAGE>
                                        THE FIRST NATIONAL BANK OF CHICAGO

                                        By: /s/ (ILLEGIBLE)
                                           -------------------------------------
                                        Its:       V.P.
                                            ------------------------------------

                                        U.S. BANK NATIONAL ASSOCIATION

                                        By:  /s/ MARK R. MCDONALD
                                           -------------------------------------
                                        Its:       Mark R. McDonald
                                                   Vice President
                                            ------------------------------------

                      [SIGNATURE PAGE TO CREDIT AGREEMENT]

                                       90

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