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                                                                   Exhibit 10.7

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

                      LOCK UP, VOTING AND CONSENT AGREEMENT

         This Lock Up, Voting and Consent Agreement (this "AGREEMENT"), dated as
of May 24, 2002, is entered into and made by and among Dade Behring Holdings,
Inc., a Delaware corporation ("HOLDINGS"), Dade Behring Inc., a Delaware
corporation, ("DBI"), Dade MicroScan Inc., a Delaware corporation ("MICROSCAN"),
Dade Finance, Inc., a Delaware corporation (`FINANCE"), Syva Diagnostics Holding
Co., a Delaware corporation ("SYVA HOLDINGS"), Syva Company, a Delaware
corporation ("SYVA"), Syva Childcare Inc., a Delaware corporation ("CHILDCARE")
and Chimera Research and Chemical, Inc., a Florida corporation ("CHIMERA", and
together with Holdings, DBI, MicroScan, Finance, Syva Holdings, Syva and
Childcare, collectively, the "DEBTOR" or the "COMPANY"), each of the undersigned
holders (each, a "CONSENTING HOLDER" and, collectively, the "CONSENTING
HOLDERS") of the Existing Senior Debt, the Old Notes and the Existing Common
Stock (each as defined below). All capitalized terms not otherwise defined
herein have the meanings given to such terms in the Term Sheet (as defined
below).

         WHEREAS, DBI is a borrower under that certain Credit Agreement, dated
as of June 29, 1999 (as amended, supplemented or otherwise modified from time to
time, the "EXISTING SENIOR CREDIT AGREEMENT") by and among DBI, Dade Behring
Holdings GmbH, various lending institutions and Deutsche Bank Trust Company
Americas (f/k/a Bankers Trust Company), as administrative agent (in such
capacity, the "ADMINISTRATIVE AGENT"). As of March 31, 2002, an aggregate
principal amount of approximately $1,113,000,000 was outstanding (including B
Revolving Loans (as defined in the Existing Senior Credit Agreement) to Dade
Behring Holdings GmbH)) (the "EXISTING SENIOR DEBT");

         WHEREAS, DBI has issued 11 1/8 % Subordinated Notes Due 2006, Series B
with an aggregate original principal balance of $350,000,000 and accrued
interest and fees as of March 1, 2002, of approximately $51,000,000 (the "OLD
NOTES") pursuant to an indenture, dated as of May 7, 1996, (the "INDENTURE") by
and between DBI and HSBC USA, as trustee (the "OLD NOTES TRUSTEE");

         WHEREAS, Holdings has issued and has outstanding 48,382,243.72 shares,
on a fully diluted basis, including all vested options and warrants of common
stock and Bain Capital Fund IV, L.P., Bain Capital Fund IV-B, L.P., BCIP
Associates, BCIP Trust Associates, L.P., Randolph Street Partners (collectively,
the "BAIN ENTITIES"), GS Capital Partners L.P., Bridge Street Fund 1994, L.P.,
Stone Street Fund 1994, L.P. (collectively, together with GS Dade LLC, the
"Goldman Entities"), and Hoechst AG hold in the aggregate not less than 82.9%
(on a fully diluted basis) of such common stock (the "EXISTING COMMON STOCK")
(the Bain Entities, the Goldman Entities (other than GS Dade LLC) and Hoechst
AG, are collectively referred to, for purposes of this Agreement solely in their
capacity as holders of Existing Common Stock, as the "EQUITYHOLDERS");

         WHEREAS, the Bain Entities, the Goldman Entities and Hoechst AG own
$18,736,186, $9,269,000 and $39,645,000 in aggregate principal amount,
respectively, of Old Notes (collectively, for purposes of this Agreement solely
in their capacity as holders of Old Notes, the "INSIDER NOTEHOLDERS").

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         WHEREAS, Debtor and the Consenting Holders have engaged in good faith
negotiations with the objective of reaching an agreement with regard to
restructuring of the Existing Senior Debt and Old Notes and the treatment of all
equity interests of the Debtor, including the Existing Common Stock;

         WHEREAS, Debtor and each of the Consenting Holders now desire to
implement a financial restructuring (the "FINANCIAL RESTRUCTURING") consistent
in all material respects with this Agreement and the term sheet attached hereto
as EXHIBIT A (the "TERM SHEET"), and in order to implement the Financial
Restructuring, Debtor intends to prepare and file a disclosure statement (the
"DISCLOSURE STATEMENT") and plan of reorganization reasonably acceptable to the
Administrative Agent, the ad hoc committee of holders of Old Notes, and holders
of Existing Common Stock and otherwise consistent in all material respects with
the terms set forth in this Agreement and the Term Sheet (the "PLAN")
implementing the terms of the Financial Restructuring pursuant to a prepackaged
case (the "CHAPTER 11 CASE") to be filed under the United States Bankruptcy
Code, 11 U.S.C. Section 101 ET SEQ. (the "BANKRUPTCY CODE"), and Debtor intends
to use its best efforts to have the solicitation of votes pursuant to the
Disclosure Statement approved under Section 1126(b)(2) of the Bankruptcy Code
and such Plan confirmed by the United States Bankruptcy Court for the Northern
District of Illinois (the "BANKRUPTCY COURT") in the Chapter 11 Case as
expeditiously as possible under the Bankruptcy Code and the Federal Rules of
Bankruptcy Procedure (the "BANKRUPTCY RULES")1;

         WHEREAS, each Consenting Holder holds or is the legal or beneficial
owner of the aggregate principal amount of Existing Senior Debt, Old Notes
and/or Existing Common Stock (for each such party, the "RELEVANT CLAIM") or has
investment authority and the right or authority to vote ("VOTING CONTROL") in
the solicitation of acceptances to the Plan and the Financial Restructuring all
as set forth in the Term Sheet, in each case as set forth below each such
Consenting Holder's signature attached hereto;

         WHEREAS, each Consenting Holder has reviewed, or has had the
opportunity to review, with the assistance of professional financial and legal
advisors of its choosing, the Term Sheet; and

         WHEREAS, each Consenting Holder desires to support and (except for
Consenting Holders of Existing Common Stock, who, in such capacity, will be
deemed to reject the Plan pursuant to Section 1126(g) of the Bankruptcy Code)
vote for confirmation of the Plan, and Debtor desire to obtain the commitment of
the Consenting Holders to support and vote for the Plan, in each case subject to
the terms and conditions set forth herein.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements set forth herein, and for other good and valuable
consideration, the receipt and

--------------------------
1    If all of the holders of Existing Senior Debt execute this Agreement,
     Holdings may elect, at its option, to file a Chapter 11 Case that does not
     include all of its U.S. subsidiaries (the "NON-FILING SUBSIDIARIES").

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sufficiency of which are hereby acknowledged, Debtor and each of the Consenting
Holders agree as follows:

         Section 1. REPRESENTATIONS OF CONSENTING HOLDER; ACKNOWLEDGMENT. (a)
Each Consenting Holder hereby severally (but not jointly) represents and
warrants to the Company as follows:

                  (1) As of the date hereof, Consenting Holder (a) is the legal
or beneficial owner of, or has Voting Control over, Existing Senior Debt and/or
Old Notes in the aggregate principal amount set forth below such Consenting
Holder's name on the signature pages hereof; if applicable, the registered
holder and custodial party for the Existing Senior Debt and/or Old Notes are as
set forth on the signature pages hereof; and, subject, in the case of the
Goldman Entities and the Bain Entities to SECTION 1(b) below, legally or
beneficially owns, or has Voting Control over, no other Existing Senior Debt
and/or Old Notes, or (b) in the case of a Consenting Holder of Existing Common
Stock, has legal and/or beneficial ownership of, or has Voting Control of the
number of shares of Existing Common Stock as set forth on the signature pages
hereof and holds no legal and/or beneficial ownership in, or Voting Control with
respect to, any other shares of Common Stock or other equity interests in the
Company or any of its subsidiaries.

                  (2) As of the date hereof, all Existing Senior Debt, Old Notes
and/or Existing Common Stock (as the case may be), legally or beneficially owned
by the applicable Consenting Holder, is so owned free and clear of all claims,
charges, leases, covenants, easements, encumbrances, pledges, security
interests, liens, options, pledges, rights of others, mortgages, transfer,
disposition, or otherwise), whether imposed by agreement, understanding, law,
equity, or otherwise, except for (a) any restrictions on, transfer generally
arising under any applicable federal or state securities law, or other defects
in title, and has not been pledged or assigned to any person and (b)
participations that may have been granted in Existing Senior Debt, it being
understood that any Consenting Holder that has granted any participation in the
Existing Senior Debt has or will obtain Voting Control in respect to such
participations; and

                  (3) Each Consenting Holder has received and reviewed this
Agreement, the Term Sheet and all exhibits to the Term Sheet and has received
all such information as it deems necessary and appropriate to enable it to
evaluate the financial risk inherent in the Financial Restructuring pursuant to
the terms of the Plan.

         (b) Each Consenting Holder acknowledges that affiliates of the Goldman
Entities and the Bain Entities may legally or beneficially own Existing Senior
Debt and agree that the terms of this Agreement shall not bind such affiliates
or extend to such Existing Senior Debt unless such affiliates have executed this
Agreement in respect of such Existing Senior Debt.

         Section 2. SUPPORT OF THE PLAN.

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                  (1) Subject to the terms and conditions contained herein, each
Consenting Holder severally agrees that so long as it is the legal owner,
beneficial owner and/or the holder of Voting Control of all or any portion of
the Relevant Claim, (i) from and after the date hereof through the date of
termination of the obligations under this Agreement pursuant to SECTION 9 hereof
it will not, directly or indirectly, agree to, consent to, provide any support
to, participate in the formulation of, or vote for any plan of reorganization or
liquidation, other than the Plan; PROVIDED that the terms of all the
Reorganization Documents (as defined below) are customary, incorporate the terms
and conditions set forth in, and are otherwise consistent in all material
respects with, the Term Sheet; (ii) (other than in respect of any Existing
Senior Debt and Existing Common Stock) it will at the request of the Debtor
execute and deliver a customary letter, in form and substance reasonably
satisfactory to the Company and such Consenting Holder, from the Consenting
Holder (or an ad hoc committee of Consenting Holders) for distribution to the
holders of any impaired claims against or interests in the Company, stating that
such Consenting Holder supports and has committed to vote to approve the Plan;
and (iii) agree to permit disclosure in the Disclosure Statement and any filings
by the Company with the Securities and Exchange Commission of the contents of
this Agreement, including, but not limited to, the commitments given in clause
(i) of this SECTION 2(1) and the aggregate Relevant Claims held by all
Consenting Holders; PROVIDED that the Company shall not disclose the amount of
the Relevant Claim of any individual Consenting Holder, except as otherwise
required by applicable securities law.

                  (2) Subject to the terms and conditions contained herein, each
Consenting Holder further severally agrees that so long as it is a holder of a
Relevant Claim, it shall not object to or otherwise commence any proceeding to
oppose, or object to, confirmation of the Plan, approval of the Disclosure
Statement or any other document filed in connection with the confirmation of the
Plan (hereinafter, such documents together with the Plan and Disclosure
Statement, each a "REORGANIZATION DOCUMENT"), and shall not take any action
which is inconsistent with, or that would delay approval or confirmation (as the
case may be) of any of the Disclosure Statement, the Plan or any other
Reorganization Document; PROVIDED that the terms of the Plan, the Disclosure
Statement and all other Reorganization Documents are customary, incorporate the
terms and conditions set forth in, and are otherwise consistent in all material
respects with, the Term Sheet.

                  (3) Subject to the terms and conditions contained herein, and
without limiting the generality of the foregoing, no Consenting Holder may
directly or indirectly seek, solicit, support or encourage any other plan,
transaction, sale, proposal or offer of dissolution, winding up, liquidation,
reorganization, merger or restructuring of the Company or any of its
subsidiaries other than as contemplated by the Term Sheet or any other
Reorganization Document.

         Section 3. VOTING. Each Consenting Holder agrees for itself that it
shall timely vote its Relevant Claim and any other claims or interests that it
holds (and not revoke or withdraw such vote) to accept the Plan; PROVIDED that
the terms of the Plan, the Disclosure Statement and each other Reorganization
Document are customary, incorporate the terms and conditions set forth in, and
are otherwise consistent in all material respects with the terms described in
the Term Sheet.

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         Section 4. FORBEARANCE. So long as this Agreement shall remain in
effect and subject to the continued satisfaction of all material terms and
conditions of the Term Sheet, each Consenting Holder hereby severally agrees to
forebear (and where necessary cause the forbearance, including by giving all
necessary instructions to the Old Notes Trustee and/or Administrative Agent in
accordance with the Indenture and/or Existing Senior Credit Agreement) during
the period commencing on the date hereof and ending on the earliest to occur of:
(a) the Effective Date (as defined in the Term Sheet) (it being understood that
such forbearance applies to any defaults caused solely by the commencement of
the Chapter 11 Case filed to implement the Financial Restructuring); (b) the
date on which the obligations of the Consenting Holders hereunder are terminated
pursuant to SECTION 9 hereof; or (c) the date on which any action against the
Debtor, any Consenting Holder or any Equity Released Party (as defined in the
Term Sheet) in respect of any Equityholder Released Claim (as defined in the
Term Sheet) is commenced in any court:

                  (1) in the case of any Old Notes comprising all or part of the
Relevant Claim of such Consenting Holder, from (x) exercising any rights or
remedies it may have under the Indenture and all related documents, applicable
law, or otherwise, (including, without limitation, the filing of an involuntary
petition against the Company), with respect to any existing default as of the
date hereof and including, without limitation, any default that has arisen or
event of default that may arise from the Company's failure to pay interest on
the principal amount of the Old Notes that was due and payable on May 1, 2002
under the Indenture and all related documents; and (y) commencing any action in
any court against the Debtor, any Equity Released Party or any Consenting Holder
in respect of any Equity Released Claim (as defined in the Term Sheet); and

                  (2) in the case of any Existing Senior Debt comprising all or
part of the Relevant Claim of such Consenting Holder, from (a) exercising any
rights and remedies it may have under the Existing Senior Credit Agreement and
all related documents, applicable law and otherwise against the Debtor or the
Non-Filing Subsidiaries with respect to any existing Default or Event of Default
(each as defined in the Existing Senior Credit Agreement) as of the date of
hereof, and after the date hereof (x)(i) any Default or Event of Default arising
under Section 9.03(a) of the Existing Senior Credit Agreement as a result of
Holdings failure to comply with Section 8.10 or 8.11 of the Existing Senior
Credit Agreement, (ii) any Default or Event of Default arising under Section
9.03(b) of the Existing Senior Credit Agreement as a result of Holdings failure
to deliver the certification by independent certified public accountants
described in Section 7.01(c) of the Existing Senior Credit Agreement with
respect to the annual financial statements of Holdings' and its subsidiaries for
the years ending December 31, 2000 and December 31, 2001 and (iii) any Default
or Event of Default arising under Section 9.04 of the Existing Senior Credit
Agreement as a result of the failure of DBI (I) to pay interest on the Old Notes
or (II) to file with the SEC and the Notes Trustee, pursuant to Section 4.08 of
the Indenture, annual reports on Form 10K for the years ending December 31, 2000
and December 31, 2001 and quarterly reports on Form 10Q for the quarters ending
March 31, 2001, June 30, 2001, September 30, 2001 and March 31, 2002 (it being
understood that such forbearance under the Existing Senior Credit Agreement
applies to any defaults (subject to the terms and conditions

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of the Fourth Amendment to the Existing Senior Credit Agreement (as defined
below)) caused solely by the commencement of the Chapter 11 Case filed to
implement the Financial Restructuring) and (b) commencing any action in any
court against the Debtor, any Equity Released Party or any Consenting Holder in
respect of any Equity Released Claim; and

                  (3) in the case of any B Revolving Loan comprising all or part
of the Relevant Claim of such Consenting Holder, from exercising any rights and
remedies it may have on account of the B Revolving Loans, subject to and in
accordance with the terms of Fourth Amendment to and Waiver under the Existing
Senior Credit Agreement dated as of the date hereof (the "FOURTH AMENDMENT").

         Section 5. RESTRICTIONS ON TRANSFER. Each of the Consenting Holders
hereby severally agrees that, for so long as this Agreement shall remain in
effect, it shall not sell, transfer or assign all or any of its Relevant Claims
or any option thereon or any right, interest (voting or otherwise) therein,
unless the transferee agrees in writing to be bound by all of the terms of this
Agreement by executing counterpart signature pages to this Agreement
(identifying the transferee and the portion of the Relevant Claim transferred to
such transferee) and the transferor promptly provides the Company and other
notice parties with a copy thereof, in which event the Company shall be deemed
to have acknowledged that its obligations to the Consenting Holders hereunder
shall be deemed to constitute obligations in favor of such transferee, and the
Company shall confirm such acknowledgment in writing. Any sale, transfer or
assignment of any Relevant Claim that does not comply with the foregoing shall
be deemed void AB INITIO.

         Section 6. FURTHER ACQUISITION OF EXISTING SENIOR DEBT, OLD NOTES,
EXISTING COMMON STOCK. This Agreement shall in no way be construed to preclude
the Consenting Holders or any of their respective subsidiaries from acquiring
additional Existing Senior Debt, Old Notes and/or equity interests (including
any Existing Common Stock) in the Company. However, any such additional Existing
Senior Debt, Old Notes or equity interest acquired by a Consenting Holder shall
automatically be deemed to be Relevant Claims and to be subject to the terms of
this Agreement. The Consenting Holder agrees that it shall not create any
subsidiary or affiliate or cause any existing subsidiary or affiliate to create
any subsidiary or affiliate for the sole purpose of acquiring any Existing
Senior Debt, Old Notes or Existing Common Stock. Upon the request of the
Company, each Consenting Holder shall provide an accurate current list of the
Relevant Claims held by such Consenting Holder to the Company and other notice
parties hereto.

         Section 7. COMPANY AGREEMENT. The Company hereby agrees to use its
reasonable best efforts to have the Disclosure Statement approved by the
Bankruptcy Court, and thereafter to use its reasonable best efforts to obtain an
order of the Bankruptcy Court confirming the Plan, in each case as expeditiously
as commercially reasonable under the Bankruptcy Code and Bankruptcy Rules, and
incorporating the terms and conditions of this Agreement and the Term Sheet and
otherwise consistent in all material respects with this Agreement and the Term
Sheet (including with respect to the treatment of claims and interests and the
form of distribution therein contemplated). Each of the Consenting Holders shall
take all necessary corporate action to enable it to enter into this Agreement
and to comply with all of its obligations hereunder.

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         Section 8. ACKNOWLEDGMENT. This Agreement is not and shall not be
deemed to be a solicitation for consents to the Plan. The acceptance of those
Consenting Holders entitled to vote on the Plan will not be solicited until the
Consenting Holders have received the Disclosure Statement and related ballot in
final form.
         Section 9. TERMINATION. Upon the effectiveness of this Agreement in
accordance with paragraph 19, the obligations of the Consenting Holders
hereunder shall remain effective and binding until such time as one or more
Consenting Holders whose Relevant Claims in respect of the Existing Senior Debt,
or Old Notes or Existing Common Stock, as the case may be, equal or exceed one
third in amount of the total of the Relevant Claims in respect of the Existing
Senior Debt, or Old Notes or Existing Common Stock, as the case may be,
provide(s) written notice to Debtor of the termination of this Agreement, and
upon the receipt of such notice by Debtor the obligations of the parties
hereunder shall immediately and automatically terminate and shall be of no
further force or effect, which notice may be given by any such Consenting
Holder(s) (or the Administrative Agent acting upon the direction of any such
Consenting Holder(s) of Existing Senior Debt) if, and only if, one or more of
any of the following occurs:

                           (a) the Plan or any Restructuring Document is
modified to provide for treatment of such Consenting Holder(s) which is
different in any material adverse respect (it being understood that any change
in the form or amount of Plan distributions or in the terms of any releases or
indemnities contemplated by the Term Sheet shall be deemed "adverse" and
"material") to the treatment described in the Term Sheet;

                           (b) Debtor fails to commence the Chapter 11 Case on
or before August 1, 2002, or the Chapter 11 Case is commenced without the
simultaneous filing of the Plan and Disclosure Statement;

                           (c) the Plan is either not confirmed within 90 days
from the date that Debtor commences the Chapter 11 Case or not consummated
within 120 days from the date that Debtor commences the Chapter 11 Case;

                           (d) any term or condition of the Term Sheet that is
material to such Consenting Holder and is required therein to be satisfied prior
to the commencement of the Chapter 11 Case shall not have been satisfied (or
waived);

                           (e) The Chapter 11 Case of the Debtor is converted to
a case under Chapter 7 of the Bankruptcy Code or a trustee is appointed for the
Debtor under any Chapter of the Bankruptcy Code;

                           (f) Any written representation or warranty made by
the Company or its agents or representatives to the Consenting Holders in this
Agreement or the Term Sheet (including without limitation representations
relating to the Company's financial performance) is false or misleading in any
material respect when made;

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                           (g) The Debtor shall publicly announce its intention
not to pursue the Financial Restructuring in accordance with the Term Sheet or
proposes a transaction or chapter 11 plan that is not the Plan in any material
respect; and

                           (h) The Tolling Agreement dated as of the date hereof
(as the same may be hereafter amended, modified, supplemented, replaced or
superceded, the "TOLLING AGREEMENT") by and among, INTER ALIA, Holdings, DBI,
Deutsche Bank Trust Company Americas as Collateral Agent for the holders of
Existing Senior Debt, certain holders of Existing Senior Debt that are or may
become a party to the Tolling Agreement, certain holders of Old Notes party to
the Tolling Agreement, and certain holders of Existing Common Stock party to the
Tolling Agreement, shall terminate or as to a termination thereunder that
requires the giving of notice, such notice shall have been given, in each case
in accordance with its terms.

         No party shall have any liability to the other or any other person as a
result of the termination of such party's obligations hereunder in accordance
with this paragraph 9.

         Section 10. RELEASE OF HOLDERS OF EXISTING COMMON STOCK. Subject to the
condition that the Plan is consummated, in addition to, and in no way limiting
the releases in the Plan, each of the Consenting Holders party hereto is hereby
irrevocably deemed to have released, without any further action as of the
Effective Date, each of the Equity Released Parties from the Equityholder
Released Claims (each as defined in the Term Sheet). Subject to and effective as
of the consummation of the Plan, the releases by the Consenting Holders of the
Equityholder Released Claims with respect to the Equity Released Parties shall
be valid and fully enforceable, and shall be binding upon each Consenting
Holder, as a matter of contract and irrespective of whether a Reorganization
Document, the order confirming the Plan (or any other order pertaining to any
Reorganization Document, or any order entered as a result of any appeal or
motion for reconsideration) modifies or eliminates all or any provisions of the
Plan releasing the Equityholder Released Claims with respect to the Equity
Released Parties.

         Section 11. RELEASE OF NON-FILING SUBSIDIARIES. Subject to (i) the
receipt by the Debtor of signatures to this Agreement from Consenting Holders
who in the aggregate hold 100% of the Existing Senior Debt, (ii) this Agreement
not having been terminated in accordance with Section 9 hereof, and (iii) the
consummation of the Plan, each of the Consenting Holders party hereto who hold
Existing Senior Debt is irrevocably deemed to (A) have released as of the
Effective Date, without any further action, each of the Non-Filing Subsidiaries
(if any) from their respective Obligations (as such term is defined in the
Existing Senior Credit Agreement) and (B) have directed the Collateral Agent (as
such term is defined in the Existing Senior Credit Agreement) to take such steps
and execute such releases and discharges, in accordance with the terms of the
Credit Documents (as such term is defined in the Existing Senior Credit
Agreement), as are reasonably necessary to effect the release set forth in (A)
above.

         Section 12. GOOD FAITH NEGOTIATION OF DOCUMENTS. Each party hereby
further covenants and agrees to negotiate the documentation implementing the
Plan (including the Reorganization Documents) and any definitive documents
relating thereto (including, but not

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limited to, the New Notes and New Common Stock), in good faith and, in any
event, in all material respects consistent with the Term Sheet.

         Section 13. REPRESENTATIONS AND WARRANTIES. Each of the Consenting
Holders and Debtors severally (but not jointly) represent and warrant to each
other that the following statements are true, correct and complete as of the
date hereof:

                  (1) POWER AND AUTHORITY. It has all requisite corporate,
partnership, or limited liability company power and authority to enter into this
Agreement and to carry out the transactions contemplated hereby, and to perform
its obligations hereunder.

                  (2) DUE ORGANIZATION. It is duly organized, validly existing
and in good standing under the laws of its state of organization and it has the
requisite power and authority to execute and deliver this Agreement and to
perform its obligations hereunder.

                  (3) AUTHORIZATION. The execution and delivery of this
Agreement and the performance of its obligations hereunder have been duly
authorized by all necessary corporate, partnership or limited liability company
action on its part.

                  (4) NO CONFLICTS. The execution, delivery and performance of
this Agreement does not and shall not: (i) violate any provision of law, rule or
regulation applicable to it or any of its subsidiaries, (ii) violate its
certificate of incorporation, bylaws or other organizational documents or those
of any of its subsidiaries; or (iii) conflict with, result in a breach of or
constitute (with due notice or lapse of time or both) a default under any
material contractual obligation to which it or any of its subsidiaries is a
party.

                  (5) GOVERNMENTAL CONSENTS. The execution, delivery and
performance by it of this Agreement do not and shall not require any
registration or filing with, consent or approval of, or notice to, or other
action to, with or by, any federal, state or other governmental authority or
regulatory body (other than the approval of the Bankruptcy Court in the case of
Debtor).

                  (6) BINDING OBLIGATION. Subject to the provision of Sections
1125 and 1126 of the Bankruptcy Code, this Agreement is a legally valid and
binding obligation of such party, enforceable against such party in accordance
with its terms.

         Section 14. FEES AND EXPENSES. The Company shall pay the reasonable
fees and expenses of the financial and legal advisors for each of the informal
committees formed by certain holders of Existing Senior Debt, and Old Notes
respectively, in accordance with the Term Sheet.

         Section 15. COMPLETE AGREEMENT, MODIFICATION OF AGREEMENT. This
Agreement and the other agreements referenced herein constitute the complete
agreement between the parties with respect to the subject matter hereof. No
modification or amendment of the terms of this Agreement shall be valid unless
such modification or amendment is in writing and has been signed by the Debtors
and the other signatories hereto (and their permitted successors and

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assigns) that hold not less than two-thirds in amount of each of (i) all
Existing Senior Debt (ii) all Old Notes and (iii) all Existing Common Stock.
Notwithstanding the foregoing, no modification or amendment of the Agreement
shall be binding on any Consenting Holder that has not executed such
modification or amendment.

         Section 16. SPECIFIC PERFORMANCE. It is understood and agreed by the
parties hereto that money damages would not be a sufficient remedy for any
breach of this Agreement by any party and each non-breaching party shall be
entitled to the sole and exclusive remedy of specific performance and injunctive
or other equitable relief, including attorneys fees and costs, as a remedy of
any such breach, and each party agrees to waive any requirement for the securing
or posting of a bond in connection with such remedy.

         Section 17. ASSIGNMENT. Except as set forth in SECTION 5, no rights or
obligations of any party under this Agreement may be assigned or transferred to
any other person or entity.

         Section 18. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
CONTRACTS MADE AND TO BE PERFORMED IN SUCH STATE. By its execution and delivery
of this Agreement, each of the Parties hereto hereby irrevocably and
unconditionally agrees for itself that any legal action, suit or proceeding
against it with respect to any matter under or arising out of or in connection
with this Agreement or for recognition or enforcement of any judgment rendered
in any such action, suit or proceeding, may be brought in the U.S. District
Court for the Southern District of New York. By execution and delivery of this
Agreement, each of the Parties hereto hereby irrevocably accepts and submits
itself to the nonexclusive jurisdiction of each such court, generally and
unconditionally, with respect to any such action, suit or proceeding.
Notwithstanding the foregoing consent to jurisdiction, upon the commencement of
the Chapter 11 Case, each of the Parties hereto hereby severally agrees that the
Bankruptcy Court shall have exclusive jurisdiction of all matters arising out of
or in connection with this Agreement.

         Section 19. EFFECTIVENESS OF THE AGREEMENT. This Agreement shall become
effective when the Debtors have received counterparts hereof duly executed and
delivered by the Debtors and the holders of (1) the Existing Common Stock, (2)
at least two-thirds in principal amount of the Existing Senior Debt and (3) at
least two-thirds in principal amount of all outstanding Old Notes; PROVIDED that
Debtors together with the written consent of each of the Administrative Agent,
the ad hoc committee of Holders of Old Notes through its counsel, and the
holders of Existing Common Stock that are signatories hereto shall have the
right to waive such conditions to the effectiveness of this Agreement, in whole
or in part.

         Section 20. INDEPENDENT DUE DILIGENCE AND DECISION-MAKING. Each of the
Consenting Holders hereby confirms that its decision to execute this Agreement
has been based upon its independent investigation of the operations, businesses,
financial and other conditions and prospects of Debtor. To the extent any
materials or information have been furnished to it by Debtor, the undersigned
hereby acknowledges that they have been provided for informational purposes
only, without any representation or warranty.

                                       10
<Page>

         Section 21. RESERVATION OF RIGHTS. This Agreement and the Term Sheet
are part of a proposed settlement of a dispute among the parties hereto. Except
as expressly provided in this Agreement and the Term Sheet: (a) nothing herein
is intended to, or does, in any manner waive, limit, impair or restrict the
ability of the Company and each Consenting Holder to protect and preserve its
rights, remedies and interests, including without limitation, its claims against
the other; and (b) nothing contained herein effects a modification of the rights
of the Company or the Consenting Holders, unless and until the Plan is confirmed
and the Financial Restructuring becomes effective. If the transactions
contemplated herein are not consummated, or if this Agreement is terminated for
any reason, the parties hereto fully reserve any and all of their rights.
Pursuant to Federal Rule of Evidence 408 and any applicable state rules of
evidence, this Agreement and all negotiations relating thereto shall not be
admissible into evidence in any proceeding other than a proceeding to enforce
its terms.

         Section 22. HEADINGS. The headings of the sections, paragraphs and
subsections of this Agreement are inserted for convenience only and shall not
affect the interpretation hereof.

         Section 23. PRIOR NEGOTIATIONS. This Agreement, the Term Sheet and the
Reorganization Documents supersede all prior negotiations, and documents
reflecting such prior negotiations among the parties hereto with respect to the
subject matter hereof.

         Section 24. REPRESENTATION BY COUNSEL. Each party hereto acknowledges
that it has been represented by counsel in connection with this Agreement and
the transactions contemplated by this Agreement. Accordingly, any rule of law or
any legal decision that would provide any party hereto with a defense to the
enforcement of the terms of this Agreement against such party based upon lack of
legal counsel shall have no application and is expressly waived.

         Section 25. SEVERAL, NOT JOINT, OBLIGATIONS. The agreements,
representations and obligations of the Consenting Holders under this Agreement
and the Term Sheet are, in all respects, several and not joint.

         Section 26. AGREEMENT. Delivery of an executed counterpart of the
signature pages to this Agreement by facsimile transmission shall be effective
as delivery of a manually executed counterpart thereof.

         Section 27. CONSIDERATION. It is hereby acknowledged by the Company and
each of the Consenting Holders that no consideration shall be due or paid to the
Consenting Holders for their agreement to vote to accept the Plan subject to and
in accordance with the terms and conditions of this Agreement, other than the
provisions hereof and Company's agreement to use its best efforts to obtain
approval of the Disclosure Statement and to confirm the Plan in accordance with
the terms and conditions of this Agreement.

         Section 28. NO THIRD PARTY BENEFICIARIES. This Agreement shall be
solely for the benefit of the parties hereto and, solely with respect to Section
4 and Section 10 hereof, the Equity Released Parties, including their permitted
assigns, and no other person or entity shall be

                                       11
<Page>

a third party beneficiary hereof. Nothing in this Agreement, express or implied,
shall give to any party or entity other than the parties any benefit or any
legal or equitable right, remedy or claim under this Agreement.

         Section 29. SUCCESSORS AND ASSIGNS. This Agreement is intended to bind
and inure to the benefit of the parties hereto and their respective successors,
permitted assigns, heirs, executors, administrators and representatives.

         Section 30. NOTICES. (1) All notices hereunder to be served to the
Company shall be deemed given if in writing and delivered or sent by telecopy,
courier or by registered or certified mail (return receipt requested) to the
following addresses or telecopier numbers (or at such other addresses or
telecopier numbers as shall be specified by like notice:

                  Dade Behring Holdings, Inc.
                  1717 Deerfield Rd.
                  P.O. Box 778
                  Deerfield, IL  60015-0778
                  Attn: Louise Pearson, Esq.
                  General Counsel
                  Fax: (847) 267-5376

         with copies to:

                  Kirkland & Ellis
                  200 E. Randolph Drive
                  Chicago, Illinois 60601
                  Attn:    James H.M. Sprayregen, P.C.
                           Marc Kieselstein, Esq.
                           Fax: (312) 861-2200

         (2) All notices hereunder to be served to a Consenting Holder shall be
deemed given if in writing and delivered or sent by telecopy, courier or by
registered or certified mail to the address for such Consenting Holder set forth
above its signature hereto (or at such other addresses or telecopier numbers as
shall be specified by like notice.

         (3) All notices to any party hereunder shall also be copied to:

                                       12
<Page>

                  Simpson Thacher & Bartlett
                  425 Lexington Avenue
                  New York, NY 10017
                  Attn:    Peter V. Pantaleo, Esq.
                           Fax: (212) 455-2502

                  Hennigan, Bennett & Dorman
                  601 South Figueroa Street
                  Suite 3300
                  Los Angeles, CA  90017
                  Attn:    Bennett J. Murphy, Esq.
                           Fax: (213) 694-1234

                  Ropes & Gray
                  One International Place
                  Boston, MA 02110
                  Attn:    William F. McCarthy, Esq.
                           Fax: (617) 951-7050

                  Baker Botts L.L.P.
                  The Warner Building
                  1299 Pennsylvania Avenue NW
                  Washington, D.C.  20004
                  Attn:    Theodore C. Jonas, Esq.
                  Fax: (202) 585-1081

                  Fried Frank Harris Shriver & Jacobson
                  One New York Plaza
                  New York, NY 10004
                  Attn: Robert Schwenkel, Esq.
                  Fax: (212) 859-4000

         Section 31. COUNTERPARTS. This Agreement may be executed in any number
of counterparts, each of which shall, collectively and separately, constitute
one and the same agreement.

                                       13
<Page>

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

DADE BEHRING HOLDINGS, INC.                DADE BEHRING INC.

By:       /s/ Louise S. Pearson            By:       /s/ Louise S. Pearson
         -----------------------------              ----------------------------
Its:     Secretary & General Counsel      Its:  VP, General Counsel & Secretary
         -----------------------------           -------------------------------

DADE MICROSCAN INC.                        DADE FINANCE INC.

By:      /s/ Louise S. Pearson             By:       /s/ Louise S. Pearson
         -----------------------------              ----------------------------
Its:     Secretary & General Counsel       Its:     Secretary & General Counsel
         -----------------------------              ----------------------------

SYVA DIAGNOSTICS HOLDING CO.               SYVA COMPANY

By:      /s/ Louise S. Pearson             By:       /s/ Louise S. Pearson
         -----------------------------              ----------------------------
Its:     Secretary & General Counsel       Its:     Secretary & General Counsel
         -----------------------------              ----------------------------

CHIMERA RESEARCH AND CHEMICAL, INC.        SYVA CHILDCARE INC.

By:       /s/ Louise S. Pearson            By:       /s/ Louise S. Pearson
         -----------------------------              ----------------------------
Its:     Secretary & General Counsel       Its:     Secretary & General Counsel
         -----------------------------              ----------------------------

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

HOLDER OF RELEVANT CLAIM:

Name of Holder:

                 HOECHST AG

By:      /s/ ILLEGIBLE /s/ ILLEGIBLE
         -----------------------------
Its:
         -----------------------------

Aggregate Principal Amount of Old Notes:    $39,650,000
                                             ----------
Aggregate Principal Amount of
 Existing Senior Debt:                      $
                                             ---------

Total Amount of Relevant Claim:             $39,650,000
                                             ----------
Number of Shares of Existing Common
 Stock (for Consenting  Holders of
Existing Common Stock only)                 25,857,700 - Common
                                             2,512,544 - Class L-B
                                             ---------

Percentage of Shares of Existing
Common Stock on fully diluted basis
 (for Consenting Holders of Existing
Common Stock only.)                           48.66%
                                             ---------

Address for Notices
[                                          ]

Hoecher AG
c/o General Counsel
67917 Strasbourg
Cedex 9
France

Theodore C. Jones
Baker Botts L.L.P.
1299 Pennsylvania Avenue N.W.
Washington, D.C. 20004-2400

<Page>

HOLDER OF RELEVANT CLAIM:

Name of Holder:

           RANDOLPH STREET PARTNERS

By:      /s/ ILLEGIBLE
         -----------------------------
Its:     A General Partner
         -----------------------------

Aggregate Principal Amount of Old Notes:     $186,000
                                             ---------
Aggregate Principal Amount of
 Existing Senior Debt:                        $0.00
                                             ---------

Total Amount of Relevant Claim:              $186,000
                                             ---------
Number of Shares of Existing Common
 Stock (for Consenting  Holders of
Existing Common Stock only)                  133,423.22
                                             ----------

Percentage of Shares of Existing
Common Stock on fully diluted basis
 (for Consenting Holders of Existing
Common Stock only.)                           0.002%
                                             ---------

Address for Notices
[                                          ]

200 East Randolph Drive
Chichago IL 60603
Attention: Matthew Steinmetz

<Page>

HOLDER OF RELEVANT CLAIM:

Name of Holder:

              BCIP ASSOCIATES

By:      Bain Capital Investors, LLC
         -----------------------------
Its:     Management Committee
         -----------------------------

By:      /s/ ILLEGIBLE
         -----------------------------

Name:    -----------------------------

Title:   Managing Director
         -----------------------------

Aggregate Principal Amount of Old Notes:     $1,951,000
                                             ----------
Aggregate Principal Amount of
 Existing Senior Debt:                      $
                                             ---------

Total Amount of Relevant Claim:              $1,951,000
                                             ----------
Number of Shares of Existing Common
 Stock (for Consenting  Holders of
Existing Common Stock only)
                                             ---------

Percentage of Shares of Existing
Common Stock on fully diluted basis
 (for Consenting Holders of Existing
Common Stock only.)
                                             ---------

Address for Notices
[                                          ]

c/o Bain Capital, LLC
111 Huntington Avenue
Boston, MA 02199

with a copy to:

William F. McCarthy
Ropes & Gray
One International Place
Boston, MA 02110

<Page>

HOLDER OF RELEVANT CLAIM:

Name of Holder:

          BCIP TRUST ASSOCIATES, L.P.

By:      Bain Capital Investors, LLC
         -----------------------------
Its:     Management Committee
         -----------------------------

By:      /s/ ILLEGIBLE
         -----------------------------

Name:    -----------------------------

Title:   Managing Director
         -----------------------------

Aggregate Principal Amount of Old Notes:    $       --
                                             ---------
Aggregate Principal Amount of
 Existing Senior Debt:                      $       --
                                             ---------

Total Amount of Relevant Claim:             $       --
                                             ---------
Number of Shares of Existing Common
 Stock (for Consenting  Holders of
Existing Common Stock only)
                                             ---------

Percentage of Shares of Existing
Common Stock on fully diluted basis
 (for Consenting Holders of Existing
Common Stock only.)
                                             ---------

Address for Notices
[                                          ]

c/o Bain Capital, LLC
111 Huntington Avenue
Boston, MA 02199

with a copy to:

William F. McCarthy
Ropes & Gray
One International Place
Boston, MA 02110

<Page>

HOLDER OF RELEVANT CLAIM:

Name of Holder:

          BAIN CAPITAL FUND IV, L.P.

By:      Bain Capital Partners IV, L.P.
         -----------------------------
Its:     General Partner
         -----------------------------

By:      Bain Capital Investors, LLC
         -----------------------------
Its:     Managing Partner
         -----------------------------

By:      /s/ ILLEGIBLE
         -----------------------------

Name:    -----------------------------

Its:     Managing Director
         -----------------------------

Aggregate Principal Amount of Old Notes:    $7,738,000
                                             ---------
Aggregate Principal Amount of
 Existing Senior Debt:                      $       --
                                             ---------

Total Amount of Relevant Claim:             $7,738,000
                                             ---------
Number of Shares of Existing Common
 Stock (for Consenting  Holders of
Existing Common Stock only)
                                             ---------

Percentage of Shares of Existing
Common Stock on fully diluted basis
 (for Consenting Holders of Existing
Common Stock only.)
                                             ---------

Address for Notices
[                                          ]

c/o Bain Capital, LLC
111 Huntington Avenue
Boston, MA 02199

with a copy to:

William F. McCarthy
Ropes & Gray
One International Place
Boston, MA 02110

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:

BAIN CAPITAL FUND IV-B, L.P.

By: Bain Capital Partners IV, L.P.,
its general partner
By: Bain Capital Investors, LLC,
its general partner

By: /s/ [ILLEGIBLE]
   -----------------------------

Name:
Title: Managing Director

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $      8,861,000

Aggregate Principal Amount of
Existing Senior Debt:                          $             --

Total Amount of Relevant Claim:                $      8,861,000

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing Common
Stock on fully diluted basis (for
Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices
c/o Bain Capital, LLC
111 Huntington Avenue
Boston, MA 02199

With a copy to:

William P. McCarthy
Roper & Gray
One International Place
Boston, MA 02110

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:
GS-Dade, LLC

By: The Goldman Sachs Group, Inc., its managing member

By:   /s/ John E. Bowman
     ----------------------------------
Its:  John E. Bowman, Attorney-in-Fact
     ----------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $      9,269,000

Aggregate Principal Amount of
Existing Senior Debt:                          $_______________

Total Amount of Relevant Claim:                $_______________

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

c/o Goldman, Sachs Capital Partners, L.P.
85 Broad Street
New York, NY 10004
Attn: John Bowman

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:
Stone Street Fund 1994, L.P.
By: Stone Street 1994, L.L.C., its general partner

By:   /s/ John E. Bowman
     -----------------------------
Its:  John E. Bowman, V.P.
     -----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $___________

Aggregate Principal Amount of
Existing Senior Debt:                          $___________

Total Amount of Relevant Claim:                $___________

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                      325,862.00

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                   0.56%
</Table>

Address for Notices

C/O Goldman, Sachs Capital Partners, L.P.
85 Broad Street
New York, NY 10004
Attn: John Bowman

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:
Bridge Street Fund 1994, L.P.
By: Stone Street 1994, LLC, its general partner

By:   /s/ John E. Bowman
     -----------------------------
Its:  John E. Bowman, V.P.
     -----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $___________

Aggregate Principal Amount of
Existing Senior Debt:                          $___________

Total Amount of Relevant Claim:                $___________

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                      341,204.56

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                   0.59%
</Table>

Address for Notices

C/o Goldman, Sachs Capital Partners, L.P.
85 Broad Street
New York, NY 10004
Attn: John Bowman

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:
GS Capital Partners, L.P.
By: GS Advisors, LLC, its general partner

By:   /s/ John E. Bowman
     -----------------------------
Its:  John E. Bowman, V.P.
     -----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $____________

Aggregate Principal Amount of
Existing Senior Debt:                          $____________

Total Amount of Relevant Claim:                $____________

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                     5,959,128.88

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                    10.22%
</Table>

Address for Notices

85 Broad Street
New York, NY 10004
Attn: John Bowman

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: SILVER OAK CAPITAL, LLC

By:   /s/ [ILLEGIBLE]
     -----------------------------
Its:
     -----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $  51,837,000.00

Aggregate Principal Amount of
Existing Senior Debt:                          $  48,994,020.22

Total Amount of Relevant Claim:                $ 100,831,020.22

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices
[                               ]

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:     AG CAPITAL FUNDING PARTNERS, L.P.
                BY: ANGELO, GORDON & CO., L.P.,
                    AS INVESTMENT ADVISOR

By:   /s/ [ILLEGIBLE]
     -----------------------------
Its:
     -----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $  13,973,000.00

Aggregate Principal Amount of
Existing Senior Debt:                          $   9,046,888.37

Total Amount of Relevant Claim:                $  23,019,888.37

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices
[                               ]

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:
Wellington Management Company, LLP
as Investment Advisor on behalf of certain client accounts

By:  /s/ [ILLEGIBLE]
     ------------------------
Its: Vice President
     ------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $    1,810,000

Aggregate Principal Amount of
Existing Senior Debt:                          $            0

Total Amount of Relevant Claim:                $    1,810,000

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                 0

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                         0
</Table>

Address for Notices

75 State Street
Boston, MA 02109

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:    Oaktree Capital Management, LLC
                   as agent and on behalf of certain
                   funds and accounts

By:  /s/ [ILLEGIBLE]     /s/ [ILLEGIBLE]
     -----------------------------------------
Its: Managing Director   Vice President, Legal
     -----------------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $    6,510,000

Aggregate Principal Amount of
Existing Senior Debt:                          $            -

Total Amount of Relevant Claim:                $    6,510,000

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                 -

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                         -
</Table>

Address for Notices

333 S. Grand Ave.
28th Floor
Los Angeles, CA 90071

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:  SENECA CAPITAL LP

By:  /s/ [ILLEGIBLE]
     -----------------------------------
Its: DOUGLAS HIRSCH GENERAL PARTNER
     -----------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $     25,015,000

Aggregate Principal Amount of
Existing Senior Debt:                          $  92,678,145.42

Total Amount of Relevant Claim:                $ 117,693,145.42

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

527 MADISON, 11TH FLOOR
NEW YORK, NY 10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:  PARA PARTNERS L.P.

By:  /s/ Ronald Ray
     ----------------------------------------------
Its: CFO - BOSPHORUS PARTNERS LLC (GENERAL PARTNER)
     ----------------------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $      2,194,000

Aggregate Principal Amount of
Existing Senior Debt:                          $     12,140,900

Total Amount of Relevant Claim:                $     14,354,900

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

520 MADISON AVENUE
8TH FLOOR
NEW YORK, N.Y. 10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:  PARA INTERNATIONAL FUND LTD.

By:  /s/ Ronald Ray
     -------------------------------------------
Its: CFO - PARA ADVISORS INC. (ATTORNEY-IN-FACT)
     -------------------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $      1,490,000

Aggregate Principal Amount of
Existing Senior Debt:                          $      7,923,000

Total Amount of Relevant Claim:                $      9,413,000

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

C/O PARA ADVISORS INC
520 MADISON AVENUE
8TH FLOOR
NEW YORK, N.Y. 10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: PARA INVESTORS L.P.

By:  /s/ Ronald Ray
     ----------------------------------------------
Its: CFO - BOSPHORUS PARTNERS LLC (GENERAL PARTNER)
     ----------------------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $        582,000

Aggregate Principal Amount of
Existing Senior Debt:                          $      3,247,800

Total Amount of Relevant Claim:                $      3,829,800

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

520 MADISON AVE
8TH FLOOR
NEW YORK, N.Y. 10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: ALPHA US SUB FUND V LLC.

By:  /s/ Ronald Ray
     ----------------------------------
Its: CFO - PARA ADVISORS INC (MANAGER)
     ----------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $         97,000

Aggregate Principal Amount of
Existing Senior Debt:                          $        651,400

Total Amount of Relevant Claim:                $        748,400

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

C/O PARA ADVISORS INC.
520 MADISON AVENUE
8TH FLOOR
NEW YORK, N.Y. 10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: LXYOR MASTER FUND

By:  /s/ Ronald Ray
     ---------------------------------
Its: CFO - PARA ADVISORS INC (MANAGER)
     ---------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $        139,000

Aggregate Principal Amount of
Existing Senior Debt:                          $              0

Total Amount of Relevant Claim:                $        139,000

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

C/O PARA ADVISORS INC
520 MADISON AVENUE
8TH FLOOR
NEW YORK, N.Y. 10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:  PARIBAS LIQUID HEDGE FUND

By:  /s/ Ronald Ray
     ----------------------------------
Its: CFO - PARA ADVISORS INC (MANAGER)
     ----------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $         51,000

Aggregate Principal Amount of
Existing Senior Debt:                          $              0

Total Amount of Relevant Claim                 $         51,000

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

C/O PARA ADVISORS INC
520 MADISON AVE.
8TH FLOOR
NEW YORK, N.Y. 10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:  HFR ED OPPORTUNITY MASTER TRUST

By:  /s/ Ronald Ray
     ----------------------------------
Its: CFO - PARA ADVISORS INC (MANAGER)
     ----------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $         47,000

Aggregate Principal Amount of
Existing Senior Debt:                          $              0

Total Amount of Relevant Claim:                $         47,000

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

C/O PARA ADVISORS INC
520 MADISON AVENUE
8TH FLOOR
NEW YORK, N.Y. 10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:  Bedford Falls Investor, L.P.

By:  /s/ [ILLEGIBLE]
     -----------------------------------------------------------------------
Its: President of Metropoliton Capital Advisors, Inc., the general partner
     of the general partner.
     -----------------------------------------------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $        700,000

Aggregate Principal Amount of
Existing Senior Debt:                          $      5,145,834

Total Amount of Relevant Claim:                $      5,845,834

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

Bedford Falls Investors, L.P.
Attention:  Scott Cohen
660 Madison Avenue, 20th Floor
New York, NY 10021
Phone: 212-486-8100
Fax: 212-355-7480
E-Mail: scohen@metrocap.net

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:  Metropoliton Capital Advisors International Limited

By:  /s/ [ILLEGIBLE]
     --------------------------------------------------------------
Its: President of the General Partner of the Investment Manager,
     Metropoliton Capital III, Inc.
     --------------------------------------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $        925,000

Aggregate Principal Amount of
Existing Senior Debt:                          $_______________

Total Amount of Relevant Claim:                $        925,000

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

Metropoliton Capital Advisors International Limited
Attention: Scott Cohen
660 Madison Avenue, 20th Floor
New York, NY 10021
Phone: 212-486-8100
Fax: 212-355-7480
E-Mail: scohen@metrocap.net

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:  York Capital

By:  /s/ [ILLEGIBLE]
     ----------------------------------
Its: Managing Director
     ----------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $     25,215,000

Aggregate Principal Amount of
Existing Senior Debt:                          $_______________

Total Amount of Relevant Claim:                $_______________

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

York Capital Management
350 Park Ave 4th Fl.
New York, NY 10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:  P&S CAPITAL PARTNERS LLC
                 ON BEHALF OF GRACIE CAPITAL

By:  /s/ [ILLEGIBLE]
     ----------------------------------
Its: MANAGING MEMBER
     ----------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $     25,525,000

Aggregate Principal Amount of
Existing Senior Debt:                          $    [ILLEGIBLE]

Total Amount of Relevant Claim:                $    [ILLEGIBLE]

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                  --

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                          --
</Table>

Address for Notices

GRACIE CAPITAL
527 MADISON AVENUE
11TH FLOOR
NEW YORK, NY 10022

ATTN: GREG PEARSON
PHONE: (212) 319-8000
FAX: (212) 888-9576
E-MAIL: pearson@graciecap.com

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:  PSAM Allegro Partners, LP

By:  /s/ Frank Argenziano
     ----------------------------------
Its: Frank Argenziano, CFO
     ----------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $        596,000

Aggregate Principal Amount of
Existing Senior Debt:                          $             --

Total Amount of Relevant Claim:                $             --

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                  --

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                          --
</Table>

Address for Notices

P. SCHOENFELD ASST. MGMT. LLC
1330 AVENUE OF THE AMERICAS
NEW YORK, NY 10019

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:  PSAM GPS Fund, Ltd.

By:  /s/ Frank Argenziano
     ----------------------------------
Its: Frank Argenziano, CFO
     ----------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $        364,000

Aggregate Principal Amount of
Existing Senior Debt:                          $             --

Total Amount of Relevant Claim:                $             --

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                  --

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                          --
</Table>

Address for Notices

P. SCHOENFELD ASST. MGMT. LLC
1330 AVENUE OF THE AMERICAS
NEW YORK, NY 10019

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: PSAM WorldArb Partners, L.P.

By:  /s/ Frank Argenziano
     ----------------------------
Its: Frank Argenziano, CFO
     ----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $        814,000

Aggregate Principal Amount of
Existing Senior Debt:                          $             --

Total Amount of Relevant Claim:                $             --

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                  --

Percentage of Shares of Existing
Common Stock on fully diluted basis (for
Consenting Holders of Existing
Common Stock only.)                                          --
</Table>

Address for Notices

P. SCHOENFELD ASST. MGMT. LLC
1330 AVENUE OF THE AMERICAS
NEW YORK, NY 10019

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: PSAM GPS Minneapolis

By:  /s/ Frank Argenziano
     ----------------------------
Its: Frank Argenziano, CFO
     ----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $        180,000

Aggregate Principal Amount of
Existing Senior Debt:                          $             --

Total Amount of Relevant Claim:                $             --

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                  --

Percentage of Shares of Existing
Common Stock on fully diluted basis (for
Consenting Holders of Existing
Common Stock only.)                                          --
</Table>

Address for Notices

P. SCHOENFELD ASST. MGMT. LLC
1330 AVENUE OF THE AMERICAS
NEW YORK, NY 10019

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: One Wall Street Partners, LP

By:  /s/ Frank Argenziano
     ----------------------------
Its: Frank Argenziano, CFO
     ----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $         35,000

Aggregate Principal Amount of
Existing Senior Debt:                          $             --

Total Amount of Relevant Claim:                $             --

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                  --

Percentage of Shares of Existing
Common Stock on fully diluted basis (for
Consenting Holders of Existing
Common Stock only.)                                          --
</Table>

Address for Notices

P. SCHOENFELD ASST. MGMT. LLC
1330 AVENUE OF THE AMERICAS
NEW YORK, NY 10019

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: PSAM Panorama Fund, Ltd.

By:  /s/ Frank Argenziano
     ----------------------------
Its: Frank Argenziano, CFO
     ----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $      3,048,000

Aggregate Principal Amount of
Existing Senior Debt:                          $             --

Total Amount of Relevant Claim:                $             --

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                  --

Percentage of Shares of Existing
Common Stock on fully diluted basis (for
Consenting Holders of Existing
Common Stock only.)                                          --
</Table>

Address for Notices

P. SCHOENFELD ASST. MGMT. LLC
1330 AVENUE OF THE AMERICAS
NEW YORK, NY 10019

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: Rumpere Capital Trading Partners, Ltd.

By:  /s/ Frank Argenziano
     ----------------------------
Its: Frank Argenziano, CFO
     ----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $        640,000

Aggregate Principal Amount of
Existing Senior Debt:                          $             --

Total Amount of Relevant Claim:                $             --

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                  --

Percentage of Shares of Existing
Common Stock on fully diluted basis (for
Consenting Holders of Existing
Common Stock only.)                                          --
</Table>

Address for Notices

P. SCHOENFELD ASST. MGMT. LLC
1330 AVENUE OF THE AMERICAS
NEW YORK, NY 10019

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: Spartan Partners, LP

By:  /s/ Frank Argenziano
     ----------------------------
Its: Frank Argenziano, CFO
     ----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $        960,000

Aggregate Principal Amount of
Existing Senior Debt:                          $             --

Total Amount of Relevant Claim:                $             --

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                  --

Percentage of Shares of Existing
Common Stock on fully diluted basis (for
Consenting Holders of Existing
Common Stock only.)                                          --
</Table>

Address for Notices

P. SCHOENFELD ASST. MGMT. LLC
1330 AVENUE OF THE AMERICAS
NEW YORK, NY 10019

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: PSAM GPS Texas LLC

By:  /s/ Frank Argenziano
     ----------------------------
Its: Frank Argenziano, CFO
     ----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $        126,000

Aggregate Principal Amount of
Existing Senior Debt:                          $             --

Total Amount of Relevant Claim:                $             --

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                  --

Percentage of Shares of Existing
Common Stock on fully diluted basis (for
Consenting Holders of Existing
Common Stock only.)                                          --
</Table>

Address for Notices

P. SCHOENFELD ASST. MGMT. LLC
1330 AVENUE OF THE AMERICAS
NEW YORK, NY 10019

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: PSAM World Arb Fund Ltd.

By:  /s/ Frank Argenziano
     ----------------------------
Its: Frank Argenziano, CFO
     ----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $      1,153,000

Aggregate Principal Amount of
Existing Senior Debt:                          $             --

Total Amount of Relevant Claim:                $             --

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                  --

Percentage of Shares of Existing
Common Stock on fully diluted basis (for
Consenting Holders of Existing
Common Stock only.)                                          --
</Table>

Address for Notices

P. SCHOENFELD ASST. MGMT. LLC
1330 AVENUE OF THE AMERICAS
NEW YORK, NY 10019

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: West Bay International Co.

By:  /s/ Frank Argenziano
     ----------------------
Its: Frank Argenziano, CFO
     ----------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $        758,000

Aggregate Principal Amount of
Existing Senior Debt:                          $             --

Total Amount of Relevant Claim:                $             --

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                  --

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                          --
</Table>

Address for Notices

P. SCHOENFELD ASST. MGMT. LLC
1330 AVENUE OF THE AMERICAS
NEW YORK, NY 10019

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: WSCI Limited Partnership

By:  /s/ Frank Argenziano
     ---------------------
Its: Frank Argenziano, CFO
     ---------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $      1,326,000

Aggregate Principal Amount of
Existing Senior Debt:                          $             --

Total Amount of Relevant Claim:                $             --

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                  --

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                          --
</Table>

Address for Notices

P. SCHOENFELD ASST. MGMT. LLC
1330 AVENUE OF THE AMERICAS
NEW YORK, NY 10019

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: Scoggin Capital Management LP II
                By: [ILLEGIBLE]
                By: Scoggin Inc its: GP

By:  /s/ [ILLEGIBLE]
     ---------------
Its: [ILLEGIBLE] President
     ----------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $     13,612,500

Aggregate Principal Amount of
Existing Senior Debt:                          $_______________

Total Amount of Relevant Claim                 $     13,612,500

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

660 Madison Avenue
20th Floor
New York  NY 10021
Attn: Renee Koevary
      Dev Chodry

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: Scoggin International Fund Ltd.
                By: Scoggin LLC its: trading advisors

By:  /s/ [ILLEGIBLE]
     ----------------
Its: [ILLEGIBLE] Managing Member
     ---------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $     13,782,500

Aggregate Principal Amount of
Existing Senior Debt:                          $_______________

Total Amount of Relevant Claim:                $     13,782,500

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

660 Madison Avenue
20th Floor
New York  NY 10021
Attn: Renee Koevary
      Dev Chodry

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: Deutsche Bank Trust Company Americas

By:  /s/ Clark G. Peterson  [ILLEGIBLE]
     ----------------------------------
Its: Clark G. Peterson  Vice President
     ----------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $_______________

Aggregate Principal Amount of
Existing Senior Debt:                          $ 110,172,382.55

Total Amount of Relevant Claim:                $ 110,172,382.55

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

Attn: Clark Peterson
Deutsche Bank
MS. NYC01-0715
31 West 52 Street
New York, NY
10019

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: AG CAPITAL FUNDING PARTNERS, LP.
                BY: ANGELO, GORDON & CO., LP.,
                    AS INVESTMENT ADVISOR

By:  /s/ [ILLEGIBLE]
     ---------------
Its:
     ---------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $ 13,973,000.00

Aggregate Principal Amount of
Existing Senior Debt:                          $  9,046,888.37

Total Amount of Relevant Claim:                $ 23,019,888.37

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    _______________

Percentage of Shares of Existing
 Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            _______________
</Table>

Address for Notices
[                          ]

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: ALPHA US SUB FUND V LLC
                PARA ADVISORS INC. (MANAGER)

By:  /s/ Ronald Ray
     --------------------------------
Its: CFO-PARA ADVISORS INC (MANAGER)
     --------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $____________

Aggregate Principal Amount of
Existing Senior Debt:                          $  459,769.57

Total Amount of Relevant Claim:                $  459,769.57

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    _____________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            _____________
</Table>

Address for Notices

C/o PARA ADVISORS INC
520 MADISON AVENUE
8TH FLOOR
NEW YORK, N.Y. 10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: KZH CypressTree-I LLC

By:  /s/ Joyce Fraser-Bryant
     ---------------------------------------
Its: AUTHORIZED AGENT
     ---------------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $            N/A

Aggregate Principal Amount of
Existing Senior Debt:                          $  11,100,955.04

Total Amount of Relevant Claim:                $  11,100,955.04

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                 N/A

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                         N/A
</Table>

Address for Notices

KZH Cypress Tree-I LLC
c/o Virginia Conway
JPMorgan Chase Bank
140 East 45th St., 11th Floor
New York, NY 10017

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: KZH ING-2 LLC

By:  /s/ Joyce Fraser-Bryant
     -------------------------
Its: AUTHORIZED AGENT
     -------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $            N/A

Aggregate Principal Amount of
Existing Senior Debt:                          $   8,624,612.56

Total Amount of Relevant Claim:                $   8,624,612.56

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                 N/A

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                         N/A
</Table>

Address for Notices

KZH ING-2 LLC
c/o Virginia Cooway
JPMorgan Chase Bank
140 East 45th St., 11th Floor
New York, NY 10017

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT
<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:  NORTHWOODS CAPITAL LIMITED
                 BY: ANGELO, GORDON & CO., L.P.,
                     AS COLLATERAL MANAGER

By:  /s/ [ILLEGIBLE]
     --------------------------
Its:
     --------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $_______________

Aggregate Principal Amount of
Existing Senior Debt:                          $   3,538,281.??

Total Amount of Relevant Claim:                $_______________

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices
[                                 ]

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: NORTHWOODS CAPITAL II, LIMITED
                BY: ANGELO, GORDON & CO., L.P.,
                    AS COLLATERAL MANAGER

By:  /s/ [ILLEGIBLE]
     --------------------------
Its:
     --------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $_______________

Aggregate Principal Amount of
Existing Senior Debt:                          $   2,394,626.[ILLEGIBLE]

Total Amount of Relevant Claim:                $_______________

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices
[                                 ]

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: SILVER OAK CAPITAL, LLC.

By:  /s/ [ILLEGIBLE]
     --------------------------
Its:
     --------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $  51,837,000.00

Aggregate Principal Amount of
Existing Senior Debt:                          $  48,994,020.22

Total Amount of Relevant Claim:                $ 100,831,020.22

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices
[                                 ]

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: AVENUE SPECIAL SITUATIONS FUND II

By:  /s/ [ILLEGIBLE]
     --------------------------
Its:
     --------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $            --

Aggregate Principal Amount of
Existing Senior Debt:                          $ 35,394,710.72

Total Amount of Relevant Claim:                $ 35,394,710.72

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                 --

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                         --
</Table>

Address for Notices
[                                 ]

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:

By:  /s/ [ILLEGIBLE]
     --------------------------
Its: Bear Stearns & Co. Inc.
     --------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $          --

Aggregate Principal Amount of
Existing Senior Debt:                          $  15,520,184 [ILLEGIBLE]

Total Amount of Relevant Claim:                $____________

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                               --

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                       --
</Table>

Address for Notices

383 MADISON AVE.
8th Floor,
NY, NY 10179

ATTN: [ILLEGIBLE]

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: BedFord Falls Investors, L.P.

By:  /s/ [ILLEGIBLE]
     --------------------------
Its: President, Metropoliton Capital Advisors, Inc., the general partner of
     the general partner.
     ----------------------------------------------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $   700,000

Aggregate Principal Amount of
Existing Senior Debt:                          $ 5,145,834

Total Amount of Relevant Claim:                $ 5,845,834

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ___________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ___________
</Table>

Address for Notices

BedFord Falls Investors, L.P.
Attention: Scott Cohen
660 Madison Avenue, 20th Floor
New York, NY 10021
Phone: 212-486-8100
Fax: 212-355-7480
E-Mail: scohen@metrocap.net

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: Blue Ridge L.P.

By:  /s/ [ILLEGIBLE]
     --------------------------
Its: Managing Director
     --------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $______________

Aggregate Principal Amount of
Existing Senior Debt:                          $ 29,687,977.41

Total Amount of Relevant Claim:                $______________

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    _______________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            _______________
</Table>

Address for Notices
[                                 ]

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: BNP Paribas

By:  /s/ [ILLEGIBLE]
     ------------------------------------
Its: [ILLEGIBLE] MANAGING DIRECTOR
     ------------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $_______________

Aggregate Principal Amount of
Existing Senior Debt:                          $      3,864,756

Total Amount of Relevant Claim:                $      3,864,756

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

787 7th Ave, 3rd Floor
NY, NY 10019
Attn: Paul [ILLEGIBLE]

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: DICKSTEIN & CO., L.P.
                By: Dickstein Partners, L.P.
                By: Dickstein Partners Inc.

By:  /s/ Edward Farr
     ------------------------------
Its: V.P. Vice President
     ------------------------------

By:  /s/ Edward Farr
     ------------------------------
     Name:  Edward Farr
           ----------------------------
     Title: Vice President
           ----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $______________

Aggregate Principal Amount of
Existing Senior Debt:                          $ 19,700,519.63

Total Amount of Relevant Claim:                $ 19,700,519.63

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    _______________

Percentage of Shares of Existing Common
Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            _______________
</Table>

Address for Notices

DICKSTEIN & CO., L.P.
[ILLEGIBLE] Madison Ave, 16th Floor
New York, NY 10021
Attn: Leigh Waxman
Tel: 212-754-4000
Fax: 212-754-5825

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: FERNWOOD ASSOCIATES L.P.

By:  /s/ DAVID B. [ILLEGIBLE]
     -------------------------------
Its: GENERAL PARTNER
     ------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $             0

Aggregate Principal Amount of
Existing Senior Debt:                          $ 14,522,002.00

Total Amount of Relevant Claim:                $ 14,522,002.00

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    _______________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            _______________
</Table>

Address for Notices

CREDIT CONTACT:
Jay P. Teevan
Intermarket Corporation
667 Madison Avenue
20th Floor
New York, NY 10021
(212) 593-1550(p)
(212) 832-4997(f)

ADMINISTRATIVE CONTACT:
Laura M. Zaki
Intermarket Corporation
667 Madison Avenue
20th Floor
New York, NY 10021
(212) 593-1550(p)
(212) 832-4997(f)

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:

By:  Goldman Sachs Credit Partners LP
     ----------------------------------
Its:
     ----------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $           N/A

Aggregate Principal Amount of
Existing Senior Debt:                          $ 41,440,082.43

Total Amount of Relevant Claim:                $           N/A

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                N/A

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                        N/A
</Table>

Address for Notices

Primary E mail: gsd.link@gs.com
c/o Goldman Sachs & Co.
85 Broad St. - 6th Floor
New York, New York 10004
Fax 212 428 1243
Attn: Philip Green

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: P&S CAPITAL PARTNERS LLC
     ON BEHALF OF GRACIE CAPITAL

By:  /s/ [ILLEGIBLE]
     -----------------------------
Its: MANAGING MEMBER
     -----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $    25,525,000

Aggregate Principal Amount of
Existing Senior Debt:                          $ 31,762,507.26

Total Amount of Relevant Claim:                $ 57,287,507.26

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                 --

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                         --
</Table>

Address for Notices

GRACIE CAPITAL
527 MADISON AVENUE
11TH FLOOR
NEW YORK, NY 10022

ATTN: GREG PEARSON
PHONE: (212) 319-8000
FAX: (212) 888-9576
E-MAIL: pearson@graciecap.com

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: Halcyon Restructuring Fund, L.P.
            By: Halcyon Alan B. Slitka Management Co. LLC.
            Its MANAGING GENERAL PARTNER.

By:  /s/ James Pasquarelli
     --------------------------
Its: Chief Financial Officer
     --------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $______________

Aggregate Principal Amount of
Existing Senior Debt:                          $ 77,089,957.53

Total Amount of Relevant Claim:                $ 77,089,957.53

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    _______________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            _______________
</Table>

Address for Notices

BRUCE FALBAUM
JAMES SYKES
JIM PASQUARELLI
HALCYON PARTNERSHIPS
477 MADISON AVENUE
NEW YORK, NY 10022.

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM: HARVEST SENIOR INCOME PARTNERS
                      by: HARVEST INCOME ADVISORS, L.L.C., as
                          Investment Manager

Name of Holder:

By:  /s/ [ILLEGIBLE]
     --------------------------
Its:
     --------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $______________

Aggregate Principal Amount of
Existing Senior Debt:                          $  1,484,450.89

Total Amount of Relevant Claim:                $  1,484,450.89

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    _______________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            _______________
</Table>

Address for Notices

HARVEST MANAGEMENT LLC
600 MADISON AVENUE
11TH FLOOR
NYC, NY 10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: ING Capital LLC
as agent for Middenbank Curacao, N.V.

By:  /s/ William Soto
     -----------------------------
Its: Vice President
     -----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $______________

Aggregate Principal Amount of
Existing Senior Debt:                          $  4,875,897.02

Total Amount of Relevant Claim:                $  4,875,897.02

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    _______________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            _______________
</Table>

Address for Notices

1325 Avenue of Americas - 6th FL
New York, NY 10019

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: 02 Master Fund Ltd.
                By: 02 Management LLC
                    as Investment Manager

By:  /s/ [ILLEGIBLE]
     ----------------------
Its: Senior Managing Member
     ----------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $              0

Aggregate Principal Amount of
Existing Senior Debt:                          $ 205,024,594.30*

Total Amount of Relevant Claim:                $ 205,024,594.30*

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                   0

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                           0
</Table>

Address for Notices

c/o 02 Management, LLC
9 West 57th Street
39th Floor
New York, NY 10019

* Descrepency due to foreign exchange rate and other misc. items.

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: 02F Credit Opportunities Master Fund, Ltd.
                By: 02F Management, LP
                    as Investment Manager

By:  /s/ [ILLEGIBLE]
     -----------------------
Its: Senior Managing Members
     -----------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $              0

Aggregate Principal Amount of
Existing Senior Debt:                          $  27,341,276.52*

Total Amount of Relevant Claim:                $  27,341,276.52*

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                   0

Percentage of Shares of Existing
Common Stock on fully diluted basis (for
Consenting Holders of Existing
Common Stock only.)                                           0
</Table>

Address for Notices

c/o 02F Management, LP
9 West 57th Street
39th Floor
New York, NY 10019

* Descrepency due to foreign exchange rate and other misc. items.

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: 02F Credit Opportunities Master Fund II, Ltd.
                By: 02F Management, LP
                    as Investment Manager

By:  /s/ [ILLEGIBLE]  /s/ [ILLEGIBLE]
     -----------------------
Its: Senior Managing Members
     -----------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $              0

Aggregate Principal Amount of
Existing Senior Debt:                          $  38,502,881.48*

Total Amount of Relevant Claim:                $  38,502,881.48*

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                   0

Percentage of Shares of Existing
Common Stock on fully diluted basis (for
Consenting Holders of Existing
Common Stock only.)                                           0
</Table>

Address for Notices

c/o 02F Management, LP
9 West 57th Street
39th Floor
New York, NY 10019

* descrepency due to foreign exchange rate and other misc. items.

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: PARA INTERNATIONAL FUND LTD.

By:  /s/ Ronald Ray
     ----------------------------------------
Its: CFO-PARA ADVISORS INC (ATTORNEY-IN-FACT)
     ----------------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $_______________

Aggregate Principal Amount of
Existing Senior Debt:                          $   6,336,034.75 (BANK DEBT)

Total Amount of Relevant Claim:                $   6,336,034.75

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing Common Stock
on fully diluted basis (for
Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

c/o PARA ADVISORS INC
520 MADISON AVE.
8TH FLOOR
NEW YORK, N.Y. 10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: PARA INVESTORS L.P.

By:  /s/ Ronald Ray
     -----------------------------
Its: CFO - BOSPHORUS PARTNERS LLC (GENERAL PARTNER)
     -----------------------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $______________

Aggregate Principal Amount of
Existing Senior Debt:                          $  1,843,495.39 (BANK DEBT)

Total Amount of Relevant Claim:                $  1,843,495.39

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    _______________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            _______________
</Table>

Address for Notices

520 MADISON AVE
8TH FLOOR
NEW YORK, N.Y.10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: PARA PARTNERS L.P.

By:  /s/ Ronald Ray
     -----------------------------
Its: CFO - BOSPHORUS PARTNERS LLC (GENERAL PARTNER)
     -----------------------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $______________

Aggregate Principal Amount of
Existing Senior Debt:                          $  6,944,041.06 (BANK DEBT)

Total Amount of Relevant Claim:                $  6,944,041.06

Number of Shares of Existing Common
Stock (for Consenting Holders of Existing
Common Stock only)                             _______________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            _______________
</Table>

Address for Notices

520 MADISON AVENUE
8TH FLOOR
NEW YORK, N.Y.10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:  Scoggin Capital Management LP II
                 By: [ILLEGIBLE]
                 By: Scoggin Inc. Its: [ILLEGIBLE]

By:  /s/ [ILLEGIBLE]
     ---------------------------------
Its: [ILLEGIBLE] President
     ---------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $______________

Aggregate Principal Amount of
Existing Senior Debt:                          $ 27,268,001.38

Total Amount of Relevant Claim:                $______________

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    _______________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            _______________
</Table>

Address for Notices

660 Madison Avenue
20th Floor
New York NY 10021
Attn: Renee Koevary
      Dev Chodry

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder:  Scoggin International Fund Ltd.
                 By: Scoggin LLC its: trading advisors

By:  /s/ [ILLEGIBLE]
     ----------------------------
Its: [ILLEGIBLE] Managing Member
     ----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $______________

Aggregate Principal Amount of
Existing Senior Debt:                          $ 27,268,001.36

Total Amount of Relevant Claim:                $______________

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    _______________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            _______________
</Table>

Address for Notices

660 Madison Avenue
20th Floor
New York NY 10021
Attn: Renee Koevary
      Dev Chodry

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: SENECA CAPITAL LP

By:  /s/ [ILLEGIBLE]
     ----------------------------
Its: [ILLEGIBLE] GENERAL PARTNER
     ----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $     25,015,000

Aggregate Principal Amount of
Existing Senior Debt:                          $  92,678,145.42

Total Amount of Relevant Claim:                $ 117,693,145.42

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ________________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ________________
</Table>

Address for Notices

527 MADISON, 11TH FLOOR
NEW YORK, NY 10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM: Stein Roe Floating Rate Limited Liability Company

Name of Holder: [ILLEGIBLE]

By:  /s/ [ILLEGIBLE]
     ------------------------------------------
Its: Senior Vice President
     ------------------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $            0

Aggregate Principal Amount of
Existing Senior Debt:                          $ 5,867,345.86

Total Amount of Relevant Claim:                $ 5,867,345.86

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                 0

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                         0
</Table>

Address for Notices
[                                   ]

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM: Liberty - Stein Roe Advisor Floating Rate
                          Advantage Fund
                          by Stein Roe & Farnharn Incorporated, as Advisor

Name of Holder:

By:  /s/ James [ILLEGIBLE] Fellows
     --------------------------------------
Its: James [ILLEGIBLE] Fellows
     Sr. Vice President & Portfolio Manager
     --------------------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $            0

Aggregate Principal Amount of
Existing Senior Debt:                          $ 3,894,280.81

Total Amount of Relevant Claim:                $ 3,894,280.81

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                 0

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                         0
</Table>

Address for Notices
[                                   ]

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: Tenso? Endowment Limited

By:  /s/ [ILLEGIBLE]
     ----------------------------
Its: Treasurer
     ----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $ ____________

Aggregate Principal Amount of
Existing Senior Debt:                          $ 2,932,476.24

Total Amount of Relevant Claim:                $ 2,932,476.24

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    ______________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            ______________
</Table>

Address for Notices

M. Safra & Co
Attn: Bill Bokos
590 Madison Avenue
27th Floor
New York, NY 10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: VAN KAMPEN
                PRIME RATE INCOME TRUST
                By: Van Kampen Investment Advisory Corp.

By:  /s/ BRIAN BUSCHER
     ----------------------------
Its:      MANAGER
     ----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $           N/A

Aggregate Principal Amount of
Existing Senior Debt:                          $ 17,449,001.94

Total Amount of Relevant Claim:                $ 17,449,001.94

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                N/A

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                        N/A
</Table>

Address for Notices
[See Attached]

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: VAN KAMPEN
                SENIOR FLOATING RATE FUND
                By: Van Kampen Investment Advisory Corp.

By:  /s/ BRIAN BUSCHER
     ----------------------------
Its: MANAGER
     ----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $          N/A

Aggregate Principal Amount of
Existing Senior Debt:                          $ 3,158,118.04

Total Amount of Relevant Claim:                $ 3,158,118.04

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                               N/A

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                       N/A
</Table>

Address for Notices

[See Attached]

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: VAN KAMPEN SENIOR INCOME TRUST
                By: Van Kampen Investment Advisory Corp.

By:  /s/ BRIAN BUSCHER
     ----------------------------
Its: MANAGER
     ----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $           N/A

Aggregate Principal Amount of
Existing Senior Debt:                          $ 11,295,336.23

Total Amount of Relevant Claim:                $ 11,295,336.23

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                                N/A

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                                        N/A
</Table>

Address for Notices
[See Attached]

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENT

<Page>

                                                                 EXECUTION DRAFT
                                               SETTLEMENT COMMUNICATION GOVERNED
                                                 BY FEDERAL RULE OF EVIDENCE 408

HOLDER OF RELEVANT CLAIM:

Name of Holder: Alan H. Cohen

By:  /s/ [ILLEGIBLE]
     ----------------------------
Its: Managing Director
     ----------------------------

<Table>
<S>                                            <C>
Aggregate Principal Amount of Old Notes:       $______________

Aggregate Principal Amount of
Existing Senior Debt:                          $ 51,889,441.28

Total Amount of Relevant Claim:                $______________

Number of Shares of Existing Common
Stock (for Consenting Holders of
Existing Common Stock only)                    _______________

Percentage of Shares of Existing
Common Stock on fully diluted basis
(for Consenting Holders of Existing
Common Stock only.)                            _______________
</Table>

Address for Notices

York Capital Management
350 Park Ave 4th Floor
New York, NY 10022

            SIGNATURE PAGES TO LOCK UP, VOTING AND CONSENT AGREEMENTTHIS  WARRANT AND THE SHARES  ISSUABLE  UPON THE EXERCISE OF
          THIS WARRANT HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES
          ACT OF 1933,  AS  AMENDED.  EXCEPT  AS  OTHERWISE  SET FORTH
          HEREIN OR IN A  SECURITIES  PURCHASE  AGREEMENT  DATED AS OF
          JANUARY  24,  2002,  NEITHER  THIS  WARRANT  NOR ANY OF SUCH
          SHARES MAY BE SOLD,  TRANSFERRED  OR ASSIGNED IN THE ABSENCE
          OF AN EFFECTIVE  REGISTRATION  STATEMENT FOR SUCH SECURITIES
          UNDER SAID ACT OR, AN OPINION OF COUNSEL, IN FORM, SUBSTANCE
          AND SCOPE,  CUSTOMARY  FOR OPINIONS OF COUNSEL IN COMPARABLE
          TRANSACTIONS,  THAT  REGISTRATION IS NOT REQUIRED UNDER SUCH
          ACT OR UNLESS SOLD PURSUANT TO RULE 144 UNDER SUCH ACT.

                                                                        Right to
                                                                        Purchase
                                                                         333,332
                                                                       Shares of
                                                                          Common
                                                                      Stock, par
                                                                    value $0.001
                                                                       per share

                             STOCK PURCHASE WARRANT

     THIS CERTIFIES THAT, for value received,  Pegasus Capital Partners,  LLC or
its registered  assigns,  is entitled to purchase from Insynq,  Inc., a Delaware
corporation (the "Company"),  at any time or from time to time during the period
specified in Paragraph 2 hereof,  Three  Hundred  Thirty-Three  Thousand,  Three
Hundred  Thirty-Two  (333,332)  fully  paid  and  nonassessable  shares  of  the
Company's Common Stock,  par value $0.001 per share (the "Common Stock"),  at an
exercise  price per share  equal to the lesser of (i) $.007 and (ii) the average
of lowest  three (3) Trading  Prices (as defined  below)  during the twenty (20)
Trading Days (as defined  below)  immediately  prior to exercise (the  "Exercise
Price").  The term  "Warrant  Shares," as used  herein,  refers to the shares of
Common Stock  purchasable  hereunder.  The Warrant Shares and the Exercise Price
are subject to adjustment as provided in Paragraph 4 hereof. The term "Warrants"
means this  Warrant  and the other  warrants  issued  pursuant  to that  certain
Securities Purchase Agreement,  dated January 24, 2002, by and among the Company
and the Buyers listed on the execution  page thereof (the  "Securities  Purchase
Agreement").  "Trading  Price"  means,  for any  security  as of any  date,  the
inter-day trading price on the Over-the-Counter  Bulletin Board (the "OTCBB") as
reported by Bloomberg  Financial  Markets or an equivalent,  reliable  reporting
service mutually  acceptable to the Company and the holder hereof  ("Bloomberg")
or, if the OTCBB is not the  principal  trading  market for such  security,  the
inter-day trading price of such security on the principal securities exchange or
trading  market where such security is listed or traded as reported by Bloomberg
or, if no inter-day  trading  price of such  security is available in any of the
foregoing  manners,  the average of the inter-day  trading  prices of any market
makers for such  security  that are listed in the "pink  sheets" by the National
Quotation  Bureau,  Inc.  If the Trading  Price  cannot be  calculated  for such
security on such date in the manner provided  above,  the Trading Price shall be
the fair  market  value as  mutually  determined  by the  Company and the holder
hereof.  "Trading Day" shall mean any day on which the Common Sock is traded for
any  period on the  OTCBB,  or on the  principal  securities  exchange  or other
securities market on which the Common Stock is then being traded.

     This Warrant is subject to the following terms, provisions, and conditions:

1.   Manner of Exercise;  Issuance of Certificates;  Payment for Shares. Subject
     to the  provisions  hereof,  this  Warrant may be  exercised  by the holder
     hereof,  in whole or in part, by the  surrender of this  Warrant,  together
     with a  completed  exercise  agreement  in the form  attached  hereto  (the
     "Exercise  Agreement"),  to the Company during normal business hours on any
     business day at the Company's  principal  executive  offices (or such other
     office or agency of the Company as it may designate by notice to the holder
     hereof),  and upon (i)  payment to the  Company in cash,  by  certified  or
     official  bank check or by wire  transfer for the account of the Company of
     the  Exercise  Price  for the  Warrant  Shares  specified  in the  Exercise
     Agreement or (ii) if the resale of the Warrant  Shares by the holder is not
     then registered pursuant to an effective  registration  statement under the
     Securities Act of 1933, as amended (the "Securities Act"),  delivery to the
     Company of a written notice of an election to effect a "Cashless  Exercise"
     (as defined in Section 11(c) below) for the Warrant Shares specified in the
     Exercise  Agreement.  The Warrant Shares so purchased shall be deemed to be
     issued to the holder hereof or such holder's designee,  as the record owner
     of such  shares,  as of the  close of  business  on the date on which  this
     Warrant shall have been surrendered, the completed Exercise Agreement shall
     have been  delivered,  and payment  shall have been made for such shares as
     set  forth  above.  Certificates  for  the  Warrant  Shares  so  purchased,
     representing  the  aggregate  number of shares  specified  in the  Exercise
     Agreement,  shall be  delivered  to the holder  hereof  within a reasonable
     time, not exceeding three (3) business days,  after this Warrant shall have
     been  so  exercised.  The  certificates  so  delivered  shall  be  in  such
     denominations  as may be  requested  by the  holder  hereof  and  shall  be
     registered  in the  name of such  holder  or such  other  name as  shall be
     designated by such holder.  If this Warrant shall have been  exercised only
     in part, then,  unless this Warrant has expired,  the Company shall, at its
     expense,  at the time of  delivery  of such  certificates,  deliver  to the
     holder a new  Warrant  representing  the number of shares  with  respect to
     which this Warrant shall not then have been  exercised.  In addition to all
     other  available  remedies  at law or in equity,  if the  Company  fails to
     deliver  certificates for the Warrant Shares within three (3) business days
     after this Warrant is  exercised,  then the Company shall pay to the holder
     in cash a penalty  (the  "Penalty")  equal to 2% of the  number of  Warrant
     Shares that the holder is entitled to  multiplied  by the Market  Price for
     each day that the  Company  fails to deliver  certificates  for the Warrant
     Shares.  For example,  if the holder is entitled to 100,000  Warrant Shares
     and the Market  Price is $2.00,  then the  Company  shall pay to the holder
     $4,000 for each day that the Company fails to deliver  certificates for the
     Warrant Shares.  The Penalty shall be paid to the holder by the fifth (5th)
     day of the month following the month in which it has accrued.

     Notwithstanding anything in this Warrant to the contrary, in no event shall
     the holder of this Warrant be entitled to exercise a number of Warrants (or
     portions thereof) in excess of the number of Warrants (or portions thereof)
     upon  exercise of which the sum of (i) the number of shares of Common Stock
     beneficially  owned by the holder and its affiliates  (other than shares of
     Common Stock which may be deemed  beneficially  owned through the ownership
     of the unexercised  Warrants and the unexercised or unconverted  portion of
     any other  securities of the Company  (including the Debentures (as defined
     in  the  Securities  Purchase   Agreement))  subject  to  a  limitation  on
     conversion or exercise  analogous to the limitation  contained  herein) and
     (ii) the number of shares of Common  Stock  issuable  upon  exercise of the
     Warrants (or  portions  thereof)  with  respect to which the  determination
     described herein is being made, would result in beneficial ownership by the
     holder and its  affiliates of more than 4.9% of the  outstanding  shares of
     Common  Stock.  For  purposes  of  the  immediately   preceding   sentence,
     beneficial  ownership  shall be determined in accordance with Section 13(d)
     of the Securities  Exchange Act of 1934, as amended,  and Regulation  13D-G
     thereunder,  except as  otherwise  provided in clause (i) of the  preceding
     sentence.  Notwithstanding  anything to the contrary  contained herein, the
     limitation  on exercise of this Warrant set forth herein may not be amended
     without  (i) the written  consent of the holder  hereof and the Company and
     (ii) the approval of a majority of shareholders of the Company.

2.   Period of Exercise. This Warrant is exercisable at any time or from time to
     time on or after the date on which this  Warrant  is issued  and  delivered
     pursuant to the terms of the Securities  Purchase Agreement and before 5:00
     p.m., New York City, New York time, on the second (2nd)  anniversary of the
     date of issuance (the "Exercise Period").

3.   Certain Agreements of the Company.  The Company hereby covenants and agrees
     as follows:

     (a)  Shares to be Fully Paid.  All Warrant  Shares will,  upon  issuance in
          accordance with the terms of this Warrant,  be validly  issued,  fully
          paid, and  nonassessable  and free from all taxes,  liens, and charges
          with respect to the issue thereof.

     (b)  Reservation of Shares.  During the Exercise Period,  the Company shall
          at all times have authorized, and reserved for the purpose of issuance
          upon exercise of this Warrant, a sufficient number of shares of Common
          Stock to provide for the exercise of this Warrant.

     (c)  Listing.  The Company shall promptly  secure the listing of the shares
          of Common  Stock  issuable  upon  exercise  of the  Warrant  upon each
          national  securities  exchange or automated  quotation system, if any,
          upon which shares of Common Stock are then listed (subject to official
          notice of issuance upon exercise of this Warrant) and shall  maintain,
          so long as any other shares of Common  Stock shall be so listed,  such
          listing of all shares of Common Stock from time to time  issuable upon
          the exercise of this  Warrant;  and the Company  shall so list on each
          national  securities  exchange or automated  quotation  system, as the
          case may be, and shall  maintain  such listing of, any other shares of
          capital  stock  of the  Company  issuable  upon the  exercise  of this
          Warrant if and so long as any shares of the same class shall be listed
          on such national securities exchange or automated quotation system.

     (d)  Certain Actions Prohibited.  The Company will not, by amendment of its
          charter   or  through   any   reorganization,   transfer   of  assets,
          consolidation,  merger,  dissolution,  issue or sale of securities, or
          any other voluntary  action,  avoid or seek to avoid the observance or
          performance  of any of the terms to be  observed  or  performed  by it
          hereunder,  but will at all times in good faith assist in the carrying
          out of all the  provisions  of this  Warrant  and in the taking of all
          such  action as may  reasonably  be  requested  by the  holder of this
          Warrant in order to protect the  exercise  privilege  of the holder of
          this Warrant against dilution or other impairment, consistent with the
          tenor and purpose of this Warrant.  Without limiting the generality of
          the foregoing,  the Company (i) will not increase the par value of any
          shares of Common  Stock  receivable  upon the exercise of this Warrant
          above the Exercise  Price then in effect,  and (ii) will take all such
          actions as may be necessary or  appropriate  in order that the Company
          may validly and legally issue fully paid and  nonassessable  shares of
          Common Stock upon the exercise of this Warrant.

     (e)  Successors  and Assigns.  This Warrant will be binding upon any entity
          succeeding to the Company by merger, consolidation,  or acquisition of
          all or substantially all the Company's assets.

4.   Antidilution Provisions. During the Exercise Period, the Exercise Price and
     the number of Warrant  Shares shall be subject to  adjustment  from time to
     time as provided in this  Paragraph 4. In the event that any  adjustment of
     the Exercise Price as required herein results in a fraction of a cent, such
     Exercise Price shall be rounded up to the nearest cent.

     (a)  Adjustment  of Exercise  Price and Number of Shares  upon  Issuance of
          Common Stock. Except as otherwise provided in Paragraphs 4(c) and 4(e)
          hereof,  if and  whenever  on or after  the date of  issuance  of this
          Warrant,  the Company issues or sells, or in accordance with Paragraph
          4(b)  hereof is deemed to have  issued or sold,  any  shares of Common
          Stock for no  consideration  or for a consideration  per share (before
          deduction  of  reasonable  expenses  or  commissions  or  underwriting
          discounts or allowances in connection  therewith) less than the Market
          Price (as  hereinafter  defined) on the date of issuance (a  "Dilutive
          Issuance"),  then immediately upon the Dilutive Issuance, the Exercise
          Price  will  be  reduced  to a price  determined  by  multiplying  the
          Exercise Price in effect immediately prior to the Dilutive Issuance by
          a fraction,  (i) the  numerator of which is an amount equal to the sum
          of (x) the  number  of shares of  Common  Stock  actually  outstanding
          immediately prior to the Dilutive  Issuance,  plus (y) the quotient of
          the aggregate consideration, calculated as set forth in Paragraph 4(b)
          hereof, received by the Company upon such Dilutive Issuance divided by
          the Market Price in effect immediately prior to the Dilutive Issuance,
          and (ii) the  denominator  of which is the  total  number of shares of
          Common Stock Deemed  Outstanding (as defined below)  immediately after
          the Dilutive Issuance.

     (b)  Effect  on  Exercise  Price  of  Certain   Events.   For  purposes  of
          determining  the adjusted  Exercise Price under Paragraph 4(a) hereof,
          the following will be applicable:

          (i)  Issuance  of Rights or  Options.  If the  Company  in any  manner
               issues or grants any warrants,  rights or options, whether or not
               immediately  exercisable,  to subscribe for or to purchase Common
               Stock or other  securities  convertible  into or exchangeable for
               Common Stock  ("Convertible  Securities") (such warrants,  rights
               and options to purchase  Common Stock or  Convertible  Securities
               are hereinafter referred to as "Options") and the price per share
               for which  Common  Stock is  issuable  upon the  exercise of such
               Options is less than the Market  Price on the date of issuance or
               grant of such Options, then the maximum total number of shares of
               Common Stock issuable upon the exercise of all such Options will,
               as of the  date of the  issuance  or grant  of such  Options,  be
               deemed to be outstanding  and to have been issued and sold by the
               Company for such price per share.  For purposes of the  preceding
               sentence, the "price per share for which Common Stock is issuable
               upon the exercise of such  Options" is determined by dividing (i)
               the total amount,  if any,  received or receivable by the Company
               as  consideration  for  the  issuance  or  granting  of all  such
               Options,   plus  the  minimum   aggregate  amount  of  additional
               consideration,  if any,  payable to the Company upon the exercise
               of all such Options,  plus, in the case of Convertible Securities
               issuable upon the exercise of such Options, the minimum aggregate
               amount of additional consideration payable upon the conversion or
               exchange  thereof at the time such  Convertible  Securities first
               become  convertible  or  exchangeable,  by (ii) the maximum total
               number of shares of Common  Stock  issuable  upon the exercise of
               all  such  Options   (assuming  full  conversion  of  Convertible
               Securities, if applicable). No further adjustment to the Exercise
               Price will be made upon the actual  issuance of such Common Stock
               upon the  exercise  of such  Options  or upon the  conversion  or
               exchange of Convertible Securities issuable upon exercise of such
               Options.

          (ii) Issuance of Convertible Securities.  If the Company in any manner
               issues  or  sells  any  Convertible  Securities,  whether  or not
               immediately  convertible  (other than where the same are issuable
               upon the  exercise of Options)  and the price per share for which
               Common Stock is issuable upon such conversion or exchange is less
               than the Market Price on the date of  issuance,  then the maximum
               total  number  of  shares  of  Common  Stock  issuable  upon  the
               conversion or exchange of all such  Convertible  Securities will,
               as of the date of the issuance of such Convertible Securities, be
               deemed to be outstanding  and to have been issued and sold by the
               Company  for  such  price  per  share.  For the  purposes  of the
               preceding  sentence,  the "price per share for which Common Stock
               is issuable  upon such  conversion  or exchange" is determined by
               dividing (i) the total amount,  if any, received or receivable by
               the Company as consideration for the issuance or sale of all such
               Convertible  Securities,  plus the  minimum  aggregate  amount of
               additional consideration, if any, payable to the Company upon the
               conversion  or  exchange  thereof  at the time  such  Convertible
               Securities first become convertible or exchangeable,  by (ii) the
               maximum total number of shares of Common Stock  issuable upon the
               conversion  or exchange of all such  Convertible  Securities.  No
               further  adjustment  to the Exercise  Price will be made upon the
               actual  issuance of such Common Stock upon conversion or exchange
               of such Convertible Securities.

          (iii)Change in Option Price or  Conversion  Rate. If there is a change
               at any time in (i) the amount of additional consideration payable
               to the Company upon the exercise of any Options;  (ii) the amount
               of additional consideration,  if any, payable to the Company upon
               the  conversion  or exchange of any  Convertible  Securities;  or
               (iii)  the  rate  at  which  any   Convertible   Securities   are
               convertible  into or  exchangeable  for Common  Stock (other than
               under or by reason of  provisions  designed  to  protect  against
               dilution),  the  Exercise  Price  in  effect  at the time of such
               change will be readjusted to the Exercise  Price which would have
               been in  effect  at such  time had such  Options  or  Convertible
               Securities still outstanding provided for such changed additional
               consideration or changed  conversion rate, as the case may be, at
               the time initially granted, issued or sold.

          (iv) Treatment  of  Expired   Options  and   Unexercised   Convertible
               Securities. If, in any case, the total number of shares of Common
               Stock issuable upon exercise of any Option or upon  conversion or
               exchange of any  Convertible  Securities is not, in fact,  issued
               and the rights to exercise  such Option or to convert or exchange
               such Convertible Securities shall have expired or terminated, the
               Exercise  Price then in effect will be readjusted to the Exercise
               Price  which  would  have  been  in  effect  at the  time of such
               expiration  or   termination   had  such  Option  or  Convertible
               Securities,  to the extent outstanding  immediately prior to such
               expiration  or  termination  (other than in respect of the actual
               number  of  shares  of  Common  Stock  issued  upon  exercise  or
               conversion thereof), never been issued.

          (v)  Calculation  of  Consideration  Received.  If any  Common  Stock,
               Options or Convertible Securities are issued, granted or sold for
               cash, the  consideration  received  therefor for purposes of this
               Warrant  will be the amount  received  by the  Company  therefor,
               before   deduction  of   reasonable   commissions,   underwriting
               discounts or  allowances  or other  reasonable  expenses  paid or
               incurred by the Company in connection  with such issuance,  grant
               or  sale.  In case  any  Common  Stock,  Options  or  Convertible
               Securities are issued or sold for a consideration  part or all of
               which shall be other than cash,  the amount of the  consideration
               other than cash received by the Company will be the fair value of
               such consideration,  except where such consideration  consists of
               securities, in which case the amount of consideration received by
               the Company  will be the Market  Price  thereof as of the date of
               receipt.  In  case  any  Common  Stock,  Options  or  Convertible
               Securities are issued in connection with any acquisition,  merger
               or   consolidation   in  which  the  Company  is  the   surviving
               corporation,  the amount of consideration therefor will be deemed
               to be the  fair  value  of such  portion  of the net  assets  and
               business of the  non-surviving  corporation as is attributable to
               such Common Stock, Options or Convertible Securities, as the case
               may be.  The fair value of any  consideration  other than cash or
               securities  will be  determined  in good  faith  by the  Board of
               Directors of the Company.

          (vi) Exceptions to Adjustment of Exercise  Price. No adjustment to the
               Exercise  Price  will  be  made  (i)  upon  the  exercise  of any
               warrants,  options or convertible securities granted,  issued and
               outstanding  on the date of issuance of this  Warrant;  (ii) upon
               the grant or exercise of any stock or options which may hereafter
               be granted or exercised  under any employee  benefit plan,  stock
               option plan or restricted  stock plan of the Company now existing
               or to be  implemented  in the future,  so long as the issuance of
               such  stock  or  options  is   approved  by  a  majority  of  the
               independent members of the Board of Directors of the Company or a
               majority of the members of a committee of  independent  directors
               established  for such purpose;  or (iii) upon the exercise of the
               Warrants.

     (c)  Subdivision or Combination of Common Stock. If the Company at any time
          subdivides  (by any stock  split,  stock  dividend,  recapitalization,
          reorganization,  reclassification  or otherwise)  the shares of Common
          Stock  acquirable  hereunder  into a greater  number of shares,  then,
          after the date of record for effecting such subdivision,  the Exercise
          Price  in  effect  immediately  prior  to  such  subdivision  will  be
          proportionately  reduced.  If the  Company  at any time  combines  (by
          reverse     stock     split,     recapitalization,     reorganization,
          reclassification  or otherwise) the shares of Common Stock  acquirable
          hereunder  into a smaller  number of shares,  then,  after the date of
          record for effecting  such  combination,  the Exercise Price in effect
          immediately   prior  to  such  combination  will  be   proportionately
          increased.

     (d)  Adjustment in Number of Shares.  Upon each  adjustment of the Exercise
          Price  pursuant to the  provisions of this  Paragraph 4, the number of
          shares of Common Stock issuable upon exercise of this Warrant shall be
          adjusted by multiplying a number equal to the Exercise Price in effect
          immediately prior to such adjustment by the number of shares of Common
          Stock issuable upon exercise of this Warrant immediately prior to such
          adjustment  and  dividing  the  product so  obtained  by the  adjusted
          Exercise Price.

     (e)  Consolidation,  Merger or Sale.  In case of any  consolidation  of the
          Company with, or merger of the Company into any other corporation,  or
          in case of any sale or conveyance of all or  substantially  all of the
          assets of the Company other than in connection with a plan of complete
          liquidation of the Company, then as a condition of such consolidation,
          merger or sale or conveyance,  adequate provision will be made whereby
          the holder of this  Warrant will have the right to acquire and receive
          upon  exercise of this  Warrant in lieu of the shares of Common  Stock
          immediately  theretofore acquirable upon the exercise of this Warrant,
          such shares of stock, securities or assets as may be issued or payable
          with  respect  to or in  exchange  for the  number of shares of Common
          Stock immediately  theretofore acquirable and receivable upon exercise
          of this Warrant had such  consolidation,  merger or sale or conveyance
          not taken place.  In any such case, the Company will make  appropriate
          provision  to insure that the  provisions  of this  Paragraph 4 hereof
          will  thereafter  be applicable as nearly as may be in relation to any
          shares of stock or securities thereafter deliverable upon the exercise
          of this Warrant. The Company will not effect any consolidation, merger
          or sale or conveyance  unless prior to the consummation  thereof,  the
          successor  corporation (if other than the Company)  assumes by written
          instrument the obligations  under this Paragraph 4 and the obligations
          to  deliver  to the  holder  of this  Warrant  such  shares  of stock,
          securities or assets as, in accordance with the foregoing  provisions,
          the holder may be entitled to acquire.

     (f)  Distribution of Assets.  In case the Company shall declare or make any
          distribution of its assets (including cash) to holders of Common Stock
          as a partial  liquidating  dividend,  by way of return of  capital  or
          otherwise, then, after the date of record for determining stockholders
          entitled to such distribution,  but prior to the date of distribution,
          the holder of this  Warrant  shall be entitled  upon  exercise of this
          Warrant for the  purchase of any or all of the shares of Common  Stock
          subject hereto,  to receive the amount of such assets which would have
          been  payable to the holder  had such  holder  been the holder of such
          shares of Common  Stock on the record  date for the  determination  of
          stockholders entitled to such distribution.

     (g)  Notice of Adjustment.  Upon the occurrence of any event which requires
          any adjustment of the Exercise Price, then, and in each such case, the
          Company shall give notice thereof to the holder of this Warrant, which
          notice shall state the Exercise Price  resulting from such  adjustment
          and  the  increase  or  decrease  in  the  number  of  Warrant  Shares
          purchasable at such price upon  exercise,  setting forth in reasonable
          detail  the  method of  calculation  and the  facts  upon  which  such
          calculation is based. Such calculation shall be certified by the Chief
          Financial Officer of the Company.

     (h)  Minimum  Adjustment of Exercise  Price.  No adjustment of the Exercise
          Price shall be made in an amount of less than 1% of the Exercise Price
          in effect at the time such  adjustment  is  otherwise  required  to be
          made,  but any such  lesser  adjustment  shall be carried  forward and
          shall  be made at the  time and  together  with  the  next  subsequent
          adjustment  which,  together with any adjustments so carried  forward,
          shall amount to not less than 1% of such Exercise Price.

     (i)  No Fractional  Shares.  No fractional shares of Common Stock are to be
          issued upon the exercise of this Warrant,  but the Company shall pay a
          cash  adjustment  in  respect  of any  fractional  share  which  would
          otherwise be issuable in an amount  equal to the same  fraction of the
          Market Price of a share of Common Stock on the date of such exercise.

     (j)  Other Notices. In case at any time:

          (i)  the Company  shall  declare any  dividend  upon the Common  Stock
               payable  in  shares  of  stock of any  class  or make  any  other
               distribution  (including  dividends or  distributions  payable in
               cash out of  retained  earnings)  to the  holders  of the  Common
               Stock;

          (ii) the Company shall offer for  subscription pro rata to the holders
               of the Common Stock any  additional  shares of stock of any class
               or other rights;

          (iii)there  shall be any capital  reorganization  of the  Company,  or
               reclassification  of the Common Stock, or consolidation or merger
               of the Company with or into, or sale of all or substantially  all
               its assets to, another corporation or entity; or

          (iv) there  shall  be  a   voluntary   or   involuntary   dissolution,
               liquidation  or  winding-up  of the Company;  then,  in each such
               case,  the Company  shall give to the holder of this  Warrant (a)
               notice of the date on which the books of the Company  shall close
               or a record shall be taken for  determining the holders of Common
               Stock  entitled to receive any such  dividend,  distribution,  or
               subscription  rights or for  determining  the  holders  of Common
               Stock  entitled  to vote in respect  of any such  reorganization,
               reclassification,   consolidation,   merger,  sale,  dissolution,
               liquidation  or  winding-up  and  (b) in  the  case  of any  such
               reorganization,  reclassification,  consolidation,  merger, sale,
               dissolution,  liquidation or winding-up,  notice of the date (or,
               if not then  known,  a  reasonable  approximation  thereof by the
               Company)  when the same shall take place.  Such notice shall also
               specify  the date on which the  holders of Common  Stock shall be
               entitled to receive such dividend,  distribution, or subscription
               rights  or to  exchange  their  Common  Stock  for stock or other
               securities  or  property  deliverable  upon such  reorganization,
               reclassification,   consolidation,   merger,  sale,  dissolution,
               liquidation, or winding-up, as the case may be. Such notice shall
               be given at least 30 days prior to the record date or the date on
               which the Company's books are closed in respect thereto.  Failure
               to give any such  notice or any defect  therein  shall not affect
               the validity of the proceedings referred to in clauses (i), (ii),
               (iii) and (iv) above.

     (k)  Certain  Events.  If any event occurs of the type  contemplated by the
          adjustment  provisions of this Paragraph 4 but not expressly  provided
          for by such provisions,  the Company will give notice of such event as
          provided  in  Paragraph  4(g)  hereof,  and  the  Company's  Board  of
          Directors  will make an  appropriate  adjustment in the Exercise Price
          and the number of shares of Common Stock  acquirable  upon exercise of
          this  Warrant  so that the  rights  of the  holder  shall  be  neither
          enhanced nor diminished by such event.

     (l)  Certain Definitions.

          (i)  "Common Stock Deemed Outstanding" shall mean the number of shares
               of Common Stock actually  outstanding  (not  including  shares of
               Common  Stock  held in the  treasury  of the  Company),  plus (x)
               pursuant to Paragraph 4(b)(i) hereof, the maximum total number of
               shares of Common Stock issuable upon the exercise of Options,  as
               of the date of such  issuance or grant of such  Options,  if any,
               and (y) pursuant to Paragraph  4(b)(ii) hereof, the maximum total
               number of shares of Common  Stock  issuable  upon  conversion  or
               exchange of Convertible Securities, as of the date of issuance of
               such Convertible Securities, if any.

          (ii) "Market Price," as of any date, (i) means the average of the last
               reported  sale prices for the shares of Common Stock on the OTCBB
               for the five (5) Trading Days immediately  preceding such date as
               reported by Bloomberg,  or (ii) if the OTCBB is not the principal
               trading market for the shares of Common Stock, the average of the
               last reported sale prices on the principal trading market for the
               Common Stock during the same period as reported by Bloomberg,  or
               (iii) if market value cannot be calculated as of such date on any
               of the foregoing bases, the Market Price shall be the fair market
               value as reasonably  determined in good faith by (a) the Board of
               Directors   of  the   Corporation   or,   at  the   option  of  a
               majority-in-interest  of the holders of the outstanding  Warrants
               by (b) an independent  investment  bank of nationally  recognized
               standing in the valuation of  businesses  similar to the business
               of the corporation. The manner of determining the Market Price of
               the  Common  Stock set forth in the  foregoing  definition  shall
               apply with  respect to any other  security  in respect of which a
               determination as to market value must be made hereunder.

          (iii)"Common  Stock," for purposes of this  Paragraph 4,  includes the
               Common  Stock,  par value  $0.001 per share,  and any  additional
               class  of  stock  of  the  Company  having  no  preference  as to
               dividends or  distributions  on  liquidation,  provided  that the
               shares  purchasable  pursuant to this Warrant  shall include only
               shares of Common Stock, par value $0.001 per share, in respect of
               which this Warrant is exercisable,  or shares  resulting from any
               subdivision or  combination of such Common Stock,  or in the case
               of any reorganization,  reclassification,  consolidation, merger,
               or sale of the  character  referred to in Paragraph  4(e) hereof,
               the stock or other  securities  or property  provided for in such
               Paragraph.

5.   Issue Tax.  The  issuance  of  certificates  for  Warrant  Shares  upon the
     exercise of this Warrant shall be made without charge to the holder of this
     Warrant  or such  shares  for any  issuance  tax or other  costs in respect
     thereof,  provided  that the  Company  shall not be required to pay any tax
     which may be payable in respect of any  transfer  involved in the  issuance
     and  delivery  of any  certificate  in a name other than the holder of this
     Warrant.

6.   No Rights or Liabilities  as a Shareholder.  This Warrant shall not entitle
     the holder hereof to any voting rights or other rights as a shareholder  of
     the Company.  No provision of this Warrant,  in the absence of  affirmative
     action  by the  holder  hereof  to  purchase  Warrant  Shares,  and no mere
     enumeration herein of the rights or privileges of the holder hereof,  shall
     give rise to any  liability of such holder for the  Exercise  Price or as a
     shareholder  of the  Company,  whether  such  liability  is asserted by the
     Company or by creditors of the Company.

7.   Transfer, Exchange, and Replacement of Warrant.

     (a)  Restriction  on Transfer.  This Warrant and the rights  granted to the
          holder hereof are transferable, in whole or in part, upon surrender of
          this Warrant, together with a properly executed assignment in the form
          attached hereto, at the office or agency of the Company referred to in
          Paragraph  7(e)  below,  provided,   however,  that  any  transfer  or
          assignment  shall be subject to the  conditions set forth in Paragraph
          7(f)  hereof  and  to the  applicable  provisions  of  the  Securities
          Purchase Agreement. Until due presentment for registration of transfer
          on the books of the  Company,  the  Company  may treat the  registered
          holder hereof as the owner and holder hereof for all purposes, and the
          Company  shall  not  be  affected  by  any  notice  to  the  contrary.
          Notwithstanding   anything  to  the  contrary  contained  herein,  the
          registration  rights  described in Paragraph 8 are assignable  only in
          accordance  with the  provisions of that certain  Registration  Rights
          Agreement,  dated  January 24, 2002,  by and among the Company and the
          other signatories thereto (the "Registration Rights Agreement").

     (b)  Warrant  Exchangeable  for  Different  Denominations.  This Warrant is
          exchangeable,  upon the  surrender  hereof by the holder hereof at the
          office or agency of the Company  referred to in Paragraph  7(e) below,
          for new Warrants of like tenor representing in the aggregate the right
          to  purchase  the  number  of  shares  of  Common  Stock  which may be
          purchased hereunder,  each of such new Warrants to represent the right
          to purchase such number of shares as shall be designated by the holder
          hereof at the time of such surrender.

     (c)  Replacement   of  Warrant.   Upon   receipt  of  evidence   reasonably
          satisfactory  to the  Company  of the  loss,  theft,  destruction,  or
          mutilation  of this Warrant and, in the case of any such loss,  theft,
          or  destruction,  upon delivery of an indemnity  agreement  reasonably
          satisfactory in form and amount to the Company, or, in the case of any
          such mutilation,  upon surrender and cancellation of this Warrant, the
          Company, at its expense,  will execute and deliver, in lieu thereof, a
          new Warrant of like tenor.

     (d)  Cancellation;  Payment of Expenses. Upon the surrender of this Warrant
          in connection with any transfer,  exchange, or replacement as provided
          in this  Paragraph 7, this Warrant  shall be promptly  canceled by the
          Company.  The  Company  shall pay all  taxes  (other  than  securities
          transfer taxes) and all other expenses (other than legal expenses,  if
          any,  incurred by the holder or  transferees)  and charges  payable in
          connection with the preparation,  execution,  and delivery of Warrants
          pursuant to this Paragraph 7.

     (e)  Register.  The Company  shall  maintain,  at its  principal  executive
          offices  (or such  other  office or agency  of the  Company  as it may
          designate  by  notice  to the  holder  hereof),  a  register  for this
          Warrant, in which the Company shall record the name and address of the
          person in whose name this Warrant has been issued, as well as the name
          and address of each transferee and each prior owner of this Warrant.

     (f)  Exercise  or  Transfer  Without  Registration.  If, at the time of the
          surrender of this Warrant in connection  with any exercise,  transfer,
          or  exchange of this  Warrant,  this  Warrant  (or, in the case of any
          exercise,  the  Warrant  Shares  issuable  hereunder),  shall  not  be
          registered   under  the  Securities  Act  of  1933,  as  amended  (the
          "Securities  Act") and under  applicable  state securities or blue sky
          laws,  the  Company may  require,  as a  condition  of  allowing  such
          exercise,  transfer, or exchange, (i) that the holder or transferee of
          this  Warrant,  as the case may be,  furnish to the  Company a written
          opinion of counsel,  which  opinion and counsel are  acceptable to the
          Company, to the effect that such exercise,  transfer,  or exchange may
          be made without registration under said Act and under applicable state
          securities  or blue sky  laws,  (ii)  that the  holder  or  transferee
          execute and deliver to the  Company an  investment  letter in form and
          substance  acceptable to the Company and (iii) that the  transferee be
          an "accredited  investor" as defined in Rule 501(a)  promulgated under
          the Securities Act; provided that no such opinion, letter or status as
          an  "accredited  investor"  shall be  required  in  connection  with a
          transfer  pursuant  to Rule 144 under the  Securities  Act.  The first
          holder of this Warrant, by taking and holding the same,  represents to
          the Company that such holder is acquiring  this Warrant for investment
          and not with a view to the distribution thereof.

8.   Registration  Rights.  The  initial  holder of this  Warrant  (and  certain
     assignees  thereof) is entitled to the benefit of such registration  rights
     in  respect  of the  Warrant  Shares as are set  forth in  Section 2 of the
     Registration Rights Agreement.

9.   Notices.  All  notices,  requests,  and other  communications  required  or
     permitted to be given or delivered  hereunder to the holder of this Warrant
     shall be in writing, and shall be personally delivered, or shall be sent by
     certified or  registered  mail or by  recognized  overnight  mail  courier,
     postage prepaid and addressed, to such holder at the address shown for such
     holder on the books of the Company,  or at such other address as shall have
     been  furnished  to the Company by notice from such  holder.  All  notices,
     requests,  and other  communications  required or  permitted to be given or
     delivered  hereunder  to the  Company  shall be in  writing,  and  shall be
     personally  delivered,  or shall be sent by certified or registered mail or
     by recognized overnight mail courier, postage prepaid and addressed, to the
     office of the Company at 1127 Broadway Plaza, Suite 10, Tacoma,  Washington
     98402, Attention:  John P. Gorst, Chief Executive Officer, or at such other
     address  as shall  have been  furnished  to the  holder of this  Warrant by
     notice from the Company.  Any such notice,  request, or other communication
     may be sent by facsimile,  but shall in such case be subsequently confirmed
     by a writing  personally  delivered or sent by certified or registered mail
     or by recognized  overnight  mail courier as provided  above.  All notices,
     requests,  and other  communications  shall be  deemed  to have been  given
     either at the time of the receipt thereof by the person entitled to receive
     such notice at the address of such person for purposes of this Paragraph 9,
     or,  if  mailed  by  registered  or  certified  mail or  with a  recognized
     overnight  mail courier upon deposit with the United  States Post Office or
     such  overnight  mail  courier,  if postage is prepaid  and the  mailing is
     properly addressed, as the case may be.

10.  Governing Law. THIS WARRANT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN
     ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS
     MADE AND TO BE PERFORMED  ENTIRELY WITH SUCH STATE,  WITHOUT  REGARD TO THE
     PRINCIPLES  OF CONFLICT OF LAWS.  THE PARTIES  HERETO  HEREBY SUBMIT TO THE
     EXCLUSIVE  JURISDICTION  OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW
     YORK, NEW YORK WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS WARRANT,  THE
     AGREEMENTS  ENTERED  INTO  IN  CONNECTION   HEREWITH  OR  THE  TRANSACTIONS
     CONTEMPLATED HEREBY OR THEREBY.  BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE
     OF AN  INCONVENIENT  FORUM TO THE  MAINTENANCE  OF SUCH SUIT OR PROCEEDING.
     BOTH PARTIES  FURTHER  AGREE THAT SERVICE OF PROCESS UPON A PARTY MAILED BY
     FIRST  CLASS MAIL  SHALL BE DEEMED IN EVERY  RESPECT  EFFECTIVE  SERVICE OF
     PROCESS UPON THE PARTY IN ANY SUCH SUIT OR PROCEEDING. NOTHING HEREIN SHALL
     AFFECT EITHER PARTY'S RIGHT TO SERVE PROCESS IN ANY OTHER MANNER  PERMITTED
     BY LAW. BOTH PARTIES AGREE THAT A FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH
     SUIT OR  PROCEEDING  SHALL  BE  CONCLUSIVE  AND MAY BE  ENFORCED  IN  OTHER
     JURISDICTIONS  BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER LAWFUL MANNER.  THE
     PARTY  WHICH DOES NOT  PREVAIL IN ANY DISPUTE  ARISING  UNDER THIS  WARRANT
     SHALL BE RESPONSIBLE FOR ALL FEES AND EXPENSES,  INCLUDING ATTORNEYS' FEES,
     INCURRED BY THE PREVAILING PARTY IN CONNECTION WITH SUCH DISPUTE.

11.      Miscellaneous.

     (a)  Amendments.  This Warrant and any provision hereof may only be amended
          by an  instrument  in  writing  signed by the  Company  and the holder
          hereof.

     (b)  Descriptive   Headings.   The  descriptive  headings  of  the  several
          paragraphs  of this  Warrant are  inserted  for  purposes of reference
          only, and shall not affect the meaning or  construction  of any of the
          provisions hereof.

     (c)  Cashless Exercise.  Notwithstanding anything to the contrary contained
          in this Warrant,  if the resale of the Warrant Shares by the holder is
          not then registered  pursuant to an effective  registration  statement
          under  the   Securities   Act,   this  Warrant  may  be  exercised  by
          presentation  and  surrender  of this  Warrant  to the  Company at its
          principal  executive  offices  with a written  notice of the  holder's
          intention to effect a cashless  exercise,  including a calculation  of
          the number of shares of Common  Stock to be issued upon such  exercise
          in accordance  with the terms hereof (a "Cashless  Exercise").  In the
          event of a Cashless Exercise,  in lieu of paying the Exercise Price in
          cash,  the holder  shall  surrender  this  Warrant  for that number of
          shares of Common Stock determined by multiplying the number of Warrant
          Shares to which it would  otherwise  be entitled  by a  fraction,  the
          numerator  of which shall be the  difference  between the then current
          Market Price per share of the Common Stock and the Exercise Price, and
          the  denominator  of which shall be the then current  Market Price per
          share of Common  Stock.  For  example,  if the  holder  is  exercising
          100,000  Warrants with a per Warrant exercise price of $0.75 per share
          through a cashless  exercise when the Common  Stock's  current  Market
          Price per share is $2.00 per share,  then upon such Cashless  Exercise
          the holder will receive 62,500 shares of Common Stock.

     (d)  Remedies.  The  Company  acknowledges  that  a  breach  by it  of  its
          obligations  hereunder will cause  irreparable harm to the holder,  by
          vitiating  the intent  and  purpose  of the  transaction  contemplated
          hereby.  Accordingly,  the Company acknowledges that the remedy at law
          for a breach of its obligations  under this Warrant will be inadequate
          and  agrees,  in the  event of a breach  or  threatened  breach by the
          Company of the  provisions of this  Warrant,  that the holder shall be
          entitled,  in  addition to all other  available  remedies at law or in
          equity,  and in addition to the  penalties  assessable  herein,  to an
          injunction or injunctions restraining, preventing or curing any breach
          of this Warrant and to enforce  specifically  the terms and provisions
          thereof,  without the  necessity of showing  economic loss and without
          any bond or other security being required.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its
duly authorized officer.

                                       INSYNQ, INC.

                                       By: /s/ John P. Gorst
                                           -----------------
                                           John P. Gorst
                                           Chief Executive Officer

Dated as of July 3, 2002

<PAGE>

                           FORM OF EXERCISE AGREEMENT

                                                  Dated:  ________ __, 200_

To:      Insynq, Inc.

     The  undersigned,  pursuant  to the  provisions  set  forth  in the  within
Warrant,  hereby agrees to purchase  ________  shares of Common Stock covered by
such Warrant, and makes payment herewith in full therefor at the price per share
provided by such Warrant in cash or by  certified or official  bank check in the
amount of,  or, if the resale of such  Common  Stock by the  undersigned  is not
currently registered pursuant to an effective  registration  statement under the
Securities  Act of 1933, as amended,  by surrender of  securities  issued by the
Company  (including a portion of the Warrant) having a market value (in the case
of a portion of this Warrant, determined in accordance with Section 11(c) of the
Warrant) equal to $_________.  Please issue a certificate  or  certificates  for
such shares of Common  Stock in the name of and pay any cash for any  fractional
share to:

                                 Name:    ______________________________

                                 Signature:
                                 Address:_______________________________

     Note:The above  signature  should  correspond  exactly with the name on the
          face of the  within  Warrant,  if  applicable.and,  if said  number of
          shares of Common Stock shall not be all the shares  purchasable  under
          the within Warrant,  a new Warrant is to be issued in the name of said
          undersigned covering the balance of the shares purchasable  thereunder
          less any fraction of a share paid in cash.

<PAGE>

                               FORM OF ASSIGNMENT

     FOR VALUE RECEIVED,  the undersigned hereby sells,  assigns,  and transfers
all the rights of the undersigned under the within Warrant,  with respect to the
number of shares of Common Stock covered thereby set forth hereinbelow, to:

Name of Assignee                         Address                No. of Shares

and       hereby        irrevocably        constitutes        and       appoints
___________________________________  as agent and  attorney-in-fact  to transfer
said Warrant on the books of the  within-named  corporation,  with full power of
substitution in the premises.

Dated:   ________ __, 200_

In the presence of:                        _____________________________________

                                           Name:    ____________________________

                                           Signature:___________________________
                                           Title of Signing Officer or Agent
                                           if any):
                                           _______________________________

                                           Address: _________________________

     Note:The above  signature  should  correspond  exactly with the name on the
          face of the within Warrant, if applicable.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]