Document:

<PAGE>
                                                                   Exhibit 4(ii)

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

                                CREDIT AGREEMENT

                                      AMONG

                         AMERICAN GREETINGS CORPORATION,
                                   AS BORROWER

                     THE FINANCIAL INSTITUTIONS NAME HEREIN,
                                   AS LENDERS

                               NATIONAL CITY BANK,
                                       AND
                       GOLDMAN SACHS CREDIT PARTNERS L.P.,
                           AS JOINT-LEAD ARRANGERS AND
                              CO-SYNDICATION AGENTS

                               NATIONAL CITY BANK,
                               AS THE GLOBAL AGENT

                          KEYBANK NATIONAL ASSOCIATION,
                             AS DOCUMENTATION AGENT

                              ---------------------

                                   DATED AS OF
                                 AUGUST 7, 2001
                              ---------------------

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>

<S>                                                                                                              <C>
ARTICLE I. DEFINITIONS............................................................................................ 1

ARTICLE II. AMOUNT AND TERMS OF CREDIT............................................................................27

   Section 2.1. Amount and Nature of Credit.......................................................................27
   Section 2.2. Conditions to Credit Events.......................................................................34
   Section 2.3. Payment on Notes, Etc.............................................................................35
   Section 2.4. Payments Net of Taxes.............................................................................36
   Section 2.5. Voluntary Prepayment; Prepayment Fees.............................................................37
   Section 2.6. Facility and Other Fees...........................................................................38
   Section 2.7. Modification of Commitment........................................................................39
   Section 2.8. Mandatory Payment.................................................................................40
   Section 2.9. Computation of Interest And Fees; Default Rate....................................................43
   Section 2.10. Fixed Charge Coverage Ratio Condition............................................................43
   Section 2.11. Extension of Commitment..........................................................................44

ARTICLE III.  ADDITIONAL PROVISIONS RELATING TO FIXED RATE........................................................44

   Section 3.1. Reserves or Deposit Requirements, Etc.............................................................44
   Section 3.2. Tax Law, Etc......................................................................................45
   Section 3.3. Eurodollar or Alternate Currency Deposits Unavailable or Interest Rate Unascertainable............45
   Section 3.4. Indemnity.........................................................................................46
   Section 3.5. Changes in Law Rendering Fixed Rate Loans Unlawful................................................46
   Section 3.6. Funding...........................................................................................46
   Section 3.7. Capital Adequacy..................................................................................46

ARTICLE IV.  CONDITIONS PRECEDENT.................................................................................47

   Section 4.1. Notes.............................................................................................47
   Section 4.2. Guaranties of Payment.............................................................................47
   Section 4.3. Security Documents................................................................................47
   Section 4.4. Officer's Certificate, Resolutions, Organizational Documents......................................48
   Section 4.5. Legal Opinions....................................................................................48
   Section 4.6. Good Standing Certificates and Articles of Incorporation..........................................48
   Section 4.7. Closing and Legal Fees; Fee Letters...............................................................48
   Section 4.8. Lien Searches.....................................................................................49
   Section 4.9. Insurance Certificates............................................................................49
   Section 4.10. Senior Indenture.................................................................................49
   Section 4.11. Subordinated Indenture...........................................................................49
   Section 4.12. Subordinated Convertible Indenture...............................................................49
   Section 4.13. Permitted Receivables Facility...................................................................50
   Section 4.14. Existing Credit Agreement........................................................................50
   Section 4.15. Financial Projections............................................................................50
   Section 4.16. Regulatory Approvals.............................................................................50
   Section 4.17. Closing Certificate..............................................................................50
</TABLE>

                                      -i-

<PAGE>

<TABLE>

<S>                                                                                                              <C>
   Section 4.18. No Material Adverse Change.......................................................................50
   Section 4.19. Miscellaneous....................................................................................51

ARTICLE V.  COVENANTS.............................................................................................51

   Section 5.1. Insurance.........................................................................................51
   Section 5.2. Money Obligations.................................................................................51
   Section 5.3. Financial Statements..............................................................................51
   Section 5.4. Financial Records.................................................................................51
   Section 5.5. Franchises........................................................................................53
   Section 5.6. ERISA Compliance..................................................................................53
   Section 5.7. Financial Covenants...............................................................................53
   Section 5.8. Borrowing.........................................................................................53
   Section 5.9. Liens.............................................................................................54
   Section 5.10. Regulations U and X..............................................................................56
   Section 5.11. Investments and Loans............................................................................57
   Section 5.12. Merger and Sale of Assets........................................................................57
   Section 5.13. Acquisitions.....................................................................................58
   Section 5.14. Capital Expenditures.............................................................................59
   Section 5.15. Notice...........................................................................................59
   Section 5.16. Environmental Compliance.........................................................................60
   Section 5.17. Affiliate Transactions...........................................................................60
   Section 5.18. Use of Proceeds..................................................................................60
   Section 5.19. Corporate Names; Location of Collateral..........................................................61
   Section 5.20. Restricted Payments..............................................................................61
   Section 5.22. Amendment of Organizational Documents............................................................61
   Section 5.23. Real Property Matters............................................................................63
   Section 5.24. Restrictive Agreements; Material Indebtedness Agreements.........................................63
ARTICLE VI. REPRESENTATIONS AND WARRANTIES........................................................................64

   Section 6.1. Corporate Existence; Subsidiaries; Foreign Qualification..........................................65
   Section 6.2. Corporate Authority...............................................................................65
   Section 6.3. Compliance With Laws..............................................................................66
   Section 6.4. Litigation and Administrative Proceedings.........................................................66
   Section 6.5. Title to Assets...................................................................................66
   Section 6.6. Liens and Security Interests......................................................................67
   Section 6.7. Tax Returns.......................................................................................67
   Section 6.8. Environmental Laws................................................................................67
   Section 6.9. Continued Business................................................................................67
   Section 6.10. Employee Benefits Plans..........................................................................67
   Section 6.11. Consents or Approvals............................................................................68
   Section 6.12. Solvency.........................................................................................68
   Section 6.13. Financial Statements.............................................................................68
   Section 6.14. Regulations......................................................................................69
   Section 6.15. Material Agreements..............................................................................69
   Section 6.16. Intellectual Property............................................................................69
   Section 6.17. Insurance........................................................................................69
</TABLE>

                                      -ii-
<PAGE>

<TABLE>

<S>                                                                                                              <C>
   Section 6.18. Accurate And Complete Statements.................................................................69
   Section 6.19. Location; Trade Names............................................................................69
   Section 6.20. Investment Company; Holding Company..............................................................70
   Section 6.21. Senior Indenture.................................................................................70
   Section 6.22. Subordinated Indenture and Subordinated Convertible Indenture....................................70
   Section 6.23. Defaults.........................................................................................70

ARTICLE VII. EVENTS OF DEFAULT....................................................................................70

   Section 7.1. Payments..........................................................................................71
   Section 7.2. Special Covenants.................................................................................71
   Section 7.3. Other Covenants...................................................................................71
   Section 7.4. Representations And Warranties....................................................................71
   Section 7.5. Cross Default.....................................................................................71
   Section 7.6. ERISA Default.....................................................................................71
   Section 7.7. Change in Control.................................................................................71
   Section 7.8. Money Judgment....................................................................................71
   Section 7.9. Material Adverse Change...........................................................................71
   Section 7.10. Senior Indenture.................................................................................71
   Section 7.11. Subordinated Indenture and Subordinated Convertible Indenture....................................72
   Section 7.12. Validity of Loan Documents.......................................................................72
   Section 7.13. Solvency.........................................................................................72

ARTICLE VIII. REMEDIES UPON DEFAULT...............................................................................72

   Section 8.1. Optional Defaults.................................................................................73
   Section 8.2. Automatic Defaults................................................................................73
   Section 8.3. Letters of Credit.................................................................................73
   Section 8.4. Offsets...........................................................................................73
   Section 8.5. Equalization Provision............................................................................74

ARTICLE IX. THE GLOBAL AGENT......................................................................................75

   Section 9.1. Appointment And Authorization.....................................................................75
   ection 9.2. Note Holders.......................................................................................75
   Section 9.3. Consultation With Counsel.........................................................................75
   Section 9.4. Documents.........................................................................................75
   Section 9.5. The Global Agent And Affiliates...................................................................75
   Section 9.6. Knowledge of Default..............................................................................75
   Section 9.7. Action by the Global Agent........................................................................76
   Section 9.8. Notices; Default..................................................................................76
   Section 9.9. Indemnification of the Global Agent...............................................................76
   Section 9.10. Successor Agent..................................................................................76

ARTICLE X. INTERCREDITOR PROVISIONS...............................................................................77

   Section 10.1. Definitions......................................................................................77
   Section 10.2. Creditor Obligations to be Ratably Secured.......................................................79
   Section 10.3. Appointment of the Collateral Agent..............................................................80
   Section 10.4. Pro Rata Distribution of the Creditor Collateral.................................................80
</TABLE>

                                     -iii-
<PAGE>

<TABLE>

<S>                                                                                                              <C>
   Section 10.5. Payments or Proceed Received by a Creditor Prior to a Sharing Event..............................80
   Section 10.6. Payments or Proceeds Received by the Collateral Agent Prior to a
                        Sharing Event.............................................................................81
   Section 10.7. Payments or Proceeds Received After a Sharing Event..............................................81
   Section 10.8. Distribution of Proceeds.........................................................................81
   Section 10.9. Delivery of Creditor Collateral to the Collateral Agent..........................................82
   Section 10.10. Return of Payments..............................................................................82
   Section 10.11. Lending Party Rights and Remedies...............................................................82
   Section 10.12. Rights and Remedies of the Collateral Agent Upon Sharing Event..................................83
   Section 10.13. Appoint of Power of Attorney....................................................................83
   Section 10.14. Obligations Unaffected; Modification of Lending Documents.......................................83
   Section 10.15. Release of Creditor Collateral..................................................................83
   Section 10.16. Accounting......................................................................................83
   Section 10.17. Contesting Liens or Security Interests..........................................................84
   Section 10.18. Actions by the Collateral Agent.................................................................84
   Section 10.19. Bankruptcy Filing...............................................................................84
   Section 10.20. Indemnification by Creditors....................................................................85
   Section 10.21. Right to Opt Out................................................................................85
   Section 10.22. Third Parties...................................................................................85
   Section 10.23. Successor Collateral Agent......................................................................85
   Section 10.24. Termination.....................................................................................85

ARTICLE XI. MISCELLANEOUS.........................................................................................86

   Section 11.1. Lenders' Independent Investigation...............................................................86
   Section 11.2. No Waiver; Cumulative Remedies...................................................................86
   Section 11.3. Amendments, Consents.............................................................................86
   Section 11.4. Notices..........................................................................................87
   Section 11.5. Costs, Expenses And Taxes........................................................................87
   Section 11.6. Indemnification..................................................................................87
   Section 11.7. Obligations Several; No Fiduciary Obligations....................................................88
   Section 11.8. Execution in Counterparts........................................................................88
   Section 11.9. Binding Effect; Borrowers' Assignment............................................................88
   Section 11.10. Lender Assignments/Participations...............................................................88
   Section 11.11. Designation.....................................................................................91
   Section 11.12. Severability of Provisions; Captions; Attachments...............................................92
   Section 11.13. Governing Law; Submission to Jurisdiction.......................................................92
   Section 11.14. Legal Representation of Parties.................................................................92
   Section 11.15. Judgment Currency...............................................................................92
   Section 11.16. Designated Senior Indebtedness..................................................................93
   Section 11.17. Jury Trial Waiver..............................................................................S-1
</TABLE>

                                      -iv-
<PAGE>

         This CREDIT AGREEMENT (as the same may from time to time be amended,
restated or otherwise modified, this "Agreement") is made effective as of the
7th day of August, 2001, among:

               (a) AMERICAN GREETINGS CORPORATION, an Ohio corporation
          ("Borrower");

               (b) the financial institutions named in SCHEDULE 1 hereto
          (collectively, the "Lenders", and individually each a "Lender");

               (c) KEYBANK NATIONAL ASSOCIATION, as documentation agent (the
          "Documentation Agent");

               (d) NATIONAL CITY BANK and GOLDMAN SACHS CREDIT PARTNERS L.P.
          ("Goldman Sachs"), as joint-lead arrangers and co-syndication agents
          (collectively, the "Lead Arrangers", and individually each a "Lead
          Arranger"); and

               (e) NATIONAL CITY BANK, as administrative agent for all of the
          Lenders (together with any successor appointed pursuant to Section
          9.10 hereof, the "Global Agent").

                                   WITNESSETH:

         WHEREAS, Borrower and the Lenders desire to contract for the
establishment of credits in the aggregate principal amounts hereinafter set
forth, to be made available to Borrower upon the terms and subject to the
conditions hereinafter set forth;

         NOW, THEREFORE, it is mutually agreed as follows:

                             ARTICLE I. DEFINITIONS

         As used in this Agreement, the following terms shall have the following
meanings:

         "364 Day Commitment" shall mean the obligation hereunder, during the
applicable Commitment Period, of each 364 Day Lender to participate in the
making of 364 Day Revolving Loans up to the aggregate amount set forth opposite
such Lender's name under the column headed "364 Day Commitment Amount" as set
forth on SCHEDULE 1 hereto (or such other amount as shall be determined pursuant
to Section 2.7 hereof).

         "364 Day Exposure" shall mean, at any time, the aggregate principal
amount of all 364 Day Revolving Loans outstanding.

         "364 Day Lender" shall mean a Lender with a 364 Day Commitment.

         "364 Day Note" shall mean a 364 Day Revolving Credit Note in the form
of the attached EXHIBIT C, executed and delivered pursuant to Section 2.1(b)
hereof.

                                       1
<PAGE>

         "364 Day Revolving Loan" shall mean a loan granted to Borrower by the
364 Day Lenders in accordance with Section 2.1(b) hereof.

         "Acquisition" shall mean any transaction or series of related
transactions for the purpose of or resulting, directly or indirectly, in (a) the
acquisition of all or substantially all of the assets of any Person, or any
business or division of any Person (other than the purchase of Receivables
Related Assets by the Receivables Subsidiary from AGSC in connection with the
Permitted Receivables Facility), (b) the acquisition of in excess of fifty
percent (50%) of the stock (or other equity interest) of any Person, or (c) the
acquisition of another Person (other than a Company) by a merger or
consolidation or any other combination with such Person.

         "Additional Commitment" shall have the meaning given to such term in
Section 2.7(c) hereof.

         "Additional Convertible Proceeds Amount" shall mean the Convertible
Excess Proceeds used by Borrower within one hundred eighty (180) days of the
Closing Date to effect an Acquisition permitted pursuant to Section 5.13 hereof.

         "Additional Lender" shall mean a financial institution that shall
become a Lender hereunder during the Commitment Increase Period pursuant to
Section 2.7(c) hereof.

         "Additional Lender Assumption Agreement" shall mean an Assumption
Agreement in form and substance satisfactory to the Global Agent, wherein an
Additional Lender shall become a Lender hereunder.

         "Adjusted Consolidated Cash Flow" shall mean, for any period,
Consolidated Net Earnings plus: (a) an amount equal to any extraordinary loss
plus any net loss realized by the Companies in connection with any Disposition,
to the extent such losses were deducted in computing such Consolidated Net
Earnings; plus (b) provision for taxes based on income or profits of the
Companies, to the extent such provision for taxes was deducted in computing such
Consolidated Net Earnings; plus (c) Consolidated Interest Expense whether paid
or accrued and whether or not capitalized (including, without limitation,
amortization of debt issuance costs and original issue discount, non-cash
interest payments, the interest component of any deferred payment obligations,
the interest component of all payments associated with capital lease
obligations, commissions, discounts and other fees and charges incurred in
respect of letter of credit or bankers' acceptance financings, and net of the
effect of all payments made or received pursuant to Hedge Agreements), to the
extent that any such expense was deducted in computing such Consolidated Net
Earnings; plus (d) non-recurring and special charges deducted in computing
Consolidated Net Earnings; plus (e) depreciation, amortization (including
amortization of goodwill and other intangibles but excluding amortization of
prepaid cash expenses that were paid in a prior period) and other non-cash
expenses (excluding any such non-cash expense to the extent that it represents
an accrual of or reserve for cash expenses in any future period or amortization
of a prepaid cash expense that was paid in a prior period) of the Companies to
the extent that such depreciation, amortization and other non-cash expenses were
deducted in computing such Consolidated Net Earnings; minus (f) non-cash items
increasing such Consolidated Net Earnings, other than the accrual of revenue in
the ordinary course of business, in each case, on a Consolidated basis and in
accordance with GAAP.

                                       2
<PAGE>

         "Advantage" shall mean any payment (whether made voluntarily or
involuntarily, by offset of any deposit or other indebtedness or otherwise)
received by any Lender in respect of the Applicable Debt, if such payment
results in that Lender having less than its Pro Rata Share (based upon its
Applicable Commitment Percentage and, in the case of a Sharing Event pursuant to
the terms of Section 8.5 hereof, based upon its Equalization Percentage, as
defined in Section 8.5 hereof) of the Applicable Debt then outstanding, than was
the case immediately before such payment.

         "Affiliate" shall mean any Person, directly or indirectly, controlling,
controlled by or under common control with a Company and "control" (including
the correlative meanings, the terms "controlling", "controlled by" and "under
common control with") shall mean the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of a
Company, whether through the ownership of voting securities, by contract or
otherwise.

         "AGSC" shall mean American Greetings Service Corp.

         "AGSC Note" shall mean the Subordinated Promissory Note, dated as of
August 7, 2001, by Borrower to AGSC, as the same may, with the prior written
consent of the Global Agent, from time to time be amended, restated or otherwise
modified.

         "Alternate Currency" shall mean Australian Dollars, Euros and Pounds
Sterling, or any other foreign currency, other than Eurodollars, agreed to by
the Global Agent, in consultation with the General Revolving Lenders, that shall
be freely transferable and convertible into Dollars.

         "Alternate Currency Loan" shall mean a General Revolving Loan that is
denominated in an Alternate Currency and on which Borrower shall pay interest at
a rate based on the applicable LIBO Pre-Margin Rate.

         "Alternate Currency Exposure" shall mean, at any time, the sum of (a)
the aggregate principal amount of all Alternate Currency Loans outstanding, and
(b) the Alternate Currency Letter of Credit Exposure.

         "Alternate Currency Letter of Credit Exposure" shall mean, at any time,
the sum of (a) the Dollar Equivalent of the aggregate undrawn face amount of all
issued and outstanding Letters of Credit denominated in an Alternate Currency,
and (b) the Dollar Equivalent of the aggregate amount of the draws made on
Letters of Credit denominated in an Alternate Currency that have not been
reimbursed by Borrower or converted to a General Revolving Loan pursuant to
Section 2.1(a)(ii) hereof.

         "Alternate Currency Maximum Amount" shall mean the Dollar Equivalent of
Forty Million Dollars ($40,000,000).

         "Applicable Commitment Percentage" shall mean, for each Lender, (a)
with respect to the General Revolving Commitments, the percentage, if any, set
forth opposite such Lender's name, if any, under the column headed "General
Revolving Commitment Percentage" as

                                       3
<PAGE>

described in SCHEDULE 1 hereto; (b) with respect to the 364 Day Commitments, the
percentage, if any, set forth opposite such Lender's name under the column
headed "364 Day Commitment Percentage" as described in SCHEDULE 1 hereto; and
(c) with respect to the Term Loan Commitments, the percentage, if any, set forth
opposite such Lender's name under the column headed "Term Loan Commitment
Percentage" as described in SCHEDULE 1 hereto.

         "Applicable Debt" shall mean:

               (a) with respect to the General Revolving Commitments,
          collectively, (i) all Indebtedness incurred by Borrower to the
          Fronting Lender, the Swing Line Lender and the General Revolving
          Lenders pursuant to this Agreement and includes, without limitation,
          the principal of and interest on all General Revolving Notes and the
          Swing Line Note and all obligations with respect to Letters of Credit,
          (ii) each extension, renewal or refinancing thereof, in whole or in
          part, (iii) the facility, prepayment and other fees and amounts
          payable hereunder in connection with the General Revolving
          Commitments, and (iv) all Related Expenses incurred in connection with
          the foregoing;

               (b) with respect to the 364 Day Commitments, collectively, (i)
          all Indebtedness incurred by Borrower to the 364 Day Lenders pursuant
          to this Agreement and includes, without limitation, the principal of
          and interest on all 364 Day Notes, (ii) each extension, renewal or
          refinancing thereof, in whole or in part, (iii) the facility,
          prepayment and other fees and amounts payable hereunder in connection
          with the 364 Day Commitments, and (iv) all Related Expenses incurred
          in connection with the foregoing; and

               (c) with respect to the Term Loan Commitments, collectively, (i)
          all Indebtedness incurred by Borrower to the Term Loan Lenders
          pursuant to this Agreement and includes, without limitation, the
          principal of and interest on all Term Notes, (ii) each extension,
          renewal or refinancing thereof in whole or in part, (iii) all
          prepayment and other fees and amounts payable hereunder in connection
          with the Term Loan Commitments, and (iv) all Related Expenses incurred
          in connection with the foregoing.

         "Applicable Facility Fee Rate" shall mean the number of basis points
that is determined, based upon the S&P Rating or the Moody's Rating (whichever
is higher, but subject to the proviso set forth below), as follows:

<TABLE>
<CAPTION>

         --------------------------------------------------------------------------------------------------------------

                                                        APPLICABLE FACILITY FEE RATE   APPLICABLE FACILITY FEE RATE
                                                           FOR GENERAL REVOLVING          FOR 364 DAY COMMITMENTS
               S&P RATING           MOODY'S RATING              COMMITMENTS

         --------------------------------------------------------------------------------------------------------------
<S>      <C>                     <C>                         <C>                             <C>
         A or higher             A2 or higher                8.50 basis points               7.00 basis points
         --------------------------------------------------------------------------------------------------------------
         A-                      A3                          10.00 basis points              8.50 basis points
         --------------------------------------------------------------------------------------------------------------
         BBB+                    Baa1                        12.50 basis points             10.00 basis points
         --------------------------------------------------------------------------------------------------------------
         BBB                     Baa2                        25.00 basis points             20.00 basis points
         --------------------------------------------------------------------------------------------------------------
         BBB-                    Baa3                        37.50 basis points             25.00 basis points
         --------------------------------------------------------------------------------------------------------------
         BB+                     Ba1                         50.00 basis points             37.50 basis points
         --------------------------------------------------------------------------------------------------------------
         BB or lower or unrated  Ba2 or lower or             50.00 basis points             37.50 basis points
                                 unrated
         --------------------------------------------------------------------------------------------------------------
</TABLE>

                                       4
<PAGE>

Changes to the Applicable Facility Fee Rate shall be immediately effective upon
any change in the Moody's Rating or the S&P Rating; provided, however, that (a)
(i) if, at any time, there shall be a Split Rating of one rating, then the
Applicable Facility Fee Rate then in effect shall be based upon the higher of
the Moody's Rating or the S&P Rating, or (ii) if, at any time, there shall be a
Split Rating of two ratings or more, then the Applicable Facility Fee Rate then
in effect shall be based upon the rating that is one level below the higher of
the Moody's Rating or the S&P Rating; or (b) notwithstanding the foregoing
subpart (a) hereof, if, at any time, either (i) the Moody's Rating shall be
below Baa2 or (ii) the S& P Rating shall be below BBB, then, in such case, the
Applicable Facility Fee Rate then in effect shall be based upon the lower of the
Moody's Rating or the S&P Rating. The above matrix does not modify or waive, in
any respect, the rights of the Global Agent and the Lenders to charge the
Default Rate, or the rights and remedies of the Global Agent and the Lenders
hereunder.

         "Applicable Margin" shall mean the number of basis points that is
determined, based upon the S&P Rating or the Moody's Rating (whichever is
higher, but subject to the proviso set forth below), as follows:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------

                                APPLICABLE MARGIN      APPLICABLE MARGIN     APPLICABLE MARGIN   APPLICABLE MARGIN
  S&P RATING      MOODY'S     FOR FIXED RATE LOANS   FOR FIXED RATE LOANS      FOR BASE RATE       FOR BASE RATE
                   RATING         UNDER GENERAL          UNDER 364 DAY          LOANS UNDER       LOANS UNDER 364
                                    REVOLVING             COMMITMENTS        GENERAL REVOLVING    DAY COMMITMENTS
                                   COMMITMENTS                                  COMMITMENTS

-----------------------------------------------------------------------------------------------------------------------
<S>             <C>             <C>                    <C>                    <C>                  <C>
A or higher     A2 or higher    91.50 basis points     93.00 basis points     0 basis points       0 basis points
-----------------------------------------------------------------------------------------------------------------------
A-              A3             115.00 basis points    116.50 basis points     0 basis points       0 basis points
-----------------------------------------------------------------------------------------------------------------------
BBB+            Baa1           137.50 basis points    140.00 basis points     0 basis points       0 basis points
-----------------------------------------------------------------------------------------------------------------------
BBB             Baa2           175.00 basis points    180.00 basis points     0 basis points       0 basis points
-----------------------------------------------------------------------------------------------------------------------
BBB-            Baa3           212.50 basis points    225.00 basis points     0 basis points       0 basis points
-----------------------------------------------------------------------------------------------------------------------
BB+             Ba1            250.00 basis points    262.50 basis points    100 basis points     100 basis points
-----------------------------------------------------------------------------------------------------------------------
BB or lower     Ba2 or         300.00 basis points    312.50 basis points    150 basis points     150 basis points
or unrated      lower or
                unrated
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

Changes to the Applicable Margin shall be immediately effective upon any change
in the Moody's Rating or the S&P Rating, as applicable; provided, however, that
(a) (i) if, at any time, there shall be a Split Rating of one rating, then the
Applicable Margin then in effect shall be based upon the higher of the Moody's
Rating or the S&P Rating, or (ii) if, at any time, there shall be a Split Rating
of two ratings or more, then the Applicable Margin then in effect shall be based
upon the rating that is one level below the higher of the Moody's Rating or the
S&P Rating; or (b) notwithstanding the foregoing subpart (a) hereof, if, at any
time (i) either the Moody's Rating shall be below Baa2 or (ii) the S&P Rating
shall be below BBB, then, in such case, the Applicable Margin then in effect
shall be based upon the lower of the Moody's Rating or the S&P Rating. The above
matrix does not modify or waive, in any respect, the rights of the Global Agent
and the Lenders to charge the Default Rate, or the rights and remedies of the
Global Agent and the Lenders hereunder.

                                       5
<PAGE>

         "Applicable Term Loan Margin" shall mean, with respect to the Term
Loan, (a) four hundred fifty (450) basis points for any portion of the Term Loan
that is a Eurodollar Loan, and (b) two hundred fifty (250) basis points for any
portion of the Term Loan that is a Base Rate Loan; provided, however, that, the
Applicable Term Loan Margin shall be increased by an additional fifty (50) basis
points at any time that either (i) the Moody's Rating shall be Ba2 or lower,
(ii) the S&P Rating shall be BB or lower or (iii) if Adjusted Consolidated Cash
Flow for any period of four consecutive quarters ending on or prior to May 31,
2003, shall be less than Two Hundred Twenty-Five Million Dollars ($225,000,000).
Any change to the Applicable Term Loan Margin shall be immediately effective
upon any change in the Moody's Rating or the S&P Rating. The foregoing does not
modify or waive, in any respect, the rights of the Global Agent and the Lenders
to charge the Default Rate, or the rights and remedies of the Global Agent and
the Lenders hereunder.

         "Assignment Agreement" shall mean an Assignment and Acceptance
Agreement in the form of the attached EXHIBIT K.

         "Base Rate" shall mean a rate per annum equal to the greater of (a) the
Prime Rate or (b) one-half of one percent (1/2%) in excess of the Federal Funds
Effective Rate. Any change in the Base Rate shall be effective immediately from
and after such change in the Base Rate.

         "Base Rate Loan" shall mean a Loan described in Section 2.1(a), (b) or
(c) hereof on which Borrower shall pay interest at a rate based upon the Base
Rate.

         "Business Day" shall mean a day of the year on which banks are not
required or authorized to close in Cleveland, Ohio, and, if the applicable
Business Day relates to any Eurodollar Loan, on which dealings are carried on in
the London interbank Eurodollar market, and, if the applicable Business Day
relates to any Alternate Currency Loan, on which commercial banks are open for
international business (including the clearing of currency transfer in the
relevant Alternate Currency) in the principal financial center of the home
country of such Alternate Currency.

         "Capital Distribution" shall mean a payment made, liability incurred or
other consideration given for the purchase, acquisition, redemption or
retirement of any capital stock or other equity interest of any Company or as a
dividend, return of capital or other distribution (other than any stock
dividend, stock split or other equity distribution payable only in capital stock
or other equity of the Company in question) in respect of any Company's capital
stock or other equity interest.

         "Capitalization Ratio" shall mean, for the most recently completed
fiscal quarter of the Companies, on a Consolidated basis and in accordance with
GAAP, the ratio of (a) Consolidated Total Indebtedness, to (b) the sum of
Consolidated Total Indebtedness and Consolidated Net Worth.

         "Cash Dividend" shall mean a Capital Distribution of Borrower payable
in cash to the shareholders of Borrower with respect to any class or series of
stock of Borrower.

         "Cash Equivalent" shall mean (a) a security that is the direct
obligation of the United States of America, any member state of the European
Union or any other sovereign nation

                                       6
<PAGE>

acceptable to the Global Agent so long as the full faith of and credit of such
nation is pledged in support thereof; (b) time deposits, certificates of deposit
or bankers acceptances issued by any Lender or any other domestic or foreign
commercial bank or United States branch of a foreign bank licensed under the
laws of the United States or a State thereof having (i) capital and surplus in
excess of Two Hundred Fifty Million Dollars ($250,000,000) and (ii) a Keefe Bank
Watch Rating of "B" or better or, with respect to any investment or deposit in a
foreign bank in excess of Two Hundred Fifty Thousand Dollars ($250,000), an
equivalent rating from a comparable foreign rating agency (each an "Approved
Depository"); (c) commercial paper or securities that at the time of investment
therein shall have been assigned one of the two highest quality ratings in
accordance with the rating systems employed by either Moody's or S&P; or (d)
fully collateralized repurchase obligations entered into with any Lender or
Approved Depository, having a term of not more than thirty (30) days and
covering securities of the type describe in subpart (a) above.

         "Casualty Event Proceeds" shall mean any funds, in excess of the
aggregate amount of One Million Dollars ($1,000,000) for any single casualty
event, received by any Company or Companies from (a) insurance losses, returns
or unearned premiums under any policy of insurance; (b) any condemnation,
eminent domain or other proceeding relating to the Real Property; or (c) any
litigation, settlement or other legal proceeding.

         "Change in Control" shall mean (a) the acquisition of, or, if earlier,
the shareholder or director approval of the acquisition of, ownership or voting
control, directly or indirectly, beneficially or of record, on or after the
Closing Date, by any Person or group (within the meaning of Rule 13d-3 of the
SEC under the Securities Exchange Act of 1934, as then in effect), of shares
representing more than twenty percent (20%) of the aggregate ordinary Voting
Power represented by the issued and outstanding capital stock of Borrower;
provided, however, that the foregoing restriction shall not apply to the
Permitted Holders so long as the acquisition by the Permitted Holders of such
Voting Power shall not result, directly or indirectly, in a "going private
transaction" within the meaning of the Securities Exchange Act of 1934; (b) the
occupation of a majority of the seats (other than vacant seats) on the board of
directors of Borrower by Persons who were neither (i) nominated by the board of
directors of Borrower nor (ii) appointed by directors so nominated; or (c) the
occurrence of a change in control, or other similar provision, as defined in any
Material Indebtedness Agreement.

         "Closing Date" shall mean the effective date of this Agreement.

         "Closing Fee Letter" shall mean the Closing Fee Letter between Borrower
and the Lenders, dated as of the Closing Date.

         "Code" shall mean the Internal Revenue Code of 1986, as amended,
together with the rules and regulations promulgated thereunder.

         "Collateral" shall mean, collectively, (a) all of the Collateral, as
defined in each of the respective Security Documents executed by any Company,
(b) all of the Mortgaged Real Property, and (c) any other property, whether
tangible or intangible, at any time securing the Debt, or any part thereof.

                                       7
<PAGE>

         "Collateral Agent" shall mean National City Bank in its capacity as
collateral agent under this Agreement and the Security Documents, together with
any successor collateral agent appointed pursuant to Section 10.23 hereof.

         "Collateral Assignment and Security Agreement" shall mean a Collateral
Assignment and Security Agreement, in the form of the attached EXHIBIT G,
executed and delivered on or after the Closing Date by a Company to the
Collateral Agent, pursuant to which such Company shall have granted to the
Collateral Agent a security interest in and an assignment of all intellectual
property owned by such Company, as the same may from time to time be amended,
restated or otherwise modified.

         "Combined Closing Commitment Amount" shall mean Two Hundred Twenty-Five
Million Dollars ($225,000,000).

         "Combined Maximum Commitment Amount" shall mean Two Hundred Forty-Five
Million Dollars ($245,000,000).

         "Commitment" shall mean the obligation hereunder of (a) the General
Revolving Lenders to make General Revolving Loans, the Fronting Lender to issue
Letters of Credit and the Swing Line Lender to make Swing Loans pursuant to the
General Revolving Commitments, up to the Maximum General Revolving Commitment
Amount, (b) the 364 Day Lenders to make 364 Day Loans pursuant to the 364 Day
Commitments, up to the Maximum 364 Day Commitment Amount, and (c) the Term Loan
Lenders to make the Term Loan pursuant to the Term Loan Commitment, in the Term
Loan Commitment Amount.

         "Commitment Increase Period" shall mean the period from the Closing
Date to July 31, 2002, or such later date as shall be agreed to in writing by
the Global Agent.

         "Commitment Period" shall mean (a) with respect to the General
Revolving Commitments, the period from the Closing Date to January 15, 2006, and
(b) with respect to the 364 Day Commitment, the period from the Closing Date to
August 6, 2002, or, in the case of both (a) and (b), such earlier date on which
the Commitment shall have been terminated pursuant to Article VIII hereof.

         "Company" shall mean Borrower or a Subsidiary.

         "Companies" shall mean Borrower and all Subsidiaries.

         "Compliance Certificate" shall mean a certificate, substantially in the
form of the attached EXHIBIT F.

         "Consideration" shall mean, in connection with an Acquisition, the
aggregate consideration paid, including borrowed funds, cash, the issuance of
securities or notes, the assumption or incurring of liabilities (direct or
contingent), the payment of consulting fees or fees for a covenant not to
compete and any other consideration paid for the purchase.

         "Consolidated" shall mean the resultant consolidation of the financial
statements of Borrower and its Subsidiaries in accordance with GAAP, including
principles of consolidation

                                       8
<PAGE>

consistent with those applied in preparation of the consolidated financial
statements referred to in Section 6.13 hereof.

         "Consolidated Adjusted Net Worth" shall mean, at any date, (a) the net
book value (after deducting all applicable reserves and excluding any
re-appraisal or write-up of assets) of the assets (other than patents, goodwill
or other intangibles) of the Companies, minus (b) Consolidated Total
Liabilities.

         "Consolidated Capital Expenditures" shall mean, for any period, the
amount of capital expenditures of the Companies, as determined on a Consolidated
basis and in accordance with GAAP.

         "Consolidated Depreciation and Amortization Charges" shall mean, for
any period, the aggregate of all depreciation and amortization charges for fixed
assets, leasehold improvements and general intangibles (specifically including
goodwill) of the Companies for such period, as determined on a Consolidated
basis and in accordance with GAAP.

         "Consolidated EBITDA" shall mean, for any period, on a Consolidated
basis and in accordance with GAAP, Consolidated Net Earnings for such period
plus the aggregate amounts deducted in determining such Consolidated Net
Earnings in respect of (a) income taxes, (b) Consolidated Interest Expense, (c)
Consolidated Depreciation and Amortization Charges, and (d) the Restructuring
Charges.

         "Consolidated Interest Expense" shall mean, for any period, the
interest expense of the Companies for such period, as determined on a
Consolidated basis and in accordance with GAAP; provided, however, that
Consolidated Interest Expense shall include the interest component of the
Permitted Receivables Facility.

         "Consolidated Net Earnings" shall mean, for any period, the net income
(loss) of the Companies for such period, as determined on a Consolidated basis
and in accordance with GAAP.

         "Consolidated Net Worth" shall mean, at any date, the Consolidated
stockholders' equity of the Companies, determined as of such date in accordance
with GAAP.

         "Consolidated Total Indebtedness" shall mean all Indebtedness of the
Companies, as determined on a Consolidated basis and in accordance with GAAP,
including but not limited to all Indebtedness under the Permitted Receivables
Facility.

         "Consolidated Total Liabilities" shall mean the total of items of
Indebtedness or liabilities of the Companies that, in accordance with GAAP,
would be included in determining total liabilities on the liability side of the
balance sheet of the Companies as of the date of determination, as determined on
a Consolidated basis.

         "Controlled Group" shall mean a Company and each Person required to be
aggregated with a Company under Code Sections 414(b), (c), (m) or (o).

                                       9
<PAGE>

         "Convertible Excess Proceeds" shall mean the gross proceeds received by
Borrower pursuant to the issuance of notes under the Subordination Convertible
Indenture in excess of One Hundred Fifty Million Dollars ($150,000,000).

         "Credit Event" shall mean (a) the making by any Lender of a Loan, the
conversion by any Lender of a Fixed Rate Loan or Base Rate Loan, or the
continuation by any Lender of a Fixed Rate Loan, (b) the making by the Swing
Line Lender of a Swing Loan, or (c) the issuance by the Fronting Lender of any
Letter of Credit.

         "Credit Exposure" shall mean, at any time, with respect to any
Commitment, the sum of the Dollar Equivalent of (a) the aggregate principal
amount of Loans outstanding thereunder, and (b) the Letter of Credit Exposure,
if any.

         "Debt" shall mean, collectively, (a) all Indebtedness and other
obligations incurred by Borrower to the Global Agent, the Swing Line Lender, the
Fronting Lender or the Lenders pursuant to this Agreement and includes, without
limitation, the principal of and interest on all Notes and all obligations in
connection with Letters of Credit; (b) each extension, renewal or refinancing
thereof in whole or in part; (c) the facility and other fees, including any
prepayment fee, payable hereunder; and (d) all Related Expenses.

         "Default" shall mean an event or condition that constitutes, or with
the lapse of any applicable grace period or the giving of notice or both would
constitute, an Event of Default and that has not been waived by the Required
Lenders (or, if applicable, all of the Lenders) in writing.

         "Default Rate" shall mean a rate per annum equal to two percent (2%) in
excess of the Base Rate from time to time in effect.

         "Derived Base Rate" shall mean with respect to Base Rate Loans, a rate
per annum equal to the sum of the Applicable Margin (from time to time in
effect) plus the Base Rate.

         "Derived Fixed Rate" shall mean with respect to Eurodollar Loans or
Alternate Currency Loans, a rate per annum equal to the sum of (a) the
Applicable Margin (from time to time in effect), plus (b) the applicable LIBO
Pre-Margin Rate, plus (c) (i) if the S&P Rating shall be lower than BBB- but
higher than BB or the Moody's Rating shall be lower than Baa3 but higher than
Ba2, seventy-five (75) basis points, or (ii) if the S&P Rating shall be BB or
lower or the Moody's Rating shall be Ba2 or lower, one hundred (100) basis
points.

         "Derived Swing Loan Rate" shall mean, with respect to any Swing Loan, a
rate per annum quoted to Borrower by the Swing Line Lender and agreed to by
Borrower, which rate shall be determined by the Swing Line Lender by adding the
Applicable Margin (from time to time in effect) to the Swing Line Lender's costs
of funds, as determined by Swing Line Lender.

         "Derived Term Loan Base Rate" shall mean a rate per annum equal to the
sum of the Applicable Term Loan Margin (from time to time in effect) plus the
Base Rate.

                                       10
<PAGE>

         "Derived Term Loan Eurodollar Rate" shall mean a rate per annum equal
to the sum of the Applicable Term Loan Margin (from time to time in effect) plus
the LIBO Pre-Margin Rate applicable to Eurodollar Loans.

         "Designated Lending Office" shall mean, with respect to the Global
Agent, the address set forth on the signature pages to this Agreement, or such
other office or address as the Global Agent shall designate in writing to
Borrower and the appropriate Lenders.

         "Disposition" shall mean the sale, lease, transfer or other disposition
of assets (whether in one or more than one transaction) by a Company, other than
a sale, lease, transfer or other disposition made by a Company pursuant to
Section 5.12(e) hereof.

         "Dividend Reduction Amount" shall mean (a) for any date of
determination on or before February 28, 2003, an amount equal to (i) the maximum
amount of Cash Dividends Borrower was permitted to make during the period from
the Closing Date to the date of determination, or if such period is longer than
twelve months, during the twelve month period immediately preceding such date of
determination minus (ii) the actual amount of Cash Dividends made by Borrower
during the relevant period, and (b) for any date of determination after February
28, 2003 an amount equal to (i) the maximum amount of Cash Dividends Borrower
was permitted to make during the most recently completed fiscal year pursuant to
Section 5.20(a) hereof, minus (ii) the actual amount of Cash Dividends made by
Borrower during such fiscal year.

         "Dollars" or "$" shall mean the lawful currency of the United States of
America.

         "Dollar Equivalent" of (a) an Alternate Currency Loan, shall mean the
Dollar equivalent of the amount of such Alternate Currency Loan, determined by
the Global Agent on the basis of its spot rate at approximately 11:00 A.M.
London time on the date two (2) Business Days before the date of such Alternate
Currency Loan, for the purchase of the relevant Alternate Currency with Dollars
for delivery on the date of such Alternate Currency Loan, and (b) any other
amount, shall mean the Dollar equivalent of such amount, determined by the
Global Agent on the basis of its spot rate at approximately 11:00 A.M. London
time on the date for which the Dollar equivalent amount of such amount is being
determined, for the purchase of the relevant Alternate Currency with Dollars for
delivery on such date; provided, however, that, in calculating the Dollar
Equivalent for purposes of determining (i) Borrower's obligation to prepay Loans
pursuant to Section 2.8 hereof, or (ii) Borrower's ability to request additional
Loans pursuant to the Commitment, the Global Agent may, in its discretion, on
any Business Day (prior to payment in full of the Debt) selected by the Global
Agent, calculate the Dollar Equivalent of each such Loan. The Global Agent shall
notify Borrower of the Dollar Equivalent of such Alternate Currency Loan or any
other amount at the time that Dollar Equivalent shall be determined.

         "Domestic Company" shall mean Borrower or a Domestic Subsidiary.

         "Domestic Subsidiary" shall mean a Subsidiary that is not a Foreign
Subsidiary.

         "Eligible Receivables" shall mean accounts receivable eligible for
inclusion in the Permitted Receivables Facility against which the provider of
such Permitted Receivables Facility is willing to lend as of the date of the
most recent Permitted Receivables Facility Certificate.

                                       11
<PAGE>

         "Eligible Transferee" shall mean any commercial bank, financial
institution or other "accredited investor" (as defined in SEC Regulation D) that
is not Borrower or a Subsidiary or any Affiliate thereof.

         "Environmental Laws" shall mean all provisions of law, statutes,
ordinances, rules, regulations, permits, licenses, judgments, writs,
injunctions, decrees, orders, awards and standards promulgated by the government
of the United States of America, Australia, Canada, the United Kingdom or any
other foreign jurisdiction, or by any state or municipality thereof, or by any
court, agency, instrumentality, regulatory authority or commission of any of the
foregoing concerning health, safety and protection of, or regulation of the
discharge of substances into, the environment.

         "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as amended from time to time, and the regulations promulgated pursuant thereto.

         "ERISA Event" shall mean (a) the existence of a condition or event with
respect to an ERISA Plan that presents a risk of the imposition of an excise tax
or any other liability on a Company or of the imposition of a Lien on the assets
of a Company; (b) the engagement by a Controlled Group member in a non-exempt
"prohibited transaction" (as defined under ERISA Section 406 or Code Section
4975) or a breach of a fiduciary duty under ERISA that could result in liability
to a Company; (c) the application by a Controlled Group member for a waiver from
the minimum funding requirements of Code Section 412 or ERISA Section 302 or a
Controlled Group member is required to provide security under Code Section
401(a)(29) or ERISA Section 307; (d) the occurrence of a Reportable Event with
respect to any Pension Plan as to which notice is required to be provided to the
PBGC; (e) the withdrawal by a Controlled Group member from a Multiemployer Plan
in a "complete withdrawal" or a "partial withdrawal" (as such terms are defined
in ERISA Sections 4203 and 4205, respectively); (f) the involvement of, or
occurrence or existence of any event or condition that makes likely the
involvement of, a Multiemployer Plan in any reorganization under ERISA Section
4241; (g) the failure of an ERISA Plan (and any related trust) that is intended
to be qualified under Code Sections 401 and 501 to be so qualified or the
failure of any "cash or deferred arrangement" under any such ERISA Plan to meet
the requirements of Code Section 401(k); (h) the taking by the PBGC of any steps
to terminate a Pension Plan or appoint a trustee to administer a Pension Plan,
or the taking by a Controlled Group member of any steps to terminate a Pension
Plan; (i) the failure by a Controlled Group member or an ERISA Plan to satisfy
any requirements of law applicable to an ERISA Plan; (j) the commencement,
existence or threatening of a claim, action, suit, audit or investigation with
respect to an ERISA Plan, other than a routine claim for benefits; or (k) any
occurrence by or any expectation of the incurrence by a Controlled Group member
of any liability for post-retirement benefits under any Welfare Plan, other than
as required by ERISA Section 601, ET. SEQ. or Code Section 4980B.

         "ERISA Plan" shall mean an "employee benefit plan" (within the meaning
of ERISA Section 3(3)) that a Controlled Group member at any time sponsors,
maintains, contributes to, has liability with respect to or has an obligation to
contribute to such plan.

         "Eurodollar" shall mean a Dollar denominated deposit in a bank or
branch outside of the United States.

                                       12
<PAGE>

         "Eurodollar Loan" shall mean a Loan described in Section 2.1(a), (b) or
(c) hereof that is denominated in Eurodollars and on which Borrower shall pay
interest at a rate based on the applicable LIBO Pre-Margin Rate.

         "Event of Default" shall mean an event or condition that constitutes an
event of default as defined in Article VII hereof.

         "Excess Cash Flow" shall mean, for any period, on a Consolidated basis
and in accordance with GAAP, an amount (if positive) equal to (a) the sum,
without duplication, of the amounts for such period of (i) Consolidated EBITDA
plus (ii) other income (to the extent it has been excluded from the calculation
of Consolidated EBITDA), minus (b) the sum, without duplication, of the amounts
for such period of (i) Operating Working Capital Adjustment, (ii) Consolidated
Interest Expense, (iii) Consolidated Capital Expenditures (net of any related
refinancings with respect to such expenditures), (iv) scheduled or mandatory
principal payments with respect to Consolidated Total Indebtedness (other than
optional prepayments of the General Revolving Commitments or the 364 Day
Commitments), (v) Capital Distributions, (vi) cash Restructuring Charges, (vii)
the charges set forth on SCHEDULE 6.7 hereto, and (viii) provisions for current
taxes based on income of the Companies and payable in cash with respect to such
period. As used in this definition, (A) "Consolidated Current Assets" shall
mean, as of the date of determination, the amount of Consolidated total assets
that may properly be classified as current assets in accordance with GAAP,
excluding cash and cash equivalents, deferred and refundable income taxes, and
including Other Assets, (B) "Consolidated Current Liabilities" shall mean, as of
the date of determination, the amount of Consolidated Total Liabilities that may
properly be classified as current liabilities in accordance with GAAP, excluding
debt due within one year, and including Other Liabilities, (C) "Operating
Working Capital Adjustment" shall mean, for any period, the amount (that may be
a negative number) by which Operating Working Capital as of the beginning of
such period exceeds (or is less than) Operating Working Capital as of the end of
such period, and (D) "Operating Working Capital" shall mean, as of the date of
determination, the excess of Consolidated Current Assets over Consolidated
Current Liabilities.

         "Excess Cash Flow Prepayment" shall have the meaning given to such term
in Section 2.8(b) hereof.

         "Federal Funds Effective Rate" shall mean, for any day, the rate per
annum (rounded upward to the nearest one one-hundredth of one percent (1/100 of
1%)) announced by the Federal Reserve Bank of New York (or any successor) on
such day as being the weighted average of the rates on overnight federal funds
transactions arranged by federal funds brokers on the previous trading day, as
computed and announced by such Federal Reserve Bank (or any successor) in
substantially the same manner as such Federal Reserve Bank computes and
announces the weighted average it refers to as the "Federal Funds Effective
Rate" as of the Closing Date.

         "Financial Officer" shall mean any of the following officers: chief
executive officer, president, chief financial officer or treasurer. Unless
otherwise qualified, all references to a Financial Officer in this Agreement
shall refer to a Financial Officer of Borrower.

                                       13
<PAGE>

         "Financial Projections" shall mean the financial projections prepared
by Borrower and delivered to the Global Agent and the Lenders for the period
from May 31, 2001 through February 29, 2004.

         "Fixed Charge Coverage Ratio Condition" shall mean any time that
Borrower's Fixed Charge Coverage Ratio (as defined in the Subordinated
Indenture) shall be less than (a) 2.50 to 1.00 for the period from the Closing
Date through June 29, 2002, (b) 2.75 to 1.00 on June 30, 2002 through June 29,
2003, and (c) 3.00 to 1.00 thereafter, as calculated in accordance with the
terms and conditions of the Subordinated Indenture.

         "Fixed Rate Loan" shall mean a Eurodollar Loan or an Alternate Currency
Loan.

         "Foreign Subsidiary" shall mean a Subsidiary that is organized outside
of the United States, including any Subsidiary organized under the laws of any
territory of the United States.

         "Fronting Lender" shall mean, as to any Letter of Credit transaction
hereunder, National City Bank, as the issuer of such Letter of Credit, or such
other General Revolving Lender (or subsidiary or affiliate thereof), as
determined by the Global Agent, as shall agree to issue a Letter of Credit in
its own name, but on behalf of the General Revolving Lenders.

         "GAAP" shall mean generally accepted accounting principles as then in
effect, which shall include the official interpretations thereof by the
Financial Accounting Standards Board, applied on a basis consistent with the
past accounting practices and procedures of Borrower and its Subsidiaries.

         "General Revolving Commitment" shall mean the obligation hereunder,
during the applicable Commitment Period, of (a) each Lender to participate in
the making of General Revolving Loans up to the aggregate amount set forth
opposite such Lender's name under the column headed "General Revolving
Commitment Amount" as set forth on SCHEDULE 1 hereto (or such other amount as
shall be determined pursuant to Section 2.7 hereof, (b) the Swing Line Lender to
make, and each General Revolving Lender to participate, if required, in the
making of, Swing Loans pursuant to the Swing Line Commitment, and (c) the
Fronting Lender to issue, and each Lender to participate in the issuance of,
Letters of Credit pursuant to the Letter of Credit Commitment.

         "General Revolving Commitment Exposure" shall mean, at any time, the
sum of the Dollar Equivalent of (a) the aggregate principal amount of all
General Revolving Loans outstanding, (b) the Swing Line Exposure, and (c) the
Letter of Credit Exposure.

         "General Revolving Lender" shall mean a Lender with a General Revolving
Commitment.

         "General Revolving Note" shall mean a General Revolving Credit Note in
the form of the attached EXHIBIT A, executed and delivered pursuant to Section
2.1(a)(i) hereof.

         "General Revolving Loan" shall mean a loan granted to Borrower by the
General Revolving Lenders in accordance with Section 2.1(a)(i) hereof.

                                       14
<PAGE>

         "Global Agent Fee Letter" shall mean the Global Agent Fee Letter
between Borrower and the Global Agent, dated as of the Closing Date.

         "Guarantor" shall mean a Person that pledges its credit or property in
any manner for the payment or other performance of the indebtedness, contract or
other obligation of another and includes (without limitation) any guarantor
(whether of payment or of collection), surety, co-maker, endorser or Person that
agrees conditionally or otherwise to make any purchase, loan or investment in
order thereby to enable another to prevent or correct a default of any kind.

         "Guarantor of Payment" shall mean each of the Companies set forth on
SCHEDULE 2 hereto that are each executing and delivering a Guaranty of Payment,
or any other Person that shall have delivered a Guaranty of Payment to the
Global Agent subsequent to the Closing Date.

         "Guaranty of Payment" shall mean each Guaranty of Payment of Debt, in
the form of EXHIBIT H hereto, executed and delivered on or after the Closing
Date in connection herewith by a Guarantor of Payment, as the same may from time
to time be amended, restated or otherwise modified.

         "Hedge Agreement" shall mean any hedge agreement, interest rate swap,
cap, collar or floor agreement, or other interest rate management device entered
into by Borrower with any Person in connection with any Indebtedness of
Borrower.

         "Indebtedness" shall mean, for any Company (excluding in all cases
trade payables payable in the ordinary course of business by such Company),
without duplication, (a) all obligations to repay borrowed money, direct or
indirect, incurred, assumed, or guaranteed, (b) all obligations for the deferred
purchase price of capital assets, (c) all obligations under conditional sales or
other title retention agreements, (d) all obligations (contingent or otherwise)
under any letter of credit, banker's acceptance, currency swap agreement,
interest rate swap, cap, collar or floor agreement or other interest rate
management device, (e) all synthetic leases, (f) all lease obligations that have
been or should be capitalized on the books of such Company in accordance with
GAAP, (g) all obligations of such Company with respect to asset securitization
financing, including, but not limited to, all obligations of any Company under
the Permitted Receivables Facility, (h) all obligations to advance funds to, or
to purchase assets, property or services from, any other Person in order to
maintain the financial condition of such Person, and (i) any other transaction
(including forward sale or purchase agreements) having the commercial effect of
a borrowing of money entered into by such Company to finance its operations or
capital requirements.

         "Intellectual Property" shall mean, with respect to any Person, all
patents, patent applications, trademarks, service marks, copyrights, licenses
and other intellectual property of such Person.

         "Interest Adjustment Date" shall mean the last day of each Interest
Period.

         "Interest Coverage Ratio" shall mean, for the most recently completed
four fiscal quarters of the Companies, on a Consolidated basis and in accordance
with GAAP, the ratio of (a) Consolidated EBITDA to (b) Consolidated Interest
Expense.

                                       15
<PAGE>

         "Interest Period" shall mean, with respect to any Fixed Rate Loan, the
period commencing on the date such Fixed Rate Loan is made and ending on the
last day of such period, as selected by Borrower pursuant to the provisions
hereof, and, thereafter, each subsequent period commencing on the last day of
the immediately preceding Interest Period and ending on the last day of such
period, as selected by Borrower pursuant to the provisions hereof. The duration
of each Interest Period for any Fixed Rate Loan shall be one month, two months,
three months or six months, in each case as Borrower may select upon notice, as
set forth in Section 2.2 hereof, provided that (a) if Borrower shall fail to so
select the duration of any Interest Period for a Eurodollar Loan, Borrower shall
be deemed to have converted such Eurodollar Loan to a Base Rate Loan at the end
of the then current Interest Period; (b) Borrower may not select any Interest
Period for a Fixed Rate Loan that shall end after any date when principal shall
be due on such Fixed Rate Loan, and (c) if Borrower shall fail to select a new
Interest Period with respect to an outstanding Alternate Currency Loan at least
three (3) Business Days prior to the Interest Adjustment Date applicable to such
Alternative Currency Loan, such Alternate Currency Loan shall be repaid on the
last day of the applicable Interest Period.
..
         "Landlord's Agreement" shall mean a landlord's waiver or mortgagee's
waiver, each in form and substance satisfactory to the Collateral Agent,
delivered by a Company in connection with this Agreement, as the same may from
time to time be amended, restated or otherwise modified.

         "Lender Credit Exposure" shall mean, for any Lender, at any time, the
aggregate of such Lender's respective Pro Rata Shares of the General Revolving
Commitment Exposure, the 364 Day Exposure and the Term Loan Exposure.

         "Letter of Credit" shall mean any sight commercial documentary letter
of credit or any standby letter of credit that shall be issued by the Fronting
Lender for the account of Borrower, including amendments thereto, if any, and
shall have an expiration date no later than the earlier of (a) one year after
its date of issuance or (b) thirty (30) days prior to the last day of the
applicable Commitment Period.

         "Letter of Credit Commitment" shall mean the commitment of the Fronting
Lender, on behalf of the Lenders, to issue Letters of Credit in an aggregate
face amount of up to the Dollar Equivalent of Sixty Million Dollars
($60,000,000), during the Commitment Period applicable to the General Revolving
Commitment, on the terms and conditions set forth in Section 2.1(a)(ii) hereof.

         "Letter of Credit Exposure" shall mean, at any time, the sum of the
Dollar Equivalent of (a) the aggregate undrawn face amount of all issued and
outstanding Letters of Credit, and (b) the aggregate of the draws made on
Letters of Credit that have not been reimbursed by Borrower or converted to a
General Revolving Loan pursuant to Section 2.1(a)(ii) hereof.

         "Leverage Ratio" shall mean, at any time, for the most recently
completed four fiscal quarters of the Companies, on a Consolidated basis and in
accordance with GAAP, the ratio of (a) Consolidated Total Indebtedness to (b)
Consolidated EBITDA.

         "LIBO Pre-Margin Rate" shall mean:

                                       16
<PAGE>

         (a) with respect to a Eurodollar Loan, the rate per annum (rounded
upwards, if necessary, to the next higher 1/16 of 1%), as determined by the
Global Agent, that equals the average rate per annum at which deposits in
Dollars are offered for deposits of the duration and amount in question, at
11:00 A.M. (London time) (or as soon thereafter as practicable) two Business
Days prior to the first day of the Interest Period in question, to the Global
Agent by prime banking institutions in any eurodollar market reasonably selected
by the Global Agent, as adjusted for reserves required under Regulation D of the
Federal Reserve Act or under any other applicable law or regulation; and

         (b) with respect to an Alternate Currency Loan, the rate per annum
(rounded upwards, if necessary, to the next higher 1/16 of 1%), as determined by
the Global Agent, that equals the average rate per annum at which deposits in
the relevant Alternate Currency are offered for deposits of the duration and
amount in question, at 11:00 A.M. (London time) (or as soon thereafter as
practicable) two Business Days prior to the first day of the Interest Period in
question, to the Global Agent by prime banking institutions in any Alternate
Currency market reasonably selected by the Global Agent, as adjusted for
reserves required under Regulation D of the Federal Reserve Act or under any
other applicable law or regulation.

         "Lien" shall mean any mortgage, security interest, lien (statutory or
other), charge, encumbrance on, pledge or deposit of, or conditional sale,
leasing, sale with a right of redemption or other title retention agreement and
any capitalized lease with respect to any property (real or personal) or asset.

         "Loan" shall mean a General Revolving Loan, a 364 Day Revolving Loan, a
Swing Loan or the Term Loan.

         "Loan Documents" shall mean, collectively, this Agreement, each Note,
each Guaranty of Payment, each Security Document, the Global Agent Fee Letter,
the Closing Fee Letter, each Assignment Agreement, and all documentation
relating to each Letter of Credit, as any of the foregoing may from time to time
be amended, restated or otherwise modified or replaced.

         "Mandatory Prepayment Event" shall mean (a) the receipt by any Company
of any Casualty Event Proceeds; (b) a public or private offering of equity or
debt securities by any Company; or (c) a Significant Asset Disposition the
proceeds of which have not been reinvested in accordance with Section 5.12(f)
hereof.

         "Material Adverse Effect" shall mean a material adverse effect on (a)
the business, operations, property, condition (financial or otherwise) or
prospects of Borrower, (b) the business, operations, property, condition
(financial or otherwise) or prospects of the Companies taken as a whole, or (c)
the validity or enforceability of this Agreement or any of the other Loan
Documents or the rights and remedies of the Global Agent or the Lenders
hereunder or thereunder.

         "Material Indebtedness Agreement" shall mean any debt instrument, lease
(capital, operating or otherwise), guaranty, contract, commitment, agreement or
other arrangement evidencing any Indebtedness of any Company in excess of the
aggregate amount of Five Million Dollars ($5,000,000) (or the Dollar Equivalent
thereof).

                                       17
<PAGE>

         "Maximum 364 Day Commitment Amount" shall mean the principal amount of
One Hundred Five Million Dollars ($105,000,000) (or such other amount as shall
be determined pursuant to Section 2.7 hereof).

         "Maximum Acquisition Amount" shall mean an amount equal to (a) Ten
Million Dollars ($10,000,000), plus (b) the Additional Convertible Proceeds
Amount (which amount shall only be applicable in connection with one
Acquisition), if any, plus (c) the Dividend Reduction Amount.

         "Maximum Annual Dividend Amount" shall mean, for any fiscal year of the
Companies, Twenty-Seven Million Dollars ($27,000,000); provided, however, that,
(a) if, during any fiscal quarter, the S&P Senior Rating shall be BB (or lower)
or the Moody's Senior Rating shall be Ba2 (or lower), the Maximum Annual
Dividend Amount for purposes of determining the Maximum Quarterly Dividend
Amount for such fiscal quarter shall be Thirteen Million Five Hundred Thousand
Dollars ($13,500,000), (b) if, during any fiscal quarter, the S&P Senior Rating
shall be BBB- and the Moody's Senior Rating shall be Baa3, the Maximum Annual
Dividend Amount for purposes of determining the Maximum Quarterly Dividend
Amount for such fiscal quarter shall be Fifty Million Dollars ($50,000,000), and
(c) if, during any fiscal quarter, the S&P Senior Rating shall be BBB and the
Moody's Senior Rating shall be Baa2, the Maximum Annual Dividend Amount for
purposes of determining the Maximum Quarterly Dividend Amount for such fiscal
quarter shall be an amount equal to the greater of (i) Fifty Million Dollars
($50,000,000), or (ii) fifty percent (50%) of Consolidated Net Earnings for such
year. In determining the foregoing amount, if, during any period of the
Companies, there is a change in the S&P Senior Rating or the Moody's Senior
Rating, then the lowest ratings level of each of the S&P Senior Rating and the
Moody's Senior Rating in effect during such fiscal year shall apply.

         "Maximum General Revolving Commitment Amount" shall mean the principal
amount of One Hundred Twenty Million Dollars ($120,000,000) (including the
Dollar Equivalent of each Alternate Currency Loan), or such other amount as
shall be determined pursuant to Section 2.7 hereof.

         "Maximum Quarterly Dividend Amount" shall mean, for any fiscal quarter
of the Companies, an amount equal to twenty-five percent (25%) of the Maximum
Annual Dividend Amount.

         "Minimum Borrowing Amount" shall mean with respect to (a) a Base Rate
Loan, an amount of not less than One Million Dollars ($1,000,000), increased by
increments of One Hundred Thousand Dollars ($100,000), (b) a Fixed Rate Loan, an
amount of not less than Five Million Dollars ($5,000,000) (or, with respect to
an Alternate Currency Loan, the Dollar Equivalent thereof), increased by
increments of One Million Dollars ($1,000,000) (or, with respect to an Alternate
Currency Loan, such approximately comparable amount as shall result in a rounded
number of the applicable Alternate Currency), and (iii) a Swing Loan, an amount
of not less than One Million Dollars ($1,000,000).

         "Minimum Required Consolidated EBITDA Amount" shall mean, for the
fiscal period set forth in the table below, the amount set forth opposite such
period:

                                       18
<PAGE>

<TABLE>
<CAPTION>

         ---------------------------------------------------------------------------------------------------

                                      PERIOD                                            AMOUNT

         ---------------------------------------------------------------------------------------------------
<S>      <C>                                                                         <C>
         For the four quarter period ending August 31, 2001                          $216,000,000
         ---------------------------------------------------------------------------------------------------
         For the four quarter period ending November, 30, 2001                       $229,000,000
         ---------------------------------------------------------------------------------------------------
         For the four quarter period ending February 28, 2002                        $256,000,000
         ---------------------------------------------------------------------------------------------------
         For the four quarter period ending May 31, 2002                             $309,000,000
         ---------------------------------------------------------------------------------------------------
         For the four quarter period ending August 31, 2002                          $302,000,000
         ---------------------------------------------------------------------------------------------------
         For the four quarter period ending November, 30 2002                        $334,000,000
         ---------------------------------------------------------------------------------------------------
         For the four quarter period ending February 28, 2003                        $404,000,000
         ---------------------------------------------------------------------------------------------------
</TABLE>

         "Moody's" shall mean Moody's Investors Service, Inc., or any successor
to such company.

         "Moody's Rating" means the rating accorded to Borrower's senior credit
facilities by Moody's.

         "Moody's Senior Rating" shall mean the senior implied rating accorded
to Borrower by Moody's.

         "Mortgage" shall mean a Mortgage, Deed of Trust or other instrument, in
form and substance reasonably satisfactory to the Global Agent, executed by a
Company on or after the Closing Date, with respect to a Mortgaged Real Property,
as the same may from time to time be amended, restated or otherwise modified.

         "Mortgaged Real Property" shall mean each of the parcels of real
property as set forth on SCHEDULE 3 hereto, or interests therein, owned or
leased by a Company, together with each other parcel of real property that shall
become subject to a Mortgage on or after the Closing Date, in each case together
with all of such Company's right, title and interest in the improvements and
buildings thereon and all appurtenances, easements or other rights belonging
thereto.

         "Multiemployer Plan" shall mean a Pension Plan that is subject to the
requirements of Subtitle E of Title IV of ERISA.

         "Note" shall mean any General Revolving Note, any 364 Day Note, the
Swing Line Note, any Term Note or any other note delivered pursuant to this
Agreement.

         "Notice of Loan" shall mean a Notice of Loan in the form of the
attached EXHIBIT E.

         "Obligor" shall mean (a) a Person whose credit or any of whose property
is pledged to the payment of the Debt and includes, without limitation, any
Guarantor, and (b) any signatory to a Related Writing.

         "Organizational Documents" shall mean, with respect to any Person
(other than an individual), such Person's Articles (Certificate) of
Incorporation, or equivalent formation documents, and Regulations (Bylaws), or
equivalent governing documents, and any amendments to any of the foregoing.

                                       19
<PAGE>

         "Other Assets" shall have the meaning assigned to such term in the
applicable Consolidated balance sheet for the Companies determined in conformity
with the historical accounting practices of the Companies in effect as of the
date of the financial statements for the fiscal year ended February 28, 2001.

         "Other Liabilities" shall have the meaning assigned to such term in the
applicable Consolidated balance sheet for the Companies determined in conformity
with the historical accounting practices of the Companies in effect as of the
date of the financial statements for the fiscal year ended February 28, 2001.

         "PBGC" shall mean the Pension Benefit Guaranty Corporation, or its
successor.

         "Pension Plan" shall mean an ERISA Plan that is a "pension plan"
(within the meaning of ERISA Section 3(2)).

         "Permitted Foreign Subsidiary Loans and Investments" shall mean (a) the
investments, existing as of the Closing Date, by a Domestic Company (other than
the Receivables Subsidiary) in Foreign Subsidiaries, as set forth on SCHEDULE
5.11 hereto; (b) loans and investments by a Domestic Company (other than the
Receivables Subsidiary) to or in a Foreign Subsidiary made on or after the
Closing Date in the ordinary course of business, so long as the aggregate amount
of all such loans and investments by all Domestic Companies shall not, at any
time, exceed (i) Ten Million Dollars ($10,000,000) (or the Dollar Equivalent
thereof), minus (ii) the Dollar Equivalent of the amount of Indebtedness of
Foreign Subsidiaries guaranteed by a Domestic Company pursuant to subpart (c) of
this definition; and (c) loans to a Foreign Subsidiary by any Person (other than
a Company), and any guaranty of such loans by a Domestic Subsidiary (other than
the Receivables Subsidiary), so long as the aggregate principal amount of all
such loans shall not exceed the Dollar Equivalent of Fifteen Million Dollars
($15,000,000) at any time.

         "Permitted Holders" shall mean Morry Weiss, Judith A. Weiss, Harry H.
Stone, Gary Weiss, Jeffrey Weiss, Zev Weiss, Elie Weiss, the Irving I. Stone
Limited Liability Co. and the American Greetings Corporation Retirement Profit
Sharing and Savings Plan or any Person controlled by any of the foregoing.

         "Permitted Investment" shall mean an investment of a Company in the
stock (or other debt or equity instruments) of a Person (other than a Company),
so long as (a) the Company making the investment shall be Borrower or a
Guarantor of Payment; and (b) the aggregate amount of all such investments of
all Companies shall not exceed, at any time, the Dollar Equivalent of Fifteen
Million Dollars ($15,000,000).

         "Permitted Receivables Facility" shall mean the accounts receivable
facility established pursuant to the Receivables Facility Documents whereby
certain of the Companies shall have sold or transferred, or hereafter sell or
transfer, the accounts receivables of the Companies directly or indirectly to
the Receivables Subsidiary which in turn transfers to a buyer, purchaser or
lender undivided fractional interests in such accounts receivable, so long as
(a) no portion of the Indebtedness or any other obligation (contingent or
otherwise) under such Permitted Receivables Facility shall be guaranteed by any
Company, (b) there shall be no recourse or obligation to any Company (other than
the Receivables Subsidiary) whatsoever other than pursuant to customary
representations, warranties, covenants and indemnities entered into in the

                                       20
<PAGE>

ordinary course of business in connection with such Permitted Receivables
Subsidiary, and (c) no Company (other than the Receivables Subsidiary) shall
have provided, either directly or indirectly, any other credit support of any
kind in connection with such Permitted Receivables Facility, other than as set
forth in subpart (b) of this definition.

         "Permitted Receivables Facility Certificate" shall mean a certificate
executed by a Financial Officer of Borrower and delivered to the Global Agent,
certifying (a) the Prior Seasonal Peak Drawing Level for purposes of complying
with Section 5.27 hereof, (b) that the provider of the Permitted Receivables
Facility has informed Borrower in writing that such provider has confirmed the
amount of the Prior Seasonal Peak Drawing Level as specified in the foregoing
subpart (a) and that there has not been and is not anticipated to be any change
or condition in the existing or expected Eligible Receivables as compared to
those used in the calculation of the Prior Seasonal Peak Drawing Level that
could reasonably be expected to have a material adverse impact on the amount
available for drawing under the Permitted Receivables Facility, and (c) that all
credit enhancements in effect as of the date of the Permitted Receivables
Facility Certificate shall remain in full force and effect for the term of the
Permitted Receivables Facility.

         "Person" shall mean any individual, sole proprietorship, partnership,
joint venture, unincorporated organization, corporation, limited liability
company, institution, trust, estate, government or other agency or political
subdivision thereof or any other entity.

         "Pledge Agreement" shall mean a Pledge Agreement, in the form of the
attached EXHIBIT J, executed and delivered to the Collateral Agent by a Company
on or after the Closing Date, as the same may from time to time be amended,
restated or otherwise modified.

         "Prepayment Proceeds" shall mean the proceeds of any Mandatory
Prepayment Event minus taxes, fees and expenses actually paid in connection with
such Mandatory Prepayment Event; provided, however, that, with respect to a
Mandatory Prepayment Event relating to the issuance of equity securities by any
Company, Prepayment Proceeds shall be limited to an amount equal to eight
percent (80%) of such Prepayment Proceeds.

         "Prime Rate" shall mean the interest rate established from time to time
by the Global Agent as the Global Agent's prime rate, whether or not such rate
is publicly announced; the Prime Rate may not be the lowest interest rate
charged by the Global Agent for commercial or other extensions of credit. Each
change in the Prime Rate shall be effective immediately from and after such
change.

         "Prior Seasonal Peak Drawing Level" shall mean, as of any date of
calculation, the amount that Borrower could have drawn as of the most recent
November 30 prior to the date of calculation pursuant to the terms of the
Permitted Receivables Facility in effect on the date of calculation, as
determined by applying the criteria (after giving effect to the existence of any
credit enhancements in effect as of the date of calculation) for Eligible
Receivables of any Receivables Facility Participant to the accounts receivable
of such Receivables Facility Participant as of the prior November 30, excluding
for purposes of making such calculation (a) twenty percent (20%) of any accounts
receivable owed by Wal-Mart, Kmart or their respective affiliates as of November
30, 2000 (other than any such accounts receivable owed to Plus Mark, Inc. which
shall not be subject to such twenty percent (20%) exclusion), and (b) the entire

                                       21
<PAGE>

amount of any accounts receivable owed by any other Person that, as of the date
of calculation, does not satisfy the credit standards of Borrower or the
provider of the Permitted Receivables Facility.

         "Pro Rata Basis" or "pro rata basis" shall mean, as appropriate, (a)
distribution to the applicable Lenders by the Global Agent in accordance with
the Applicable Commitment Percentages, or (b) distribution among the Commitments
in accordance with the Credit Exposure thereunder.

         "Pro Rata Share" or "pro rata share" shall mean, with respect to the
Applicable Debt, a Lender's share in accordance with such Lender's Applicable
Commitment Percentage.

         "Ratable Account" or "ratable account" shall mean each Lender's share
of the Applicable Debt in accordance with such Lender's Applicable Commitment
Percentage.

         "Ratable Share" or "ratable share" shall mean each Lender's share of
the Applicable Debt in accordance with such Lender's Applicable Commitment
Percentage.

         "Ratably" or "ratably" shall mean in accordance with each Lender's
Ratable Share.

         "Real Property" shall mean any one of the parcels of real property, or
interests therein, owned or leased by a Company (including, but not limited to,
the Mortgaged Real Property), together with all improvements and buildings
thereon and all appurtenances, easements or other rights belonging thereto.

         "Receivables Facility Documents" shall mean, collectively, the
Receivables Purchase Agreement, dated as of August 7, 2001, among the
Receivables Subsidiary, the members of various purchase groups, as Purchasers,
American Greetings Corp., as Servicer, and PNC Bank, National Association, as
Administrator, together with each other document, instrument or agreement
executed in connection with the foregoing, as any of the foregoing may, in
accordance with Section 5.24(b) hereof, be amended, restated or otherwise
modified or replaced from time to time.

         "Receivables Facility Participant" shall mean Borrower, Gibson
Greetings, Inc. or Plus Mark, Inc.

         "Receivables Related Assets" shall mean (a) any indebtedness and other
obligations owed to any Receivables Facility Participant by, or any right of
such Receivables Facility Participant to payment from or on behalf of, the
Person obligated with respect to such indebtedness or other obligations, arising
in connection with the sale of goods or the rendering of services by any
Receivables Facility Participant (in each case, an "Account Receivable") that is
subject to the Permitted Receivables Facility, and the following to the extent
that they are proceeds of or relate to the Accounts Receivable that are subject
to the Permitted Receivables Financing: (i) accounts, (ii) instruments, (iii)
chattel paper, (iv) general intangibles, (v) the merchandise or goods (including
returned goods), the sale or lease of which gave rise to such Accounts
Receivable, and the insurance proceeds thereof, (vi) contractual rights
(including any agreement, lease, invoice or other writing), guaranties,
insurance, claims and indemnities, (vii) books and records, (viii) all
documentation of title evidencing the shipment or storage of any

                                       22
<PAGE>

goods (including returned goods), (ix) guaranties and collections of such
Accounts Receivable, (x) any security interest or liens and property thereto
from time to time purporting to secure payment of such Accounts Receivable, (xi)
lock-box accounts and amounts on deposit therein, (xii) monies due or to become
due, and (xiii) all proceeds and products of and all amounts received or
receivable under any of the foregoing; (b) the Purchase and Sale Agreement (as
defined in the Permitted Receivables Facility Documents) and all rights of AGSC
thereunder; and (c) the Receivables Sale Agreement (as defined in the
Receivables Facility Documents) and all rights of Borrower thereunder.

         "Receivables Subsidiary" shall mean AGC Funding Corporation, a Delaware
corporation, and a Wholly-Owned Subsidiary of Borrower that shall have been
established as a "bankruptcy remote" Subsidiary for the sole purpose of
acquiring accounts receivable under the Permitted Receivables Facility and that
shall not engage in any activities other than in connection with the Permitted
Receivables Facility.

         "Related Expenses" shall mean any and all costs, liabilities and
expenses (including, without limitation, losses, damages, penalties, claims,
actions, reasonable attorneys' fees, legal expenses, judgments, suits and
disbursements) incurred by, imposed upon, or asserted against, the Global Agent,
Collateral Agent or any Lender in any attempt by the Global Agent or Collateral
Agent (a) to obtain, preserve, perfect or enforce any security interest
evidenced by any Security Document or any other Loan Document or any Related
Writing; (b) to obtain payment, performance or observance of any and all of the
Debt; (c) to maintain, insure, audit, collect, preserve, repossess or dispose of
any of the collateral securing the Debt or any thereof, including, without
limitation, costs and expenses for appraisals, assessments and audits of any
Company or any such collateral; or (d) incidental or related to (a) through (c)
above, including, without limitation, interest thereupon from the date incurred,
imposed or asserted until paid at the Default Rate.

         "Related Writing" shall mean each Loan Document and any other
assignment, mortgage, security agreement, guaranty agreement, subordination
agreement, financial statement, audit report or other writing furnished by
Borrower, Subsidiary or Obligor, or any of their respective officers, to the
Global Agent or the Lenders pursuant to or otherwise in connection with this
Agreement.

         "Reportable Event" shall mean a reportable event as that term is
defined in Title IV of ERISA, except actions of general applicability by the
Secretary of Labor under Section 110 of such Act.

         "Required Lenders" shall mean the holders of at least fifty-one percent
(51%) of the Total Commitment Amount, or, if there shall be any borrowing
hereunder, the holders (including such Lender's risk participation with respect
to outstanding Swing Loans and Letters of Credit) of at least fifty-one percent
(51%) of the sum of the Dollar Equivalent of (a) the aggregate amount of the
Loans outstanding (other than Swing Loans), (b) the Letter of Credit Exposure,
and (c) the Swing Line Exposure.

         "Restricted Payment" shall mean (a) any Capital Distribution; (b) any
amount paid by a Company in repayment, redemption, retirement, repurchase,
direct or indirect, of any Subordinated Indebtedness, including, but not limited
to, the Indebtedness incurred pursuant to

                                       23
<PAGE>

the notes issued in connection with the Subordinated Indenture or the
Subordinated Convertible Indenture; (c) any amount paid by a Company in
repayment, redemption, retirement, repurchase, direct or indirect, of any the
Indebtedness incurred pursuant to the notes or securities issued in connection
with the Senior Indenture; or (d) the exercise by a Company of any right of
defeasance or covenant defeasance or similar right with respect to (i) any
Subordinated Indebtedness, including, but not limited to the Indebtedness
incurred pursuant to the notes issued in connection with the Subordinated
Indenture or the Subordinated Convertible Indenture, or (ii) the Indebtedness
incurred pursuant to the notes or securities issued in connection with the
Senior Indenture.

         "Restructuring Charges" shall mean the restructuring charges,
write-downs and reserves taken by Borrower in accordance with GAAP in connection
with the restructuring of the Companies to the extent such restructuring
charges, write-downs and reserves were deducted in determining Consolidated Net
Earnings; provided, however, that (a) the aggregate amount of all such charges
shall not exceed Three Hundred Fifty Million Six Hundred Thousand Dollars
($350,600,000), which amount shall include no more than (i) Thirty Two Million
Six Hundred Thousand Dollars ($32,600,000) related to the write-down of
Borrower's investment in Egreetings Network, Inc., (ii) Eighteen Million Dollars
($18,000,000) related to changes in contractual relationships with strategic
partners of americangreetings.com, (iii) Ninety Million Dollars ($90,000,000)
related to the implementation of scan-based trading at select retailers, or (iv)
Two Hundred Ten Million Dollars ($210,000,000) related to corporate
restructuring, and (b) only those charges that shall have been taken during
Borrower's fiscal year ending February 28, 2002 shall be deemed to be
Restructuring Charges for purposes of this Agreement.

         "SEC" shall mean the United States Securities and Exchange Commission,
or any governmental body or agency succeeding to any of its principal functions.

         "Security Agreement" shall mean a Security Agreement, in the form of
EXHIBIT J hereto, executed and delivered by a Company to the Collateral Agent in
connection with this Agreement, as the same may from time to time be amended,
restated or otherwise modified.

         "Security Documents" shall mean each Security Agreement, each Pledge
Agreement, each Collateral Assignment and Security Agreement, each Mortgage,
each Landlord's Agreement, each U.C.C. financing statement executed in
connection herewith or securing any interest created in any of the foregoing
documents, and any other documents relating to any of the foregoing, as any of
the foregoing may from time to time be amended, restated or otherwise modified
or replaced.

         "Senior Indenture" shall mean the Indenture between Borrower and NBD
Bank, as trustee, dated as of July 27, 1998, as the same may, in accordance with
Section 5.24(b) hereof, from time to time be amended, supplemented, restated or
otherwise modified or replaced.

         "Significant Asset Disposition" shall mean a Disposition or
Dispositions in which the aggregate fair market value or book value, whichever
is greater, of the assets sold, leased, transferred or otherwise disposed of
shall be greater than or equal to One Million Dollars ($1,000,000).

                                       24
<PAGE>

         "Standard & Poor's" shall mean Standard & Poor's Ratings Group, a
division of McGraw-Hill, Inc., or any successor to such company.

         "S&P Rating" means the rating accorded to Borrower's senior credit
facilities by Standard & Poor's.

         "S&P Senior Rating" shall mean the corporate credit rating accorded to
Borrower by S&P.

         "Split Rating" shall exist at any time there shall be a difference in
level between the Moody's Rating and the S&P Rating that correlates with the
Moody's Rating.

         "Subordinated", as applied to Indebtedness, shall mean that the
Indebtedness shall have been subordinated (by written terms or written agreement
being, in either case, in form and substance satisfactory to the Global Agent
and the Required Lenders) in favor of the prior payment in full of the Debt.

         "Subordinated Convertible Indenture" shall mean the Indenture between
Borrower and National City Bank, as trustee, dated as of June 29, 2001, as the
same may, in accordance with Section 5.24(b) hereof, from time to time be
amended, supplemented, restated or otherwise modified or replaced, pursuant to
which Borrower shall have issued the 7.00% Convertible Subordinated Notes Due
July 15, 2006.

         "Subordinated Indenture" shall mean the Indenture between Borrower and
The Huntington National Bank, as trustee, dated as of June 29, 2001, as the same
may, in accordance with Section 5.24(b) hereof, from time to time be amended,
supplemented, restated or otherwise modified or replaced, pursuant to which
Borrower shall have issued the 11.75% Senior Subordinated Notes Due 2008.

         "Subsidiary" of Borrower or any of its Subsidiaries shall mean (a) a
corporation more than fifty percent (50%) of the Voting Power of which is owned,
directly or indirectly, by Borrower or by one or more other subsidiaries of
Borrower or by Borrower and one or more subsidiaries of Borrower, (b) a
partnership or limited liability company of which Borrower, one or more other
subsidiaries of Borrower or Borrower and one or more subsidiaries of Borrower,
directly or indirectly, is a general partner or managing member, as the case may
be, or otherwise has the power to direct the policies, management and affairs
thereof, or (c) any other Person (other than a corporation) in which Borrower,
one or more other subsidiaries of Borrower or Borrower and one or more
subsidiaries of Borrower, directly or indirectly, has at least a majority
interest in the Voting Power or the power to direct the policies, management and
affairs thereof.

         "Swing Line" shall mean the credit facility established by the Swing
Line Lender for Borrower in accordance with Section 2.1(a)(iii) hereof.

         "Swing Line Commitment" shall mean the commitment of the Swing Line
Lender to make Swing Loans to Borrower up to the maximum aggregate amount at any
time outstanding of Ten Million Dollars ($10,000,000), in accordance with the
terms and conditions of the Swing Line.

                                       25
<PAGE>

         "Swing Line Exposure" shall mean, at any time, the aggregate principal
amount of all Swing Loans outstanding.

         "Swing Line Lender" shall mean the Global Agent, as holder of the Swing
Line Commitment.

         "Swing Line Note" shall mean the Swing Line Note in the form of the
attached EXHIBIT B, executed and delivered pursuant to Section 2.1(a)(iii)
hereof.

         "Swing Loan" shall mean a loan granted to Borrower by the Swing Line
Lender under the Swing Line.

         "Swing Loan Maturity Date" shall mean, with respect to any Swing Loan,
the earlier of (a) the last day of the period for such Swing Loan as established
by the Swing Line Lender and agreed to be Borrower but in no event later than
thirty (30) days after the date such Swing Loan is made, or (b) the last day of
the applicable Commitment Period.

         "Term Loan" shall mean the Term Loan made by the Term Loan Lenders
pursuant to Section 2.1(c) hereof.

         "Term Loan Commitment" shall mean the obligation hereunder of each Term
Loan Lender to participate in the making of the Term Loan, up to the amount set
forth opposite such Term Loan Lender's name under the column headed "Term Loan
Commitment Amount", as set forth on SCHEDULE 1 hereto.

         "Term Loan Commitment Amount" shall mean One Hundred Twenty-Five
Million Dollars ($125,000,000).

         "Term Loan Exposure" shall mean, at any time, the outstanding principal
amount of the Term Loan.

         "Term Loan Lender" shall mean a Lender with a Term Loan Commitment.

         "Term Loan Maturity Date" shall mean June 15, 2006.

         "Term Loan Prepayment Fee" shall mean (a) for the period from the
Closing Date through the first anniversary of the Closing Date, an amount equal
to five percent (5%) of the principal amount to be prepaid, (b) for the period
from the second anniversary of the Closing Date through the third anniversary of
the Closing Date, an amount equal to three percent (3%) of the principal amount
to be prepaid, and (c) for the period from the third anniversary of the Closing
Date through the fourth anniversary of the Closing Date, an amount equal to one
percent (1%) of the principal amount to be prepaid; provided, however, that,
notwithstanding the foregoing, the Term Loan Prepayment Fee with respect to a
prepayment of the Term Loan pursuant to Section 2.8(b) or subdivision (vi) of
Section 5.12(f) hereof, shall be an amount equal to one percent (1%) of the
principal amount to be prepaid.

         "Term Note" shall mean a Term Note in the form of the attached EXHIBIT
D, executed and delivered pursuant to Section 2.1(c) hereof.

                                       26
<PAGE>

         "Total Commitment Amount" shall mean the Dollar Equivalent of the
amount of the Commitment.

         "Voting Power" shall mean, with respect to any Person, the exclusive
ability to control, through the ownership of shares of capital stock,
partnership interests, membership interests or otherwise, the election of
members of the board of directors or other similar governing body of such
Person, and the holding of a designated percentage of Voting Power of a Person
means the ownership of shares of capital stock, partnership interests,
membership interests or other interests of such Person sufficient to control
exclusively the election of that percentage of the members of the board of
directors or similar governing body of such Person.

         "Welfare Plan" shall mean an ERISA Plan that is a "welfare plan" within
the meaning of ERISA Section 3 (l).

         "Wholly-Owned Subsidiary" shall mean, with respect to any Person, any
corporation, limited liability company or other entity, all of the securities or
other ownership interest of which having ordinary voting power to elect a
majority of the board of directors, or other persons performing similar
functions, are at the time directly or indirectly owned by such Person.

         Any accounting term not specifically defined in this Article I shall
have the meaning ascribed thereto by GAAP.

         The foregoing definitions shall be applicable to the singular and
plurals of the foregoing defined terms.

                     ARTICLE II. AMOUNT AND TERMS OF CREDIT

         Section 2.1. AMOUNT AND NATURE OF CREDIT. Subject to the terms and
conditions of this Agreement, each Lender shall participate, to the extent
hereinafter provided, in making Loans to Borrower, and issuing Letters of Credit
at the request of Borrower, in such aggregate amount as Borrower shall request
pursuant to the Commitment.

         Each Lender, for itself and not one for any other, agrees to
participate in Loans made and Letters of Credit issued hereunder during the
Commitment Period on such basis that (i) immediately after the completion of any
borrowing by Borrower, the Dollar Equivalent of the aggregate principal amount
then outstanding on each Note (other than any Swing Line Note) issued to such
Lender or, if there is no Note, outstanding from such Lender, when combined with
the Dollar Equivalent of such Lender's Pro Rata Share of any Letter of Credit
Exposure or Swing Line Exposure, shall not be in excess of the respective
amounts of any of such Lender's 364 Day Commitment, General Revolving Commitment
or Term Loan Commitment; and (ii) the Dollar Equivalent of the principal amount
outstanding on each Note issued to such Lender (other than any Swing Line Note)
or, if there is no Note, outstanding from such Lender, shall represent,
respectively that percentage of the aggregate principal amount of Loans (other
than Swing Loans) then outstanding under each of the 364 Day Commitments,
General Revolving Commitments and Term Loan Commitments that shall be such
Lender's Applicable Commitment Percentage.

                                       27
<PAGE>

         Within each Commitment, each borrowing (other than Swing Loans) from
the Lenders hereunder shall be made Pro Rata according to the respective
Applicable Commitment Percentages of the Lenders. The Loans may be made and
Letters of Credit may be issued as follows:

         (a) GENERAL REVOLVING COMMITMENTS.

         (i) GENERAL REVOLVING LOANS. Subject to the terms and conditions of
this Agreement, during the applicable Commitment Period, the General Revolving
Lenders shall make a General Revolving Loan or General Revolving Loans to
Borrower in such amount or amounts as Borrower may from time to time request,
but not exceeding in aggregate principal amount at any time outstanding
hereunder the Maximum General Revolving Commitment Amount, when such General
Revolving Loans are combined with the Letter of Credit Exposure and the Swing
Line Exposure; provided, however, that Borrower shall not request a General
Revolving Loan hereunder (and the General Revolving Lenders shall not be
obligated to make a General Revolving Loan) if, after giving effect thereto, (A)
the Alternate Currency Exposure would exceed the Alternate Currency Maximum
Amount or (B) the General Revolving Commitment Exposure would exceed the Maximum
General Revolving Commitment. Borrower shall have the option, subject to the
terms and conditions set forth herein, to borrow General Revolving Loans,
maturing on the last day of the applicable Commitment Period, by means of any
combination of Base Rate Loans, Eurodollar Loans, or Alternate Currency Loans.
With respect to each Alternate Currency Loan, subject to the other provisions of
this Agreement, Borrower shall have the right to receive all of the proceeds of
such Alternate Currency Loan in an Alternate Currency. Each Alternate Currency
Loan shall be made in a single Alternate Currency.

         Borrower shall pay interest on the unpaid principal amount of Base Rate
Loans outstanding from time to time under the General Revolving Commitment from
the date thereof until paid at the Derived Base Rate from time to time in
effect. Interest on such Base Rate Loans shall be payable, commencing September
30, 2001, and on the last day of each succeeding December, March, June and
September thereafter and at the maturity thereof.

         Borrower shall pay interest on the unpaid principal amount of each
Fixed Rate Loan outstanding from time to time under the General Revolving
Commitment, fixed in advance on the first day of the Interest Period applicable
thereto through the last day of the Interest Period applicable thereto (but
subject to changes in the Applicable Margin) at the Derived Fixed Rate. Interest
on such Fixed Rate Loan shall be payable on each Interest Adjustment Date
(provided that if an Interest Period shall exceed three months, the interest
shall be paid every three months, commencing three months from the beginning of
such Interest Period).

         At the request of Borrower to the Global Agent, subject to the notice
and other provisions of Section 2.2 hereof, the General Revolving Lenders shall
convert, under the General Revolving Commitment, (A) Base Rate Loans to
Eurodollar Loans at any time and (B) Eurodollar Loans to Base Rate Loans on any
Interest Adjustment Date. No General Revolving Loan may be converted to or from
an Alternate Currency Loan.

         The obligation of Borrower to repay the Base Rate Loans and Fixed Rate
Loans made by the General Revolving Lenders pursuant to the General Revolving
Commitment and to pay

                                       28
<PAGE>

interest thereon shall be evidenced by a General Revolving Note, payable to the
order of each General Revolving Lender in the principal amount of its General
Revolving Commitment, or, if less, the aggregate unpaid principal amount of
General Revolving Loans made hereunder by such General Revolving Lender. Subject
to the provisions of this Agreement, Borrower shall be entitled under this
Section 2.1(a)(i) to borrow funds, repay the same in whole or in part and
re-borrow hereunder at any time and from time to time during the applicable
Commitment Period.

         (ii) LETTERS OF CREDIT. Subject to the terms and conditions of this
Agreement, during the applicable Commitment Period, the Fronting Lender, shall,
in its own name, but only as agent for the General Revolving Lenders, issue such
Letters of Credit for the account of Borrower, as Borrower may from time to time
request. Borrower shall not request any Letter of Credit (and the Fronting
Lender shall not be obligated to issue any Letter of Credit) if, after giving
effect thereto, (A) the Letter of Credit Exposure would exceed the Letter of
Credit Commitment, (B) the General Revolving Commitment Exposure would exceed
the Maximum General Revolving Commitment Amount, or (C) the Alternate Currency
Exposure would exceed the Alternate Currency Maximum Amount. Borrower may
request that a Letter of Credit be issued in Dollars or an Alternate Currency.
The issuance of each Letter of Credit shall confer upon each General Revolving
Lender the benefits and liabilities of a participation consisting of an
undivided pro rata interest in the Letter of Credit to the extent of the
Applicable Commitment Percentage of such General Revolving Lender.

         Each request for a Letter of Credit shall be delivered to the Global
Agent and the Fronting Lender not later than 11:00 A.M. (Cleveland, Ohio time)
three Business Days prior to the day upon which the Letter of Credit is to be
issued (or such shorter time period as may be agreed to by the Fronting Lender).
Each such request shall be in a form acceptable to the Global Agent and the
Fronting Lender and specify the face amount thereof, whether such Letter of
Credit shall be a commercial documentary or a standby Letter of Credit, the type
of currency, the account party, the beneficiary, the intended date of issuance,
the expiry date thereof, and the nature of the transaction to be supported
thereby. Concurrently with each such request, Borrower, shall execute and
deliver to the Fronting Lender an appropriate application and agreement, being
in the standard form of the Fronting Lender for such letters of credit, as
amended to conform to the provisions of this Agreement if required by the Global
Agent. Global Agent shall give each General Lender notice of each such request
for a Letter of Credit.

         In respect of each Letter of Credit that shall be a commercial
documentary letter of credit and the drafts thereunder, if any, Borrower agrees
(1) to pay to the Global Agent, for the pro rata benefit of the General
Revolving Lenders, a non-refundable commission based upon the Dollar Equivalent
of the face amount of such Letter of Credit, which shall be paid on the date
that any draw shall have been made on such Letter of Credit, at a rate equal to
(y) one-half (1/2) of the Applicable Margin (in effect on the date such payment
is to be made, times (z) the Dollar Equivalent amount drawn under such Letter of
Credit, and (2) to pay to the Fronting Lender such issuance, amendment,
negotiation, draw, acceptance, telex, courier, postage and similar transactional
fees as shall be generally charged by the Fronting Lender under its fee schedule
as in effect from time to time.

         In respect of each Letter of Credit that shall be a standby letter of
credit and the drafts thereunder, if any, Borrower agrees (a) to pay to the
Global Agent, for the pro rata benefit of the Lenders, a non-refundable
commission based upon the Dollar Equivalent of the face amount of

                                       29
<PAGE>

such Letter of Credit, which shall be paid quarterly in arrears, at a rate per
annum equal to (i) the then current Applicable Margin (and specifically
including any additional amount payable pursuant to subpart (c) of the
definition of Derived Fixed Rate) for Eurodollar Loans (i.e., the Applicable
Margin for Eurodollar Loans in effect on the date such Letter of Credit shall be
issued and, as to each quarterly payment thereafter, the Applicable Margin for
Eurodollar Loans in effect on the date of such quarterly payment), times (ii)
the Dollar Equivalent of the average undrawn face amount of such Letter of
Credit during such fiscal quarter, (b) to pay to the Fronting Lender, for its
sole account, an additional Letter of Credit fee, which shall be paid on each
date that such Letter of Credit shall be issued or renewed at the rate of
one-eighth percent (1/8 of 1%) of the face amount of such Letter of Credit, and
(c) to pay to the Fronting Lender for its sole account, such other issuance,
amendment, negotiation, draw, acceptance, telex, courier, postage and similar
transactional fees as shall be generally charged by the Fronting Lender under
its fee schedule as in effect from time to time.

         Whenever a Letter of Credit shall have been drawn, Borrower shall
immediately reimburse the Fronting Lender for the amount drawn in Dollars or in
the Alternate Currency in which such Letter of Credit shall have been issued, as
the case may be. If the amount drawn in Dollars shall not be reimbursed by
Borrower within one Business Day of the drawing of such Letter of Credit, at the
sole option of the Fronting Lender, Borrower shall be deemed to have requested a
General Revolving Loan, subject to the provisions of Section 2.1(a)(i), in the
amount drawn. Such General Revolving Loan shall be evidenced by the General
Revolving Notes. Each General Revolving Lender agrees to make a General
Revolving Loan on the date of such notice, subject to no conditions precedent
whatsoever. Each General Revolving Lender acknowledges and agrees that its
obligation to make a General Revolving Loan pursuant to Section 2.1(a)(i)
hereof, when required by this Section 2.1(a)(ii) shall be absolute and
unconditional and shall not be affected by any circumstance whatsoever,
including, without limitation, the occurrence and continuance of a Default or
Event of Default, and that its payment to the Global Agent, for the account of
the Fronting Lender, of the proceeds of such General Revolving Loan shall be
made without any offset, abatement, recoupment, counterclaim, withholding or
reduction whatsoever and whether or not the General Revolving Commitment of such
General Revolving Lender shall have been reduced or terminated. Borrower
irrevocably authorizes and instructs the Global Agent to apply the proceeds of
any borrowing pursuant to this paragraph to reimburse, in full, the Fronting
Lender for the amount drawn on such Letter of Credit. Each such General
Revolving Loan shall be deemed to be a Base Rate Loan. Each General Revolving
Lender is hereby authorized to record on its records relating to its General
Revolving Note such Lender's Pro Rata Share of the amounts paid and not
reimbursed on the Letters of Credit.

         If, for any reason, the Fronting Lender shall be unable to or, in the
opinion of the Global Agent, it shall be impracticable to, convert any Letter of
Credit to a General Revolving Loan pursuant to the preceding paragraph, the
Fronting Lender shall have the right to request that each General Revolving
Lender purchase a participation in the amount due with respect to such Letter of
Credit, and the Global Agent shall promptly notify each General Revolving Lender
thereof (by facsimile or telephone, confirmed in writing). Upon such notice, but
without further action, the Fronting Lender hereby agrees to grant to each
General Revolving Lender, and each General Revolving Lender hereby agrees to
acquire from the Fronting Lender, an undivided participation interest in the
amount due with respect to such Letter of Credit in an amount equal to such
General Revolving Lender's Applicable Commitment Percentage of the Dollar
Equivalent of the aggregate principal amount of the amount due with respect to
such Letter of Credit. In

                                       30
<PAGE>

consideration and in furtherance of the foregoing, each General Revolving Lender
hereby absolutely and unconditionally agrees, upon receipt of notice as provided
above, to pay in Dollars to the Global Agent, for the account of the Fronting
Lender, such General Revolving Lender's ratable share of the Dollar Equivalent
of the amount due with respect to such Letter of Credit (determined in
accordance with the Applicable Commitment Percentage of such General Revolving
Lender). Each General Revolving Lender acknowledges and agrees that its
obligation to acquire participations in the amount due under any Letter of
Credit that shall have been drawn but not reimbursed by Borrower pursuant to
this Section 2.1(a)(ii) shall be absolute and unconditional and shall not be
affected by any circumstance whatsoever, including, without limitation, the
occurrence and continuance of a Default or Event of Default, and that each such
payment shall be made without any offset, abatement, recoupment, counterclaim,
withholding or reduction whatsoever and whether or not the General Revolving
Commitment of such General Revolving Lender shall have been reduced or
terminated. Each General Revolving Lender shall comply with its obligation under
this Section 2.1 (a)(ii) by wire transfer of immediately available funds, in the
same manner as provided in Section 2.2 hereof with respect to General Revolving
Loans. Each General Revolving Lender is hereby authorized to record on its
records such General Revolving Lender's Pro Rata Share of the amounts paid and
not reimbursed on the Letters of Credit.

         (iii) SWING LOANS. Subject to the terms and conditions of this
Agreement, during the Commitment Period applicable to the General Revolving
Commitment, the Swing Line Lender shall make a Swing Loan or Swing Loans to
Borrower in such amount or amounts as Borrower may from time to time request;
provided that Borrower shall not request any Swing Loan hereunder if, after
giving effect thereto, (A) the General Revolving Commitment Exposure would
exceed the Maximum General Revolving Commitment Amount, or (B) the Swing Line
Exposure would exceed the Swing Line Commitment. Each Swing Loan shall be due
and payable on the Swing Loan Maturity Date applicable thereto. Each Swing Loan
shall be made in Dollars.

         Borrower shall pay interest, for the sole benefit of the Swing Line
Lender (and any General Revolving Lender that shall have purchased a
participation in such Swing Loan), on the unpaid principal amount of each Swing
Loan outstanding from time to time from the date thereof until paid, at the
Derived Swing Loan Rate applicable to such Swing Loan. Interest on each Swing
Loan shall be payable on the Swing Loan Maturity Date applicable thereto. Each
Swing Loan shall bear interest for a minimum of one day.

         The obligation of Borrower to repay the Swing Loans and to pay interest
thereon shall be evidenced by a Swing Line Note of Borrower payable to the order
of the Swing Line Lender in the principal amount of the Swing Line Commitment,
or, if less, the aggregate unpaid principal amount of Swing Loans made hereunder
by the Swing Line Lender. Subject to the provisions of this Agreement, Borrower
shall be entitled under this Section 2.1(a)(iii) to borrow funds, repay the same
in whole or in part and reborrow hereunder at any time and from time to time
during the Commitment Period applicable to the General Revolving Commitment.

         If the Swing Line Lender shall so elect, by giving notice to Borrower
and the Lenders, Borrower agrees that the Swing Line Lender shall have the
right, in its sole discretion, to require that any Swing Loan be refinanced as a
General Revolving Loan. Such General Revolving Loan shall be a Base Rate Loan
unless and until converted by Borrower to a Eurodollar Loan pursuant

                                       31
<PAGE>

to Section 2.1(a)(i) and Section 2.2 hereof. Upon receipt of such notice by
Borrower, Borrower shall be deemed, on such day, to have requested a General
Revolving Loan in the principal amount of the Swing Loan in accordance with
Section 2.1(a)(i) hereof. Each General Revolving Lender agrees to make a General
Revolving Loan on the date of such notice, subject to no conditions precedent
whatsoever. Each General Revolving Lender acknowledges and agrees that such
General Revolving Lender's obligation to make a General Revolving Loan pursuant
to Section 2.1(a)(i) hereof when required by this Section 2.1(a)(iii) shall be
absolute and unconditional and shall not be affected by any circumstance
whatsoever, including, without limitation, the occurrence and continuance of a
Default or Event of Default, and that its payment to the Swing Line Lender, for
the account of the Swing Line Lender, of the proceeds of such General Revolving
Loan shall be made without any offset, abatement, recoupment, counterclaim,
withholding or reduction whatsoever and whether or not such General Revolving
Lender's General Revolving Commitment shall have been reduced or terminated.
Borrower irrevocably authorizes and instructs the Swing Line Lender to apply the
proceeds of any borrowing pursuant to this paragraph to repay in full such Swing
Loan.

         If, for any reason, the Swing Line Lender shall be unable or, in the
opinion of the Swing Line Lender, it shall be impracticable, to convert any
Swing Loan to a General Revolving Loan pursuant to the preceding paragraph,
then, on any day that a Swing Loan shall be outstanding (whether before or after
the maturity thereof), the Swing Line Lender shall have the right to request
that each General Revolving Lender purchase a participation in such Swing Loan,
and the Swing Line Lender shall promptly notify each General Revolving Lender
thereof (by facsimile or telephone, confirmed in writing). Upon such notice, but
without further action, the Swing Line Lender hereby agrees to grant to each
General Revolving Lender, and each General Revolving Lender hereby agrees to
acquire from the Swing Line Lender, an undivided participation interest in such
Swing Loan in an amount equal to such General Revolving Lender's Applicable
Commitment Percentage of the aggregate principal amount of such Swing Loan. In
consideration and in furtherance of the foregoing, each General Revolving Lender
hereby absolutely and unconditionally agrees, upon receipt of notice as provided
above, to pay to the Swing Line Lender, for its sole account, such General
Revolving Lender's ratable share of such Swing Loan (determined in accordance
with such General Revolving Lender's Applicable Commitment Percentage). Each
General Revolving Lender acknowledges and agrees that its obligation to acquire
participations in Swing Loans pursuant to this Section 2.1(a)(iii) shall be
absolute and unconditional and shall not be affected by any circumstance
whatsoever, including, without limitation, the occurrence and continuance of a
Default or an Event of Default, and that each such payment shall be made without
any offset, abatement, recoupment, counterclaim, withholding or reduction
whatsoever and whether or not such General Revolving Lender's General Revolving
Commitment shall have been reduced or terminated. Each General Revolving Lender
shall comply with its obligation under this Section 2.1(a)(iii) by wire transfer
of immediately available funds, in the same manner as provided in Section 2.2
hereof with respect to General Revolving Loans to be made by such General
Revolving Lender. Each General Revolving Lender is hereby authorized to record
on its records such General Revolving Lender's Pro Rata Share of the amounts
paid and not reimbursed on the Swing Loans.

         (b) 364 DAY COMMITMENTS.

         Subject to the terms and conditions of this Agreement, during the
applicable Commitment Period, the 364 Day Lenders shall make a 364 Day
Revolving Loan or 364 Day

                                       32
<PAGE>

Revolving Loans to Borrower in such amount or amounts as Borrower may from time
to time request, but not exceeding in aggregate principal amount at any time
outstanding hereunder the Maximum 364 Day Commitment Amount. Borrower shall
have the option, subject to the terms and conditions set forth herein, to
borrow 364 Day Revolving Loans, maturing on the last day of the applicable
Commitment Period, by means of any combination of Base Rate Loans or Eurodollar
Loans.

         Borrower shall pay interest on the unpaid principal amount of Base Rate
Loans outstanding from time to time under the 364 Day Commitment from the date
thereof until paid at the Base Rate from time to time in effect. Interest on
such Base Rate Loans shall be payable, commencing September 30, 2001, and on the
last day of each succeeding December, March, June and September thereafter and
at the maturity thereof.

         Borrower shall pay interest on the unpaid principal amount of each
Eurodollar Loan outstanding from time to time under the 364 Day Commitment,
fixed in advance on the first day of the Interest Period applicable thereto
through the last day of the Interest Period applicable thereto (but subject to
changes in the Applicable Margin) at the Derived Fixed Rate applicable to
Eurodollar Loans. Interest on such Eurodollar Loan shall be payable on each
Interest Adjustment Date (provided that if an Interest Period shall exceed three
months, the interest shall be paid every three months, commencing three months
from the beginning of such Interest Period).

         At the request of Borrower to the Global Agent, subject to the notice
and other provisions of Section 2.2 hereof, the 364 Day Lenders shall convert,
under the 364 Day Commitment, (i) Base Rate Loans to Eurodollar Loans at any
time and (ii) Eurodollar Loans to Base Rate Loans on any Interest Adjustment
Date.

         The obligation of Borrower to repay the Base Rate Loans and Eurodollar
Loans made by the 364 Day Lenders pursuant to the 364 Day Commitment and to pay
interest thereon shall be evidenced by a 364 Day Note, payable to the order of
each 364 Day Lender in the principal amount of its 364 Day Commitment, or, if
less, the aggregate unpaid principal amount of 364 Day Revolving Loans made
hereunder by such 364 Day Lender. Subject to the provisions of this Agreement,
Borrower shall be entitled under this Section 2.1(b) to borrow funds, repay the
same in whole or in part and re-borrow hereunder at any time and from time to
time during the applicable Commitment Period.

         (c) TERM LOAN COMMITMENTS.

         Subject to the terms and conditions of this Agreement, the Term Loan
Lenders shall make the Term Loan to Borrower on the Closing Date in the Term
Loan Commitment Amount. To evidence the Term Loan, Borrower shall, upon request
of any Term Loan Lender, execute and deliver to such Term Loan Lender a Term
Note. The Term Loan shall be payable in twenty (20) quarter-annual installments,
commencing November 30, 2001, and continuing on the last day of each succeeding
February, May, August and November thereafter until paid in full. From November
30, 2001 through February 28, 2006, each payment shall be in the principal
amount of Three Hundred Twelve Thousand Five Hundred Dollars ($312,500), with
the last payment to be paid on the Term Loan Maturity Date in the amount of the
then remaining balance of the Term Loan.

                                       33
<PAGE>

         Borrower shall notify the Global Agent, in accordance with the notice
provisions of Section 2.2 hereof, whether the Term Loan will be a Base Rate Loan
or a Eurodollar Loan. The Term Loan may be a mixture of a Base Rate Loan and
Eurodollar Loans. The Term Loan Lenders, at the request of Borrower to the
Global Agent, subject to the applicable notice and other provisions of Section
2.2 hereof, shall convert a Base Rate Loan to a Eurodollar Loan at any time and
shall convert a Eurodollar Loan to a Base Rate Loan on any Interest Adjustment
Date.

         With respect to any portion of the Term Loan that shall be a Base Rate
Loan, Borrower shall pay interest on the unpaid principal amount thereof
outstanding from time to time from the date thereof until paid, commencing
September 30, 2001, and continuing on the last day of each succeeding December,
March, June and September thereafter and at the maturity thereof, at the Derived
Term Loan Base Rate from time to time in effect.

         With respect to any portion of the Term Loan that shall be a Eurodollar
Loan, Borrower shall pay interest on the unpaid principal amount of each
Eurodollar Loan outstanding from time to time, fixed in advance on the first day
of the Interest Period applicable thereto through the last day of the Interest
Period applicable thereto (but subject to changes in the Applicable Term Loan
Margin), the Derived Term Loan Eurodollar Rate. Interest on such Eurodollar Loan
shall be payable on each Interest Adjustment Date (provided that if an Interest
Period shall exceed three months, the interest shall be paid every three months,
commencing three months from the beginning of such Interest Period).

         Section 2.2. CONDITIONS TO CREDIT EVENTS. The obligation of the Global
Agent, the Swing Line Lender, the Fronting Lender or any Lender to participate
in any Credit Event shall be conditioned, in the case of each such Credit Event,
upon:

         (a) all conditions precedent as listed in Article IV hereof shall have
been satisfied;

         (b) for General Revolving Loans, 364 Day Revolving Loans or the Term
Loan, (i) in respect of Base Rate Loans, receipt by the Global Agent of a Notice
of Loan by 11:00 A.M. (Cleveland, Ohio time) on the proposed date of borrowing
or conversion, and (ii) in respect of Fixed Rate Loans, receipt by the Global
Agent by 11:00 A.M. (Cleveland, Ohio time) three Business Days (or, with respect
to Alternate Currency Loans, four Business Days) prior to the proposed date of
borrowing, conversion or continuation. The Global Agent shall notify each Lender
of the date, amount and Interest Period (if applicable) promptly upon the
receipt of such notice, and, in any event, by 2:00 P.M. (Cleveland, Ohio time)
on the date such notice is received. On the date such Loan is to be made, each
Lender shall provide the Global Agent, not later than 3:00 P.M. (Cleveland, Ohio
time), with the amount of Dollars or, if applicable, Alternate Currency required
of it, in federal or other immediately available funds;

         (c) for Swing Loans, receipt by the Global Agent of a Notice of Loan,
such notice to be received by 11:00 A.M. (Cleveland, Ohio time) on the proposed
date of borrowing;

         (d) with respect to Letters of Credit, satisfaction of the notice
provisions set forth in Section 2.1(a)(ii) hereof;

                                       34
<PAGE>

         (e) Borrower's request for a Loan shall have been for no less than the
Minimum Borrowing Amount for such Loan;

         (f) the fact that no Default or Event of Default shall then exist or
immediately after such Credit Event would exist; and

         (g) the fact that each of the representations and warranties contained
in Article VI hereof shall be true and correct with the same force and effect as
if made on and as of the date of such Credit Event, except to the extent that
any thereof expressly relate to an earlier date.

         At no time shall Borrower request that Fixed Rate Loans be outstanding
for more than six different Interest Periods at any time, and, if Base Rate
Loans are outstanding, then Fixed Rate Loans shall be limited to five different
Interest Periods at any time.

         Each request by Borrower with respect to any Credit Event hereunder
shall be deemed to be a representation and warranty by Borrower as of the date
of such request as to the facts specified in (f) and (g) above.

         Each request for a Fixed Rate Loan shall be irrevocable and binding on
Borrower and Borrower shall indemnify the Global Agent and the applicable
Lenders against any loss or expense incurred by the Global Agent or such Lenders
as a result of any failure by Borrower to consummate such transaction including,
without limitation, any loss (including loss of anticipated profits) or expense
incurred by reason of liquidation or re-employment of deposits or other funds
acquired by such Lenders to fund such Fixed Rate Loan. A certificate as to the
amount of such loss or expense submitted by such Lenders to Borrower shall be
conclusive and binding for all purposes, absent manifest error.

         If the Global Agent shall elect to advance the proceeds of a Loan prior
to receiving funds from the applicable Lenders, the Global Agent shall have the
right, upon prior notice to Borrower, to debit any account of Borrower or
otherwise receive from Borrower, on demand, such amount, in the event that any
such Lender shall fail to reimburse the Global Agent in accordance with this
subsection. The Global Agent shall also have the right to receive interest from
any such Lender at the Federal Funds Effective Rate in the event that such
Lender shall fail to provide its portion of the Loan on the date requested and
the Global Agent shall elect to provide such funds.

         Section 2.3. PAYMENT ON NOTES, ETC.

         (a) PAYMENTS WITHOUT SET-OFF. Each payment made hereunder by Borrower
shall be made without any offset, abatement, recoupment, counterclaim,
withholding or reduction whatsoever.

         (b) PAYMENTS IN ALTERNATE CURRENCY. With respect to any Alternate
Currency Loan, all payments (including prepayments) to any Lender of the
principal of or interest on such Alternate Currency Loan shall be made in the
same Alternate Currency as the original Loan. All such payments shall be
remitted by Borrower to the Global Agent at the Designated Lending Office for
the account of the Lenders not later than 11:00

                                       35
<PAGE>

A.M. (Cleveland, Ohio time) on the due date thereof in same day funds. Any
payments received by the Global Agent after 11:00 A.M. (Cleveland, Ohio time)
shall be deemed to have been made and received on the next following Business
Day.

         (c) PAYMENTS IN DOLLARS. With respect to (i) any Loan (other than as
set forth in subparts (b) above), or (ii) any other payment to the Global Agent
or the Lenders that shall not be covered by subsection (b) above, all such
payments (including prepayments) of the principal of or interest on such Loan or
other payment, including but not limited to principal, interest, fees or any
other amount owed by Borrower under this Agreement, shall be made in Dollars.
All payments described in this subsection (c) shall be remitted to the Global
Agent at its Designated Lending Office for the account of the appropriate
Lenders not later than 11:00 A.M. (Cleveland, Ohio time) on the due date thereof
in immediately available funds. Any such payments received by the Global Agent
after 11:00 A.M. (Cleveland, Ohio time) shall be deemed to have been made and
received on the next following Business Day.

         (d) PAYMENTS TO LENDERS. Upon the Global Agent's receipt of payments
hereunder, the Global Agent shall immediately distribute to the appropriate
Lenders their respective Ratable Shares, if any, of the amount of principal,
interest, and facility and other fees received by the Global Agent for the
account of such Lenders. Payments received by the Global Agent in Dollars shall
be delivered to the appropriate Lenders in Dollars in immediately available
funds. Payments received by the Global Agent in any Alternate Currency shall be
delivered to the appropriate Lenders in such Alternate Currency in same day
funds. Each Lender shall record any principal, interest or other payment, the
principal amounts of Base Rate Loans and Fixed Rate Loans, the type of currency
for each Loan, all prepayments and the applicable dates, including Interest
Periods, with respect to the Loans made, and payments received by such Lender,
by such method as such Lender may generally employ; provided, however, that
failure to make any such entry shall in no way detract from the obligations of
Borrower under this Agreement or the Notes. The aggregate unpaid amount of
Loans, types of Loans, Interest Periods and similar information with respect to
such Loans and Letters of Credit set forth on the records of the Global Agent
shall be rebuttably presumptive evidence with respect to such information,
including the amounts of principal and interest owing to each Lender.

         (e) TIMING OF PAYMENTS. Whenever any payment to be made hereunder,
including, without limitation, any payment to be made on any Note, shall be
stated to be due on a day that shall not be a Business Day, such payment shall
be made on the next succeeding Business Day and such extension of time shall in
each case be included in the computation of the interest payable on such Note;
provided, however, that, with respect to any Fixed Rate Loan, if the next
succeeding Business Day shall fall in the succeeding calendar month, such
payment shall be made on the preceding Business Day and the relevant Interest
Period shall be adjusted accordingly.

         Section 2.4. PAYMENTS NET OF TAXES.

         (a) GENERAL PROVISIONS. All payments under this Agreement shall be made
absolutely net of, without deduction or offset for, and altogether free and
clear of, any and all present and future taxes, levies, deductions, charges and
withholdings and all liabilities with respect thereto, under the laws of the
United States of America or any foreign jurisdiction (or any state or political
subdivision thereof), excluding income and franchise taxes imposed on any Lender
(and withholding relating thereto) under the laws of the United States of
America, Australia or any

                                       36
<PAGE>

other foreign jurisdiction (or any state or political subdivision thereof). If
Borrower shall be compelled by law to deduct any such taxes or levies (other
than such excluded taxes) or to make any such other deductions, charges or
withholdings, then Borrower shall pay such additional amounts as may be
necessary in order that the net payments after such deduction, and after giving
effect to any United States or foreign jurisdiction (or any state or political
subdivision thereof) income taxes required to be paid by the Lenders in respect
of such additional amounts, shall equal the amount of interest, and other fees
and amounts payable as provided in Section 2.1 and Section 2.6 hereof for each
Loan or Letter of Credit, plus any principal then due.

         (b) ALTERNATE CURRENCY TRANSACTIONS. All payments on account of
principal, if any, interest and other fees and amounts payable hereunder shall
be made without set-off or counterclaim and, unless otherwise required by law,
shall be made free and clear of and without deduction for withholding tax or
similar tax, present or future, imposed by any taxing authority in any
jurisdiction (in this subsection (b) hereof, a "Tax"). If Borrower shall be
required to withhold or pay any Tax, it shall make the required withholding and
payment in accordance with and within the time allowed by law, and shall
nonetheless pay to the appropriate Lender such additional amounts as shall be
necessary to cause such Lender actually to receive in full all amounts (after
taking account of any further deduction or withholding that is required to be
made as a consequence of the payment of such additional amounts) on account of
principal and interest or other fees or amounts owing to it hereunder, as if
such Tax had not been paid. As soon as practicable after the date that any Tax
shall become due and payable, (i) Borrower shall give to such Lender the
original or a copy of a receipt for the payment of the Tax, or, if such receipts
are not issued by or received from the taxing authority to which the Tax was
paid, a certificate of an officer of Borrower, confirming the date and amount of
the payment so made and reasonable details of the calculation of the amount due;
and (ii) Borrower shall indemnify and save such Lender harmless from and against
any claim, liability, loss, cost, expense (including without limitation legal,
accounting and other professional fees, and interest and penalty charges or
fines imposed by any taxing authority in respect of or arising from non-payment
of such Tax) to which such Lender may be exposed or that it may incur, by reason
of Borrower's failure to make punctual payment of any amount required to be paid
to a taxing authority pursuant to subsection (b) hereof.

         Section 2.5. VOLUNTARY PREPAYMENT; PREPAYMENT FEES.

         (a) RIGHT TO PREPAY. Borrower shall have the right, at any time or from
time to time, to prepay, on a Pro Rata Basis for all of the applicable Lenders
(or, with respect to Swing Loans, the applicable Swing Line Lender), all or any
part of the principal amount of the Notes of Borrower then outstanding, as
designated by Borrower, plus interest accrued on the amount so prepaid to the
date of such prepayment.

         (b) PREPAYMENT FEES.

               (i) Prepayments of Base Rate Loans shall be without any premium
          or penalty;

               (ii) In any case of prepayment of a Fixed Rate Loan, Borrower
          agrees that if the reinvestment rate with respect to Eurodollars or
          the Alternate Currency, as the case may be, of such Fixed Rate Loan,
          as quoted by the money desk of the Global Agent (the "Reinvestment
          Rate"), shall be lower than the Adjusted LIBOR Rate applicable to the

                                       37
<PAGE>

          Fixed Rate Loan that is intended to be prepaid (hereinafter, "Last
          LIBOR"), then Borrower shall, upon written notice from the Global
          Agent, promptly pay to the Global Agent, for the account of the
          applicable Lenders, in immediately available funds, a prepayment fee
          equal to the product of (A) a rate (the "Prepayment Rate") which shall
          be equal to the difference between the Last LIBOR and the Reinvestment
          Rate, times (B) the prepayment principal amount of the Fixed Rate Loan
          that is to be prepaid, times (C) (1) the number of days remaining in
          the Interest Period of the Fixed Rate Loan that is to be prepaid
          divided by (2) three hundred sixty (360). In addition, Borrower shall
          immediately pay directly to the Global Agent, for the account of the
          applicable Lenders, the amount of any additional costs or expenses
          (including, without limitation, cost of telex, wires, or cables)
          incurred by the Global Agent or the Lenders in connection with the
          prepayment, upon Borrower's receipt of a written statement from the
          Global Agent; and

               (iii) In the case of prepayment of any Swing Loan, Borrower
          agrees to pay to the Swing Line Lender, on demand, for any resulting
          loss, cost or expense of the Swing Line Lender as a result thereof,
          including, without limitation, any loss incurred in obtaining,
          liquidating or employing deposits.

         (c) TERM LOAN PREPAYMENT FEES. In addition to any fees payable pursuant
to subpart (b) above, in the case of any prepayment of the Term Loan, whether in
whole or in part, Borrower shall pay to the Global Agent, for the account of the
Term Loan Lenders, on the date of such prepayment, a fee equal to the Term Loan
Prepayment Fee and if, as a result of such prepayment, any Fixed Rate Loan shall
be prepaid prior to the Interest Adjustment Date applicable thereto, Borrower
shall pay to the Term Loan Lenders the prepayment fees set forth in subsection
(b) hereof.

         (d) NOTICE OF PREPAYMENT. Borrower shall give the Global Agent written
notice of prepayment of any Base Rate Loan by not later than 11:00 A.M.
(Cleveland, Ohio time) on the Business Day such prepayment is to be made and
written notice of the prepayment of any Fixed Rate Loan not later than 1:00 P.M.
(Cleveland, Ohio time) three Business Days prior to the Business Day on which
such prepayment is to be made.

         (e) MINIMUM AMOUNT. Except in the case of a mandatory prepayment in
connection with Section 2.8 or Article III hereof, each prepayment of a Fixed
Rate Loan by Borrower shall be in the aggregate principal amount of not less
than Five Million Dollars ($5,000,000) (or, with respect to an Alternate
Currency Loan, the Dollar Equivalent of such amount).

         Section 2.6. FACILITY AND OTHER FEES.

         (a) GENERAL FACILITY FEE. Borrower shall pay to the Global Agent, for
the ratable account of the General Revolving Lenders, as a consideration for the
General Revolving Commitments, a facility fee from the Closing Date to and
including the last day of the applicable Commitment Period, payable quarterly,
at a rate per annum equal to (i) the Applicable Facility Fee Rate in effect on
the date that such facility fee shall be due, times (ii) the average daily
Maximum General Revolving Commitment Amount during such quarter. The facility
fee with respect to the General Revolving Commitments shall be payable in
arrears, on September 30,

                                       38
<PAGE>

2001 and on the last day of each succeeding December, March, June and September
thereafter, and on the last day of the applicable Commitment Period.

         (b) 364 DAY FACILITY FEE. Borrower shall pay to the Global Agent, for
the ratable account of the 364 Day Lenders, as a consideration for the 364 Day
Commitments, a facility fee from the Closing Date to and including the last day
of the applicable Commitment Period, payable quarterly, at a rate per annum
equal to (i) the Applicable Facility Fee Rate in effect on the date that such
facility fee shall be due, times (ii) the average daily Maximum 364 Day
Commitment Amount during such quarter. The facility fee with respect to the 364
Day Commitments shall be payable in arrears, on September 30, 2001 and on the
last day of each succeeding December, March, June and September thereafter, and
on the last day of the applicable Commitment Period.

         (c) GLOBAL AGENT FEES. Borrower shall pay to the Global Agent, for its
sole benefit, the fees set forth in the Global Agent Fee Letter.

         Section 2.7.      MODIFICATION OF COMMITMENT.

         (a) REDUCTION OF GENERAL REVOLVING COMMITMENTS. Borrower may at any
time or from time to time permanently reduce in whole, or ratably in part, the
General Revolving Commitments to an amount not less than the then existing
General Revolving Commitment Exposure by giving the Global Agent not fewer than
three Business Days' notice of such reduction, provided that any such partial
reduction shall be in an aggregate amount, for all of the General Revolving
Lenders, of not less than Five Million Dollars ($5,000,000), increased by
increments of One Million Dollars ($1,000,000). The Global Agent shall promptly
notify each General Revolving Lender of the date of each such reduction and such
General Revolving Lender's proportionate share thereof. After each such
reduction, the facility fees payable hereunder shall be calculated upon the
General Revolving Commitments as so reduced in accordance with Section 2.6(a)
hereof. If Borrower shall reduce in whole the General Revolving Commitments, on
the effective date of such reduction (Borrower having prepaid in full the unpaid
principal balance, if any, of the General Revolving Notes and the Swing Line
Note, together with all interest and facility and other fees accrued and unpaid,
and so long as there shall exist no Letter of Credit Exposure), all of the
General Revolving Notes shall be delivered to the Global Agent marked "Canceled"
and the Global Agent shall redeliver such General Revolving Notes to Borrower.
Any partial reduction in the General Revolving Commitments shall be effective
during the remainder of the applicable Commitment Period.

         (b) REDUCTION OF 364 DAY COMMITMENTS. Borrower may at any time or from
time to time permanently reduce in whole, or ratably in part, the 364 Day
Commitments to an amount not less than the then existing 364 Day Exposure by
giving the Global Agent not fewer than three Business Days' notice of such
reduction, provided that any such partial reduction shall be in an aggregate
amount, for all of the 364 Day Lenders, of not less than Five Million Dollars
($5,000,000), increased by increments of One Million Dollars ($1,000,000). The
Global Agent shall promptly notify each 364 Day Lender of the date of each such
reduction and such 364 Day Lender's proportionate share thereof. After each such
reduction, the facility fees payable hereunder shall be calculated upon the 364
Day Commitments as so reduced in accordance with Section 2.6(b) hereof. If
Borrower shall reduce in whole the 364 Day Commitments, on the effective date of
such reduction (Borrower having prepaid in full the unpaid principal balance, if

                                       39
<PAGE>

any, of the 364 Day Notes, together with all interest and facility and other
fees accrued and unpaid), all of the 364 Day Notes shall be delivered to the
Global Agent marked "Canceled" and the Global Agent shall redeliver such 364 Day
Notes to Borrower. Any partial reduction in the 364 Day Commitments shall be
effective during the remainder of the applicable Commitment Period.

         (c) INCREASE IN COMMITMENT. At any time during the Commitment Increase
Period, Borrower may request that the Global Agent proportionally increase the
Maximum 364 Day Commitment Amount and Maximum General Revolving Commitment
Amount from the Combined Closing Commitment Amount to the Combined Maximum
Commitment Amount by either (i) proportionally increasing, for one or more
Lenders, with their prior written consent, their 364 Day Commitment and General
Revolving Commitment, or (ii) including one or more Additional Lenders, each
with a new 364 Day Commitment and a new General Revolving Commitment (with the
same Commitment Percentage for the 364 Day Commitment and the General Revolving
Commitment), as a party to this Agreement (collectively, the "Additional
Commitment"). During the Commitment Increase Period, the Lenders agree that the
Global Agent, in its sole discretion, may permit one or more Additional
Commitments upon satisfaction of the following requirements: (A) each Additional
Lender, if any, shall execute an Additional Lender Assumption Agreement, (B) the
Global Agent shall provide to each Lender a revised SCHEDULE 1 to this Agreement
at least three Business Days prior to the effectiveness of such Additional
Commitments (each an "Assumption Effective Date"), and (C) Borrower shall
execute and deliver to the Global Agent and the Lenders such replacement or
additional 364 Day Notes and General Revolving Notes as shall be required by the
Global Agent. The Lenders hereby authorize the Global Agent to execute each
Additional Lender Assumption Agreement on behalf of the Lenders. On each
Assumption Effective Date, the 364 Day Lenders and the General Revolving Lenders
shall make adjustments among themselves with respect to the 364 Day Loans and
General Revolving Loans then outstanding and amounts of principal, interest,
facility fees and other amounts paid or payable with respect thereto as shall be
necessary, in the opinion of the Global Agent, in order to reallocate among such
Lenders such outstanding amounts, based on the revised Applicable Commitment
Percentages and to otherwise carry out fully the terms of this Section 2.7(c).
Borrower shall not request any increase in the Commitment pursuant to this
Section 2.7(c) if a Default or an Event of Default shall then exist or
immediately after giving effect to any such increase would exist.

         Section 2.8. MANDATORY PAYMENT.

         (a) COMMITMENTS. If (i) the General Revolving Commitment Exposure at
any time shall exceed the Maximum General Commitment Amount as then in effect,
Borrower shall, as promptly as practicable, but in no event later than the next
Business Day, prepay an aggregate principal amount of the General Revolving
Loans sufficient to bring the General Revolving Commitment Exposure within the
Maximum General Revolving Commitment Amount, (ii) the 364 Day Exposure at any
time shall exceed the Maximum 364 Day Commitment Amount as then in effect,
Borrower shall, as promptly as practicable, but in no event later than the next
Business Day, prepay an aggregate principal amount of the 364 Day Revolving
Loans sufficient to bring the 364 Day Exposure within the Maximum 364 Day
Commitment Amount, or (iii) the Alternate Currency Exposure shall at any time
exceed the Alternate Currency Maximum Amount, then Borrower shall, as promptly
as practicable, but in no event later than the next Business Day,

                                       40
<PAGE>

prepay an aggregate principal amount of Alternate Currency Loans sufficient to
bring the Alternate Currency Exposure within the Alternate Currency Maximum
Amount.

         (b) EXCESS CASH FLOW. Within one hundred (100) days after the end of
each fiscal year of the Companies, commencing with the fiscal year ending
February 28, 2002, Borrower shall make a prepayment in an amount of not less
than fifty percent (50%) of Excess Cash Flow, if any, based on the financial
statements of the Companies for the most recently completed fiscal year (each
such prepayment an "Excess Cash Flow Prepayment"). Each Excess Cash Flow
Prepayment shall be applied (i) first, to the principal payments of the Term
Loan (to be applied in the inverse order of maturity), and (ii) second, on a Pro
Rata Basis, to (1) the General Revolving Commitment Exposure (with payments to
be made in the following order: General Revolving Loans, Swing Loans, and to be
held by the Global Agent in a special account as security for any Letter of
Credit Exposure pursuant to subpart (f) hereof) and (2) the 364 Day Exposure. If
there shall be Credit Exposure under the General Revolving Commitments or Credit
Exposure under the 364 Day Commitments, the then remaining Prepayment Proceeds
shall be paid to whichever such General Revolving Commitments or 364 Day
Commitments as shall then have Credit Exposure. The General Revolving
Commitments and the 364 Day Commitments shall be permanently reduced by the
amount of such Prepayment Proceeds allocated thereto, respectively.

         (c) MANDATORY PREPAYMENT EVENT.

               (i) INVOLVING A COMPANY PRIOR TO AN EVENT OF DEFAULT. If any
          Company shall effect a Mandatory Prepayment Event (which Mandatory
          Prepayment Event shall only be permitted in accordance with the terms
          of this Agreement), then the Prepayment Proceeds of such Mandatory
          Prepayment Event shall be paid, on the date of such Mandatory
          Prepayment Event, by Borrower (or Company) to the Global Agent to be
          applied, (A) first, to the outstanding principal balance of the Term
          Loan (to be applied to the principal payments thereof in the inverse
          order of maturity), and (B) second, on a Pro Rata Basis, to (1) the
          General Revolving Commitment Exposure (with payments to be made in the
          following order: General Revolving Loans, Swing Loans, and to be held
          by the Global Agent in a special account as security for any Letter of
          Credit Exposure pursuant to subpart (d) hereof) and (2) the 364 Day
          Exposure. If there shall be Credit Exposure under the General
          Revolving Commitments or Credit Exposure under the 364 Day
          Commitments, the then remaining Prepayment Proceeds shall be paid to
          whichever such General Revolving Commitments or 364 Day Commitments as
          shall then have Credit Exposure. The General Revolving Commitments and
          the 364 Day Commitments shall be permanently reduced by the amount of
          such Prepayment Proceeds allocated thereto, respectively, whether or
          not there shall be any Credit Exposure thereunder. Any remaining
          Prepayment Proceeds shall be distributed in accordance with subpart
          (ii) hereof;

               (ii) INVOLVING ANY COMPANY AFTER AN EVENT OF DEFAULT. If any
          Company shall effect a Mandatory Prepayment Event (which Mandatory
          Prepayment Event shall only be permitted in accordance with the terms
          of this Agreement) after an Event of Default shall have occurred (and
          whether or not such Event of Default shall have been waived), then the
          Prepayment Proceeds of such Mandatory Prepayment Event shall be paid,
          on the date of such Prepayment Event, by Borrower (or the appropriate
          Company) to the Global

                                       41
<PAGE>

          Agent to be applied to the following, on a Pro Rata Basis among the
          Commitments: (A) the General Revolving Commitment Exposure (with
          payments to be made in the following order: General Revolving Loans,
          Swing Loans, and to be held by the Global Agent in a special account
          as security for any Letter of Credit Exposure pursuant to subpart (d)
          hereof), (B) the 364 Day Exposure, and (C) the unpaid principal
          balance of the Term Loan (with any prepayment of the Term Loan to be
          applied to the principal payments thereof in the inverse order of
          maturity). The General Revolving Commitments and 364 Day Commitments
          shall be permanently reduced by the amount of such Prepayment Proceeds
          allocated thereto, respectively, whether or not there shall not be any
          Credit Exposure thereunder. If there shall be no Credit Exposure under
          any Commitment, the then remaining Prepayment Proceeds shall be
          reallocated among the other Commitments on a Pro Rata Basis.

         (d) RIGHT OF TERM LOAN LENDERS TO FOREGO PROCEEDS. Each Term Loan
Lender shall have the right to forego the application of any mandatory
prepayment of the Term Loan required to be made to such Term Loan Lender
pursuant to subparts (c) or (d) above in accordance with the following
provisions:

               (i) the Global Agent shall, on or prior to 3:00 P. M. (Cleveland,
          Ohio time) on the date it shall have received immediately available
          funds from Borrower in respect of a mandatory prepayment of Loans
          pursuant to subpart (c) or (d) above, give each Term Loan Lender
          written or telephonic notice of (A) the amount of such mandatory
          prepayment, (B) the portion thereof proposed to be paid to such Term
          Loan Lender, and (C) such Term Loan Lender's right to forego its
          portion of such mandatory prepayment, which notice shall request such
          Term Loan Lender to confirm to the Global Agent whether or not such
          Term Loan Lender shall forego such mandatory prepayment;

               (ii) If any Term Loan Lender shall indicate its desire to forego
          its portion of such mandatory prepayment by giving the Global Agent
          written or telephonic notice to such effect by 5:00 P. M. (Cleveland,
          Ohio time) on the date that is two (2) Business Days after such Term
          Loan Lender shall have received such written or telephonic notice from
          the Global Agent, the amount of the applicable prepayment that would
          otherwise have been paid to such Term Loan Lender shall,
          notwithstanding anything in this Section 2.8 to the contrary, be
          applied, on a Pro Rata Basis, in accordance with subpart (c)(ii)
          above. The General Revolving Commitments and the 364 Day Commitments
          shall be permanently reduced by the amount of such prepayment;

               (iii) the Global Agent may act without liability upon the basis
          of any such telephonic notice or written notice believed by the Global
          Agent in good faith to be from an authorized representative of a Term
          Loan Lender. In the case of each such telephonic notice, the Global
          Agent's record of the terms of such telephonic notice shall be
          conclusive absent manifest error;

               (iv) any Term Loan Lender that shall not have responded to the
          Global Agent, within the time period specified above, to a notice from
          the Global Agent requesting such Term Loan Lender to confirm whether
          or not such Term Loan Lender wishes to exercise its right to forego
          the application of its portion of such mandatory prepayment pursuant
          to

                                       42
<PAGE>

          this Section 2.8, shall be deemed to have waived such right to forego
          such application; and

               (v) notwithstanding anything to the contrary contained in this
          Agreement, the Global Agent may defer, until the next Business Day,
          the distribution to the Term Loan Lenders of any portion of any
          mandatory prepayment of Loans received by the Global Agent pursuant to
          this Section 2.8 as to which the Global Agent shall be determining
          whether or not the Term Loan Lenders wish to exercise their rights
          under this subpart (d).

         (e) APPLICATION OF PROCEEDS. Unless otherwise designated by Borrower,
each prepayment pursuant to this Section 2.8 shall be applied in the following
order (i) first, on a pro rata basis among all of the outstanding Base Rate
Loans of Borrower, and (ii) second, on a pro rata basis among all of the
outstanding Fixed Rate Loans of Borrower, provided that if the outstanding
principal amount of any Fixed Rate Loan shall reduced to an amount less than the
applicable Minimum Borrowing Amount as a result of such prepayment, then such
Fixed Rate Loan shall be converted into a Base Rate Loan on the date of such
prepayment. Any prepayment of a Fixed Rate Loan or Swing Loan pursuant to this
Section 2.8 shall be subject to the prepayment penalties set forth in Section
2.5 hereof.

         (f) LETTER OF CREDIT EXPOSURE. Any amounts to be distributed for
application to a Lender's liabilities with respect to any Letter of Credit
Exposure shall be held by the Collateral Agent in an interest bearing trust
account (the "SPECIAL TRUST ACCOUNT") as collateral security for such
liabilities until a drawing on any Letter of Credit, at which time such amounts,
together with interest accrued thereon, shall be released by the Collateral
Agent and applied to such liabilities. If any such Letter of Credit shall expire
without having been drawn upon in full, the amounts held in the Special Trust
Account with respect to the undrawn portion of such Letter of Credit, together
with interest accrued thereon, shall be applied by the Collateral Agent in
accordance with the provisions of subpart (c) above.

         Section 2.9. COMPUTATION OF INTEREST AND FEES; DEFAULT RATE.

         (a) With the exception of Base Rate Loans, interest on Loans, Related
Expenses and facility and other fees and charges hereunder shall be computed on
the basis of a year having three hundred sixty (360) days and calculated for the
actual number of days elapsed. With respect to Base Rate Loans, interest shall
be computed on the basis of a year having three hundred sixty-five (365) days or
three hundred sixty-six (366) days, as the case may be, and calculated for the
actual number of days elapsed.

         (b) Anything herein to the contrary notwithstanding, if an Event of
Default shall have occurred hereunder, at the option of the Required Lenders,
(i) the principal of each Loan and the unpaid interest thereon shall bear
interest, until paid, at the Default Rate; and (ii) the fees for the aggregate
undrawn face amount of all issued and outstanding Letters of Credit shall be
increased to two percent (2%) in excess of the rate otherwise applicable
thereto; provided, however, that in no event shall the rate of interest
hereunder exceed the maximum rate allowable by law.

         Section 2.10. FIXED CHARGE COVERAGE RATIO CONDITION. Borrower shall
provide immediate written notice to the Global Agent and the Lenders at any time
that the Fixed Charge Coverage Ratio Condition shall exist or, within the next
three months, shall be likely to exist,

                                       43
<PAGE>

and, so long as the Fixed Charge Coverage Ratio Condition shall exist, Borrower
shall not request any Credit Event, and the Fronting Lender, the Swing Line
Lender and any Lender shall not be obligated to make or participate in any
Credit Event, unless (a) the proceeds of such Credit Event shall constitute, in
the sole opinion of the Global Agent, Designated Senior Indebtedness (as defined
in the Subordinated Indenture), and (b) upon request of the Global Agent,
Borrower shall have provided to the Global Agent and the Lenders such opinion of
counsel with respect to the Subordinated Indenture, as the Global Agent may
require in its reasonable discretion.

         Section 2.11. EXTENSION OF COMMITMENT. Not more than sixty (60) days
(but not less than thirty (30) days) prior to the last day of the Commitment
Period applicable to the 364 Day Commitments, Borrower may request that the
Lenders extend the maturity of the 364 Day Commitments for an additional year.
Such request shall be made in writing to the Global Agent and the Lenders shall
not respond to such request earlier than thirty (30) days prior to the last day
of the Commitment Period applicable to the 364 Day Commitments. Any such
extension shall require the unanimous written consent of all of the Lenders with
a 364 Day Commitment and shall be upon such terms and conditions as may be
agreed to by the Global Agent, Borrower and the Lenders. Borrower shall pay any
attorneys' fees or other expenses of the Global Agent in connection with the
documentation of any such extension, as well as such other fees as may be agreed
upon between Borrower and the Global Agent.

            ARTICLE III. ADDITIONAL PROVISIONS RELATING TO FIXED RATE
                        LOANS; INCREASED CAPITAL; TAXES.

         Section 3.1. RESERVES OR DEPOSIT REQUIREMENTS, ETC. If, at any time,
any law, treaty or regulation (including, without limitation, Regulation D of
the Board of Governors of the Federal Reserve System) or the interpretation
thereof by any governmental authority charged with the administration thereof or
any central bank or other fiscal, monetary or other authority shall impose
(whether or not having the force of law), modify or deem applicable any reserve
or special deposit requirement (other than reserves included in the eurocurrency
reserve percentage, the effect of which is reflected in the interest rates of
the Fixed Rate Loans in question) against assets held by, or deposits in or for
the amount of any Fixed Rate Loan by, any Lender, and the result of the
foregoing shall be to increase the cost (whether by incurring a cost or adding
to a cost) to such Lender of making or maintaining hereunder such Fixed Rate
Loan or to reduce the amount of principal or interest received by such Lender
with respect to such Fixed Rate Loan, then, upon demand by such Lender, Borrower
shall pay to such Lender from time to time on Interest Adjustment Dates with
respect to such Fixed Rate Loan, as additional consideration hereunder,
additional amounts sufficient to fully compensate and indemnify such Lender for
such increased cost or reduced amount, assuming (which assumption such Lender
need not corroborate) such additional cost or reduced amount was allocable to
such Fixed Rate Loan. A certificate as to the increased cost or reduced amount
as a result of any event mentioned in this Section 3.1, setting forth the
calculations therefor, shall be promptly submitted by such Lender to Borrower
and shall, in the absence of manifest error, be conclusive and binding as to the
amount thereof. Notwithstanding any other provision of this Agreement, after any
such demand for compensation by any Lender, Borrower, upon at least three
Business Days' prior written notice to such Lender through the Global Agent, may
prepay any affected Fixed Rate Loan in full or, if such Fixed Rate Loan shall be
a Eurodollar Loan, convert such Eurodollar Loan to a Base Rate

                                       44
<PAGE>

Loan regardless of the Interest Period thereof. Any such prepayment or
conversion shall be subject to the prepayment fees set forth in Section 2.5
hereof. Each Lender shall notify Borrower as promptly as practicable (with a
copy thereof delivered to the Global Agent) of the existence of any event that
will likely require the payment by Borrower of any such additional amount under
this Section.

         Section 3.2. TAX LAW, ETC. In the event that, by reason of any law,
regulation or requirement or in the interpretation thereof by an official
authority, or the imposition of any requirement of any central bank whether or
not having the force of law, any Lender shall, with respect to this Agreement or
any transaction under this Agreement, be subjected to any tax, levy, impost,
charge, fee, duty, deduction or withholding of any kind whatsoever (other than
any tax imposed upon the total net income of such Lender) and if any such
measures or any other similar measure shall result in an increase in the cost to
such Lender of making or maintaining any Fixed Rate Loan or in a reduction in
the amount of principal, interest or commitment fee receivable by such Lender in
respect thereof, then such Lender shall promptly notify Borrower stating the
reasons therefor. Borrower shall thereafter pay to such Lender, upon demand from
time to time on Interest Adjustment Dates with respect to such Fixed Rate Loan,
as additional consideration hereunder, such additional amounts as shall fully
compensate such Lender for such increased cost or reduced amount. A certificate
as to any such increased cost or reduced amount, setting forth the calculations
therefor, shall be submitted by such Lender to Borrower and shall, in the
absence of manifest error, be conclusive and binding as to the amount thereof.

         If any Lender shall receive such additional consideration from Borrower
pursuant to this Section 3.2, such Lender shall use reasonable efforts to obtain
the benefits of any refund, deduction or credit for any taxes or other amounts
on account of which such additional consideration has been paid and shall
reimburse Borrower to the extent, but only to the extent, that such Lender shall
have received a refund of such taxes or other amounts together with any interest
thereon or an effective net reduction in taxes or other governmental charges
(including any taxes imposed on or measured by the total net income of such
Lender) of the United States or any state or subdivision thereof (or any
applicable foreign jurisdiction) by virtue of any such deduction or credit,
after first giving effect to all other deductions and credits otherwise
available to such Lender. If, at the time any audit of such Lender's income tax
return is completed, such Lender determines, based on such audit, that it was
not entitled to the full amount of any refund reimbursed to Borrower as
aforesaid or that its net income taxes are not reduced by a credit or deduction
for the full amount of taxes reimbursed to Borrower as aforesaid, Borrower, upon
demand of such Lender, shall promptly pay to such Lender the amount so refunded
to which such Lender was not so entitled, or the amount by which the net income
taxes of such Lender were not so reduced, as the case may be.

         Notwithstanding any other provision of this Agreement, after any such
demand for compensation by any Lender, Borrower, upon at least three Business
Days' prior written notice to such Lender through the Global Agent, may prepay
any affected Fixed Rate Loan in full or, if such Fixed Rate Loan shall be a
Eurodollar Loan, convert such Eurodollar Loan to a Base Rate Loan regardless of
the Interest Period of any thereof. Any such prepayment or conversion shall be
subject to the prepayment fees set forth in Section 2.5 hereof.

         Section 3.3. EURODOLLAR OR ALTERNATE CURRENCY DEPOSITS UNAVAILABLE OR
INTEREST RATE UNASCERTAINABLE. In respect of any Fixed Rate Loan, in the event
that the Global Agent shall

                                       45
<PAGE>

have determined that Dollar deposits or deposit of the applicable Alternate
Currency of the relevant amount for the relevant Interest Period for such Fixed
Rate Loan shall not be available to the applicable Lender in the applicable
Eurodollar or Alternate Currency market or that, by reason of circumstances
affecting such market, adequate and reasonable means shall not exist for
ascertaining the Derived Fixed Rate applicable to such Interest Period, as the
case may be, the Global Agent shall promptly give notice of such determination
to Borrower and (a) any notice of a new Fixed Rate Loan (or conversion of an
existing Loan to a Fixed Rate Loan) previously given by Borrower and not yet
borrowed (or converted, as the case may be) shall be deemed to be a notice to
make a Base Rate Loan, and (b) Borrower shall be obligated either to prepay, or
to convert to a Base Rate Loan, any outstanding Eurodollar Loan on the last day
of the then current Interest Period applicable thereto.

         Section 3.4. INDEMNITY. Without prejudice to any other provisions of
this Article III, Borrower hereby agrees to indemnify each Lender against any
loss or expense that such Lender may sustain or incur as a consequence of any
default by Borrower in payment when due of any amount hereunder in respect of
any Fixed Rate Loan, including, but not limited to, any loss of profit, premium
or penalty incurred by such Lender in respect of funds borrowed by it for the
purpose of making or maintaining such Fixed Rate Loan, as determined by such
Lender in the exercise of its sole but reasonable discretion. A certificate as
to any such loss or expense shall be promptly submitted by such Lender to
Borrower and shall, in the absence of manifest error, be conclusive and binding
as to the amount thereof.

         Section 3.5. CHANGES IN LAW RENDERING FIXED RATE LOANS UNLAWFUL. If, at
any time, any new law, treaty or regulation, or any change in any existing law,
treaty or regulation, or any interpretation thereof by any governmental or other
regulatory authority charged with the administration thereof, shall make it
unlawful for any Lender to fund any Fixed Rate Loan that it is committed to make
hereunder with moneys obtained in the eurodollar market, the commitment of such
Lender to fund such Fixed Rate shall, upon the happening of such event forthwith
be suspended for the duration of such illegality, and such Lender shall by
written notice to the affected Borrowers and the Global Agent declare that its
commitment with respect to such Fixed Rate Loan shall have been so suspended
and, if and when such illegality shall cease to exist, such suspension shall
cease and such Lender shall similarly notify Borrower and the Global Agent. If
any such change shall make it unlawful for any Lender to continue in effect the
funding in the applicable eurodollar market of any Fixed Rate Loan previously
made by it hereunder, such Lender shall, upon the happening of such event,
notify Borrower, the Global Agent and the other appropriate Lenders thereof in
writing, stating the reasons therefor, and Borrower shall, on the earlier of (a)
the last day of the then current Interest Period or (b) if required by such law,
regulation or interpretation, on such date as shall be specified in such notice,
either convert such Fixed Rate Loan, if such Fixed Rate Loan shall be a
Eurodollar Loan, to a Base Rate Loan or prepay such Fixed Rate Loan to the
appropriate Lenders in full. Any such prepayment or conversion shall be subject
to the prepayment fees described in Section 2.5 hereof.

         Section 3.6. FUNDING. Each Lender may, but shall not be required to,
make Fixed Rate Loans hereunder with funds obtained outside of the United States
or, if applicable, outside of the country in which such Lender is located or
domiciled.

         Section 3.7. CAPITAL ADEQUACY. If any Lender shall have determined,
after the Closing Date, that the adoption of any applicable law, rule,
regulation or guideline regarding capital

                                       46
<PAGE>

adequacy, or any change therein, or any change in the interpretation or
administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance
by any Lender (or its lending office) with any request or directive regarding
capital adequacy (whether or not having the force of law) of any such authority,
central bank or comparable agency, has or would have the effect of reducing the
rate of return on such Lender's capital (or the capital of its holding company)
as a consequence of its obligations hereunder to a level below that which such
Lender (or its holding company) could have achieved but for such adoption,
change or compliance (taking into consideration such Lender's policies or the
policies of its holding company with respect to capital adequacy) by an amount
deemed by such Lender to be material, then from time to time, within fifteen
(15) days after demand by such Lender (with a copy to the Global Agent), the
applicable Borrowers shall pay to such Lender such additional amount or amounts
as shall compensate such Lender (or its holding company) for such reduction.
Each Lender shall designate a different lending office if such designation will
avoid the need for, or reduce the amount of, such compensation and will not, in
the judgment of such Lender, be otherwise disadvantageous to such Lender. A
certificate of any Lender claiming compensation under this Section and setting
forth the additional amount or amounts to be paid to it hereunder shall be
conclusive in the absence of manifest error. In determining such amount, such
Lender may use any reasonable averaging and attribution methods. Failure on the
part of any Lender to demand compensation for any reduction in return on capital
with respect to any period shall not constitute a waiver of such Lender's rights
to demand compensation for any reduction in return on capital in such period or
in any other period. The protection of this Section shall be available to each
Lender regardless of any possible contention of the invalidity or
inapplicability of the law, regulation or other condition which shall have been
imposed.

                        ARTICLE IV. CONDITIONS PRECEDENT

         The obligation of the Fronting Lender, the Swing Line Lender or the
Lenders to make, issue or participate in the first Credit Event shall be subject
to Borrower satisfying each of the following conditions:

         Section 4.1. NOTES. (a) Borrower shall have executed and delivered to
each Lender a General Revolving Note and a 364 Day Note and shall have executed
and delivered to the Swing Line Lender the Swing Line Note, and (b) Borrower
shall have executed and delivered a Term Note to each Term Loan Lender that
shall have requested a Term Note.

         Section 4.2. GUARANTIES OF PAYMENT. Each Guarantor of Payment shall
have executed and delivered to the Global Agent a Guaranty of Payment.

         Section 4.3. SECURITY DOCUMENTS. Borrower and each Guarantor of Payment
shall have executed and delivered to the Collateral Agent:

               (a) a Security Agreement;

               (b) a Collateral Assignment and Security Agreement;

                                       47
<PAGE>

               (c) a Pledge Agreement, together with delivery of the share
          certificates or other evidence of equity interest referenced therein;

               (d) as appropriate, a Mortgage with respect to the Mortgaged Real
          Property;

               (e) a Landlord's Agreement, duly executed by the appropriate
          lessor or lessors, with respect to such locations as the Global Agent
          shall request; and

               (f) such U.C.C. financing statements, in form and substance
          satisfactory to the Collateral Agent and the Lenders, as the
          Collateral Agent and the Lenders shall deem necessary or appropriate.

         Section 4.4. OFFICER'S CERTIFICATE, RESOLUTIONS, ORGANIZATIONAL
DOCUMENTS. Borrower and each Guarantor of Payment shall have delivered to the
Global Agent an officer's certificate certifying the names of the officers of
Borrower or such Guarantor of Payment authorized to sign the Loan Documents to
which Borrower or such Guarantor of Payment is a party, together with the true
signatures of such officers and certified copies of (a) the resolutions (or
other authorization documents) of the board of directors (or equivalent
governing body) of Borrower and such Guarantor of Payment evidencing approval of
the execution and delivery of the Loan Documents and the other Related Writings
to which Borrower or such Guarantor of Payment shall be a party, and (b) the
Organizational Documents of Borrower and such Guarantor of Payment.

         Section 4.5. LEGAL OPINIONS. Borrower shall have delivered to the
Global Agent and the Lenders the following opinions of counsel (each of which
shall be in form and substance satisfactory to the Global Agent and the Lenders
and shall contain such opinions as the Global Agent shall deem necessary or
appropriate): (a) an opinion of Brouse McDowell LPA as special counsel to
Borrower and each other Company; and (b) an opinion of special local counsel
acceptable to the Global Agent with respect to each Mortgage.

         Section 4.6. GOOD STANDING CERTIFICATES AND ARTICLES OF INCORPORATION.
Borrower shall have delivered to the Global Agent and the Lenders (a) a good
standing certificate or full force and effect certificate (or foreign
equivalent) for Borrower and each Guarantor of Payment, issued on or about the
Closing Date by the Secretary of State (or other appropriate governmental
authority) in the state or jurisdiction where Borrower or such Guarantor of
Payment is incorporated, organized or formed and in each state or other
jurisdiction where Borrower or such Guarantor of Payment is qualified or
authorized to do business as a foreign entity and where the failure to so
qualify would have a Material Adverse Effect, and (b) a copy of the current
Articles (or Certificate) of Incorporation or Organization (or equivalent
formation documents), together with all amendments thereto, for each Domestic
Company, certified by the Secretary of State of the appropriate jurisdiction, on
or about the Closing Date, as being true and correct.

         Section 4.7. CLOSING AND LEGAL FEES; FEE LETTERS. Borrower shall have
(a) executed and delivered to the Global Agent, the Global Agent Fee Letter and
paid to the Global Agent, for its sole benefit, the fees set forth therein, (b)
executed and delivered to the Global Agent, for the benefit of the Lenders, the
Closing Fee Letter and paid to each of the Lenders the fees set forth therein,
and (c) paid all legal fees and expenses of the Lead Arrangers in connection
with the preparation and negotiation of the Loan Documents.

                                       48
<PAGE>

         Section 4.8. LIEN SEARCHES. With respect to the property owned or
leased by each Domestic Company, Borrower shall have caused to be delivered to
the Global Agent (a) the results of U.C.C. lien searches, satisfactory to the
Global Agent and the Lenders; (b) the results of federal and state tax lien and
judicial lien searches, satisfactory to the Global Agent and the Lenders; and
(c) U.C.C. termination statements or other appropriate releases reflecting the
termination or release of all U.C.C. financing statements or other evidence of a
Lien previously filed or recorded by any Person having a security interest or
Lien in any part of the Collateral and not expressly permitted pursuant to
Section 5.9 hereof.

         Section 4.9. INSURANCE CERTIFICATES. Borrower shall have delivered to
the Global Agent and the Lenders evidence of insurance on ACORD 27 form, and
otherwise satisfactory to the Global Agent, of adequate personal and real
property and liability insurance of each Company, with the Collateral Agent
listed as loss payee and additional insured and with a standard mortgagee's
endorsement in favor of the Collateral Agent.

         Section 4.10. SENIOR INDENTURE. With respect to the Senior Indenture,
Borrower shall have provided to the Global Agent and the Lenders (a) a copy of
the Senior Indenture, together with any amendments or supplements thereto,
certified by an officer of Borrower as being true and complete; and (b) an
officer's certificate, signed by a Financial Officer, and otherwise in form and
substance satisfactory to the Global Agent and the Lenders, certifying that no
Event of Default (as defined in the Senior Indenture), or event or condition
that, with the passage of time or giving of notice or both, would constitute an
Event of Default (as defined in the Senior Indenture), exists under the Senior
Indenture, nor will exist after the first Credit Event occurs hereunder.

         Section 4.11. SUBORDINATED INDENTURE. With respect to the Subordinated
Indenture, Borrower shall have provided to the Global Agent and the Lenders (a)
a copy of the Subordinated Indenture, together with any amendments or
supplements thereto, certified by an officer of Borrower as being true and
complete; and (b) an officer's certificate, signed by a Financial Officer, and
otherwise in form and substance satisfactory to the Global Agent and the
Lenders, certifying (i) that no Default (as defined in the Subordinated
Indenture) or Event of Default (as defined in the Subordinated Indenture) exists
under the Indenture, nor will exist after the making of the first Credit Event
hereunder, (ii) the Fixed Charge Coverage Ratio Condition does not exist, nor
will it exist after the first Credit Event occurs hereunder, (iii) that all of
the Debt constitutes Senior Indebtedness (as defined in the Subordinated
Indenture), Designated Senior Indebtedness (as defined in the Subordinated
Indenture), and Permitted Debt (as defined in the Subordinated Indenture), and
(iv) as to such other matters with respect to the Subordinated Indenture as the
Global Agent shall deem necessary or appropriate.

         Section 4.12. SUBORDINATED CONVERTIBLE INDENTURE. With respect to the
Subordinated Convertible Indenture, Borrower shall have provided to the Global
Agent and the Lenders (a) a copy of the Subordinated Convertible Indenture,
together with any amendments or supplements thereto, certified by an officer of
Borrower as being true and complete; and (b) an officer's certificate, signed by
a Financial Officer, and otherwise in form and substance satisfactory to the
Global Agent and the Lenders, certifying (i) that no Default (as defined in the
Subordinated Convertible Indenture) or Event of Default (as defined in the
Subordinated Convertible Indenture) exists under the Subordinated Convertible
Indenture, nor will exist after the making of

                                       49
<PAGE>

the first Credit Event hereunder, (ii) that all of the Debt constitutes Senior
Indebtedness (as defined in the Subordinated Convertible Indenture), Designated
Senior Indebtedness (as defined in the Subordinated Convertible Indenture), and
Permitted Debt (as defined in the Subordinated Convertible Indenture), and (iii)
as to such other matters with respect to the Subordinated Convertible Indenture
as the Global Agent shall deem necessary or appropriate.

         Section 4.13. PERMITTED RECEIVABLES FACILITY. With respect to the
Permitted Receivables Facility, Borrower shall have (a) provided to the Global
Agent and the Lenders a copy of the Receivables Facility Documents, certified by
an officer of Borrower as being true and complete; and (b) provided to the
Global Agent and the Lenders an officer's certificate, signed by a Financial
Officer, and otherwise in form and substance satisfactory to the Global Agent
and the Lenders, certifying that (i) Borrower shall have satisfied all
conditions precedent to funding as set forth in the Receivables Facility
Documents, and (ii) no default or event of default, or event or condition that,
with the passage of time or giving of notice or both, would constitute a default
or event of default, shall exist under the Receivables Facility Documents, nor
will exist after the making of the first Credit Event hereunder.

         Section 4.14. EXISTING CREDIT AGREEMENT. Borrower shall have delivered
to the Global Agent evidence, in form and substance satisfactory to the Global
Agent, that, after giving effect to the first Credit Events hereunder, that
Borrower shall have terminated the Second Amended and Restated Credit Agreement
among Borrower, the other borrowers named therein, the financial institutions
named therein, and Bank of America, N.A., as Global Agent, dated as of August 3,
2000.

         Section 4.15. FINANCIAL PROJECTIONS. Borrower shall have delivered to
the Global Agent and the Lenders the Financial Projections which shall be in
form and substance satisfactory to the Lead Arrangers.

         Section 4.16. REGULATORY APPROVALS. Borrower shall have delivered to
the Global Agent and the Lenders a certificate of an officer, in form and
substance satisfactory to the Global Agent, that (a) Borrower have obtained any
necessary regulatory approvals and licenses in connection with the transactions
contemplated by this Agreement and the other Loan Documents, and (b) there
exists no legal, regulatory or other restrictions or prohibitions to the
Companies entering into the Loan Documents to which each is a party and
consummating the transactions contemplated by this Agreement and the other Loan
Documents.

         Section 4.17. CLOSING CERTIFICATE. Borrower shall have delivered to the
Global Agent and the Lenders an officer's certificate certifying that, as of the
Closing Date, (a) all conditions precedent set forth in this Article IV have
been satisfied, (b) no Default or Event of Default exists nor immediately after
the occurrence of the first Credit Event will exist, and (c) each of the
representations and warranties contained in Article VI hereof are true and
correct as of the Closing Date.

         Section 4.18. NO MATERIAL ADVERSE CHANGE. No material adverse change,
in the opinion of the Global Agent, shall have occurred in the financial
condition, operations or prospects of the Companies since May 31, 2001.

                                       50
<PAGE>

         Section 4.19. MISCELLANEOUS. Borrower shall have provided to the Global
Agent and the Lenders such other items and shall have satisfied such other
conditions as may be reasonably required by the Global Agent or the Lenders.

                              ARTICLE V. COVENANTS

         Borrower agrees that, so long as the Commitment remains in effect and
thereafter until all of the Debt shall have been paid in full, Borrower shall
perform and observe, and shall cause each other Company to perform and observe,
each of the following provisions:

         Section 5.1. INSURANCE. Each Company shall at all times maintain
insurance upon its real and personal property in such form, written by such
companies, in such amounts, for such period, and against such risks as may be
acceptable to the Global Agent, with provisions (with respect to each Domestic
Company) satisfactory to the Global Agent for payment of all losses thereunder
to the Collateral Agent and such Company as their interests may appear (loss
payable endorsement in favor of the Collateral Agent). Any such policies of
insurance shall provide for no fewer than thirty (30) days prior written notice
of cancellation to the Collateral Agent. Any sums received by the Collateral
Agent in payment of insurance losses, returns, or unearned premiums under the
policies shall be applied in accordance with the terms of this Agreement. The
Collateral Agent is hereby authorized to act as attorney-in-fact for each
Domestic Company in obtaining, adjusting, settling and canceling such insurance
and indorsing any drafts. In the event of failure to provide such insurance as
herein provided, the Collateral Agent, acting at the direction of the Global
Agent, may provide such insurance and Borrower shall pay to the Collateral
Agent, upon demand, the cost thereof. Should Borrower fail to pay such sum to
the Collateral Agent upon demand, interest shall accrue thereon, from the date
of demand until paid in full, at the Default Rate. Within ten (10) days of the
Global Agent's written request, Borrower shall furnish to the Global Agent such
information about any Company's insurance as the Global Agent may from time to
time reasonably request, which information shall be prepared in form and detail
satisfactory to the Global Agent and certified by a Financial Officer of
Borrower or Company.

         Section 5.2. MONEY OBLIGATIONS. Each Company shall pay in full (a)
prior in each case to the date when penalties would attach, all taxes,
assessments and governmental charges and levies (except only those so long as
and to the extent that the same shall be contested in good faith by appropriate
and timely proceedings and for which adequate reserves have been established in
accordance with GAAP) for which it may be or become liable or to which any or
all of its properties may be or become subject; (b) all of its wage obligations
to its employees in compliance with the Fair Labor Standards Act (29 U.S.C.
206-207) or any comparable provisions; and (c) all of its other obligations
calling for the payment of money (except only those so long as and to the extent
that the same shall be contested in good faith and for which adequate reserves
have been established in accordance with GAAP) before such payment becomes
overdue.

         Section 5.3. FINANCIAL STATEMENTS. Borrower shall furnish to each
Lender or, with respect to subpart (a) below, only to the Global Agent:

                                       51
<PAGE>

         (a) within twenty (20) days after the end of each month, monthly
balance sheets, a statement of cash flow and an income statement for the month
then ended (and including the appropriate adjusted financial statements to
reflect the Restructuring Charges), in form and substance satisfactory to the
Global Agent, prepared on a year-to-date basis and on a comparative basis to the
previous year, and on a Consolidated basis; the Global Agent shall provide
copies of the foregoing information to any Lender upon such Lender's written
request;

         (b) within sixty (60) days after the end of each of the first three
quarter-annual periods of each fiscal year of the Companies, balance sheets of
the Companies as of the end of such period and statements of income (loss),
stockholders' equity and cash flow for the quarter and fiscal year to date
periods, all prepared on a Consolidated and consolidating basis, in accordance
with GAAP, and in form and detail satisfactory to the Lenders (and including the
appropriate adjusted financial statements to reflect the Restructuring Charges)
and certified by a Financial Officer;

         (c) within one hundred (100) days after the end of each fiscal year of
the Companies, an annual audit report of the Companies for that year prepared on
a Consolidated and consolidating basis, in accordance with GAAP, and in form and
detail satisfactory to the Global Agent and certified by an independent public
accountant satisfactory to the Required Lenders, which report shall include
balance sheets and statements of income (loss), stockholders' equity and
cash-flow for that period, together with a certificate by the accountant setting
forth the Defaults or Events of Default coming to its attention during the
course of its audit or, if none, a statement to that effect;

         (d) concurrently with the delivery of the financial statements set
forth in (b) and (c) above, a Compliance Certificate;

         (e) with the delivery of the quarterly and annual financial statements
in (b) and (c) above, a copy of any management report, letter or similar writing
furnished to the Companies by the accountants in respect of the Companies'
systems, operations, financial condition or properties;

         (f) within one hundred (100) days after the end of each fiscal year of
the Companies, annual pro-forma projections of the Companies for the then
current fiscal year and the next two succeeding fiscal years, to be in form
acceptable to the Global Agent;

         (g) as soon as available, copies of all notices, reports, definitive
proxy or other statements and other documents sent by Borrower to its
shareholders, to the holders of any of its debentures or bonds or the trustee of
any indenture securing the same or pursuant to which they are issued, or sent by
Borrower (in final form) to any securities exchange or over the counter
authority or system, or to the SEC or any similar federal agency having
regulatory jurisdiction over the issuance of Borrower's securities; and

         (h) within ten (10) days of the written request of the Global Agent or
any Lender, such other information about the financial condition, properties and
operations of any Company as the Global Agent or Lender may from time to time
reasonably request, which information shall be submitted in form and detail
satisfactory to the Global Agent or any Lender and certified by a Financial
Officer of the Company or Companies in question.

                                       52
<PAGE>

         Section 5.4. FINANCIAL RECORDS. Each Company shall at all times
maintain true and complete records and books of account, including, without
limiting the generality of the foregoing, appropriate reserves for possible
losses and liabilities, all in accordance with GAAP (except with respect to
certain Foreign Subsidiaries, which shall maintain such records in accordance
with generally accepted accounting principles of the country in which such
Foreign Subsidiary has its principal place of business), and at all reasonable
times (during normal business hours and upon notice to such Company) permit the
Global Agent or any Lender, or any representative of the Global Agent or such
Lender, to examine that Company's books and records and to make excerpts
therefrom and transcripts thereof.

         Section 5.5. FRANCHISES. Each Company shall preserve and maintain at
all times its existence, rights and franchises, except as otherwise permitted
pursuant to Section 5.12 hereof.

         Section 5.6. ERISA COMPLIANCE. No Company shall incur any material
accumulated funding deficiency within the meaning of ERISA, or any material
liability to the PBGC, established thereunder in connection with any ERISA Plan.
Borrower shall furnish to the Lenders (a) as soon as possible and in any event
within thirty (30) days after any Company knows or has reason to know that any
Reportable Event with respect to any ERISA Plan has occurred, a statement of the
Financial Officer of such Company, setting forth details as to such Reportable
Event and the action that such Company proposes to take with respect thereto,
together with a copy of the notice of such Reportable Event given to the PBGC if
a copy of such notice is available to such Company, and (b) promptly after
receipt thereof a copy of any notice such Company, or any member of the
Controlled Group may receive from the PBGC or the Internal Revenue Service with
respect to any ERISA Plan administered by such Company; provided, that this
latter clause shall not apply to notices of general application promulgated by
the PBGC or the Internal Revenue Service. Borrower shall promptly notify the
Lenders of any material taxes assessed, proposed to be assessed or that Borrower
has reason to believe may be assessed against a Company by the Internal Revenue
Service with respect to any ERISA Plan. As used in this Section "material" means
the measure of a matter of significance that shall be determined as being an
amount equal to five percent (5%) of the Consolidated Net Worth of Borrower. As
soon as practicable, and in any event within twenty (20) days, after any Company
becomes aware that an ERISA Event shall have occurred, such Company shall
provide the Global Agent with notice of such ERISA Event with a certificate by a
Financial Officer of such Company setting forth the details of the event and the
action such Company or another Controlled Group member proposes to take with
respect thereto. Borrower shall, at the request of the Global Agent or any
Lender, deliver or cause to be delivered to the Global Agent or such Lender, as
the case may be, true and correct copies of any documents relating to the ERISA
Plan of any Company.

         Section 5.7. FINANCIAL COVENANTS.

         (a) CAPITALIZATION RATIO. The Companies shall not suffer or permit at
any time the Capitalization Ratio to exceed (i) 0.55 to 1.00 on the Closing Date
through August 31, 2001, (ii) 0.60 to 1.00 on September 1, 2001 through November
30, 2001, and (iii) 0.55 to 1.00 on December 1, 2001 and thereafter.

                                       53
<PAGE>

         (b) INTEREST COVERAGE RATIO. The Companies shall not suffer or permit
at any time the Interest Coverage Ratio to be less than (i) 2.70 to 1.00 on the
Closing Date through February 28, 2002, (ii) 3.20 to 1.00 on March 1, 2002
through August 31, 2002, (iii) 3.40 to 1.00 on September 1, 2002 through
November 30, 2002, (iv) 4.00 to 1.00 on December 1, 2002 through February 28,
2003, and (v) 4.20 to 1.00 on March 1, 2003 and thereafter.

         (c) NET WORTH. The Companies shall not suffer or permit at any time the
Consolidated Adjusted Net Worth, for the most recently completed fiscal quarter
of the Companies, to be less than (i) Six Hundred Twenty Million Dollars
($620,000,000) for the period from the Closing Date through August 31, 2001,
(ii) Six Hundred Thirty-Five Million Dollars ($635,000,000) on September 1, 2001
through November 30, 2001, (iii) Six Hundred Fifty Million Dollars
($650,000,000) on December 1, 2001 through February 28, 2002, (iv) Seven Hundred
Twenty Million Dollars ($720,000,000) on March 1, 2002 through May 31, 2002, and
(v) Six Hundred Fifty Million Dollars ($650,000,000) on June 1, 2002 and
thereafter, with each such amount to be positively increased on a cumulative
basis, by the Increase Amount on November 30, 2002, and by an additional
Increase Amount on the last day of each succeeding fiscal quarter thereafter. As
used herein, the term "Increase Amount" shall mean an amount equal to (i) fifty
percent (50%) of positive Consolidated Net Earnings for the fiscal quarter then
ended (with no deduction for losses), plus (ii) one hundred percent (100%) of
the proceeds of any equity offering by the Companies, or any debt offering of
the Companies, to the extent converted into equity, plus (iii) one hundred
percent (100%) of the incremental net worth associated with any Acquisition made
by the Companies during such period.

         (d) MINIMUM EBITDA. The Companies shall not suffer or permit at any
time Consolidated EBITDA, for the most recently completed four fiscal quarters
of the Companies, to be less than (i) One Hundred Eighty-Eight Million Dollars
($188,000,000) for the period from the Closing Date through August 31, 2001,
(ii) One Hundred Ninety-Seven Million Dollars ($197,000,000) on September 1,
2001, through November 30, 2001, (iii) Two Hundred Twenty-One Million Dollars
($221,000,000) on December 1, 2001 through February 28, 2002, (iv) Two Hundred
Fifty-Four Million Dollars ($254,000,000) on March 1, 2002 through May 31, 2002,
(v) Two Hundred Forty-Five Million Dollars ($245,000,000) on June 1, 2002
through August 31, 2002, (vi) Two Hundred Seventy-Five Million Dollars
($275,000,000) on September 1, 2002 through November 30, 2002, (vii) Three
Hundred Twenty-Three Million Dollars ($323,000,000) on December 1, 2002 through
February 28, 2003, and (viii) Three Hundred Fifty Million Dollars ($350,000,000)
on March 1, 2003 and thereafter.

         (e) LEVERAGE RATIO. The Companies shall not suffer or permit at any
time the Leverage Ratio to be greater than (i) 5.00 to 1.00 on the Closing Date
through August 31, 2001, (ii) 5.90 to 1.00 on September 1, 2001 through November
30, 2001, (iii) 4.00 to 1.00 on December 1, 2001 through November 30, 2002, (iv)
3.20 to 1.00 on December 1, 2002 through November 30, 2003, and (v) 2.50 to 1.00
on December 1, 2003 and thereafter.

         Section 5.8. BORROWING. No Company shall create, incur or have
outstanding any obligation for borrowed money or any Indebtedness of any kind;
provided, that this Section shall not apply to:

         (a) the Loans, Letters of Credit or any other Indebtedness under this
Agreement;

                                       54
<PAGE>

         (b) in addition to the Indebtedness permitted pursuant to the other
subparts of this Section, the Indebtedness that shall exist as of the Closing
Date as set forth in SCHEDULE 5.8 hereto, but not any extensions, renewals or
replacements of such Indebtedness except (i) renewals and extensions expressly
provided for in the agreements evidencing any such Indebtedness as the same are
in effect on the date of this Agreement and (ii) refinancings and extensions of
any such Indebtedness if the terms and conditions thereof are not less favorable
to the obligor thereon or to the Global Agent and the Lenders taken as a whole
in the reasonable judgment of the Global Agent than the Indebtedness being
refinanced or extended and the average life to maturity thereof shall be greater
than or equal to that of the Indebtedness being refinanced or extended; provided
that such Indebtedness permitted under the immediately preceding clause (i) or
(ii) above shall not (A) include Indebtedness of an obligor that was not an
obligor with respect to the Indebtedness being extended, renewed or refinanced
(other than the Companies), (B) exceed in a principal amount the Indebtedness
being renewed, extended or refinanced plus the costs of refinancing (including
consent fees), accrued interest and premiums or (C) be incurred, created or
assumed if any Default or Event of Default shall have occurred and be continuing
or would result therefrom);

         (c) the unsecured Indebtedness of Borrower in connection with the notes
(including any replacement notes) issued pursuant to the Subordinated Indenture,
so long as (i) all of such Indebtedness shall be Subordinated at all times to
the Debt, and (ii) the aggregate principal amount of such Indebtedness shall not
exceed Two Hundred Sixty Million Dollars ($260,000,000) at any time;

         (d) the unsecured Indebtedness of Borrower in connection with the notes
issued pursuant to the Subordinated Convertible Indenture, so long as (i) all of
such Indebtedness shall be Subordinated at all times to the Debt, and (ii) the
aggregate principal amount of such Indebtedness shall not exceed One Hundred
Seventy-Five Million Dollars ($175,000,000) at any time;

         (e) the Indebtedness of Borrower in connection with the notes or
securities issued pursuant to the Senior Indenture, so long as the aggregate
principal amount of such Indebtedness shall not exceed Three Hundred Million
Dollars ($300,000,000) at any time;

         (f) loans or capital leases to any Company for the purchase or lease of
fixed assets, which loans or leases shall be secured by the assets being
purchased or leased, so long as the aggregate principal amount of all such loans
and leases for all Companies shall not exceed Twenty-Five Million Dollars
($25,000,000) at any time;

         (g) loans by a Domestic Company (other than the Receivables Subsidiary)
to another Domestic Company (other than the Receivables Subsidiary) so long as
each such Company shall be Borrower or a Guarantor of Payment;

         (h) loans by a Foreign Subsidiary to a Domestic Company (other than the
Receivables Subsidiary);

         (i) Permitted Foreign Subsidiary Loans and Investments;

                                       55
<PAGE>

         (j) Indebtedness under any Hedge Agreement, so long as such Hedge
Agreement shall have been entered into in the ordinary course of business and
not for speculative purposes;

         (k) the Indebtedness of Borrower with respect to the Other Lender
Obligations, as defined in Article X hereof, listed on SCHEDULE 10.1 hereto;

         (l) (i) Indebtedness of the Receivables Subsidiary under the Permitted
Receivables Facility, so long as the funded amount shall not exceed Two Hundred
Fifty Million Dollars ($250,000,000) at any time, or (ii) Indebtedness of the
Receivables Subsidiary or AGSC to any other Company in connection with the
Permitted Receivables Facility in accordance with the Receivables Facility
Documents;

         (m) the Indebtedness of Borrower to AGSC pursuant to the AGSC Note so
long as (i) all of such Indebtedness is Subordinated, and (ii) the aggregate
principal amount of such Indebtedness shall not exceed One Hundred Thirty
Million Dollars ($130,000,000) at any time; or

         (n) in addition to the Indebtedness permitted pursuant to subparts (a)
through (m) above, other unsecured Indebtedness of Borrower so long as (i) all
of such Indebtedness is Subordinated, (ii) no Default or Event of Default shall
then exist or immediately after incurring any of such Indebtedness will exist,
(iii) the documentation with respect to such Indebtedness shall be in form and
substance satisfactory to the Global Agent, and (iv) the Companies shall be in
compliance with the financial covenants set forth in Section 5.7 hereof both
immediately before and after giving pro forma effect to the incurrence of such
Indebtedness.

         Section 5.9. LIENS. No Company shall create, assume or suffer to exist
any Lien upon any of its property or assets, whether now owned or hereafter
acquired; provided that this Section shall not apply to the following:

         (a) Liens for taxes not yet due or that are being actively contested in
good faith by appropriate proceedings and for which adequate reserves shall have
been established in accordance with GAAP;

         (b) other statutory Liens incidental to the conduct of its business or
the ownership of its property and assets that (i) were not incurred in
connection with the borrowing of money or the obtaining of advances or credit,
and (ii) do not in the aggregate materially detract from the value of its
property or assets or materially impair the use thereof in the operation of its
business;

         (c) Liens on property or assets of a Subsidiary to secure obligations
of such Subsidiary to Borrower or a Guarantor of Payment;

         (d) purchase money Liens on fixed assets securing the loans and capital
leases pursuant to Section 5.8(f) hereof, provided that such Lien shall be
limited to the purchase (or lease) price and only attaches to the property being
acquired or leased;

         (e) the Liens existing on the Closing Date as set forth in SCHEDULE 5.9
hereto;

                                       56
<PAGE>

         (f) easements or other minor defects or irregularities in title of real
property not interfering in any material respect with the use of such property
in the business of any Company; or

         (g) any Lien granted to the Global Agent or the Collateral Agent
securing the Debt or Liens granted to the Collateral Agent to secure the
Obligations, as defined in Article X hereof, so long as any such Lien granted to
the Collateral Agent that secures any obligations of any Person (other than the
Global Agent and the Lenders in connection with this Agreement) shall be at all
times subject to the intercreditor provisions set forth in Article X hereof.

No Company shall enter into any contract or agreement that would prohibit the
Global Agent or the Lenders from acquiring a security interest, mortgage or
other Lien on, or a collateral assignment of, any of the property or assets of a
Company.

         Section 5.10. REGULATIONS U AND X. No Company shall take any action
that would result in any non-compliance of the Loans with Regulations U and X,
or any other applicable regulation, of the Board of Governors of the Federal
Reserve System.

         Section 5.11. INVESTMENTS AND LOANS. No Company shall (a) create,
acquire or hold any Subsidiary, (b) make or hold any investment in any stocks,
bonds or securities of any kind, (c) be or become a party to any joint venture
or other partnership, (d) make or keep outstanding any advance or loan to any
Person, or (e) be or become a Guarantor of any kind; provided, that this Section
shall not apply to:

         (i)      investments by the Companies in Cash Equivalents;

         (ii) any endorsement of a check or other medium of payment for deposit
or collection through normal banking channels or similar transaction in the
normal course of business;

         (iii) the holding of Subsidiaries listed on SCHEDULE 6.1 hereto and the
creation, acquisition and holding of any new Subsidiary (other than by the
Receivables Subsidiary) after the Closing Date so long as such new Subsidiary
shall be created, acquired or held in accordance with the terms and conditions
of this Agreement and, if required, shall comply with Section 5.21 hereof;

         (iv) loans to or investments in a Domestic Company by another Domestic
Company so long as each such Company shall be Borrower or a Guarantor of
Payment;

         (v) loans to or investments in a Domestic Company by a Foreign
Subsidiary;

         (vi) Permitted Foreign Subsidiary Loans and Investments;

         (vii) any advance or loan to an officer or employee of a Company made
in the ordinary course of such Company's business, so long as all such advances
and loans from all Companies shall aggregate not more than the maximum principal
sum of Five Hundred Thousand Dollars ($500,000) at any time outstanding;

         (viii) any Permitted Investment;

                                       57
<PAGE>

         (ix) guarantees of Indebtedness of the Companies incurred or permitted
pursuant to this Agreement;

         (x) Indebtedness of the Receivables Subsidiary to Borrower or AGSC and
Indebtedness of AGSC to Borrower in connection with Permitted Receivables
Facility in accordance with the Receivables Facility Documents; or

         (xi) the Indebtedness of Borrower to AGSC pursuant to the AGSC Note so
long as (i) all of such Indebtedness is Subordinated, and (ii) the aggregate
principal amount of such Indebtedness shall not exceed One Hundred Thirty
Million Dollars ($130,000,000) at any time.

         Section 5.12. MERGER AND SALE OF ASSETS. No Company shall merge or
consolidate with any other Person, or effect any Disposition other than in the
ordinary course of business, except that, if no Default or Event of Default
shall then exist or immediately thereafter shall begin to exist:

         (a) any Subsidiary (other than the Receivables Subsidiary) may merge
with (i) Borrower (provided that Borrower shall be the continuing or surviving
Person), or (ii) any one or more Guarantors of Payment;

         (b) any Subsidiary (other than the Receivables Subsidiary) may sell,
lease, transfer or otherwise dispose of any of its assets to (i) Borrower, or
(ii) any one or more Guarantors of Payment;

         (c) in addition to any merger permitted pursuant to subpart (a) above,
any Foreign Subsidiary may merge with any one or more Foreign Subsidiaries;

         (d) in addition to any Disposition permitted pursuant to subpart (b)
above, any Foreign Subsidiary may sell, lease, transfer or otherwise dispose of
any of its assets to any one or more Foreign Subsidiaries;

         (e) in addition to any Disposition permitted pursuant to subparts (a)
through (d) above, AGSC or any Receivables Facility Participant may sell the
Receivables Related Assets in connection with the Permitted Receivables
Facility; and

         (f) in addition to any Disposition permitted pursuant to subparts (a)
through (e) above, any Company may effect a Disposition so long as (i) the
Companies shall be in full compliance with the Loan Documents both prior to and
subsequent to the transaction, (ii) no Default or Event of Default shall then
exist or immediately after such Disposition will exist, (iii) the Companies
shall be in compliance with the financial covenants set forth in Section 5.7
hereof both immediately before and after giving pro forma effect to such
Disposition, (iv) the Companies shall receive consideration equivalent to the
fair market value (as determined by the Board of Directors of Borrower) of the
assets disposed of in connection with such Disposition, (v) at least
seventy-five percent (75%) of the consideration received in connection with such
Disposition shall be in the form of cash (other than the Disposition of
substantially all of the non-core greeting card assets comprising the party
goods and candle business of Borrower, the non-cash portion of which shall not
at any one time exceed Fifty Million Dollars ($50,000,000)), (vi)

                                       58
<PAGE>

an amount equal to at least fifty percent (50%) of the proceeds in excess of Ten
Million Dollars ($10,000,000) in the aggregate with respect to all such
Dispositions shall have been applied in accordance with Section 2.8(c) hereof,
and (vii) unless the Companies shall use the remaining proceeds of such
Disposition to effect an Acquisition permitted pursuant to Section 5.13 hereof
within one hundred eighty (180) days after the receipt of the proceeds of such
Disposition, then such remaining proceeds of such Disposition shall be applied
in accordance with Section 2.8(c) hereof.

         Section 5.13. ACQUISITIONS. No Company shall effect any Acquisition;
provided, however, that, subject to Section 5.27 hereof, Borrower or a Guarantor
of Payment may effect an Acquisition so long as:

         (a) Borrower or such Guarantor of Payment, as the case may be, shall be
the surviving entity in the case of a merger or other consolidation;

         (b) the business to be acquired shall be similar to the lines of
business of the Companies;

         (c) the Companies shall be in full compliance with the Loan Documents
both prior to and subsequent to the transaction, including, but not limited to
the requirements set forth in Section 5.21 hereof;

         (d) Borrower shall have provided to the Global Agent and the Lenders,
at least twenty (20) days prior to such Acquisition, historical financial
statements of the target entity and a pro forma financial statement of the
Companies accompanied by a certificate of a Financial Officer showing (i) pro
forma compliance with Section 5.7 hereof, both before and after giving effect to
the proposed Acquisition, and (ii) that, on a pro forma basis, such Acquisition
will not result in any negative financial impact with respect to the financial
ratios set forth in Section 5.7(a), and (b) and (e) hereof;

         (e) the Fixed Charge Coverage Ratio Condition shall not exist nor shall
it exist after giving effect to such Acquisition;

         (f) commencing with the fiscal quarter ending August 31, 2001, the
aggregate Consideration paid by the Companies in connection with such
Acquisition, when added to all other Acquisitions (including, without
limitation, the one time Acquisition described in subpart (g) below) for all
Companies, during any period of four consecutive fiscal quarters (calculated
without regard to any Acquisition that shall have occurred prior to the Closing
Date), shall not exceed the Maximum Acquisition Amount; and

         (g) the aggregate Consideration paid by the Companies in connection
with the one time Acquisition of internet related businesses on and after the
Closing Date shall not exceed the Maximum Acquisition Amount.

         Section 5.14. CAPITAL EXPENDITURES. The Companies shall not invest in
Consolidated Capital Expenditures (a) more than an aggregate amount equal to
Sixty-Five Million Dollars ($65,000,000) during the 2002 fiscal year of the
Companies, (b) more than an amount equal to Fifty-Seven Million Five Hundred
Thousand Dollars ($57,500,000) during the 2003 fiscal year

                                       59
<PAGE>

of the Companies, and (c) more than an amount equal to Sixty-Nine Million
Dollars ($69,000,000) during the 2004 fiscal year of the Companies and during
each fiscal year of the Companies thereafter.

         Section 5.15. NOTICE.

         (a) Borrower shall cause a Financial Officer of Borrower to promptly
notify the Global Agent and the Lenders in writing whenever any Default or Event
of Default may occur hereunder or any representation or warranty made in Article
VI hereof or elsewhere in this Agreement or in any Related Writing may for any
reason cease in any material respect to be true and complete.

         (b) Borrower shall provide written notice to the Global Agent,
contemporaneously with any notice being provided by any Company or to any
Company in connection with the Senior Indenture, the Subordinated Indenture or
the Subordinated Convertible Indenture.

         (c) Borrower shall provide the Global Agent and the Lenders with
immediate written notice upon any change in the S&P Rating, the S&P Senior
Rating, the Moody's Rating or the Moody's Senior Rating.

         Section 5.16. ENVIRONMENTAL COMPLIANCE. Each Company shall comply in
all respects with any and all Environmental Laws including, without limitation,
all Environmental Laws in jurisdictions in which any Company owns or operates a
facility or site, arranges for disposal or treatment of hazardous substances,
solid waste or other wastes, accepts for transport any hazardous substances,
solid waste or other wastes or holds any interest in real property or otherwise.
Borrower shall furnish to the Lenders, promptly after receipt thereof, a copy of
any notice any Company may receive from any governmental authority or private
Person or otherwise that any material litigation or proceeding pertaining to any
environmental, health or safety matter has been filed or is threatened against
such Company, any real property in which such Company holds any interest or any
past or present operation of such Company. No Company shall allow the release or
disposal of hazardous waste, solid waste or other wastes on, under or to any
real property in which any Company holds any interest or performs any of its
operations, in violation of any Environmental Law. As used in this Section,
"litigation or proceeding" means any demand, claim, notice, suit, suit in equity
action, administrative action, investigation or inquiry whether brought by any
governmental authority or private Person or otherwise. Borrower shall defend,
indemnify and hold the Global Agent and the Lenders harmless against all costs,
expenses, claims, damages, penalties and liabilities of every kind or nature
whatsoever (including attorneys' fees) arising out of or resulting from the
noncompliance of any Company with any Environmental Law. Such indemnification
shall survive any termination of this Agreement.

         Section 5.17. AFFILIATE TRANSACTIONS. No Company shall, or shall permit
any Subsidiary to, directly or indirectly, enter into or permit to exist any
transaction (including, without limitation, the purchase, sale, lease or
exchange of any property or the rendering of any service) with any Affiliate of
a Company on terms that are less favorable to such Company or such Subsidiary,
as the case may be, than those that might be obtained at the time in a
transaction with a non-Affiliate; provided, however, that the foregoing shall
not prohibit (a) the payment of customary and reasonable directors' fees to
directors who are not employees of a Company or

                                       60
<PAGE>

employees of any Affiliate of a Company, (b) any transaction between Borrower
and an Affiliate (if Borrower or a Guarantor of Payment) that Borrower
reasonably determines in good faith is beneficial to Borrower and its Affiliates
as a whole and that is not entered into for the purpose of hindering the
exercise by the Global Agent or the Lenders of their rights or remedies under
this Agreement, (c) the transactions pursuant to the Permitted Receivables
Facility, or (d) the transactions pursuant to the AGSC Note.

         Section 5.18. USE OF PROCEEDS. Borrower's use of the proceeds of the
Notes shall be solely for the refinancing of existing Indebtedness, working
capital and other general corporate purposes of the Companies.

         Section 5.19. CORPORATE NAMES; LOCATION OF COLLATERAL. Borrower shall,
and shall cause each other Company to, comply with the following provisions:

         (a) no Company shall change its corporate name, unless, in each case,
such Company shall have provided the Global Agent and the Lenders with at least
thirty (30) days prior written notice thereof;

         (b) except as set forth on SCHEDULE 6.19 hereto, no Company shall use
trade names, assumed names or fictitious names, unless, in each case, such
Company shall have provided the Global Agent and the Lenders with at least
thirty (30) days prior written notice thereof;

         (c) Borrower shall provide the Global Agent with written notification
no later than ten (10) days after (i) any change in the location of the office
where any records of any Company pertaining to its accounts shall be kept; (ii)
the closing of any existing places of business; and (iii) any change in the
chief executive office of any Company;

         (d) Borrower shall provide the Global Agent with at least twenty (20)
days prior written notice of any new location where any inventory or equipment
of any Domestic Company is to be maintained; and

         (e) in the event of any of the foregoing, the appropriate Company shall
promptly execute and deliver to the Collateral Agent (and each Company agrees
that the Collateral Agent may execute and deliver the same as such Company's
irrevocable attorney-in-fact) new U.C.C. financing or other registration
statements describing any collateral securing the Debt and otherwise in form and
substance sufficient for recordation wherever necessary or appropriate, as
determined in the Global Agent's sole discretion, to perfect or continue
perfected the security interest of the Collateral Agent in such collateral,
based upon such new places of business or names, and Borrower shall pay all
filing and recording fees and taxes in connection with the filing or recordation
of such U.C.C financing or other registration statements and shall immediately
reimburse the Global Agent or the Collateral Agent therefor if the Global Agent
or the Collateral Agent pays the same. Such amounts shall be Related Expenses
hereunder.

         Section 5.20. RESTRICTED PAYMENTS. No Company shall make or commit
itself to make any Restricted Payment, except that:

         (a) subject to Section 5.27 hereof, Borrower may make Cash Dividends so
long as (i) no Default or Event of Default shall then exist or immediately
thereafter shall begin to exist, (ii)

                                       61
<PAGE>

at all times prior to February 28, 2003, the Companies shall have achieved the
Minimum Required Consolidated EBITDA Amount, and (iii) the aggregate amount of
all Cash Dividends made during any fiscal quarter of Borrower shall not exceed
the Maximum Quarterly Dividend Amount for such fiscal quarter; provided,
however, that, if the Companies shall have failed to achieve the Minimum
Required Consolidated EBITDA Amount for any fiscal quarter, then Borrower shall
not be permitted to make any Cash Dividends for such fiscal quarter and shall
make no further Cash Dividends unless and until the Companies shall have
achieved the Minimum Required Consolidated EBITDA Amount for a fiscal quarter,
in which case Borrower shall be permitted to make Cash Dividends at the end of
such fiscal quarter in an amount equal to the Maximum Quarterly Dividend Amount
for such fiscal quarter, but not the fiscal quarter or fiscal quarters in which
the Companies shall have failed to achieve the Minimum Required Consolidated
EBITDA Amount;

         (b) if no Event of Default shall then exist or immediately thereafter
shall begin to exist, Borrower may make regularly scheduled payments of interest
with respect to the Indebtedness outstanding under the Subordinated Indenture;

         (c) if no Event of Default shall then exist or immediately thereafter
shall begin to exist, Borrower may make regularly scheduled payments of interest
with respect to the Indebtedness outstanding under the Subordinated Convertible
Indenture;

         (d) Borrower may make regularly scheduled payments of interest with
respect to the Indebtedness outstanding under the Senior Indenture; and

         (e) any Company may pay or commit itself to pay a Capital Distribution
at any time to Borrower or a Guarantor of Payment.

         Section 5.21. SUBSIDIARIES ACQUIRED OR HELD SUBSEQUENT TO THE CLOSING
DATE.

         (a) Subject to subpart (b) of this Section, each Subsidiary created,
acquired or held subsequent to the Closing Date (i) shall immediately execute
and deliver to the Global Agent a Guaranty of Payment and such Security
Documents as the Global Agent shall require, and shall deliver to the Global
Agent and the Lenders certified copies of such Organizational Documents and
authorization documents, and an opinion of counsel, as may be deemed necessary
or appropriate by the Global Agent; and (ii) the appropriate Company shall
deliver to the Collateral Agent the share certificates, or other evidence of
equity interest, of such Subsidiary pursuant to the terms of the Pledge
Agreement executed by such Company; provided, however, that (A) no Company shall
be required to pledge more than sixty-five percent (65%) of the outstanding
shares of stock or other equity interest of any first tier Foreign Subsidiary as
security for the obligations of Borrower under this Agreement and no Company
shall be obligated to pledge any of the outstanding shares of stock or other
equity interest in any Foreign Subsidiary other than a first tier Foreign
Subsidiary, and (B) neither the Receivables Subsidiary nor American Greetings
Service Corp. shall be required to be a Guarantor of Payment hereunder (and no
Company shall be obligated to pledge the shares of stock of the Receivables
Subsidiary) so long as the Permitted Receivables Facility shall not have been
terminated.

         (b) Notwithstanding anything in subpart (a) above to the contrary, a
Subsidiary shall not be required to execute and deliver a Guaranty of Payment or
any Security Documents to the

                                       62
<PAGE>

Global Agent and the Lenders so long as (i) the total assets of such Subsidiary
shall be less than the amount of One Hundred Thousand Dollars ($100,000), and
(ii) the aggregate of the total assets of all such Subsidiaries with total asset
values of less than One Hundred Thousand Dollars ($100,000) shall not exceed the
aggregate amount of Two Hundred Fifty Thousand Dollars ($250,000); provided
that, in the event that the total assets of any Subsidiary that shall not have
complied with the requirements of Section 5.21(a) above shall be at any time
equal to or greater than One Hundred Thousand Dollars ($100,000), Borrower shall
provide the Global Agent and the Lenders with prompt written notice of such
asset value and comply with Section 5.21(a) above with respect to such
Subsidiary.

         Section 5.22. AMENDMENT OF ORGANIZATIONAL DOCUMENTS. No Company shall
amend its Organizational Documents without the prior written consent of the
Global Agent; provided, however, that any Company that is not Borrower or a
Guarantor of Payment may amend its Organizational Documents so long as any such
amendment shall not have a material impact on the rights or remedies of the
Global Agent or the Lenders hereunder.

         Section 5.23. REAL PROPERTY MATTERS.

         (a) At the request of the Global Agent, Borrower or a Guarantor of
Payment shall, with respect to any Real Property acquired or held by a Company
subsequent to the Closing Date with a fair market value in excess of One Hundred
Thousand Dollars ($100,000), provide, or cause such Company to provide, to the
Collateral Agent (i) a Mortgage, (ii) such other information, documents or
agreements as may be deemed necessary or advisable by the Global Agent in
connection with such Mortgage, including, but not limited to, the items set
forth in subpart (b) hereof, and (iii) such corporate governance and
authorization documents and an opinion of counsel as may be deemed necessary or
appropriate by the Global Agent.

         (b) With respect to each Mortgaged Real Property, within thirty (30)
days of the Global Agent's written request, Borrower shall deliver to the
Collateral Agent:

               (i) a Loan Policy of title insurance, ALTA 1970 Form B (amended
          10/17/70 and 10/17/84) (unless such form is unavailable in any
          particular state, in which case Borrower shall have provided such
          other form of a Loan Policy of title insurance as may reasonably
          requested by the Global Agent) issued by a title company satisfactory
          to the Global Agent and the Required Lenders (collectively, the "Loan
          Policies" and individually, a "Loan Policy") in an amount equal to the
          fair market value of such Mortgaged Real Property insuring each
          Mortgage to be a valid first priority Lien on such Mortgaged Real
          Property, free and clear of all defects and encumbrances except such
          matters of record as permitted pursuant to this Agreement, with such
          endorsements and affirmative insurance as the Global Agent and the
          Required Lenders, in their reasonable discretion, may require;

               (ii) environmental reports or studies prepared by environmental
          engineering firms acceptable to the Global Agent and the Required
          Lenders (the "Reports"), which Reports shall be in form acceptable to
          the Global Agent and the Required Lenders;

               (iii) a current (certified not more than sixty (60) days prior to
          the date of such request) "as-built" survey of the such Mortgaged Real
          Property, prepared by a licensed

                                       63
<PAGE>

          surveyor acceptable to the Global Agent and the Required Lenders,
          certified to the Global Agent, the Collateral Agent and the Lenders
          and the title company pursuant to certificate of survey acceptable to
          the Global Agent and the Required Lenders; such survey shall be in
          form and substance acceptable to the Global Agent and the Required
          Lenders, in their sole discretion, shall be made in accordance with
          the "Minimum Standard Detail Requirements for Land Title Surveys"
          adopted by the American Land Title Association in 1999;

               (iv) a copy of the certificate of occupancy for each building
          located on each such Mortgaged Real Property;

               (v) evidence of compliance with all building and zoning codes
          applicable to the Mortgaged Real Property and evidence of the
          availability and adequacy of utilities for the buildings located on
          the Mortgaged Real Property; and

               (vi) evidence, satisfactory to the Global Agent and the Required
          Lenders, that no portion of any of the Mortgaged Real Property is
          located in a Special Flood Hazard Area or is otherwise classified as
          Class A or Class BX on the Flood Maps maintained by the Federal
          Emergency Management Agency.

         Section 5.24. RESTRICTIVE AGREEMENTS; MATERIAL INDEBTEDNESS AGREEMENTS.

         (a) Except as set forth in this Agreement or the Receivables Facility
Documents, Borrower shall not, and shall not permit any of its Subsidiaries to,
directly or indirectly, create or otherwise cause or suffer to exist or become
effective any encumbrance or restriction on the ability of any Subsidiary to (i)
make, directly or indirectly, any Capital Distribution to Borrower; (ii) make,
directly or indirectly, loans or advances or capital contributions to Borrower;
or (iii) transfer, directly or indirectly, any of the properties or assets of
such Subsidiary to Borrower, except for such encumbrances or restrictions
existing under or by reason of (A) applicable law, (B) customary non-assignment
provisions in leases or other agreements entered in the ordinary course of
business and consistent with past practices, or (C) customary restrictions in
security agreements or mortgages securing Indebtedness of a Company to the
extent such restrictions only restrict the transfer of the property subject to
such security agreement or mortgage.

         (b) No Company shall amend, restate, supplement or otherwise modify or
replace in any respect the Senior Indenture, the Subordinated Indenture, the
Subordinated Convertible Indenture, the Receivables Facility Documents or any
other Material Indebtedness Agreement without the prior written consent of the
Required Lenders; provided, however, that any Company may amend, supplement or
otherwise modify any of the foregoing agreements with the prior written consent
of the Global Agent, so long as any such amendment or modification does not, in
the opinion of the Global Agent, materially impact the rights or remedies of the
Global Agent and the Lenders hereunder.

         (c) No Company shall be or become a Guarantor of the Indebtedness
incurred pursuant to the Subordinated Indenture, the Subordinated Convertible
Indenture, the Senior Indenture or any other Material Indebtedness Agreement
(other than this Agreement).

                                       64
<PAGE>

         Section 5.25. OTHER COVENANTS In the event that any Company shall enter
into, or shall have entered into, any Material Indebtedness Agreement, wherein
the covenants and agreements contained therein shall be more restrictive than
the covenants and agreements set forth herein, then such Company shall be bound
hereunder by such covenants and agreements with the same force and effect as if
such covenants and agreements were written herein.

         Section 5.26. PARI PASSU RANKING. The Debt shall, and Borrowers shall
take all necessary action to ensure that the Debt shall, at all times rank at
least pari passu in right of payment (to the fullest extent permitted by law)
with all other senior Indebtedness of the Companies (other than the Indebtedness
incurred in connection with the Permitted Receivables Facility).

         Section 5.27. PERMITTED RECEIVABLES FACILITY CERTIFICATION.
Notwithstanding anything to the contrary set forth in this Agreement, (a) unless
and until Borrower shall have delivered a Permitted Receivables Facility
Certificate to the Global Agent pursuant to which Borrower shall have certified
that the Permitted Receivables Facility is in effect providing for not less than
Two Hundred Fifty Million Dollars ($250,000,000) of aggregate permitted
borrowings by the Receivables Subsidiary thereunder and that the Prior Seasonal
Peak Drawing Level as of the most recent November 30 is at least Two Hundred
Twenty-Five Million Dollars ($225,000,000), Borrower shall not make any Cash
Dividends or effect any Acquisitions; (b) in the event Borrower shall have
delivered a Permitted Receivables Facility Certificate to the Global Agent
pursuant to which Borrower shall have certified that a Permitted Receivables
Facility is in effect providing for not less than Two Hundred Fifty Million
Dollars ($250,000,000) of aggregate permitted borrowings thereunder and that the
Prior Seasonal Peak Drawing Level as of the most recent November 30 is at least
Two Hundred Twenty-Five Million Dollars ($225,000,000) but less than Two Hundred
Fifty Million Dollars ($250,000,000), Borrower may either (i) make any Cash
Dividend otherwise permitted to be made under Section 5.20(a) hereof or, (ii) in
lieu of making such Cash Dividend, effect Acquisitions in accordance with
Section 5.13 hereof; provided, however, that any election by Borrower not to pay
Cash Dividends pursuant to this Section 5.27, shall not be calculated as part of
the Dividend Reduction Amount; and (c) at any time that Borrower shall have
delivered to the Global Agent a Permitted Receivables Facility Certificate
pursuant to which Borrower shall have certified that a Permitted Receivables
Facility is in effect providing for not less than Two Hundred Fifty Million
Dollars ($250,000,000) of aggregate permitted borrowings thereunder and that the
Prior Seasonal Peak Drawing Level as of the most recent November 30 is at least
Two Hundred Fifty Million Dollars ($250,000,000), the foregoing provisions of
this Section 5.27 shall not apply.

                   ARTICLE VI. REPRESENTATIONS AND WARRANTIES

         Borrower represents and warrants that the statements set forth in this
Article VI are true, correct and complete.

         Section 6.1. CORPORATE EXISTENCE; SUBSIDIARIES; FOREIGN QUALIFICATION.
Each Company is a corporation duly organized, validly existing, and in good
standing under the laws of its state of incorporation and is duly qualified and
authorized to do business and is in good standing as a

                                       65
<PAGE>

foreign corporation in the jurisdictions set forth opposite its name on SCHEDULE
6.1 hereto, which are all of the states or jurisdictions where the character of
its property or its business activities makes such qualification necessary,
except where the failure to so qualify will not cause or result in a Material
Adverse Effect. SCHEDULE 6.1 hereto sets forth each Subsidiary of Borrower, its
state of incorporation, its relationship to Borrower, including the percentage
of each class of stock owned by a Company or the percentage of stock of Borrower
owned by it, the location of its chief executive offices and its principal place
of business. Except as set forth on SCHEDULE 6.1 hereto, Borrower owns all of
the capital stock of each of its Subsidiaries.

         Section 6.2. CORPORATE AUTHORITY. Borrower has the right and power and
is duly authorized and empowered to enter into, execute and deliver the Loan
Documents to which it is a party and to perform and observe the provisions of
the Loan Documents. The Loan Documents to which Borrower is a party have been
duly authorized and approved by Borrower's Board of Directors and are the valid
and binding obligations of Borrower, enforceable against Borrower in accordance
with their respective terms. The execution, delivery and performance of the Loan
Documents will not conflict with nor result in any breach in any of the
provisions of, or constitute a default under, or result in the creation of any
Lien (other than Liens permitted under Section 5.9 of this Agreement) upon any
assets or property of any Company under the provisions of, such Company's
Organizational Documents or any agreement.

         Section 6.3. COMPLIANCE WITH LAWS. Each Company:

         (a) holds permits, certificates, licenses, orders, registrations,
franchises, authorizations, and other approvals from federal, state, local, and
foreign governmental and regulatory bodies necessary for the conduct of its
business and is in compliance with all applicable laws relating thereto, except
where the failure to do so would not have or result in a Material Adverse
Effect;

         (b) is in compliance with all federal, state, local, or foreign
applicable statutes, rules, regulations, and orders including, without
limitation, those relating to environmental protection, occupational safety and
health, and equal employment practices except where the failure to do so would
not have or result in a Material Adverse Effect; and

         (c) is not in violation of or in default under any agreement to which
it is a party or by which its assets are subject or bound, except where such
violation or default would not have or result in a Material Adverse Effect.

         Section 6.4. LITIGATION AND ADMINISTRATIVE PROCEEDINGS. There are (a)
no lawsuits, actions, investigations, or other proceedings pending or threatened
against any Company, or in respect of which any Company may have any liability,
in any court or before any governmental authority, arbitration board, or other
tribunal, (b) no orders, writs, injunctions, judgments, or decrees of any court
or government agency or instrumentality to which any Company is a party or by
which the property or assets of any Company are bound, and (c) no grievances,
disputes, or controversies outstanding with any union or other organization of
the employees of any Company, or threats of work stoppage, strike, or pending
demands for collective bargaining, that, as to subparts (a) through (c) above,
if determined adversely, would have a Material Adverse Effect.

                                       66
<PAGE>

         Section 6.5. TITLE TO ASSETS. Each Company has good title to and
ownership of all property it purports to own, which property is free and clear
of all Liens, except those permitted under Section 5.9 hereof.

         Section 6.6. LIENS AND SECURITY INTERESTS. On and after the Closing
Date, except for Liens permitted pursuant to Section 5.9 hereof, (a) there is no
financing statement, registration statement or other evidence of a Lien
outstanding covering any personal property of any Company, other than a
financing statement in favor of the Collateral Agent; (b) there is no mortgage,
deed of trust or other encumbrance with respect to any Real Property outstanding
covering any such Real Property, other than a mortgage in favor of the
Collateral Agent; and (c) no real or personal property of any Company is subject
to any security interest or Lien of any kind other than any security interest or
Lien that may be granted to the Collateral Agent. No Company has entered into
any contract or agreement that exists on or after the Closing Date that would
prohibit the Collateral Agent, the Global Agent or the Lenders from acquiring a
security interest, mortgage or other Lien on, or a collateral assignment of, any
of the property or assets of any Company.

         Section 6.7. TAX RETURNS. Except as set forth on SCHEDULE 6.7 hereto,
all federal, state, local and foreign tax returns and other reports required by
law to be filed in respect of the income, business, properties and employees of
each Company have been filed and all taxes, assessments, fees and other
governmental charges which are due and payable have been paid, except as
otherwise permitted herein or the failure to do so does not and will not cause
or result in a Material Adverse Effect. The provision for taxes on the books of
each Company is adequate for all years not closed by applicable statutes and for
the current fiscal year.

         Section 6.8. ENVIRONMENTAL LAWS. Each Company is in compliance with any
and all Environmental Laws, including, without limitation, all Environmental
Laws in all jurisdictions in which any Company owns or operates, or has owned or
operated, a facility or site, arranges or has arranged for disposal or treatment
of hazardous substances, solid waste or other wastes, accepts or has accepted
for transport any hazardous substances, solid waste or other wastes or holds or
has held any interest in real property or otherwise. No litigation or proceeding
arising under, relating to or in connection with any Environmental Law is
pending or, to the best knowledge of each Company, threatened, against any
Company, any real property in which any Company holds or has held an interest or
any past or present operation of any Company. No release, threatened release or
disposal of hazardous waste, solid waste or other wastes is occurring, or has
occurred (other than those that are currently being cleaned up in accordance
with Environmental Laws), on, under or to any real property in which any Company
holds any interest or performs any of its operations, in violation of any
Environmental Law. As used in this Section, "litigation or proceeding" means any
demand, claim, notice, suit, suit in equity, action, administrative action,
investigation or inquiry whether brought by any governmental authority or
private Person or otherwise.

         Section 6.9. CONTINUED BUSINESS. There exists no actual, pending, or,
to Borrower's knowledge, any threatened termination, cancellation or limitation
of, or any modification or change in the business relationship of any Company
and any customer or supplier, or any group of customers or suppliers, whose
purchases or supplies, individually or in the aggregate, are material to the
business of any Company, and there exists no present condition or state of facts
or circumstances that would have a Material Adverse Effect or prevent a Company
from conducting

                                       67
<PAGE>

such business or the transactions contemplated by this Agreement in
substantially the same manner in which it was previously conducted.

         Section 6.10. EMPLOYEE BENEFITS PLANS. No ERISA Event has occurred or
is expected to occur with respect to an ERISA Plan. Full payment has been made
of all amounts which a Controlled Group member is required, under applicable law
or under the governing documents, to have been paid as a contribution to or a
benefit under each ERISA Plan. The liability of each Controlled Group member
with respect to each ERISA Plan has been fully funded based upon reasonable and
proper actuarial assumptions, has been fully insured, or has been fully reserved
for on its financial statements. No changes have occurred or are expected to
occur that would cause a material increase in the cost of providing benefits
under the ERISA Plan. With respect to each ERISA Plan that is intended to be
qualified under Code Section 401(a), (a) the ERISA Plan and any associated trust
operationally comply with the applicable requirements of Code Section 401(a);
(b) the ERISA Plan and any associated trust have been amended to comply with all
such requirements as currently in effect, other than those requirements for
which a retroactive amendment can be made within the "remedial amendment period"
available under Code Section 401(b) (as extended under Treasury Regulations and
other Treasury pronouncements upon which taxpayers may rely); (c) the ERISA Plan
and any associated trust have received a favorable determination letter from the
Internal Revenue Service stating that the ERISA Plan qualifies under Code
Section 401(a), that the associated trust qualifies under Code Section 501(a)
and, if applicable, that any cash or deferred arrangement under the ERISA Plan
qualifies under Code Section 401(k), unless the ERISA Plan was first adopted at
a time for which the above-described "remedial amendment period" has not yet
expired; (d) the ERISA Plan currently satisfies the requirements of Code Section
410(b), without regard to any retroactive amendment that may be made within the
above-described "remedial amendment period"; and (e) no contribution made to the
ERISA Plan is subject to an excise tax under Code Section 4972. With respect to
any Pension Plan, the "accumulated benefit obligation" of Controlled Group
members with respect to the Pension Plan (as determined in accordance with
Statement of Accounting Standards No. 87, "Employers' Accounting for Pensions")
does not exceed the fair market value of Pension Plan assets.

         Section 6.11. CONSENTS OR APPROVALS. No consent, approval or
authorization of, or filing, registration or qualification with, any
governmental authority or any other Person is required to be obtained or
completed by any Company in connection with the execution, delivery or
performance of any of the Loan Documents, that has not already been obtained or
completed, except where the failure to so would not have or result in a Material
Adverse Effect.

         Section 6.12. SOLVENCY. Borrower has received consideration that is the
reasonable equivalent value of the obligations and liabilities that Borrower has
incurred to the Lenders. Borrower is not insolvent as defined in any applicable
state or federal statute, nor will Borrower be rendered insolvent by the
execution and delivery of the Loan Documents to the Global Agent and the
Lenders. Borrower is not engaged or about to engage in any business or
transaction for which the assets retained by it are or will be an unreasonably
small amount of capital, taking into consideration the obligations to the Global
Agent and the Lenders incurred hereunder. Borrower does not intend to, nor does
it believe that it will, incur debts beyond its ability to pay such debts as
they mature.

                                       68
<PAGE>

         Section 6.13. FINANCIAL STATEMENTS. The Consolidated financial
statements of the Companies for the fiscal year ended February 28, 2001,
furnished to the Global Agent and the Lenders, are true and complete, have been
prepared in accordance with GAAP, and fairly present the financial condition of
the Companies as of the date of such financial statements and the results of
their operations for the period then ending. Since the Closing Date there has
been no material adverse change in any Company's financial condition, properties
or business nor any change in any Company's accounting procedures.

         Section 6.14. REGULATIONS. Borrower is not engaged principally or as
one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying any "margin stock" (within the meaning of
Regulation U of the Board of Governors of the Federal Reserve System of the
United States of America). Neither the granting of any Loan (or any conversion
thereof) or the issuance of any Letter of Credit nor the use of the proceeds of
any Loan or Letter of Credit will violate, or be inconsistent with, the
provisions of Regulation U or X or any other Regulation of such Board of
Governors.

         Section 6.15. MATERIAL AGREEMENTS. Except as disclosed on SCHEDULE 6.15
hereto, no Company is a party to any (a) debt instrument; (b) lease (capital,
operating or otherwise), whether as lessee or lessor thereunder; (c) contract,
commitment, agreement, or other arrangement involving the purchase or sale of
any inventory by it, or the license of any right to or by it; (d) contract,
commitment, agreement, or other arrangement with any of its "Affiliates" (as
such term is defined in the Securities Exchange Act of 1934, as amended); (e)
management or employment contract or contract for personal services with any of
its Affiliates which is not otherwise terminable at will or on less than ninety
(90) days' notice without liability; (f) collective bargaining agreement; or (g)
other contract, agreement, understanding, or arrangement which, as to
subsections (a) through (g), above, if violated, breached, or terminated for any
reason, would have or would be reasonably expected to have a Material Adverse
Effect.

         Section 6.16. INTELLECTUAL PROPERTY. Each Company owns, possesses or
has the right to use all of such Company's Intellectual Property, and the rights
with respect to such Intellectual Property necessary for the conduct of its
business without any known conflict with the rights of any other Person.
SCHEDULE 1 to each Collateral Assignment and Security Agreement sets forth all
of the Intellectual Property of each Domestic Company.

         Section 6.17. INSURANCE. Each Company maintains with financially sound
and reputable insurers insurance with coverage and limits as required by law and
as is customary with Persons engaged in the same businesses as the Companies.
SCHEDULE 6.17 hereto sets forth all insurance carried by the Companies,
describing in detail the amount and type of such insurance.

         Section 6.18. ACCURATE AND COMPLETE STATEMENTS. Neither the Loan
Documents nor any written statement made by any Company in connection with any
of the Loan Documents contains any untrue statement of a material fact or omits
a material fact necessary to make the statements contained therein or in the
Loan Documents not misleading. After due inquiry by Borrower, there is no known
fact which any Company has not disclosed to the Global Agent and the Lenders
that has or would have a Material Adverse Effect.

         Section 6.19. LOCATION; TRADE NAMES. SCHEDULE 6.19 hereto sets forth
all of the following with respect to Borrower and each Domestic Subsidiary: (a)
the places of business of

                                       69
<PAGE>

Borrower and such Domestic Subsidiary and the locations where Borrower and such
Domestic Subsidiary maintains any inventory or equipment or other fixed assets,
(b) the chief executive office of Borrower and such Domestic Subsidiary, and (c)
the office where Borrower and such Domestic Subsidiary keeps records of its
accounts. Except as set forth on SCHEDULE 6.19, or otherwise permitted pursuant
to this Agreement, no Domestic Company uses any trade name, assumed name or
fictitious name.

         Section 6.20. INVESTMENT COMPANY; HOLDING COMPANY. No Company is (a) an
"investment company" or a company "controlled" by an "investment company" within
the meaning of the Investment Company Act of 1940, as amended, or (ii) subject
to regulation under the Public Utility Holding Company Act of 1935, the Federal
Power Act, each as amended, or any foreign, federal, state or local statute or
regulation limiting its ability to incur Indebtedness.

         Section 6.21. SENIOR INDENTURE. No Event of Default (as defined in the
Senior Indenture) or event or condition that, with the passage of time or giving
of notice or both, would constitute an Event of Default (as defined in the
Senior Indenture), exists under the Senior Indenture, nor will any such Event of
Default or event or condition that, with the passage of time or giving of notice
or both, would constitute an Event of Default, exist under the Senior Indenture
immediately after the occurrence of any Credit Event.

         Section 6.22. SUBORDINATED INDENTURE AND SUBORDINATED CONVERTIBLE
INDENTURE.

         (a) (i) no Event of Default (as defined in the Subordinated Indenture)
or Default (as defined in the Subordinated Indenture) exists, nor will any such
Event of Default or Default exist under the Subordinated Indenture (or note or
other agreement executed in connection therewith) immediately after the
occurrence of any Credit Event; (ii) SCHEDULE 6.22 hereto sets forth all
Indebtedness of any Company that constitutes Indebtedness under Credit
Facilities (as defined in the Subordinated Indenture); and (iii) all of the Debt
constitutes Senior Indebtedness (as defined in the Subordinated Indenture),
Designated Senior Indebtedness (as defined in the Subordinated Indenture) and
Permitted Debt (as defined in the Subordinated Indenture).

         (b) (i) no Event of Default (as defined in the Subordinated Convertible
Indenture) or Default (as defined in the Subordinated Convertible Indenture)
exists, nor will any such Event of Default or Default exist under the
Subordinated Convertible Indenture (or note or other agreement executed in
connection therewith) immediately after the occurrence of any Credit Event; and
(ii) all of the Debt constitutes Senior Indebtedness (as defined in the
Subordinated Convertible Indenture), Designated Senior Indebtedness (as defined
in the Subordinated Convertible Indenture) and Permitted Debt (as defined in the
Subordinated Convertible Indenture).

         Section 6.23. DEFAULTS. No Default or Event of Default exists
hereunder, nor will any Default or Event of Default begin to exist immediately
after the execution and delivery hereof.

                         ARTICLE VII. EVENTS OF DEFAULT

         Each of the following shall constitute an Event of Default hereunder:

                                       70
<PAGE>

         Section 7.1. PAYMENTS. If the principal of or interest on any Note or
any facility or other fee shall not be paid in full punctually when due and
payable.

         Section 7.2. SPECIAL COVENANTS. If any Company or Obligor shall fail or
omit to perform and observe Sections 5.7, 5.8, 5.9, 5.11, 5.12, 5.13, 5.14,
5.18, 5.19, 5.20, 5.21, 5.22, 5.23, 5.24, 5.25 or 5.26 hereof.

         Section 7.3. OTHER COVENANTS. If any Company or Obligor shall fail or
omit to perform and observe any agreement or other provision (other than those
referred to in Sections 7.1 or 7.2 hereof) contained or referred to in this
Agreement or any Related Writing that is on such Company's or Obligor's part, as
the case may be, to be complied with, and that Default shall not have been fully
corrected within fifteen (15) days after the giving of written notice thereof to
Borrower by the Global Agent or any Lender that the specified Default is to be
remedied.

         Section 7.4. REPRESENTATIONS AND WARRANTIES. If any representation,
warranty or statement made in or pursuant to this Agreement or any Related
Writing or any other material information furnished by any Company or Obligor to
the Global Agent or the Lenders, or any thereof, or any other holder of any
Note, shall be false or erroneous.

         Section 7.5. CROSS DEFAULT. If any Company or Obligor shall default in
the payment of principal or interest due and owing upon any other obligation for
borrowed money in excess of the aggregate, for all such obligations for all such
Companies and Obligors, of Ten Million Dollars ($10,000,000) beyond any period
of grace provided with respect thereto or in the performance or observance of
any other agreement, term or condition contained in any agreement under which
such obligation is created, if the effect of such default is to allow the
acceleration of the maturity of such Indebtedness or to permit the holder
thereof to cause such Indebtedness to become due prior to its stated maturity.

         Section 7.6. ERISA DEFAULT. The occurrence of one or more ERISA Events
which (a) the Required Lenders determine in good faith could have a Material
Adverse Effect, or (b) results in a Lien on any of the assets of any Company.

         Section 7.7. CHANGE IN CONTROL. If any Change in Control shall occur.

         Section 7.8. MONEY JUDGMENT. A final judgment or order for the payment
of money shall be rendered against any Company or Obligor by a court of
competent jurisdiction, which remains unpaid or unstayed and undischarged for a
period (during which execution shall not be effectively stayed) of thirty (30)
days after the date on which the right to appeal shall have expired, provided
that the aggregate of all such judgments, for all such Companies and Obligors,
shall exceed Ten Million Dollars ($10,000,000).

         Section 7.9. MATERIAL ADVERSE CHANGE. There shall have occurred any
condition or event that the Global Agent or the Required Lenders shall determine
in good faith has or is reasonably likely to have a Material Adverse Effect.

         Section 7.10. SENIOR INDENTURE. If any Event of Default (as defined in
the Senior Indenture) shall occur under the Senior Indenture.

                                       71
<PAGE>

         Section 7.11. SUBORDINATED INDENTURE AND SUBORDINATED CONVERTIBLE
INDENTURE. If (a) (i) any Event of Default (as defined in the Subordinated
Indenture) shall occur under the Subordinated Indenture; (ii) without the prior
written consent of the Global Agent and the Required Lenders, any Company shall
incur any Indebtedness that shall constitute, in whole or in part, Credit
Facilities (as defined in the Subordinated Indenture) other than the
Indebtedness set forth on SCHEDULE 6.22 hereto; or (iii) the Debt, or any part
thereof, shall cease to constitute Senior Indebtedness (as defined in the
Subordinated Indenture), Designated Senior Indebtedness (as defined in the
Subordinated Indenture) or Permitted Debt (as defined in the Subordinated
Indenture); or (b) (i) any Event of Default (as defined in the Subordinated
Convertible Indenture) shall occur under the Subordinated Convertible Indenture;
(ii) the Debt, or any part thereof, shall cease to constitute Senior
Indebtedness (as defined in the Subordinated Convertible Indenture), Designated
Senior Indebtedness (as defined in the Subordinated Convertible Indenture) or
Permitted Debt (as defined in the Subordinated Convertible Indenture); or (iii)
Borrower shall designate any Indebtedness as Designated Senior Indebtedness (as
defined in the Subordinated Convertible Indenture) without the prior written
consent of the Global Agent.

         Section 7.12. VALIDITY OF LOAN DOCUMENTS. If (a) any material
provision, in the sole opinion of the Global Agent, of any Loan Document shall
at any time for any reason cease to be valid, binding and enforceable against
Borrower or any Guarantor of Payment; (b) the validity, binding effect or
enforceability of any Loan Document against Borrower or any Guarantor of Payment
shall be contested by any Company or Obligor; (c) Borrower or any Guarantor of
Payment shall deny that it has any or further liability or obligation
thereunder; or (d) any Loan Document shall be terminated, invalidated or set
aside, or be declared ineffective or inoperative or in any way cease to give or
provide to the Global Agent and the Lenders the benefits purported to be created
thereby.

         Section 7.13. SOLVENCY. If any Company with total assets the market
value of which shall exceed One Million Dollars ($1,000,000) shall (a) except as
permitted pursuant to Section 5.12 hereof, discontinue business, (b) generally
not pay its debts as such debts become due, (c) make a general assignment for
the benefit of creditors, (d) apply for or consent to the appointment of a
receiver, a custodian, a trustee, an interim trustee or liquidator of all or a
substantial part of its assets, (e) be adjudicated a debtor or have entered
against it an order for relief under Title 11 of the United States Code, as the
same may be amended from time to time, (f) file a voluntary petition in
bankruptcy, or have an involuntary proceeding filed against it and the same
shall continue undismissed for a period of thirty (30) days from commencement of
such proceeding or case or file a petition or an answer seeking reorganization
or an arrangement with creditors or seeking to take advantage of any other law
(whether federal or state) relating to relief of debtors, or admit (by answer,
by default or otherwise) the material allegations of a petition filed against it
in any bankruptcy, reorganization, insolvency or other proceeding (whether
federal or state) relating to relief of debtors, (g) suffer or permit to
continue unstayed and in effect for thirty (30) consecutive days any judgment,
decree or order entered by a court of competent jurisdiction, which approves a
petition seeking its reorganization or appoints a receiver, custodian, trustee,
interim trustee or liquidator of all or a substantial part of its assets, or (h)
take, or omit to take, any action in order thereby to effect any of the
foregoing.

                       ARTICLE VIII. REMEDIES UPON DEFAULT

                                       72
<PAGE>

         Notwithstanding any contrary provision or inference herein or
elsewhere,

         Section 8.1. OPTIONAL DEFAULTS. If any Event of Default referred to in
Section 7.1, 7.2., 7.3, 7.4, 7.5, 7.6, 7.7, 7.8, 7.9, 7.10, 7.11 or 7.12 hereof
shall occur, the Global Agent may, with the consent of the Required Lenders, and
shall, at the request of Required Lenders, give written notice to Borrower, to:

         (a) terminate the Commitment and the credits hereby established, if not
previously terminated, and, immediately upon such election, the obligations of
the Global Agent and the Lenders, and each thereof, to make any further Loan and
the obligation of the Fronting Lender to issue any Letter of Credit hereunder
immediately shall be terminated, and/or

         (b) accelerate the maturity of all of the Debt (if the Debt shall not
already be due and payable), whereupon all of the Debt shall become and
thereafter be immediately due and payable in full without any presentment or
demand and without any further or other notice of any kind, all of which are
hereby waived by Borrower.

         Section 8.2. AUTOMATIC DEFAULTS. If any Event of Default referred to in
Section 7.13 hereof shall occur:

         (a) all of the Commitment and the credits hereby established shall
automatically and immediately terminate, if not previously terminated, and
neither the Global Agent nor any Lender thereafter shall be under any obligation
to grant any further Loan, nor shall the Fronting Lender be obligated to issue
any Letter of Credit hereunder, and

         (b) the principal of and interest then outstanding on all of the Notes,
and all of the other Debt, shall thereupon become and thereafter be immediately
due and payable in full (if the Debt is not already due and payable), all
without any presentment, demand or notice of any kind, which are hereby waived
by Borrower.

         Section 8.3. LETTERS OF CREDIT. If the maturity of the Notes shall be
accelerated pursuant to Sections 8.1 or 8.2 hereof, Borrower shall immediately
deposit with the Collateral Agent, as security for the obligations of Borrower
to reimburse the Fronting Lender and the Lenders for any then outstanding
Letters of Credit, cash (in Dollars or the relevant Alternate Currency) equal to
the sum of the aggregate undrawn (or unpaid) balance of any then outstanding
Letters of Credit. The Global Agent and the Lenders are hereby authorized, at
their option, to deduct any and all such amounts from any deposit balances then
owing by any Lender to or for the credit or account of any Company, as security
for the obligations of Borrower to reimburse the Fronting Lender and the Lenders
for any then outstanding Letters of Credit.

         Section 8.4. OFFSETS. If there shall occur or exist any Event of
Default referred to in Section 7.13 hereof or if the maturity of the Notes shall
have been accelerated pursuant to Section 8.1 or 8.2 hereof, each Lender shall
have the right at any time to set off against, and to appropriate and apply
toward the payment of, any and all Debt then owing by Borrower to that Lender
(including, without limitation, any participation purchased or to be purchased
pursuant to Section 2.1 or 8.5 hereof), whether or not the same shall then have
matured, any and all deposit balances and all other indebtedness then held or
owing by that Lender to or for the credit or

                                       73
<PAGE>

account of Borrower or a Guarantor of Payment, all without notice to or demand
upon Borrower or any other Person, all such notices and demands being hereby
expressly waived by Borrower and each Guarantor of Payment.

         Section 8.5. EQUALIZATION PROVISION.

         (a) EQUALIZATION WITHIN COMMITMENTS. Subject to subpart (b) below, each
Lender agrees with the other Lenders that if it, at any time, shall obtain any
Advantage over the other Lenders, or any thereof, in respect of the Applicable
Debt (except under Article III hereof), it shall purchase from the other
Lenders, for cash and at par, such additional participation in the Applicable
Debt as shall be necessary to nullify the Advantage.

         (b) EQUALIZATION AMONG COMMITMENTS. After the occurrence of a Sharing
Event, as defined in Section 10.1 hereof, each Lender agrees with each other
Lender that if it, at any time, shall obtain any Advantage over the other
Lenders, or any thereof, in respect of the Debt (except under Article III
hereof) then outstanding (as calculated, with respect to any amounts outstanding
in an Alternate Currency, using the Dollar Equivalent in effect on the
Equalization Date, as hereinafter defined), then such Lender having an Advantage
shall purchase from the other Lenders, for cash and at par, such additional
participation in the Debt as shall be necessary to nullify the Advantage. For
purposes of determining whether or not, after a Sharing Event, an Advantage
shall exist, the Global Agent shall, as of the date that the Sharing Event
occurs (the "EQUALIZATION DATE"):

               (i) add the General Revolving Commitment Exposure, the 364 Day
          Commitment Exposure and the Term Loan Exposure to determine the
          equalization maximum amount (the "EQUALIZATION MAXIMUM AMOUNT"); and

               (ii) determine an equalization percentage (the "EQUALIZATION
          PERCENTAGE") for each Lender by dividing the aggregate amount of its
          Lender Credit Exposure by the Equalization Maximum Amount.

         (c) RECOVERY OF AMOUNT. If any such Advantage resulting in the purchase
of an additional participation as set forth in subparts (a) or (b) hereof shall
be recovered in whole or in part from the Lender receiving the Advantage, each
such purchase shall be rescinded, and the purchase price restored (but without
interest unless the Lender receiving the Advantage is required to pay interest
on the Advantage to the Person recovering the Advantage from such Lender)
ratably to the extent of the recovery.

         (d) APPLICATION AND SHARING OF SET-OFF AMOUNTS. Each Lender further
agrees with the other Lenders that if it at any time shall receive any payment
for or on behalf of Borrower or any Guarantor of Payment on any Indebtedness
owing by Borrower or such Guarantor of Payment to that Lender by reason of
offset of any deposit or other Indebtedness, it shall apply such payment first
to any and all Indebtedness owing by Borrower or such Guarantor of Payment to
that Lender pursuant to this Agreement (including, without limitation, any
participation purchased or to be purchased pursuant to this Section or any other
Section of this Agreement). Borrower and each Guarantor of Payment agree that
any Lender so purchasing a participation from the other Lenders, or any thereof,
pursuant to this Section may exercise all of its rights of payment (including
the right of set-off) with respect to such participation as fully as if such

                                       74
<PAGE>

Lender were a direct creditor of Borrower or such Guarantor of Payment in the
amount of such participation.

                          ARTICLE IX. THE GLOBAL AGENT

         The Lenders authorize National City Bank, and National City Bank hereby
agrees, to act as the administrative agent for the Lenders in respect of this
Agreement. The Global Agent agrees to act in such capacity upon the terms and
conditions set forth elsewhere in this Agreement, and upon the following terms
and conditions:

         Section 9.1. APPOINTMENT AND AUTHORIZATION. Each Lender hereby
irrevocably appoints and authorizes the Global Agent to take such action, as
agent, on such Lender's behalf, and to exercise such powers hereunder as are
delegated to the Global Agent by the terms hereof, together with such powers as
are reasonably incidental thereto. Neither the Global Agent nor any of its
respective affiliates, directors, officers, attorneys or employees shall have
any implied duties or any shall be liable for any action taken or omitted to be
taken by it or them hereunder or in connection herewith, respectively, except
for its or their own respective gross negligence or willful misconduct. As of
the Closing Date, Goldman Sachs, in its capacity as joint Lead Arranger, shall
not have any obligations, but shall be entitled to all benefits of this Article
IX.

         Section 9.2. NOTE HOLDERS. The Global Agent may treat the payee of any
Note as the holder thereof until written notice of transfer shall have been
filed with it, signed by such payee and in form satisfactory to the Global
Agent.

         Section 9.3. CONSULTATION WITH COUNSEL. The Global Agent may consult
with legal counsel selected by it and shall not be liable for any action taken
or suffered in good faith by it in accordance with the opinion of such counsel.

         Section 9.4. DOCUMENTS. The Global Agent shall be under no duty to
examine into or pass upon the validity, effectiveness, genuineness or value of
any Loan Documents or any other Related Writing furnished pursuant hereto or in
connection herewith or the value of any collateral obtained hereunder, and the
Global Agent shall be entitled to assume that the same are valid, effective and
genuine and what they purport to be.

         Section 9.5. THE GLOBAL AGENT AND AFFILIATES. With respect to the Loans
and Letters of Credit, the Global Agent shall have the same rights and powers
hereunder as any other Lender and may exercise the same as though it were not
the Global Agent, and the Global Agent and its respective affiliates may accept
deposits from, lend money to and generally engage in any kind of trust, debt,
equity or other business with any Company or any affiliate thereof.

         Section 9.6. KNOWLEDGE OF DEFAULT. It is expressly understood and
agreed that the Global Agent shall be entitled to assume that no Default or
Event of Default shall have occurred, unless the Global Agent shall have been
notified by a Lender in writing that such Lender believes that a Default or
Event of Default shall have occurred and be continuing and specifying the nature
thereof.

                                       75
<PAGE>

         Section 9.7. ACTION BY THE GLOBAL AGENT. Subject to the other terms and
conditions hereof, so long as the Global Agent shall be entitled, pursuant to
Section 9.6 hereof, to assume that no Default or Event of Default shall have
occurred and be continuing, the Global Agent shall be entitled to use its
discretion with respect to exercising or refraining from exercising any rights
that may be vested in it by, or with respect to taking or refraining from taking
any action or actions that it may be able to take under or in respect of, this
Agreement. The Global Agent shall incur no liability under or in respect of this
Agreement by acting upon any notice, certificate, warranty or other paper or
instrument believed by it to be genuine or authentic or to be signed by the
proper party or parties, or with respect to anything that it may do or refrain
from doing in the reasonable exercise of its judgment, or which may seem to it
to be necessary or desirable in the premises.

         Section 9.8. NOTICES; DEFAULT. In the event that the Global Agent shall
have acquired actual knowledge of any Default or Event of Default, the Global
Agent shall promptly notify the Lenders and shall take such action and assert
such rights under this Agreement as the Required Lenders shall direct and the
Global Agent shall inform the other Lenders in writing of the action taken.
Subject to the other terms and conditions hereof, the Global Agent may take such
action and assert such rights as it shall deem to be advisable, in its
discretion, for the protection of the interests of the holders of the Notes.

         Section 9.9. INDEMNIFICATION OF THE GLOBAL AGENT. The Lenders agree to
indemnify the Global Agent (to the extent not reimbursed by Borrower) ratably,
according to their respective Applicable Commitment Percentages, from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever that may be imposed on, incurred by or asserted against the
Global Agent as agent in any way relating to or arising out of this Agreement or
any Loan Document or any action taken or omitted by the Global Agent with
respect to this Agreement or any Loan Document, provided that no Lender shall be
liable to the Global Agent for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses
(including attorneys' fees) or disbursements resulting from the Global Agent's
gross negligence or willful misconduct, as determined by a court of competent
jurisdiction, or from any action taken or omitted by the Global Agent in any
capacity other than in its agency capacity under this Agreement.

         Section 9.10. SUCCESSOR AGENT. The Global Agent may resign from its
respective agency capacity hereunder by giving not fewer than thirty (30) days
prior written notice to Borrower and the Lenders. If the Global Agent (the
"Resigning Agent") shall resign under this Agreement, then either (a) the
Required Lenders shall appoint from among the Lenders a successor agent (a
"Successor Agent") for the Lenders (with the consent of Borrower so long as an
Event of Default shall not have occurred and which consent shall not be
unreasonably withheld), or (b) if a Successor Agent shall not be so appointed
and approved within the thirty (30) day period following the Resigning Agent's
notice to the Lenders of its resignation, then the Resigning Agent, with the
approval of the Global Agent, shall appoint a Successor Agent that shall serve
in the same agency capacity as the Resigning Agent until such time as the
Required Lenders shall appoint a Successor Agent. Upon its appointment, such
Successor Agent shall succeed to the rights, powers and duties of the Resigning
Agent, and all references to the Resigning Agent shall mean the Successor Agent,
effective upon its appointment, and the

                                       76
<PAGE>

Resigning Agent's rights, powers and duties as agent shall be terminated without
any other or further act or deed on the part of such Resigning Agent or any of
the parties to this Agreement.

                       ARTICLE X. INTERCREDITOR PROVISIONS

         Section 10.1. DEFINITIONS. For the purposes of this Article, the
following terms shall have the following meanings:

         "Acceleration Event" shall have occurred if (a) after the occurrence of
a Default Event with respect to the Lender Obligations, the maturity of the
Lender Obligations shall have been accelerated, or (b) after the occurrence of a
Default Event with respect to the Senior Indenture Obligations, the maturity of
any of the Senior Indenture Obligations shall have been accelerated.

         "Administrative Expenses" shall mean (a) any and all reasonable costs,
liabilities and expenses (including, without limitation, losses, damages,
penalties, claims, actions, reasonable attorneys' fees, legal expenses,
judgments, suits and disbursements) incurred by, imposed upon, or asserted
against, the Collateral Agent in the performance of its duties under or
otherwise in connection with this Agreement or the Collateral Documents, or in
any attempt by the Collateral Agent to (i) obtain, preserve, perfect or enforce
any security interest evidenced by this Agreement, any other Collateral Document
or any other Lending Party Document; (ii) obtain payment, performance or
observance of any and all of the Obligations; or (iii) maintain, insure, audit,
collect, preserve, repossess or dispose of any of the Creditor Collateral or any
other collateral securing the Obligations, including, without limitation, costs
and expenses for appraisals, assessments, and audits of any Company, or any such
Creditor Collateral; (b) to the extent not covered in subpart (a) hereof, all
costs and expenses payable to the Collateral Agent pursuant to Section 10.20 of
this Agreement; or (c) all costs, liabilities and expenses incidental or related
to (a) or (b) above, including, without limitation, interest thereupon from the
date incurred, imposed or asserted until paid at the Default Rate.

         "Administrative Obligations" shall mean, collectively, all
Administrative Expenses and all other Indebtedness or other obligations now
owing or hereafter incurred by Borrower or any other Company to the Collateral
Agent pursuant to this Agreement or any Collateral Document.

         "Collateral Documents" shall mean the Security Documents, together with
all other documents, instruments or agreements executed in connection with the
Security Documents, or in connection with any security interest or Lien granted,
or otherwise obtained, on or in connection with the Creditor Collateral, or any
part thereof.

         "Creditor" shall mean any Lender, Securities Holder or Other Lender.

         "Creditor Collateral" shall mean, collectively, (a) all of the
Collateral, as defined in each of the respective Security Documents executed by
any Company, (b) all of the Mortgaged Real Property, and (c) any other property,
whether tangible or intangible, at any time securing the Obligations, or any
part thereof, whether such Lien securing any of the Obligations shall have been
granted to, or otherwise obtained by, the Collateral Agent or any Creditor.

                                       77
<PAGE>

         "Default Event" shall mean the occurrence of (a) an Event of Default,
or (b) an "Event of Default", as defined in the Senior Indenture.

         "Hedge Agreement Obligations" shall mean the aggregate amount of
Indebtedness under any Hedge Agreement entered into by Borrower with a Lender
(or any of such Lender's affiliates) in connection with the Debt or any part
thereof, provided that, in determining the amount of the Indebtedness under any
Hedge Agreement, such amount shall be based upon the net termination obligation
of Borrower under such Hedge Agreement, calculated as of any date as if such
Hedge Agreement shall have been terminated as of such date.

         "Insolvency Event" shall mean (a) the pendency of any case against
Borrower or any Guarantor of Payment arising under the United States Bankruptcy
Code of 1978, as amended, or any successor statute, (b) the pendency of any case
against Borrower or any Guarantor of Payment arising under any other bankruptcy,
reorganization, compromise, arrangement, insolvency, readjustment of debt,
dissolution, liquidation or other similar law of any jurisdiction, (c) the
appointment of, or taking possession by, a trustee, receiver, custodian,
liquidator or similar official of Borrower or any Guarantor of Payment or any
substantial assets of any of them, (d) any assignment for the benefit of
creditors of Borrower or any Guarantor of Payment, or (e) the failure of
Borrower or any Guarantor of Payment generally to pay its debts as they become
due.

         "Lender Obligations" shall mean, collectively, (a) the Debt, and (b)
all other Indebtedness or other obligations incurred by any Company to the
Global Agent and the Lenders pursuant to this Agreement or any other Loan
Document, whether for principal, interest, fees, premiums, costs or indemnities,
and whether now existing or hereafter arising.

         "Lending Parties" shall mean, collectively, (a) the Global Agent, on
behalf of the Lenders, (b) each Securities Holder, and (c) each Other Lender.

         "Lending Party" shall mean (a) the Global Agent, on behalf of the
Lenders, (b) any Securities Holder, or (c) any Other Lender.

         "Lending Party Documents" shall mean, collectively, (a) the Loan
Documents, (b) the Senior Indenture and the Senior Securities, together with all
other documents, instruments or agreements executed and delivered in connection
with the foregoing, and (c) the Other Lender Documents.

         "Lending Party Pro Rata Share" shall mean, at the time of
determination, with respect to any Lending Party, the percentage that shall be
determined by dividing:

               (a) (i) for the Global Agent and the Lenders, the Loan and
          Reimbursement Obligations, (ii) for each Securities Holder, the
          aggregate principal amount then outstanding to such Securities Holder
          pursuant to the Senior Indenture, and (iii) for each Other Lender, (A)
          the aggregate principal amount of the Other Lender Obligations (other
          than the Hedge Agreement Obligations owing to such Other Lender) then
          outstanding from such Other Lender, plus (B) the Hedge Agreement
          Obligations, if any, owing to such Other Lender; by

                                       78
<PAGE>

               (b) the sum of (i) the aggregate outstanding principal Dollar
          Equivalent amount of all of the Obligations (other than the
          Administrative Obligations), (ii) the Letter of Credit Exposure, and
          (iii) the Hedge Agreement Obligations.

For all purposes under this Agreement or any of the Collateral Documents,
Lending Party Pro Rata Share shall be determined on the date of the occurrence
of the first Sharing Event.

         "Loan and Reimbursement Obligations" shall mean, at the time of
determination, with respect to the Lender Obligations, the sum of (a) the
aggregate principal Dollar Equivalent amount of the Loans then outstanding, plus
(b) the Letter of Credit Exposure.

         "Obligations" shall mean, collectively, (a) the Lender Obligations, (b)
the Securities Holder Obligations, (c) the Other Lender Obligations, and (d) the
Administrative Obligations.

         "Other Lender" shall mean (a) the financial institution set forth on
SCHEDULE 10.1 hereto; or (b) any Lender that shall have entered (or in the
future enters) into a Hedge Agreement with Borrower; provided that, if any such
Lender shall cease to be a Lender under this Agreement, then the Other Lender
Obligations owing to such Lender shall no longer be secured by the Creditor
Collateral.

         "Other Lender Documents" shall mean the promissory notes and other
agreements evidencing or relating to the Other Lender Obligations.

         "Other Lender Obligations" shall mean (a) the Indebtedness and other
obligations incurred by Borrower arising under the Other Lender Documents as
described on SCHEDULE 10.1 hereto; provided, however, that the amount owing to
such Other Lender with respect to such obligations and secured pursuant to the
provisions of this Article X (other than with respect to Hedge Agreement
Obligations) shall not exceed the amount set forth opposite such Other Lender's
name on SCHEDULE 10.1 hereto, and (b) the Hedge Agreement Obligations.

         "Securities Holder" shall mean each Holder, as defined in the Senior
Indenture, under the Senior Indenture.

         "Securities Holder Obligations" shall mean all Indebtedness or other
obligations incurred by Borrower to the Securities Holders pursuant to the
Senior Securities and the Senior Indenture, whether for principal, interest,
fees, costs or indemnities, and whether now existing or hereafter arising.

         "Senior Securities" shall mean the securities or other instruments
issued pursuant to the Senior Indenture, as the same may from time to time be
amended, supplemented, restated or otherwise modified or replaced.

         "Sharing Event" shall mean the earlier of (a) the occurrence of an
Insolvency Event, or (b) the occurrence of an Acceleration Event.

         Section 10.2. CREDITOR OBLIGATIONS TO BE RATABLY SECURED. In order to
comply with the provisions of Section 1008 of the Senior Indenture, Borrower,
the Global Agent and the Lenders agree that all of the Obligations shall be
secured equally and ratably pursuant to the

                                       79
<PAGE>

provisions of this Article X. In the event that the Securities Holders (or any
trustee or designee acting on behalf of the Securities Holders) shall request
the Global Agent, the Lenders, and the Collateral Agent to enter into a separate
intercreditor agreement with respect to the Creditor Collateral, then (a)
Borrower, (b) the Global Agent, acting on behalf of the Lenders (and each of the
Lenders hereby authorizes the Global Agent to so act upon its behalf), (c) the
Other Lenders, and (d) the Collateral Agent shall enter into an intercreditor
agreement (containing terms and conditions substantially similar to those set
forth in this Article X with the Securities Holders (or any trustee or designee
acting on their behalf) to facilitate the terms and conditions of this Article
X. The Global Agent is hereby authorized to sign any such intercreditor
agreement on behalf of the Lenders, and the Lenders shall be bound by the terms
of such intercreditor agreement as if they were parties thereto.

         Section 10.3. APPOINTMENT OF THE COLLATERAL AGENT. Each Creditor hereby
appoints National City Bank (together with its successors and assigns) as the
Collateral Agent under this Agreement and each Collateral Document, with such
powers as are specifically delegated to the Collateral Agent by the terms of
this Agreement and the Collateral Documents, together with such other powers as
are reasonably incidental thereto in order to carry out the intent of this
Agreement and the Collateral Documents, in the opinion of the Collateral Agent,
and National City Bank hereby accepts such appointment as the Collateral Agent
under this Agreement and the Collateral Documents. Neither the Collateral Agent
nor any of its directors, officers, attorneys or employees shall be liable for
any action taken or omitted to be taken by it or them hereunder or in connection
herewith, except for its or their own gross negligence or willful misconduct, as
determined by a court of competent jurisdiction.

         Section 10.4. PRO RATA DISTRIBUTION OF THE CREDITOR COLLATERAL. The
Collateral Agent shall be the secured party, beneficiary or mortgagee, as
applicable, under the Collateral Documents. The Creditor Collateral shall be
held for the benefit of the Lending Parties on a pari passu basis and shall
serve as security for the Obligations. Subject to the terms of this Agreement,
the Collateral Agent shall receive, hold, administer and enforce the Collateral
Documents, and foreclose upon, collect, dispose of all or any part of the
Creditor Collateral, for the benefit of the respective Lending Parties based
upon the Lending Party Pro Rata Share of each such Lending Party, and deliver to
the Lending Parties, the proceeds therefrom for the benefit of the respective
Lending Parties, based upon the Lending Party Pro Rata Share of each respective
Lending Party, in accordance with the terms of this Agreement. Each Creditor
agrees that any security interest or Lien granted to any Creditor with respect
to the Creditor Collateral, or any part thereof, whether granted prior to, or on
or after, the date of this Agreement, shall be deemed to be held by such
Creditor for the benefit of the Lending Parties pursuant to the terms of this
Agreement. Each Creditor further agrees that, notwithstanding the relative
priority or time of granting, creation, attachment or perfection under
applicable law of any security interest or lien, if any, of the Collateral Agent
or any Creditor, whether such security interest or lien shall arise now or
hereafter be acquired, such security interest or lien shall be first a first
priority security interest or lien in favor of the Collateral Agent to secure
the Obligations on a pari passu basis for the benefit of the respective Lending
Parties in accordance with the provisions of this Article X.

         Section 10.5. PAYMENTS OR PROCEED RECEIVED BY A CREDITOR PRIOR TO A
SHARING EVENT. Prior to the occurrence of a Sharing Event, the Creditors agree
that any Creditor may accept and apply payments made from any source (including
proceeds of the Creditor Collateral) on or in

                                       80
<PAGE>

respect of the Obligations owing to such Creditor without any responsibility to
turn over to the Collateral Agent or share with any other Creditor such
payments, except as otherwise specifically provided in this Agreement with
respect to sharing among the Lenders.

         Section 10.6. PAYMENTS OR PROCEEDS RECEIVED BY THE COLLATERAL AGENT
PRIOR TO A SHARING EVENT. If the Collateral Agent (in its capacity as the
Collateral Agent and not in any other capacity) shall receive any payments from
any source (including proceeds of the Creditor Collateral) on or in respect of
the Obligations at any time prior to the occurrence of a Sharing Event, such
payment or proceeds shall be delivered to the appropriate Lending Party or, so
long as no Event of Default shall exist, to the appropriate Company, as the case
may be. If an Event of Default shall have occurred, the Collateral Agent shall
not deliver the proceeds of any of the Creditor Collateral to any Company unless
the Required Lenders so direct.

         Section 10.7. PAYMENTS OR PROCEEDS RECEIVED AFTER A SHARING EVENT.
After the occurrence of a Sharing Event, (a) any payment received (whether from
the proceeds of the Creditor Collateral or otherwise) from any Company by any
Creditor, shall be immediately forwarded to the Collateral Agent to be
distributed in accordance with the provisions of Section 10.8 hereof, and (b)
any payment received (whether from the proceeds of the Creditor Collateral or
otherwise) by the Collateral Agent shall be distributed in accordance with the
provisions of Section 10.8 hereof.

         Section 10.8. DISTRIBUTION OF PROCEEDS. Except as set forth in Section
10.6 hereof, any proceeds received by the Collateral Agent at any time shall be
applied by the Collateral Agent as follows:

               (a) first, to the payment of any Administrative Obligations,
          including, but not limited to, the costs and expenses of the
          Collateral Agent in connection with any sale, collection or other
          realization incurred by the Collateral Agent under the provisions of
          this Agreement, or any other fees (including attorneys' fees,
          accountants fees and other fees for special advisors or consultants
          retained by the Collateral Agent), expenses, liabilities (including
          rights to indemnification) or advances made or incurred by the
          Collateral Agent in connection with the administration or enforcement
          of the Collateral Documents;

               (b) second, to each Lending Party in an amount equal to the
          Lending Party Pro Rata Share of the amount to be distributed, until
          all of the Obligations shall have been satisfied in full; and

               (c) third, after all of the Obligations shall have been
          irrevocably satisfied in full, to Borrower or a Guarantor of Payment,
          as appropriate, or as a court of competent jurisdiction may direct or
          as otherwise required by law.

Notwithstanding the foregoing, any amounts to be distributed for application to
a Creditor's liabilities with respect to any issued but undrawn (or unpaid)
Letter of Credit shall be held by the Collateral Agent in an interest bearing
trust account (the "COLLATERAL TRUST ACCOUNT") as collateral security for such
liabilities until a drawing on such Letter of Credit, at which time such
amounts, together with interest accrued thereon, shall be released by the
Collateral Agent and applied to such liabilities. If any such Letter of Credit
shall expire without having been drawn

                                       81
<PAGE>

upon (or paid) in full, the amounts held in the Collateral Trust Account with
respect to the undrawn (or unpaid) portion of such Letter of Credit, together
with interest accrued thereon, shall be applied by the Collateral Agent in
accordance with this Section 10.8.

         Section 10.9. DELIVERY OF CREDITOR COLLATERAL TO THE COLLATERAL AGENT.
If any Creditor receives possession of any portion of the Creditor Collateral,
or any proceeds thereof, whether prior to or after the occurrence of a Sharing
Event, such Creditor shall receive and hold the same in trust for the Collateral
Agent and shall deliver such Creditor Collateral or proceed to the Collateral
Agent, wherein the Collateral Agent shall hold or dispose of such Creditor
Collateral in accordance with the provisions of this Article X.

         Section 10.10. RETURN OF PAYMENTS. If any payment or other proceeds
received by any Creditor shall be required to be repaid or returned, in whole or
in part, by such Creditor to the payor thereof, or to any trustee, agent or
other representative, or such payment shall be otherwise rescinded, in whole or
in part, pursuant to applicable law, each other Creditor that shall have
received all or any part of such payment or proceeds shall promptly, upon
written demand, return all or the ratable part, as the case may be, of the
portion of such payment or proceeds so received by such other Creditor (and any
interest thereon to the extent the same is required to be paid by the Creditor
originally receiving such payment or proceeds in respect of the return of such
payment or proceeds) in order to equitably adjust for the return of all or part
of such payment or proceeds.

         Section 10.11. LENDING PARTY RIGHTS AND REMEDIES.

         (a) Except as set forth in subpart (c) below, each Lending Party shall
have the rights and remedies available to it under its respective Lending Party
Documents, other than rights specifically reserved for the Collateral Agent
under any of the Collateral Documents, upon the occurrence of a Default Event or
otherwise, including, but not limited to, the right to (i) accelerate any of the
Obligations owing to such Lending Party, (ii) institute suit against any
Company, (iii) take any other enforcement action with respect to any Default
Event, and (iv) take any other enforcement action with respect to any Default
Event; provided, however, that each Lending Party agrees that it shall have
recourse under or by virtue of the Collateral Documents to the Creditor
Collateral only through the Collateral Agent and that no Creditor Party shall
have any independent recourse to the liens and security interests created by the
Collateral Documents or otherwise, except that any Creditor may set-off any
amount of any balances held by it for the account of any Company or any other
property held or owing by such Creditor to or for the credit or the account of
any Company (provided that the amount set-off shall be delivered to the
Collateral Agent for application pursuant the terms of this Agreement).

         (b) Upon the occurrence of a Sharing Event, the appropriate Lending
Party shall promptly, and in any event within one Business Day thereafter,
provide notice to the Collateral Agent of the occurrence of such Sharing Event,
and, upon receipt of such notice, the Collateral Agent shall promptly, and in
any event within one Business Day of receipt thereof, deliver a copy to all of
the Creditors; provided, however, that the failure to provide any of the
foregoing notices shall not affect, in any way, any of the rights or obligations
of any Person under this Agreement.

                                       82
<PAGE>

         (c) Upon receipt of a notice of a Sharing Event and at all times
thereafter, no Creditor shall institute suit against any Company or otherwise
take any other enforcement action with respect to the Creditor Collateral.

         (d) By accepting any proceeds of the Creditor Collateral pursuant to
this Article X or the benefits of any Collateral Document, a Lending Party shall
be deemed to be bound by the terms and conditions set forth herein.

         Section 10.12. RIGHTS AND REMEDIES OF THE COLLATERAL AGENT UPON SHARING
EVENT. Upon the occurrence of a Sharing Event, the Required Lenders may notify
and direct the Collateral Agent to enforce the rights of the Creditors in and to
the Creditor Collateral through such remedies as may be available pursuant to
the terms and conditions of any Collateral Document, at law or in equity, or
otherwise. The Collateral Agent shall act as the Required Lenders may, in their
reasonable discretion, direct, provided that the Collateral Agent shall have no
liability for acting in accordance with such request and no Creditor shall have
any liability to any other Creditor in connection with any such request. The
Collateral Agent shall not release any Liens or Creditor Collateral without the
direction or consent of the Required Lenders, except as expressly permitted
pursuant to Section 10.15 hereof.

         Section 10.13. APPOINT OF POWER OF ATTORNEY. Each Creditor irrevocably
authorizes, appoints, and empowers the Collateral Agent to act as such
Creditor's attorney-in-fact with respect to the Creditor Collateral, or any part
thereof, or under or with respect to any of the Collateral Documents, as the
Collateral Agent may deem necessary or advisable for the enforcement of the
provisions of this Article X or the Collateral Documents, or to otherwise carry
out the intent of the provisions of this Article X. Each Creditor shall execute
and deliver to the Collateral Agent such powers of attorney, assignments, or
other instruments as may be reasonably requested by the Collateral Agent to
enable the Collateral Agent to enforce any and all of the Collateral Agent's
rights or duties under this Agreement and the Collateral Documents.

         Section 10.14. OBLIGATIONS UNAFFECTED; MODIFICATION OF LENDING
DOCUMENTS. Except for the agreements made pursuant to this Article X, the
Lending Party Documents shall be unaffected hereby. Each Lending Party shall be
entitled to amend, restate or otherwise modify any of their respective Lending
Party Documents in accordance with the respective terms of such Lending Party
Documents; provided, however, that, in the event that any Lending Party shall
receive any additional Creditor Collateral or other security for any of their
respective Obligations or file any additional financing statement, mortgage or
other lien with respect thereto, such collateral or other security shall become
part of the Creditor Collateral hereunder and shall be held in trust for the
benefit of the Lending Parties, subject to the terms and conditions of this
Article X.

         Section 10.15. RELEASE OF CREDITOR COLLATERAL. Each Lending Party
hereby authorizes the Collateral Agent to execute and deliver such releases and
termination statements as may be necessary to permit the release of any Creditor
Collateral, so long as such release is made in connection with the sale, lease,
transfer or other disposition of assets specifically permitted pursuant to this
Agreement.

         Section 10.16. ACCOUNTING. Each Lending Party agrees to render to the
Collateral Agent, at any time upon request of the Collateral Agent, an
accounting of the amounts of the

                                       83
<PAGE>

Obligations owing to such Lending Party and such other information with respect
to the Obligations owing to such Lending Party as the Collateral Agent may
reasonably request in order to give effect to the terms and conditions of this
Article X.

         Section 10.17. CONTESTING LIENS OR SECURITY INTERESTS. No Creditor
shall contest the validity, perfection, priority or enforceability of any Lien
or security interest granted to the Collateral Agent or any Creditor (provided
that such Lien or security interest shall be held for the benefit of the
Collateral Agent and the Lending Parties and shall be subject to the terms of
this Article X).

         Section 10.18. ACTIONS BY THE COLLATERAL AGENT. Each Creditor
acknowledges that (a) such Creditor has performed and shall continue to perform
its own credit analysis of the Companies, and its own investigations of the
risks involved in the transactions contemplated in connection with the
Obligations and in entering into this Agreement and the Collateral Documents,
(b) such Creditor has reviewed and approved the form and substance of each of
the Collateral Documents, including any U.C.C. financing statements filed in
connection with any of the Collateral Documents, and (c) the Collateral Agent,
by executing this Agreement, has not nor at any time shall the Collateral Agent
be deemed to have, made any representation or warranty, express or implied, with
respect to the (i) due execution, authenticity, legality, accuracy,
completeness, validity or enforceability of any of the Collateral Documents or
as to the financial condition or creditworthiness of Borrower or any other
Company, or the collectability of the Obligations, or (ii) validity, perfection,
priority, enforceability, value or sufficiency of, or title to any of the
Creditor Collateral, or the filing or recording, or taking of any other action
with respect to the Creditor Collateral. Although the Collateral Agent shall
endeavor to exercise the same care in administering the Creditor Collateral as
if the Collateral Agent were acting for its own account, the Collateral Agent
shall be fully protected in relying upon any document that appears to it to be
genuine and upon the advice of legal counsel, independent accountants and other
appropriate experts (including those retained by any Company). Neither the
Collateral Agent nor any of its affiliates, directors, officers, attorneys or
employees shall be liable for any action taken or omitted to be taken by it or
them hereunder or in connection herewith, except for its or their own gross
negligence or willful misconduct, as determined by a court of competent
jurisdiction.

         Section 10.19. BANKRUPTCY FILING. The provisions of this Article X
shall be applicable both before and after the filing of any petition by or
against Borrower or any other Company under the United States Bankruptcy Code
or, if applicable, under the laws of any foreign jurisdiction, and all
references in this Agreement to Borrower or any other Company shall be deemed to
apply to Borrower or such Company as debtor-in-possession. All postpetition
distributions of the proceeds of any of the Creditor Collateral shall, subject
to any court order approving the financing of Borrower or any other Company as
debtor-in-possession (i.e. this Article X shall not limit any Creditor's right
to provide postpetition financing, or any Creditor's right to object to any such
financing, in accordance with Section 364 of the United States Bankruptcy Code
and any such financing, and any liens or security interests granted in
connection with such financing, shall be on such terms and conditions as
approved by the Bankruptcy Court), continue to be made after the filing of any
such petition on the same basis that the Creditor Collateral was to be
distributed prior to the date of such petition.

                                       84
<PAGE>

         Section 10.20. INDEMNIFICATION BY CREDITORS. To the extent not
indemnified or reimbursed by Borrower, the Lending Parties agree to indemnify
the Collateral Agent, on the basis of the Lending Party Pro Rata Shares, from
and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever that may be imposed on, incurred by or asserted against the
Collateral Agent in its capacity as collateral agent in any way relating to or
arising out of this Agreement or any Collateral Document or any action taken or
omitted by the Collateral Agent with respect to this Agreement or any Collateral
Document, provided that no Creditor shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses (including attorneys' fees) or disbursements resulting from the
Collateral Agent's gross negligence or willful misconduct, as determined by a
court of competent jurisdiction, or from any action taken or omitted by the
Collateral Agent in any capacity other than as collateral agent under this
Agreement.

         Section 10.21. RIGHT TO OPT OUT. Any Lending Party shall be entitled to
opt out of the sharing provisions of this Article X by giving written notice to
the Collateral Agent and each Lending Party (a "Disclaiming Creditor").
Effective upon receipt by the Collateral Agent of such notice from any
Disclaiming Creditor, such Disclaiming Creditor (a) shall have no interest in
any of the Creditor Collateral, nor shall such Disclaiming Creditor be entitled
to its Lending Party Pro Rata Share of the proceeds of any of the Creditor
Collateral, and (b) shall not be liable for any indemnification obligations with
respect to the Collateral Agent or any of the Creditor Collateral, except with
respect to any such obligations that relate to claims arising or occurring prior
to the date such Creditor shall have become a Disclaiming Creditor under this
Section 10.21.

         Section 10.22. THIRD PARTIES. The provisions of this Article X shall be
solely for the benefit of the Collateral Agent and the Creditors and are not
intended to grant any rights, benefits or defenses to or for the benefit of
Borrower, any other Company or any other Person. No Company shall have any
rights under this Article X.

         Section 10.23. SUCCESSOR COLLATERAL AGENT. The Collateral Agent may
resign as collateral agent hereunder by giving not fewer than thirty (30) days
prior written notice to the Global Agent and the Lenders. If the Collateral
Agent shall resign under this Agreement, then either (a) the Required Lenders
shall appoint a successor collateral agent hereunder, or (b) if a successor
collateral agent shall not have been so appointed and approved within the thirty
(30) day period following the Collateral Agent's notice to the Global Agent and
the Lenders of its resignation, then the Collateral Agent shall appoint a
successor collateral agent that shall serve as collateral agent until such time
as the Required Lenders appoint a successor collateral agent. Upon its
appointment, such successor collateral agent shall succeed to the rights, powers
and duties as collateral agent, and the term "Collateral Agent" under this
Agreement and any other Collateral Document shall mean such successor, effective
upon its appointment, and the former collateral agent's rights, powers and
duties as collateral agent shall be terminated without any other or further act
or deed on the part of such former collateral agent or any of the parties to
this Agreement.

         Section 10.24. TERMINATION. The provisions of this Article X shall
remain in full force and effect until all of the Lender Obligations shall have
been indefeasibly paid in full, and

                                       85
<PAGE>

this Agreement terminated and not replaced by any other credit facility with the
Global Agent and the Lenders.

                            ARTICLE XI. MISCELLANEOUS

         Section 11.1. LENDERS' INDEPENDENT INVESTIGATION. Each Lender, by its
signature to this Agreement, acknowledges and agrees that the Global Agent has
not made any representation or warranty, express or implied, with respect to the
creditworthiness, financial condition, or any other condition of any Company or
with respect to the statements contained in any information memorandum furnished
in connection herewith or in any other oral or written communication between the
Global Agent and such Lender. Each Lender represents that it has made and shall
continue to make its own independent investigation of the creditworthiness,
financial condition and affairs of the Companies in connection with the
extension of credit hereunder, and agrees that the Global Agent shall not have
any duty or responsibility, either initially or on a continuing basis, to
provide any Lender with any credit or other information with respect thereto
(other than such notices as may be expressly required to be given by the Global
Agent to the Lenders hereunder), whether coming into its possession before the
first Credit Event hereunder or at any time or times thereafter.

         Section 11.2. NO WAIVER; CUMULATIVE REMEDIES. No omission or course of
dealing on the part of the Global Agent, any Lender or the holder of any Note in
exercising any right, power or remedy hereunder or under any of the Loan
Documents shall operate as a waiver thereof; nor shall any single or partial
exercise of any such right, power or remedy preclude any other or further
exercise thereof or the exercise of any other right, power or remedy hereunder
or under any of the Loan Documents. The remedies herein provided are cumulative
and in addition to any other rights, powers or privileges held by operation of
law, by contract or otherwise.

         Section 11.3. AMENDMENTS, CONSENTS. No amendment, modification,
termination, or waiver of any provision of any Loan Document nor consent to any
variance therefrom, shall be effective unless the same shall be in writing and
signed by the Required Lenders and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given (with the understanding, however, that, with respect to the application of
the mandatory prepayment provisions set forth in Section 2.8 hereof to the Term
Loan, the consent of Term Lenders holding at least fifty-one percent (51%) of
the aggregate amount outstanding under the Term Notes shall be required to amend
or waive such provisions). Anything herein to the contrary notwithstanding, the
prior written consent of all of the Lenders affected thereby shall be required
with respect to (a) any increase in the Commitment (or any part thereof), except
pursuant Section 2.7(c) hereof, (b) the extension of maturity of the Notes, the
payment date of interest or principal thereunder, or the payment of commitment
or other fees or amounts payable hereunder, (c) any reduction in the rate of
interest on the Notes, or in any amount of principal or interest due on any
Note, or reimbursement obligations with respect to any Letter of Credit, or the
payment of facility or other fees hereunder or any change in the manner of pro
rata application of any payments made by Borrower or the Collateral Agent to the
Lenders hereunder, (d) any change in any percentage voting requirement, voting
rights, or the Required Lenders definition in this Agreement, (e) the release of
any Guarantor of Payment or of any Collateral in excess of Five Million Dollars
($5,000,000) during any fiscal year of Borrower (other than the release of any
Collateral in connection with a transaction that shall be expressly permitted

                                       86
<PAGE>

pursuant to the terms of this Agreement), or (f) any amendment to this Section
11.3 or Section 8.5 hereof. Notice of amendments or consents ratified by the
Lenders hereunder shall immediately be forwarded by the Global Agent to all
Lenders. Each Lender or other holder of a Note shall be bound by any amendment,
waiver or consent obtained as authorized by this Section, regardless of its
failure to agree thereto. In addition, Section 11.11 hereof may not be amended
without the prior written consent of any Designating Lender, as defined in
Section 11.11 hereof, affected thereby.

         Section 11.4. NOTICES. All notices, requests, demands and other
communications provided for hereunder shall be in writing and, if to Borrower,
mailed or delivered to it, addressed to it at the address specified on the
signature pages of this Agreement, if to the Global Agent or any Lender, mailed
or delivered to it, addressed to the address of the Global Agent or such Lender
specified on the signature pages of this Agreement, or, as to each party, at
such other address as shall be designated by such party in a written notice to
each of the other parties. All notices, statements, requests, demands and other
communications provided for hereunder shall be deemed to be given or made when
delivered or forty-eight (48) hours after being deposited in the mails with
postage prepaid by registered or certified mail, addressed as aforesaid, or sent
by facsimile with telephonic confirmation of receipt, except that notices
pursuant to any of the provisions hereof shall not be effective until received.

         Section 11.5. COSTS, EXPENSES AND TAXES. Borrower agrees to pay on
demand all costs and expenses of the Global Agent, and all Related Expenses,
including but not limited to, (a) syndication, administration, travel and
out-of-pocket expenses, including but not limited to attorneys' fees and
expenses, of the Global Agent in connection with the preparation, negotiation
and closing of the Loan Documents and the administration of the Loan Documents,
the collection and disbursement of all funds hereunder and the other instruments
and documents to be delivered hereunder, (b) extraordinary expenses of the
Global Agent and the Collateral Agent in connection with the administration of
the Loan Documents and the other instruments and documents to be delivered
hereunder, and (c) the reasonable fees and out-of-pocket expenses of special
counsel for the Global Agent and the Collateral Agent, with respect to the
foregoing, and of local counsel, if any, that may be retained by such special
counsel with respect thereto. Borrower agrees to pay on demand all costs and
expenses of the Global Agent, the Collateral Agent and the Lenders, including
reasonable attorneys' fees, in connection with the restructuring or enforcement
of the Debt, this Agreement or any Related Writing. In addition, Borrower shall
pay any and all stamp and other taxes and fees payable or determined to be
payable in connection with the execution and delivery of the Loan Documents, and
the other instruments and documents to be delivered hereunder, and agree to hold
the Global Agent, the Collateral Agent and each Lender harmless from and against
any and all liabilities with respect to or resulting from any delay in paying or
omission to pay such taxes or fees.

         Section 11.6. INDEMNIFICATION. Borrower agrees to defend, indemnify and
hold harmless the Global Agent, the Collateral Agent and the Lenders (and their
respective affiliates, officers, directors, attorneys, agents and employees)
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses (including attorneys'
fees) or disbursements of any kind or nature whatsoever that may be imposed on,
incurred by or asserted against the Global Agent, the Collateral Agent or Lender
in connection with any investigative, administrative or judicial proceeding
(whether or not such Lender or the Global Agent or the Collateral Agent shall be
designated a party thereto) or any other claim by

                                       87
<PAGE>

any Person relating to or arising out of any Loan Document or any actual or
proposed use of proceeds of the Loans or any of the Debt, or any activities of
any Company or any Obligor or any of their respective affiliates; provided that
the Global Agent, the Collateral Agent or any Lender shall not have the right to
be indemnified under this Section for its own gross negligence or willful
misconduct, as determined by a court of competent jurisdiction. All obligations
provided for in this Section 11.6 shall survive any termination of this
Agreement.

         Section 11.7. OBLIGATIONS SEVERAL; NO FIDUCIARY OBLIGATIONS. The
obligations of the Lenders hereunder are several and not joint. Nothing
contained in this Agreement and no action taken by the Global Agent or the
Lenders pursuant hereto shall be deemed to constitute the Global Agent or the
Lenders a partnership, association, joint venture or other entity. No default by
any Lender hereunder shall excuse the other Lenders from any obligation under
this Agreement; but no Lender shall have or acquire any additional obligation of
any kind by reason of such default. The relationship among Borrower and the
Lenders with respect to the Loan Documents and the Related Writings is and shall
be solely that of debtors and creditors, respectively, and neither the Global
Agent nor any Lender shall have any fiduciary obligation toward Borrower with
respect to any such documents or the transactions contemplated thereby.

         Section 11.8. EXECUTION IN COUNTERPARTS. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which taken together shall constitute but one and the
same agreement.

         Section 11.9. BINDING EFFECT; BORROWERS' ASSIGNMENT. This Agreement
shall become effective when it shall have been executed by Borrower, the Global
Agent and each Lender and thereafter shall be binding upon and inure to the
benefit of Borrower, the Global Agent and each Lender and their respective
successors and assigns, except that Borrower shall not have the right to assign
its rights hereunder or any interest herein without the prior written consent of
the Global Agent and all of the Lenders.

         Section 11.10. LENDER ASSIGNMENTS/PARTICIPATIONS.

         (a) ASSIGNMENTS OF COMMITMENTS. Each Lender shall have the right at any
time or times to assign to an Eligible Transferee, without recourse, all or a
percentage of all of the following: (a) that Lender's Commitment, (b) all Loans
made by that Lender, (c) that Lender's Notes, and (d) that Lender's interest in
any Letter of Credit and any participation purchased pursuant to Section 2.1 or
8.5 hereof; provided, however, in each such case, that the assignor and the
assignee shall have complied with the following requirements:

               (i) PRIOR CONSENT. No assignment may be consummated pursuant to
          this Section 11.10 without the prior written consent of the Global
          Agent (other than an assignment by any Lender to any affiliate of such
          Lender which affiliate is either wholly-owned by such Lender or is
          wholly-owned by a Person that wholly owns, either directly or
          indirectly, such Lender), which consent of the Global Agent shall not
          be unreasonably withheld. Anything herein to the contrary
          notwithstanding, any Lender may at any time make a collateral
          assignment of all or any portion of its rights under the Loan
          Documents to a Federal Reserve Bank, and no such assignment shall
          release such assigning Lender from its obligations hereunder;

                                       88
<PAGE>

               (ii) MINIMUM AMOUNT. Each such assignment shall be in a minimum
          amount of the lesser of One Million Dollars ($1,000,000) of the
          assignor's Commitment and interest herein or the entire amount of the
          assignor's Commitment and interest herein;

               (iii) ASSIGNMENT FEE; ASSIGNMENT AGREEMENT. Unless the assignment
          shall be to an affiliate of the assignor or the assignment shall be
          due to merger of the assignor or for regulatory purposes, either the
          assignor or the assignee shall remit to the Global Agent, for its own
          account, an administrative fee (which fee may be waived by the Global
          Agent, in its sole discretion) of Three Thousand Five Hundred Dollars
          ($3,500). Unless the assignment shall be due to merger of the assignor
          or a collateral assignment for regulatory purposes, the assignor shall
          (A) cause the assignee to execute and deliver to Borrowers and the
          Global Agent an Assignment Agreement, and (B) execute and deliver, or
          cause the assignee to execute and deliver, as the case may be, to the
          Global Agent such additional amendments, assurances and other writings
          as the Global Agent may reasonably require; and

               (iv) NON-U.S. ASSIGNEE. If the assignment is to be made to an
          assignee that is organized under the laws of any jurisdiction other
          than the United States or any state thereof, the assignor Lender shall
          cause such assignee, at least five (5) Business Days prior to the
          effective date of such assignment, (A) to represent to the assignor
          Lender (for the benefit of the assignor Lender, the Global Agent and
          Borrower) that under applicable law and treaties no taxes will be
          required to be withheld by the Global Agent, Borrower or the assignor
          with respect to any payments to be made to such assignee in respect of
          the Loans hereunder, (B) to furnish to the assignor (and, in the case
          of any assignee registered in the Register (as defined below), the
          Global Agent and Borrower) either (1) U.S. Internal Revenue Service
          Form 4224 or U.S. Internal Revenue Service Form 1001 or (2) United
          States Internal Revenue Service Form W-8 or W-9, as applicable
          (wherein such assignee claims entitlement to complete exemption from
          U.S. federal withholding tax on all interest payments hereunder), and
          (C) to agree (for the benefit of the assignor, the Global Agent and
          Borrower) to provide the assignor Lender (and, in the case of any
          assignee registered in the Register, the Global Agent and Borrower) a
          new Form 4224 or Form 1001 or Form W-8 or W-9, as applicable, upon the
          expiration or obsolescence of any previously delivered form and
          comparable statements in accordance with applicable U.S. laws and
          regulations and amendments duly executed and completed by such
          assignee, and to comply from time to time with all applicable U.S.
          laws and regulations with regard to such withholding tax exemption.

         Upon satisfaction of the requirements specified in subparts (i) through
(iv) above, Borrower shall execute and deliver (A) to the Global Agent, the
assignor and the assignee, any consent or release (of all or a portion of the
obligations of the assignor) required to be delivered by Borrower in connection
with the Assignment Agreement, and (B) to the assignee, an appropriate Note or
Notes. After delivery of the new Note or Notes, the assignor's Note or Notes
being replaced shall be returned to Borrower marked "replaced".

         Upon satisfaction of the requirements set forth in subparts (i) through
(iv) above, and any other condition contained in this Section 11.12(a), (A) the
assignee shall become and thereafter be deemed to be a "Lender" for the purposes
of this Agreement, (B) in the event that the

                                       89
<PAGE>

assignor's entire interest has been assigned, the assignor shall cease to be and
thereafter shall no longer be deemed to be a "Lender", and (C) the signature
pages hereto and SCHEDULE 1 hereto shall be automatically amended, without
further action, to reflect the result of any such assignment.

         The Global Agent shall maintain at its address referred to in Section
11.4 hereof a copy of each Assignment Agreement delivered to it and a register
(the "REGISTER") for the recordation of the names and addresses of the Lenders
and the Commitment of, and principal amount of the Loans owing to, each Lender
from time to time. The entries in the Register shall be conclusive, in the
absence of manifest error, and Borrower, the Global Agent and the Lenders may
treat each financial institution whose name is recorded in the Register as the
owner of the Loan recorded therein for all purposes of this Agreement. The
Register shall be available for inspection by Borrower or any Lender at any
reasonable time and from time to time upon reasonable prior notice.

         (b) SALE OF PARTICIPATIONS. Each Lender shall have the right at any
time or times, without the consent of the Global Agent, Borrower or any other
Lender, to sell one or more participations or sub-participations to an Eligible
Transferee, as the case may be, in all or any part of (a) that Lender's
Commitment, (b) that Lender's Commitment Percentage, (c) any Loan made by that
Lender, (d) any Note delivered to that Lender pursuant to this Agreement, and
(e) that Lender's interest in any Letter of Credit and any participation, if
any, purchased pursuant to Section 2.1 or 8.5 hereof or this Section 11.10(b).

         The provisions of Article III and Section 11.6 shall inure to the
benefit of each purchaser of a participation or sub-participation and the Global
Agent shall continue to distribute payments pursuant to this Agreement as if no
participation has been sold.

         If any Lender shall sell any participation or sub-participation, that
Lender shall, as between itself and the purchaser, retain all of its rights
(including, without limitation, rights to enforce against Borrower the Loan
Documents and the Related Writings) and duties pursuant to the Loan Documents
and the Related Writings, including, without limitation, that Lender's right to
approve any waiver, consent or amendment pursuant to Section 11.3, except if and
to the extent that any such waiver, consent or amendment would:

               (i) reduce any fee or commission allocated to the participation
          or sub-participation, as the case may be;

               (ii) reduce the amount of any principal payment on any Loan
          allocated to the participation or sub-participation, as the case may
          be, or reduce the principal amount of any Loan so allocated or the
          rate of interest payable thereon; or

               (iii) extend the time for payment of any amount allocated to the
          participation or sub-participation, as the case may be.

         No participation or sub-participation shall operate as a delegation of
any duty of the seller thereof. Under no circumstance shall any participation or
sub-participation be deemed a novation in respect of all or any part of the
seller's obligations pursuant to this Agreement.

                                       90
<PAGE>

         Section 11.11. DESIGNATION.

         (a) Notwithstanding anything in this Agreement to the contrary, any
Lender (a "Designating Lender") may grant to one or more special purpose funding
vehicles (each an "SPV"), identified in writing from time to time by such
Designating Lender to the Global Agent and Borrower, the option to provide to
Borrower all or any part of any Loan that such Designating Lender would
otherwise be obligated to make to Borrower pursuant to this Agreement; provided
that (i) nothing in this Section shall constitute a commitment by any SPV to
make any Loan, and (ii) if an SPV designated by a Designating Lender to make
Loans elects not to exercise such option or otherwise fails to provide all or
any part of such Loan, such Designating Lender shall still be obligated to make
such Loan pursuant to the terms hereof. The making of a Loan by an SPV hereunder
shall reduce the availability under the commitment of the Designating Lender to
the same extent, and as if, such Loan were made by such Designating Lender.

         (b) As to any Loans or portion thereof made by an SPV, each such SPV
shall have all of the rights that a Lender making such Loans or portion thereof
would have under this Agreement; provided, however, that each SPV shall have
granted its Designating Lender an irrevocable power of attorney to deliver and
receive all communications and notices under this Agreement and any other Loan
Document and to exercise, in its reasonable discretion, on behalf of such SPV,
all of such SPV's voting rights under this Agreement. No additional Note shall
be required to evidence the Loans or portion thereof made by an SPV and the
Designating Lender shall be deemed to hold its Note as agent for such SPV to the
extent of the Loans or portion thereof funded by such SPV. In addition, any
payments for the account of any SPV shall be paid to its respective Designating
Lender as agent for such SPV.

         (c) The Global Agent, Borrower and the Lenders agree that no SPV shall
be liable for an indemnity or payment under this Agreement for which a Lender
would otherwise be liable and the Designating Lender shall remain liable for its
Commitment Percentage of such indemnity or payment to the extent such
Designating Lender would otherwise be liable. In furtherance of the foregoing,
the Global Agent, Borrower and each of the Lenders hereby agree (which agreement
shall survive the termination of this Agreement) that, prior to the date that is
one year and one day after the payment in full of all of the outstanding
commercial paper or other senior indebtedness of any SPV, none of the Global
Agent, Borrower or any Lender shall institute against, or join any other Person
in instituting against, such SPV any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceeding under the laws of the United States or any
State thereof.

         (d) In addition, notwithstanding anything to the contrary contained in
this Section 11.11, or otherwise in this Agreement, any SPV may (i) at any time
and without paying any processing fee therefor, assign (or grant a participation
in) all or a portion of its interest in any Loans to its Designating Lender or
to any financial institution providing liquidity and/or credit support to or for
the account of such SPV to support the funding or maintenance of Loans, and (ii)
disclose on a confidential basis any non-public information relating to the
Loans made by such SPV to any rating agency, commercial paper dealer or provider
of any surety, guarantee or credit or liquidity enhancements to such SPV. This
Section 11.11 may not be amended without the prior written consent of any
Designating Lender affected thereby.

                                       91
<PAGE>

         Section 11.12. SEVERABILITY OF PROVISIONS; CAPTIONS; ATTACHMENTS. Any
provision of this Agreement that is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof or affecting the validity or enforceability of such provision
in any other jurisdiction. The several captions to Sections and subsections
herein are inserted for convenience only and shall be ignored in interpreting
the provisions of this Agreement. Each schedule or exhibit attached to this
Agreement shall be incorporated herein and shall be deemed to be a part hereof.

         Section 11.13. GOVERNING LAW; SUBMISSION TO JURISDICTION. This
Agreement, each of the Notes and any Related Writing shall be governed by and
construed in accordance with the laws of the State of Ohio and the respective
rights and obligations of Borrower, the Global Agent and the Lenders shall be
governed by Ohio law, without regard to principles of conflict of laws. Borrower
hereby irrevocably submits to the non-exclusive jurisdiction of any Ohio state
or federal court sitting in Cleveland, Ohio, over any action or proceeding
arising out of or relating to this Agreement, the Debt or any Related Writing,
and Borrower hereby irrevocably agrees that all claims in respect of such action
or proceeding may be heard and determined in such Ohio state or federal court.
Borrower, on behalf of itself and its Subsidiaries, hereby irrevocably waives,
to the fullest extent permitted by law, any objection it may now or hereafter
have to the laying of venue in any action or proceeding in any such court as
well as any right it may now or hereafter have to remove such action or
proceeding, once commenced, to another court on the grounds of FORUM NON
CONVENIENS or otherwise. Borrower agrees that a final, nonappealable judgment in
any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.

         Section 11.14. LEGAL REPRESENTATION OF PARTIES. The Loan Documents were
negotiated by the parties with the benefit of legal representation and any rule
of construction or interpretation otherwise requiring this Agreement or any
other Loan Document to be construed or interpreted against any party shall not
apply to any construction or interpretation hereof or thereof.

         Section 11.15. JUDGMENT CURRENCY. If the Global Agent or the Collateral
Agent, on behalf of the Lenders, obtains a judgment or judgments against
Borrower in an Alternate Currency, the obligations of Borrower in respect of any
sum adjudged to be due to the Global Agent or the Lenders hereunder or under the
Notes (the "JUDGMENT AMOUNT") shall be discharged only to the extent that, on
the Business Day following receipt by the Global Agent or the Collateral Agent,
as the case may be, of the Judgment Amount in the Alternate Currency, the Global
Agent, in accordance with normal banking procedures, purchases Dollars with the
Judgment Amount in such Alternate Currency. If the amount of Dollars so
purchased is less than the amount of Dollars that could have been purchased with
the Judgment Amount on the date or dates the Judgment Amount (excluding the
portion of the Judgment Amount that has accrued as a result of the failure of
Borrower to pay the sum originally due hereunder or under the Notes when it was
originally due hereunder or under the Notes) was originally due and owing to the
Global Agent or the Lenders hereunder or under the Notes (the "ORIGINAL DUE
DATE") (the "LOSS"), Borrower agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify the Global Agent or such Lender,
as the case may be, against the Loss, and, if the amount of Dollars so purchased
exceeds the amount of Dollars that could have been purchased

                                       92
<PAGE>

with the Judgment Amount on the Original Due Date, the Global Agent or such
Lender agrees to remit such excess to Borrower.

         Section 11.16. DESIGNATED SENIOR INDEBTEDNESS. THE INDEBTEDNESS
EVIDENCED BY THIS AGREEMENT, EACH OF THE NOTES, EACH OF THE SECURITY DOCUMENTS
AND EACH OTHER LOAN DOCUMENT IS AND SHALL AT ALL TIMES CONSTITUTE "DESIGNATED
SENIOR INDEBTEDNESS" UNDER THE PROVISIONS OF THE SUBORDINATED CONVERTIBLE
INDENTURE.

                  [Remainder of page left intentionally blank]

                                       93
<PAGE>

         Section 11.17. JURY TRIAL WAIVER. BORROWER, THE GLOBAL AGENT AND EACH
OF THE BANKS WAIVE ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY
DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG BORROWER, THE
GLOBAL AGENT AND THE BANKS, OR ANY THEREOF, ARISING OUT OF, IN CONNECTION WITH,
RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN
CONNECTION WITH THIS AGREEMENT OR ANY NOTE OR OTHER INSTRUMENT, DOCUMENT OR
AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS
RELATED THERETO.

Address: One American Road                 AMERICAN GREETINGS
         Cleveland, Ohio 44144                CORPORATION
         Attention:
                   ------------
                                           By:
                                              ----------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

Address: 1900 East Ninth Street            NATIONAL CITY BANK, as the Global
         Cleveland, Ohio 44114               Agent, a Lead Arranger and a Lender
         Attention: Large Corporate
                    Banking
                                           By:
                                              ----------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

Address:
        ------------------------           GOLDMAN SACHS CREDIT PARTNERS
        ------------------------             L.P., as a Lead Arranger and
        Attention:                            a Lender
                  --------------
                                           By:
                                              ----------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

Address: 127 Public Square                 KEYBANK NATIONAL ASSOCIATION
         Cleveland, Ohio  44114
         Attention: Large Corporate        By:
                    Banking                   ----------------------------------
                                           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

                                      S-1

<PAGE>

Address:                                   BANK ONE, NA
        ------------------------
        ------------------------           By:
        Attention:                            ----------------------------------
                  --------------           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

Address:                                   LASALLE BANK NATIONAL ASSOCIATION
        ------------------------
        ------------------------           By:
        Attention:                            ----------------------------------
                  --------------           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

Address:                                   PNC BANK, NATIONAL ASSOCIATION
        ------------------------
        ------------------------           By:
        Attention:                            ----------------------------------
                  --------------           Name:
                                                --------------------------------
                                           Title:
                                                 -------------------------------

                                      S-2<PAGE>
                                                                    Exhibit 4(v)

                                                                  EXECUTION COPY

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

                         RECEIVABLES PURCHASE AGREEMENT

                           dated as of August 7, 2001

                                      among

                            AGC FUNDING CORPORATION,

                         AMERICAN GREETINGS CORPORATION,
                                   as Servicer

                     THE MEMBERS OF VARIOUS PURCHASER GROUPS
                         FROM TIME TO TIME PARTY HERETO

                                       and

                         PNC BANK, NATIONAL ASSOCIATION,
                                as Administrator

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

<PAGE>

                                TABLE OF CONTENTS

                                                                           PAGE
                                                                           ----

                                    ARTICLE I
                       AMOUNTS AND TERMS OF THE PURCHASES

Section 1.1   Purchase Facility ..............................................1
Section 1.2   Making Purchases ...............................................2
Section 1.3   Purchased Interest Computation .................................4
Section 1.4   Settlement Procedures ..........................................4
Section 1.5   Fees ..........................................................10
Section 1.6   Payments and Computations, Etc ................................10
Section 1.7   Increased Costs ...............................................11
Section 1.8   Requirements of Law ...........................................12
Section 1.9   Inability to Determine Euro-Rate ..............................12
Section 1.10  Extension of Termination Date .................................13

                                   ARTICLE II
                   REPRESENTATIONS AND WARRANTIES; COVENANTS;
                               TERMINATION EVENTS

Section 2.1   Representations and Warranties; Covenants .....................14
Section 2.2   Termination Events ............................................14

                                   ARTICLE III
                                 INDEMNIFICATION

Section 3.1   Indemnities by the Seller .....................................14
Section 3.2   Indemnities by the Servicer ...................................16

                                   ARTICLE IV
                         ADMINISTRATION AND COLLECTIONS

Section 4.1   Appointment of the Servicer ...................................17
Section 4.2   Duties of the Servicer ........................................18
Section 4.3   Lock-Box Account Arrangements .................................19
Section 4.4   Enforcement Rights ............................................19
Section 4.5   Responsibilities of the Seller ................................21
Section 4.6   Servicing Fee .................................................21

                                       i

<PAGE>

                                    ARTICLE V
                                   THE AGENTS

Section 5.1   Appointment and Authorization .................................21
Section 5.2   Delegation of Duties ..........................................23
Section 5.3   Exculpatory Provisions ........................................23
Section 5.4   Reliance by Agents ............................................23
Section 5.5   Notice of Termination Events ..................................24
Section 5.6   Non-Reliance on Administrator, Purchaser Agents and Other
              Purchasers ....................................................25
Section 5.8   Indemnification ...............................................25
Section 5.9   Successor Administrator .......................................25

                                   ARTICLE VI
                                  MISCELLANEOUS

Section 6.1   Amendments, Etc ...............................................26
Section 6.2   Notices, Etc ..................................................27
Section 6.3   Successors and Assigns; Participations; Assignments ...........27
Section 6.4   Costs, Expenses and Taxes .....................................29
Section 6.5   No Proceedings; Limitation on Payments ........................29
Section 6.6   GOVERNING LAW AND JURISDICTION ................................30
Section 6.7   Execution in Counterparts .....................................30
Section 6.8   Survival of Termination .......................................30
Section 6.9   WAIVER OF JURY TRIAL ..........................................30
Section 6.10  Sharing of Recoveries .........................................31
Section 6.11  Right of Setoff ...............................................31
Section 6.12  Entire Agreement ..............................................31
Section 6.13  Headings ......................................................31
Section 6.14  Purchaser Groups' Liabilities .................................31
Section 6.15  Call Option ...................................................32

EXHIBIT I                  Definitions
EXHIBIT II                 Conditions of Purchases
EXHIBIT III                Representations and Warranties
EXHIBIT IV                 Covenants
EXHIBIT V                  Termination Events

SCHEDULE I                 Credit and Collection Policy
SCHEDULE II                Lock-Box Banks and Lock-Box Accounts
SCHEDULE III               Trade Names

                                       ii

<PAGE>

ANNEX A                    Form of Information Package
ANNEX B                    Form of Purchase Notice
ANNEX C                    Form of Assumption Agreement
ANNEX D                    Form of Transfer Supplement
ANNEX E                    Form of Paydown Notice

                                      iii

<PAGE>

         This RECEIVABLES PURCHASE AGREEMENT (as amended, supplemented or
otherwise modified from time to time, this "AGREEMENT ") is entered into as of
August 7, 2001, among AGC FUNDING CORPORATION, a Delaware corporation, as seller
(the "SELLER"), American Greetings Corp., an Ohio Corporation ("Greetings"), as
initial servicer (in such capacity, together with its successors and permitted
assigns in such capacity, the "SERVICER"), MARKET STREET FUNDING CORPORATION
("MARKET STREET "), a Delaware corporation, as a Conduit Purchaser, PNC BANK,
NATIONAL ASSOCIATION ("PNC"), as agent for Market Street, and as Administrator
for each Purchaser Group (in such capacity, the "ADMINISTRATOR "), and each of
the other members of each Purchaser Group party hereto or that become parties
hereto by executing an Assumption Agreement or a Transfer Supplement.

         PRELIMINARY STATEMENTS. Certain terms that are capitalized and used
throughout this Agreement are defined in EXHIBIT I. References in the Exhibits
hereto to the "Agreement" refer to this Agreement, as amended, supplemented or
otherwise modified from time to time.

         The Seller desires to sell, transfer and assign an undivided variable
percentage interest in a pool of receivables, and the Purchasers desire to
acquire such undivided variable percentage interest, as such percentage interest
shall be adjusted from time to time based upon, in part, reinvestment payments
that are made by such Purchasers.

         In consideration of the mutual agreements, provisions and covenants
contained herein, the parties hereto agree as follows:

                                    ARTICLE I
                       AMOUNTS AND TERMS OF THE PURCHASES

         Section 1.1. PURCHASE FACILITY.

                  (a) On the terms and subject to the conditions hereof, the
         Seller may, from time to time before the Facility Termination Date,
         request that the Conduit Purchasers, or, only if a Conduit Purchaser
         denies such request or is unable to fund (and provides notice of such
         denial or inability to the Seller, the Administrator and its Purchaser
         Agent), ratably request that the Related Committed Purchasers, make
         purchases of and reinvestments in undivided percentage ownership
         interests with regard to the Purchased Interest from the Seller from
         time to time from the date hereof to the Facility Termination Date.
         Subject to SECTION 1.4(b), concerning reinvestments, at no time will a
         Conduit Purchaser that is not also a Related Committed Purchaser have
         any obligation to make a purchase. Each Related Committed Purchaser
         severally hereby agrees, on the terms and subject to the conditions
         hereof, to make Purchases before the Facility Termination Date, based
         on the applicable Purchaser Group's Ratable Share of each purchase
         requested pursuant to SECTION 1.2(a) (each a "PURCHASE ") (and, in the
         case of each Related Committed Purchaser, its Commitment Percentage of
         its

<PAGE>

         Purchaser Group's Ratable Share of such Purchase) to the extent its
         Investment would not thereby exceed its Commitment and the Aggregate
         Investment would not (after giving effect to all Purchases on such
         date) exceed the Purchase Limit.

                  (b) The Seller may, upon at least 60 days' written notice to
         the Administrator and each Purchaser Agent terminate the purchase
         facility provided for in this Section in whole or, upon 30 days'
         written notice to the Administrator and each Purchaser Agent, from time
         to time, irrevocably reduce in part the unfunded portion of the
         Purchase Limit (but not below the amount which would cause the Group
         Investment of any Purchaser Group to exceed its Group Commitment (after
         giving effect to such reduction)); provided that each partial reduction
         shall be in the amount of at least $10,000,000, or an integral multiple
         of $1,000,000 in excess thereof and unless terminated in whole, the
         Purchase Limit shall in no event be reduced below $50,000,000. Such
         reduction shall at the option of the Seller be applied either (i)
         ratably to reduce the Group Commitment of each Purchaser Group or (ii)
         to terminate the Group Commitment of any one Purchaser Group.

         Section 1.2. MAKING PURCHASES.

                  (a) Each purchase (but not reinvestment) of undivided
         percentage ownership interests with regard to the Purchased Interest
         hereunder shall be made upon the Seller's irrevocable written notice in
         the form of Annex B delivered to the Administrator and each Purchaser
         Agent in accordance with SECTION 6.2 (which notice must be received by
         the Administrator and each Purchaser Agent before 11:00 a.m., New York
         City time) at least three Business Days before the requested Purchase
         Date, which notice shall specify: (A) the amount requested to be paid
         to the Seller (such amount, which shall not be less than $1,000,000, or
         an integral multiple of $100,000 in excess thereof with respect to each
         Purchaser Group, being the aggregate of the Investments of each
         Purchaser within such Purchaser Group, relating to the undivided
         percentage ownership interest then being purchased), (B) the date of
         such purchase (which shall be a Business Day), and (C) a pro forma
         calculation of the Purchased Interest after giving effect to the
         increase in the Aggregate Investment. If the Purchase is requested from
         a Conduit Purchaser and such Conduit Purchaser determines, in its sole
         discretion, to make the requested Purchase, such Conduit Purchaser
         shall transfer to the account of the Seller described in SECTION
         1.2(b), below (the "DISBURSEMENT ACCOUNT "), an amount equal to such
         Conduit Purchaser's Purchaser Group Ratable Share of such Purchase on
         the requested Purchase Date. If the Purchase is requested from the
         Related Committed Purchasers for a Purchaser Group (in the case where
         the related Conduit Purchaser determined not to or was unable to make
         such Purchase), subject to the terms and conditions hereof, such
         Related Committed Purchasers for a Purchaser Group shall transfer the
         applicable Purchaser Group's Ratable Share of each Purchase (and, in
         the case of each Related Committed Purchaser, its Commitment Percentage
         of its Purchaser Group's Ratable Share of such Purchase) into the
         Disbursement Account by no later than 4:00 p.m. (New York time) on the
         Purchase Date.

                                       2
<PAGE>

                  (b) On the date of each Purchase, each Purchaser (or the
         related Purchaser Agent on its behalf), shall make available to the
         Seller in same day funds, at National City Bank, Cleveland, Ohio,
         account number 657364116, ABA #041000124, an amount equal to the
         proceeds of such Purchase.

                  (c) Effective on the date of each Purchase pursuant to this
         SECTION 1.2 and each reinvestment pursuant to SECTION 1.4, the Seller
         hereby sells and assigns to the Administrator for the benefit of the
         Purchasers (ratably, according to each such Purchaser's Investment) an
         undivided percentage ownership interest in: (i) each Pool Receivable
         then existing, (ii) all Related Security with respect to such Pool
         Receivables, and (iii) all Collections with respect to, and other
         proceeds of, such Pool Receivables and Related Security.

                  (d) To secure all of the Seller's obligations (monetary or
         otherwise) under this Agreement and the other Transaction Documents to
         which it is a party, whether now or hereafter existing or arising, due
         or to become due, direct or indirect, absolute or contingent, the
         Seller hereby grants to the Administrator, for the benefit of the
         Purchasers, a security interest in all of the Seller's right, title and
         interest (including any undivided interest of the Seller) in, to and
         under all of the following, whether now or hereafter owned, existing or
         arising: (i) all Pool Receivables, (ii) all Related Security with
         respect to such Pool Receivables, (iii) all Collections with respect to
         such Pool Receivables, (iv) the Lock-Box Accounts and all amounts on
         deposit therein, and all certificates and instruments, if any, from
         time to time evidencing such Lock-Box Accounts and amounts on deposit
         therein, (v) all books and records of each Receivable, and all
         Transaction Documents to which the Seller is a party, together with all
         rights (but none of the obligations) of the Seller thereunder and (vi)
         all proceeds and products of, and all amounts received or receivable
         under any or all of, the foregoing (collectively, the "POOL ASSETS").
         The Administrator, for the benefit of the Purchasers, shall have, with
         respect to the Pool Assets, and in addition to all the other rights and
         remedies available to the Administrator and the Purchasers, all the
         rights and remedies of a secured party under any applicable UCC.

                  (e) The Seller may, with the written consent of the
         Administrator and each Purchaser, add additional Persons as Purchasers
         (either to an existing Purchaser Group or by creating new Purchaser
         Groups) or cause an existing Purchaser to increase its Commitment in
         connection with a corresponding increase in the Purchase Limit;
         PROVIDED, HOWEVER, that the Commitment of any Purchaser may only be
         increased with the consent of such Purchaser. Each new Purchaser (or
         Purchaser Group) and each Purchaser increasing its Commitment shall
         become a party hereto or increase its Commitment, as the case may be,
         by executing and delivering to the Administrator and the Seller an
         Assumption Agreement in the form of Annex C hereto (which Assumption
         Agreement shall, in the case of any new Purchaser or Purchasers be
         executed by each Person in such new Purchaser's Purchaser Group).

                  (f) Each Related Committed Purchaser's obligation hereunder
         shall be several, such that the failure of any Related Committed
         Purchaser to make a payment in connection

                                       3
<PAGE>

         with any purchase hereunder shall not relieve any other Related
         Committed Purchaser of its obligation hereunder to make payment for any
         Purchase. Further, in the event any Related Committed Purchaser fails
         to satisfy its obligation to make a purchase as required hereunder,
         upon receipt of notice of such failure from the Administrator (or any
         relevant Purchaser Agent), subject to the limitations set forth herein,
         the non-defaulting Related Committed Purchasers in such defaulting
         Related Committed Purchaser's Purchaser Group shall purchase the
         defaulting Related Committed Purchaser's Commitment Percentage of the
         related Purchase PRO RATA in proportion to their relative Commitment
         Percentages (determined without regard to the Commitment Percentage of
         the defaulting Related Committed Purchaser; it being understood that a
         defaulting Related Committed Purchaser's Commitment Percentage of any
         Purchase shall be first put to the Related Committed Purchasers in such
         defaulting Related Committed Purchaser's Purchaser Group and thereafter
         if there are no other Related Committed Purchasers in such Purchaser
         Group or if such other Related Committed Purchasers are also defaulting
         Related Committed Purchasers, then such defaulting Related Committed
         Purchaser's Commitment Percentage of such Purchase shall be put to each
         other Purchaser Group ratably and applied in accordance with this
         paragraph (f)). Notwithstanding anything in this paragraph (f) to the
         contrary, no Related Committed Purchaser shall be required to make a
         Purchase pursuant to this paragraph for an amount which would cause (i)
         the aggregate Investment of such Related Committed Purchaser (after
         giving effect to such Purchase) to exceed its Commitment or (ii) the
         sum of the aggregate Investments of all Purchasers in the Purchaser
         Group of such Related Committed Purchaser (after giving effect to such
         Purchase) to exceed the sum of the Commitments of all of the Purchasers
         in such Purchaser Group.

         Section 1.3. PURCHASED INTEREST COMPUTATION. The Purchased Interest
shall be initially computed on the date of the initial Purchase hereunder.
Thereafter, until the Facility Termination Date, such Purchased Interest shall
be automatically recomputed (or deemed to be recomputed) on each Business Day
other than a Termination Day. From and after the occurrence of any Termination
Day, the Purchased Interest shall (until the event(s) giving rise to such
Termination Day are satisfied or are waived by the Administrator and a Simple
Majority of the Purchasers) be deemed to be 100%. The Purchased Interest shall
become zero when the Aggregate Investment thereof and Aggregate Discount thereon
shall have been paid in full, all the amounts owed by the Seller, each
Originator, AGSC, Greetings and the Servicer hereunder or under any other
Transaction Document to each Purchaser, the Administrator and any other
Indemnified Party or Affected Person are paid in full, and the Servicer shall
have received the accrued Servicing Fee thereon.

         Section 1.4. SETTLEMENT PROCEDURES.

                  (a) The collection of the Pool Receivables shall be
         administered by the Servicer in accordance with this Agreement. The
         Seller shall provide to the Servicer on a timely basis all information
         needed for such administration, including notice of the occurrence of
         any Termination Day and current computations of the Purchased Interest.

                                       4
<PAGE>

                  (b) The Servicer shall, on each day on which Collections of
         Pool Receivables are received (or deemed received) by the Seller or the
         Servicer:

                      (i) set aside and hold in trust (and shall, at the request
                  of the Administrator (with the consent or at the direction of
                  the Majority Purchasers), segregate in a separate account
                  approved by the Administrator if, at the time of such request,
                  there exists an Unmatured Termination Event or a Termination
                  Event (or if the failure to so segregate reasonably could be
                  expected to cause a Material Adverse Effect)) for the benefit
                  of each Purchaser Group, out of the Purchasers' Share of such
                  Collections, first, an amount equal to the Aggregate Discount
                  accrued through such day for each Portion of Investment and
                  not previously set aside, second, an amount equal to the fees
                  set forth in each Purchaser Group Fee Letter accrued and
                  unpaid through such day, and third, to the extent funds are
                  available therefor, an amount equal to the aggregate of each
                  Purchaser Group's Ratable Share of the Purchasers' Share of
                  the Servicing Fee accrued through such day and not previously
                  set aside,

                      (ii) subject to SECTION 1.4(f), if such day is not a
                  Termination Day, remit to the Seller, ratably, on behalf of
                  each Purchaser Group, the remainder of the Purchasers' Share
                  of such Collections. Such remainder shall, to the extent
                  representing a return on the Aggregate Investment, ratably,
                  according to each Purchaser's Investment, be automatically
                  reinvested in Pool Receivables, and in the Related Security,
                  Collections and other proceeds with respect thereto; PROVIDED,
                  HOWEVER, that if the Purchased Interest would exceed 100%,
                  then the Servicer shall not reinvest, but shall set aside and
                  hold in trust for the benefit of the Purchasers (and shall, at
                  the request of the Administrator (with the consent or at the
                  direction of the Majority Purchasers), segregate in a separate
                  account approved by the Administrator if, at the time of such
                  request, there exists an Unmatured Termination Event or a
                  Termination Event (or if the failure to so segregate
                  reasonably could be expected to cause a Material Adverse
                  Effect)) a portion of such Collections that, together with the
                  other Collections set aside pursuant to this paragraph, shall
                  equal the amount necessary to reduce the Purchased Interest to
                  100%; PROVIDED, FURTHER, that in the case of any Purchaser
                  that has provided notice (an "EXITING NOTICE") to its
                  Purchaser Agent of its refusal, pursuant to SECTION 1.10, to
                  extend its Commitment hereunder (an "EXITING PURCHASER "),
                  then such Purchaser's ratable share of such Collections based
                  on its Investment shall not be reinvested and shall instead be
                  held in trust for the benefit of such Purchaser and applied in
                  accordance with CLAUSE (iii) below,

                      (iii) if such day is a Termination Day (or any day
                  following the provision of an Exiting Notice), set aside,
                  segregate and hold in trust (and shall, at the request of the
                  Administrator (with the consent or at the direction of a
                  Simple Majority of the Purchasers), segregate in a separate
                  account approved by the Administrator) for the benefit of each
                  Purchaser Group the entire remainder of the Purchasers' Share
                  of the Collections (or in the case of an Exiting Purchaser an
                  amount equal to such

                                       5
<PAGE>

                  Purchaser's ratable share of such Collections based on its
                  Investment; provided, that solely for the purpose of
                  determining such Purchaser's ratable share of such
                  Collections, such Purchaser's Investment shall be deemed to
                  remain constant from the date of the provision of an Exiting
                  Notice until the date such Purchaser's Investment has been
                  paid in full; it being understood that if such day is also a
                  Termination Day, such Exiting Purchaser's Investment shall be
                  recalculated taking into account amounts received by such
                  Purchaser in respect of this parenthetical and thereafter
                  Collections shall be set aside for such Purchaser ratably in
                  respect of its Investment (as recalculated)); provided, that
                  if amounts are set aside and held in trust on any Termination
                  Day of the type described in clause (a) of the definition of
                  "Termination Day" (or any day following the provision of an
                  Exiting Notice) and, thereafter, the conditions set forth in
                  SECTION 2 of EXHIBIT II are satisfied or waived by the
                  Administrator and a Simple Majority of the Purchasers (or in
                  the case of an Exiting Notice, such Exiting Notice has been
                  revoked by the related Exiting Purchaser, and written notice
                  thereof has been provided to the Administrator, the related
                  Purchaser Agent and the Servicer), such previously set-aside
                  amounts shall, to the extent representing a return on
                  Aggregate Investment (or the Investment of the Exiting
                  Purchaser) and ratably in accordance with each Purchaser's
                  Investment, be reinvested in accordance with CLAUSE (ii) on
                  the day of such subsequent satisfaction or waiver of
                  conditions or revocation of Exiting Notice, and

                      (iv) release to the Seller (subject to SECTION 1.4(f)) for
                  its own account any Collections in excess of: (x) amounts
                  required to be reinvested in accordance with CLAUSE (ii) or
                  the proviso to CLAUSE (iii) plus (y) the amounts that are
                  required to be set aside pursuant to CLAUSE (i), the proviso
                  to CLAUSE (ii) and CLAUSE (iii) plus (z) the Seller's Share of
                  the Servicing Fee accrued and unpaid through such day and all
                  reasonable and appropriate out-of-pocket costs and expenses of
                  the Servicer for servicing, collecting and administering the
                  Pool Receivables.

                  (c) The Servicer shall, in accordance with the priorities set
         forth in SECTION 1.4(d), below, deposit into each applicable
         Purchaser's account (or such other account designated by such
         applicable Purchaser or its Purchaser Agent), on each Settlement Date,
         Collections held for each Purchaser with respect to such Purchaser's
         Portion(s) of Investment pursuant to CLAUSE (b)(i) or (f) of Section
         1.4 plus the amount of Collections then held for such Purchaser
         pursuant to CLAUSES (b)(ii) and (iii) of SECTION 1.4; PROVIDED, that if
         Greetings, any Originator, AGSC or an Affiliate thereof is the
         Servicer, such day is not a Termination Day and the Administrator has
         not notified Greetings, AGSC or such Originator (or such Affiliate)
         that such right is revoked, Greetings, AGSC or such Originator (or such
         Affiliate) may retain the portion of the Collections set aside pursuant
         to CLAUSE (b)(i) that represents the aggregate of each Purchaser
         Group's Ratable Share of the Purchasers' Share of the Servicing Fee. On
         or before the last day of each Yield Period with respect to any Portion
         of Investment, the applicable Purchaser Agent will notify the Servicer
         by facsimile

                                       6
<PAGE>

         of the amount of the Discount accrued with respect to each such Portion
         of Investment during the related Yield Period then ending.

                  (d) The Servicer shall distribute the amounts described (and
         at the times set forth) in SECTION 1.4(c), as follows:

                      (i) if such distribution occurs on a day that is not a
                  Termination Day and the Purchased Interest does not exceed
                  100%, first to each Purchaser Agent ratably according to the
                  Discount accrued during such Yield Period (for the benefit of
                  the relevant Purchasers within such Purchaser Agent's
                  Purchaser Group) in payment in full of all accrued Discount
                  and fees (other than Servicing Fees) with respect to each
                  Portion of Investment maintained by such Purchasers; it being
                  understood that each Purchaser Agent shall distribute such
                  amounts to the Purchasers within its Purchaser Group ratably
                  according to Discount, and second, if the Servicer has set
                  aside amounts in respect of the Servicing Fee pursuant to
                  CLAUSE (b)(i) and has not retained such amounts pursuant to
                  CLAUSE (c), to the Servicer's own account (payable in arrears
                  on each Settlement Date) in payment in full of the aggregate
                  of each Purchaser Group's Ratable Share of the Purchasers'
                  Share of accrued Servicing Fees so set aside, and

                      (ii) if such distribution occurs on a Termination Day or
                  on a day when the Purchased Interest exceeds 100%, FIRST if
                  Greetings, AGSC or any Originator or an Affiliate thereof is
                  not the Servicer, to the Servicer's own account in payment in
                  full of all accrued Servicing Fees, SECOND to each Purchaser
                  Agent ratably according to Discount (for the benefit of the
                  relevant Purchasers within such Purchaser Agent's Purchaser
                  Group) in payment in full of all accrued Discount with respect
                  to each Portion of Investment funded or maintained by the
                  Purchasers within such Purchaser Agent's Purchaser Group,
                  THIRD to each Purchaser Agent ratably according to the
                  aggregate of the Investment of each Purchaser in each such
                  Purchaser Agent's Purchaser Group (for the benefit of the
                  relevant Purchasers within such Purchaser Agent's Purchaser
                  Group) in payment in full of each Purchaser's Investment (or,
                  if such day is not a Termination Day, the amount necessary to
                  reduce the Purchased Interest to 100%); it being understood
                  that each Purchaser Agent shall distribute the amounts
                  described in the first and second clauses of this SECTION
                  1.4(d)(ii) to the Purchasers within its Purchaser Group
                  ratably according to Discount and Investment, respectively,
                  FOURTH, if the Aggregate Investment and accrued Aggregate
                  Discount with respect to each Portion of Investment for all
                  Purchaser Groups have been reduced to zero or if such day is
                  not a Termination Day, the Purchased Interest is reduced to
                  100%, and all accrued Servicing Fees payable to the Servicer
                  (if other than Greetings, AGSC or any Originator or an
                  Affiliate thereof) have been paid in full, to each Purchaser
                  Group ratably (for the benefit of the Purchasers within such
                  Purchaser Group) in accordance with its Ratable Share, the
                  Administrator and any other Indemnified Party or Affected
                  Person in payment in full of any other amounts owed

                                       7
<PAGE>

                  thereto by the Seller or Servicer hereunder and, FIFTH, to the
                  Servicer's own account (if the Servicer is Greetings, AGSC or
                  any Originator or an Affiliate thereof) in payment in full of
                  the Aggregate of each Purchaser Group's Ratable Share of all
                  accrued Servicing Fees.

After the Aggregate Investment, Aggregate Discount, fees payable pursuant to
each Purchaser Group Fee Letter and Servicing Fees with respect to the Purchased
Interest, and any other amounts payable by the Seller and the Servicer to each
Purchaser Group, the Administrator or any other Indemnified Party or Affected
Person hereunder, have been paid in full, all additional Collections with
respect to the Purchased Interest shall be paid to the Seller for its own
account.

                  (e) For the purposes of this SECTION 1.4:

                      (i) if on any day the Outstanding Balance of any Pool
                  Receivable is reduced or adjusted as a result of any
                  defective, rejected, returned, repossessed or foreclosed goods
                  or services, or any revision, cancellation, allowance,
                  discount or other adjustment made by the Seller or any
                  Affiliate of the Seller, or the Servicer or any Affiliate of
                  the Servicer, or any setoff or dispute between the Seller or
                  any Affiliate of the Seller, or the Servicer or any Affiliate
                  of the Servicer and an Obligor, the Seller shall be deemed to
                  have received on such day a Collection of such Pool Receivable
                  in the amount of such reduction or adjustment; PROVIDED THAT
                  Seller shall be deemed to have received a Collection due to a
                  reduction or adjustment made to the Outstanding Balance of a
                  Seasonal Receivable in connection with the return of unsold
                  goods only to the extent Seller shall have a claim under
                  SECTION 3.3(c) of the Sale and Contribution Agreement in
                  connection with such Seasonal Receivable.

                      (ii) if on any day any of the representations or
                  warranties in SECTION 1(g) or (n) of EXHIBIT III is not true
                  with respect to any Pool Receivable, the Seller shall be
                  deemed to have received on such day a Collection of such Pool
                  Receivable in full;

                      (iii) except as provided in CLAUSE (i) or (ii), or as
                  otherwise required by applicable law or the relevant Contract,
                  all Collections received from an Obligor of any Receivable
                  shall be applied to the Receivables of such Obligor in the
                  order of the age of such Receivables, starting with the oldest
                  such Receivable, unless such Obligor designates in writing its
                  payment for application to specific Receivables; and

                      (iv) if and to the extent the Administrator, any
                  Purchaser Agent or any Purchaser shall be required for any
                  reason to pay over to an Obligor (or any trustee, receiver,
                  custodian or similar official in any Insolvency Proceeding)
                  any amount received by it hereunder, such amount shall be
                  deemed not to have been so received by such Person but rather
                  to have been retained by the Seller and, accordingly, such
                  Person shall have a claim against the Seller for such amount,
                  payable when and to the

                                       8
<PAGE>

                  extent that any distribution from or on behalf of such Obligor
                  is made in respect thereof.

                  (f) If at any time the Seller shall wish to cause the
         reduction of Aggregate Investment (but not to commence the liquidation,
         or reduction to zero, of the entire Aggregate Investment), the Seller
         may do so as follows:

                      (i) the Seller shall give the Administrator, each
                  Purchaser Agent and the Servicer (A) at least two Business
                  Days' prior written notice thereof for any reduction of
                  Aggregate Investment less than or equal to $10,000,000 and (B)
                  at least ten Business Days' prior written notice thereof for
                  any reduction of Aggregate Investment greater than $10,000,000
                  (in each case such notice shall include the amount of such
                  proposed reduction and the proposed date on which such
                  reduction will commence);

                      (ii) on the proposed date of commencement of such
                  reduction and on each day thereafter, the Servicer shall cause
                  Collections not to be reinvested until the amount thereof not
                  so reinvested shall equal the desired amount of reduction; and

                      (iii) the Servicer shall hold such Collections in trust
                  for the benefit of each Purchaser ratably according to its
                  Investment, for payment to each such Purchaser (or its related
                  Purchaser Agent for the benefit of such Purchaser) on the (i)
                  next Settlement Date with respect to any Portions of
                  Investment maintained by such Purchaser immediately following
                  the related current Yield Period or (ii) such other date
                  approved by the Administrator, and the Aggregate Investment
                  (together with the Investment of any related Purchaser) shall
                  be deemed reduced in the amount to be paid to such Purchaser
                  (or its related Purchaser Agent for the benefit of such
                  Purchaser) only when in fact finally so paid;

PROVIDED, that:

                  (A) the amount of any such reduction shall be not less than
         $1,000,000 for each Purchaser Group and shall be an integral multiple
         of $100,000, and the entire Aggregate Investment after giving effect to
         such reduction shall be not less than $50,000,000 and shall be in an
         integral multiple of $1,000,000 (unless the Aggregate Investment shall
         have been reduced to zero); and

                  (B) with respect to any Portion of Investment, the Seller
         shall choose a reduction amount, and the date of commencement thereof,
         so that to the extent practicable such reduction shall commence and
         conclude in the same Yield Period.

         Section 1.5. FEES. The Seller shall pay to each Purchaser Agent for the
benefit of the related Purchasers certain fees in the amounts and on the dates
set forth in letters, dated the date

                                       9
<PAGE>

hereof, each such letter (as amended, supplemented, or otherwise modified from
time to time, a "PURCHASER GROUP FEE LETTER") in each case among the Seller, the
Servicer, the Administrator and the related Purchaser Agent.

         Section 1.6. PAYMENTS AND COMPUTATIONS, ETC. All amounts to be paid or
deposited by the Seller or the Servicer hereunder shall be made without
reduction for offset or counterclaim and shall be paid or deposited no later
than noon (New York City time) on the day when due in same day funds to the
applicable Purchaser's account (as such account is identified in the related
Purchaser Group Fee Letter). All amounts received after noon (New York City
time) will be deemed to have been received on the next Business Day.

                  (a) The Seller or the Servicer, as the case may be, shall, to
         the extent permitted by law, pay interest on any amount not paid or
         deposited by the Seller or the Servicer, as the case may be, when due
         hereunder, at an interest rate equal to the Base Rate, payable on
         demand.

                  (b) All computations of interest under CLAUSE (b) and all
         computations of Discount, fees and other amounts hereunder shall be
         made on the basis of a year of 360 (or 365 or 366, as applicable, with
         respect to Discount or other amounts calculated by reference to the
         Base Rate) days for the actual number of days elapsed. Whenever any
         payment or deposit to be made hereunder shall be due on a day other
         than a Business Day, such payment or deposit shall be made on the next
         Business Day and such extension of time shall be included in the
         computation of such payment or deposit.

                  (c) Each Affected Person will notify Seller and the applicable
         Purchaser Agent promptly after it has actual knowledge of any event
         which will entitle such Affected Person to such additional amounts as
         compensation pursuant to this SECTION 1.7. Such additional amounts
         shall accrue from the date as to which such Affected Person becomes
         subject to such additional costs as a result of such event (or if such
         notice of such event is not given to Seller by such Affected Person
         within 90 days after such Affected Person has actual knowledge of such
         event, from the date which is 90 days prior to the date such notice is
         given to Seller by such Affected Person).

         Section 1.7. INCREASED COSTS.

                  (a) If any Purchaser Agent, Purchaser, Liquidity Provider, the
         Administrator or any other Program Support Provider or any of their
         respective Affiliates (each an "AFFECTED PERSON") reasonably determines
         that the existence of or compliance with: (i) any law or regulation or
         any change therein or in the interpretation or application thereof, in
         each case adopted, issued or occurring after the date hereof, or (ii)
         any request, guideline or directive from any central bank or other
         Governmental Authority (whether or not having the force of law) issued
         or occurring after the date of this Agreement, affects or would affect
         the amount of capital required or expected to be maintained by such
         Affected Person, and such Affected

                                       10
<PAGE>

         Person determines that the amount of such capital is increased by or
         based upon the existence of any commitment to make purchases of (or
         otherwise to maintain the investment in) Pool Receivables related to
         this Agreement or any related liquidity facility, credit enhancement
         facility or other commitments of the same type, then, upon demand by
         such Affected Person (with a copy to the Administrator), the Seller
         shall promptly pay to the Administrator, for the account of such
         Affected Person, from time to time as specified by such Affected
         Person, additional amounts sufficient to compensate such Affected
         Person in the light of such circumstances, to the extent that such
         Affected Person reasonably determines such increase in capital to be
         allocable to the existence of any of such commitments. A certificate as
         to such amounts submitted to the Seller and the Administrator by such
         Affected Person shall be conclusive and binding for all purposes,
         absent manifest error.

                  (b) If, due to either: (i) the introduction of or any change
         in or in the interpretation of any law or regulation or (ii) compliance
         with any guideline or request from any central bank or other
         Governmental Authority (whether or not having the force of law), there
         shall be any increase in the cost to any Affected Person of agreeing to
         purchase or purchasing, or maintaining the ownership of, the Purchased
         Interest or any portion thereof in respect of which Discount is
         computed by reference to the Euro-Rate, then, upon demand by such
         Affected Person, the Seller shall promptly pay to such Affected Person,
         from time to time as specified by such Affected Person, additional
         amounts sufficient to compensate such Affected Person for such
         increased costs. A certificate as to such amounts submitted to the
         Seller and the Administrator by such Affected Person shall be
         conclusive and binding for all purposes, absent manifest error.

                  (c) If such increased costs affect the related Affected
         Person's portfolio of financing transactions, such Affected Person
         shall use reasonable averaging and attribution methods to allocate such
         increased costs to the transactions contemplated by this Agreement.

         Section 1.8. REQUIREMENTS OF LAW.

                  If any Affected Person reasonably determines that the
         existence of or compliance with: (a) any law or regulation or any
         change therein or in the interpretation or application thereof, in each
         case adopted, issued or occurring after the date hereof, or (b) any
         request, guideline or directive from any central bank or other
         Governmental Authority (whether or not having the force of law) issued
         or occurring after the date of this Agreement:

                  (i) does or shall subject such Affected Person to any tax of
         any kind whatsoever with respect to this Agreement, any increase in the
         Purchased Interest or any portion thereof or in the amount of such
         Person's Investment relating thereto, or does or shall change the basis
         of taxation of payments to such Affected Person on account of
         Collections, Discount or any other amounts payable hereunder (excluding
         taxes imposed on the overall pre-tax net income of such Affected
         Person, and franchise taxes imposed on such Affected Person, by the

                                       11
<PAGE>

         jurisdiction under the laws of which such Affected Person is organized
         or a political subdivision thereof),

                  (ii) does or shall impose, modify or hold applicable any
         reserve, special deposit, compulsory loan or similar requirement
         against assets held by, or deposits or other liabilities in or for the
         account of, purchases, advances or loans by, or other credit extended
         by, or any other acquisition of funds by, any office of such Affected
         Person that are not otherwise included in the determination of the
         Euro-Rate or the Base Rate hereunder, or

                  (iii) does or shall impose on such Affected Person any other
         condition,

and the result of any of the foregoing is: (A) to increase the cost to such
Affected Person of acting as Administrator or as a Purchaser Agent, or of
agreeing to purchase or purchasing or maintaining the ownership of undivided
percentage ownership interests with regard to the Purchased Interest (or
interests therein) or any Portion of Investment, or (B) to reduce any amount
receivable hereunder (whether directly or indirectly), then, in any such case,
upon demand by such Affected Person, the Seller shall promptly pay to such
Affected Person additional amounts necessary to compensate such Affected Person
for such additional cost or reduced amount receivable. All such amounts shall be
payable as incurred. A certificate from such Affected Person to the Seller and
the Administrator certifying, in reasonably specific detail, the basis for,
calculation of, and amount of such additional costs or reduced amount receivable
shall be conclusive and binding for all purposes, absent manifest error;
PROVIDED, HOWEVER, that no Affected Person shall be required to disclose any
confidential or tax planning information in any such certificate.

         Section 1.9. INABILITY TO DETERMINE EURO-RATE. (a) If the Administrator
(or any Purchaser Agent) determines before the first day of any Yield Period
(which determination shall be final and conclusive) that, by reason of
circumstances affecting the interbank eurodollar market generally, deposits in
dollars (in the relevant amounts for such Yield Period) are not being offered to
banks in the interbank eurodollar market for such Yield Period, or adequate
means do not exist for ascertaining the Euro-Rate for such Yield Period, then
the Administrator shall give notice thereof to the Seller. Thereafter, until the
Administrator or such Purchaser Agent notifies the Seller that the circumstances
giving rise to such suspension no longer exist, (a) no Portion of Investment
shall be funded at the Yield Rate determined by reference to the Euro-Rate and
(b) the Discount for any outstanding Portions of Investment then funded at the
Yield Rate determined by reference to the Euro-Rate shall, on the last day of
the then current Yield Period, be converted to the Yield Rate determined by
reference to the Base Rate.

         (b) If, on or before the first day of any Yield Period, the
Administrator shall have been notified by any Purchaser, Purchaser Agent or
Liquidity Provider that, such Person has determined (which determination shall
be final and conclusive) that, any enactment, promulgation or adoption of or any
change in any applicable law, rule or regulation, or any change in the
interpretation or administration thereof by a governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by such Person with any guideline, request

                                       12
<PAGE>

or directive (whether or not having the force of law) of any such authority,
central bank or comparable agency shall make it unlawful or impossible for such
Person to fund or maintain any Portion of Investment at the Yield Rate and based
upon the Euro-Rate, the Administrator shall notify the Seller thereof. Upon
receipt of such notice, until the Administrator notifies the Seller that the
circumstances giving rise to such determination no longer apply, (a) no Portion
of Investment shall be funded at the Yield Rate determined by reference to the
Euro-Rate and (b) the Discount for any outstanding Portions of Investment then
funded at the Yield Rate determined by reference to the Euro-Rate shall be
converted to the Yield Rate determined by reference to the Base Rate either (i)
on the last day of the then current Yield Period if such Person may lawfully
continue to maintain such Portion of Investment at the Yield Rate determined by
reference to the Euro-Rate to such day, or (ii) immediately, if such Person may
not lawfully continue to maintain such Portion of Investment at the Yield Rate
determined by reference to the Euro-Rate to such day.

         Section 1.10. EXTENSION OF TERMINATION DATE. The Seller may advise the
Administrator and each Purchaser Agent in writing of its desire to extend the
Facility Termination Date for an additional 364 days, provided such request is
made not more than 90 days prior to, and not less than 60 days prior to, the
then current Facility Termination Date. In the event that the Purchaser Agents
are all agreeable to such extension, the Administrator shall so notify the
Seller in writing (it being understood that the Purchaser Agents may accept or
decline such a request in their sole discretion and on such terms as they may
elect) not less than 30 days prior to the then current Facility Termination Date
and the Seller, the Administrator, the Purchaser Agents and the Purchasers shall
enter into such documents as the Purchasers may deem necessary or appropriate to
reflect such extension, and all reasonable costs and expenses incurred by the
Purchasers, the Administrator and the Purchaser Agents in connection therewith
(including reasonable Attorneys' Costs) shall be paid by the Seller. In the
event the Purchaser Agents decline the request for such extension, the
Administrator shall so notify the Seller of such determination; provided,
however, that the failure of the Administrator to notify the Seller of the
determination to decline such extension shall not affect the understanding and
agreement that the Purchaser Agents shall be deemed to have refused to grant the
requested extension in the event the Administrator fails to affirmatively notify
the Seller, in writing, of their agreement to accept the requested extension.

                                   ARTICLE II
                   REPRESENTATIONS AND WARRANTIES; COVENANTS;
                               TERMINATION EVENTS

         Section 2.1. REPRESENTATIONS AND WARRANTIES; COVENANTS. Each of the
Seller, Greetings and the Servicer hereby makes the representations and
warranties, and hereby agrees to perform and observe the covenants, applicable
to it set forth in EXHIBITS III and IV, respectively.

         Section 2.2. TERMINATION EVENTS. If any of the Termination Events set
forth in EXHIBIT V shall occur, the Administrator may (with the consent of a
Simple Majority of the Purchasers) or shall

                                       13
<PAGE>

(at the direction of a Simple Majority of the Purchasers), by notice to the
Seller, declare the Facility Termination Date to have occurred (in which case
the Facility Termination Date shall be deemed to have occurred); PROVIDED, that
automatically upon the occurrence of any event (without any requirement for the
passage of time or the giving of notice) described in PARAGRAPH (f) of EXHIBIT
V, the Facility Termination Date shall occur. Upon any such declaration,
occurrence or deemed occurrence of the Facility Termination Date, the
Administrator, each Purchaser Agent and each Purchaser shall have, in addition
to the rights and remedies that they may have under this Agreement, all other
rights and remedies provided after default under the New York UCC and under
other applicable law, which rights and remedies shall be cumulative.

                                   ARTICLE III
                                 INDEMNIFICATION

         Section 3.1. INDEMNITIES BY THE SELLER. Without limiting any other
rights that the any Purchaser Agent, Purchaser, Liquidity Provider, the
Administrator or any Program Support Provider or any of their respective
Affiliates, employees, officers, directors, agents, counsel, successors,
transferees or assigns (each, an "INDEMNIFIED PARTY ") may have hereunder or
under applicable law, the Seller hereby agrees to indemnify each Indemnified
Party from and against any and all claims, damages, expenses, costs, losses and
liabilities (including Attorney Costs) (all of the foregoing being collectively
referred to as "INDEMNIFIED AMOUNTS ") arising out of or resulting from this
Agreement (whether directly or indirectly), the use of proceeds of purchases or
reinvestments, the ownership of the Purchased Interest, or any interest therein,
or in respect of any Receivable, Related Security or Contract, excluding,
however: (a) Indemnified Amounts to the extent resulting from gross negligence
or willful misconduct on the part of such Indemnified Party or its officers,
directors, agents or counsel, (b) recourse with respect to any Receivable to the
extent that such Receivable is uncollectible on account of the insolvency,
bankruptcy or lack of credit worthiness of the related Obligor, or (c) any
overall net income taxes or franchise taxes imposed on such Indemnified Party by
the jurisdiction under the laws of which such Indemnified Party is organized or
otherwise is considered doing business (unless the Indemnified Party would not
be considered doing business in such jurisdiction, but for having entered into,
or engaged in the transactions in connection with this Agreement or any other
Transaction Document) or any political subdivision thereof. Without limiting or
being limited by the foregoing, and subject to the exclusions set forth in the
preceding sentence, the Seller shall pay on demand (which demand shall be
accompanied by documentation of the Indemnified Amounts, in reasonable detail)
to each Indemnified Party any and all amounts necessary to indemnify such
Indemnified Party from and against any and all Indemnified Amounts relating to
or resulting from any of the following:

                      (i) the failure of any Receivable included in the
                  calculation of the Net Receivables Pool Balance as an Eligible
                  Receivable to be an Eligible Receivable, the failure of any
                  information contained in an Information Package to be true and
                  correct, or the failure of any other information provided to
                  such Indemnified Party by the

                                       14
<PAGE>

                  Seller or Servicer with respect to Receivables or this
                  Agreement to be true and correct,

                      (ii) the failure of any representation, warranty or
                  statement made or deemed made by the Seller (or any of its
                  officers) under or in connection with this Agreement to have
                  been true and correct as of the date made or deemed made in
                  all respects when made,

                      (iii) the failure by the Seller to comply with any
                  applicable law, rule or regulation with respect to any Pool
                  Receivable or the related Contract, or the failure of any Pool
                  Receivable or the related Contract to conform to any such
                  applicable law, rule or regulation,

                      (iv) the failure to vest in the Administrator (for the
                  benefit of the Purchasers) a valid and enforceable: (A)
                  perfected undivided percentage ownership interest, to the
                  extent of the Purchased Interest, in the Receivables in, or
                  purporting to be in, the Receivables Pool and the other Pool
                  Assets, or (B) first priority perfected security interest in
                  the Pool Assets, in each case, free and clear of any Adverse
                  Claim,

                      (v) the failure to have filed, or any delay in filing,
                  financing statements or other similar instruments or documents
                  under the UCC of any applicable jurisdiction or other
                  applicable laws with respect to any Receivables in, or
                  purporting to be in, the Receivables Pool and the other Pool
                  Assets, whether at the time of any purchase or reinvestment or
                  at any subsequent time,

                      (vi) any dispute, claim, offset or defense (other than any
                  reduction, revision or discharge in bankruptcy of or other
                  Insolvency Event in respect of the Obligor) of the Obligor to
                  the payment of any Receivable in, or purporting to be in, the
                  Receivables Pool (including a defense (not connected with any
                  Insolvency Event) based on such Receivable or the related
                  Contract not being a legal, valid and binding obligation of
                  such Obligor enforceable against it in accordance with its
                  terms), or any other claim resulting from the sale of the
                  goods or services related to such Receivable or the furnishing
                  or failure to furnish such goods or services or relating to
                  collection activities with respect to such Receivable,

                      (vii) any failure of the Seller, any Affiliate of the
                  Seller or the Servicer to perform its duties or obligations in
                  accordance with the provisions hereof or under the Contracts,

                      (viii) any products liability or other claim,
                  investigation, litigation or proceeding arising out of or in
                  connection with merchandise, insurance or services that are
                  the subject of any Contract,

                                       15
<PAGE>
                      (ix) the commingling of Collections at any time with
                  other funds,

                      (x) the use of proceeds of purchases or reinvestments, or

                      (xi) any reduction in the Aggregate Investment as a result
                  of the distribution of Collections pursuant to SECTION 1.4(d),
                  if all or a portion of such distributions shall thereafter be
                  rescinded or otherwise must be returned for any reason.

         Section 3.2. INDEMNITIES BY THE SERVICER. Without limiting any other
rights that any Indemnified Party may have hereunder or under applicable law,
the Servicer hereby agrees to indemnify each Indemnified Party from and against
any and all Indemnified Amounts arising out of or resulting from (whether
directly or indirectly): (a) the failure of any information contained in an
Information Package to be true and correct, or the failure of any other
information provided to such Indemnified Party by, or on behalf of, the Servicer
to be true and correct, (b) the failure of any representation, warranty or
statement made or deemed made by the Servicer (or any of its officers) under or
in connection with this Agreement or any other Transaction Document to which it
is a party to have been true and correct as of the date made or deemed made in
all respects when made, (c) the failure by the Servicer to comply with any
applicable law, rule or regulation with respect to any Pool Receivable or the
related Contract, (d) any dispute, claim, offset or defense of the Obligor to
the payment of any Receivable in, or purporting to be in, the Receivables Pool
resulting from or related to the collection activities with respect to such
Receivable, (e) any failure of the Servicer to perform its duties or obligations
in accordance with the provisions hereof or any other Transaction Document to
which it is a party, (f) the failure to have filed, or any delay in filing,
financing statements or other similar instruments or documents under the UCC of
any applicable jurisdiction or other applicable laws with respect to any
Receivables in, or purporting to be in, the Receivables Pool and the other Pool
Assets, whether at the time of any purchase or reinvestment or at any subsequent
time, or (g) any commingling by the Servicer of Collections at any time with
other funds.

                                   ARTICLE IV
                         ADMINISTRATION AND COLLECTIONS

         Section 4.1. APPOINTMENT OF THE SERVICER.

                  (a) The servicing, administering and collection of the Pool
         Receivables shall be conducted by the Person so designated from time to
         time as the Servicer in accordance with this Section. Until the
         Administrator gives notice to Greetings (in accordance with this
         SECTION 4.1) of the designation of a new Servicer, Greetings is hereby
         designated as, and hereby agrees to perform the duties and obligations
         of, the Servicer pursuant to the terms hereof. Upon the occurrence of a
         Termination Event, the Administrator may (with the consent of the
         Majority Purchasers) or shall (at the direction of the Majority
         Purchasers)

                                       16
<PAGE>

         designate as Servicer any Person (including itself) to succeed
         Greetings or any successor Servicer, on the condition in each case that
         any such Person so designated shall agree to perform the duties and
         obligations of the Servicer pursuant to the terms hereof.

                  (b) Upon the designation of a successor Servicer as set forth
         in CLAUSE (a), Greetings agrees that it will terminate its activities
         as Servicer hereunder in a manner that the Administrator determines
         will facilitate the transition of the performance of such activities to
         the new Servicer, and Greetings shall cooperate with and assist such
         new Servicer. Such cooperation shall include access to and transfer of
         related records (including all Contracts) and use by the new Servicer
         of all licenses, hardware or software necessary or desirable to collect
         the Pool Receivables and the Related Security.

                  (c) Greetings acknowledges that, in making their decision to
         execute and deliver this Agreement, the Administrator and each
         Purchaser Group have relied on Greetings's agreement to act as Servicer
         hereunder. Accordingly, Greetings agrees that it will not voluntarily
         resign as Servicer without the consent of the Majority Purchasers.

                  (d) The Servicer may delegate its duties and obligations
         hereunder to any subservicer (each a "SUB-SERVICER "); PROVIDED, that,
         in each such delegation: (i) such Sub- Servicer shall agree in writing
         to perform the duties and obligations of the Servicer pursuant to the
         terms hereof, (ii) the Servicer shall remain primarily liable for the
         performance of the duties and obligations so delegated, (iii) the
         Seller, the Administrator and each Purchaser Group shall have the right
         to look solely to the Servicer for performance, and (iv) the terms of
         any agreement with any Sub-Servicer shall provide that the
         Administrator may terminate such agreement upon the termination of the
         Servicer hereunder by giving notice of its desire to terminate such
         agreement to the Servicer (and the Servicer shall provide appropriate
         notice to each such Sub-Servicer); PROVIDED, HOWEVER, that if any such
         delegation is to any Person other than an Originator or an Affiliate
         thereof, the Administrator and the Majority Purchasers shall have
         consented in writing in advance to such delegation; PROVIDED FURTHER
         that the parties agree that AGSC and each Originator shall serve as
         initial Sub-Servicers.

         Section 4.2. DUTIES OF THE SERVICER.

                  (a) The Servicer shall take or cause to be taken all such
         action as may be necessary or advisable to administer and collect each
         Pool Receivable from time to time, all in accordance with this
         Agreement and all applicable laws, rules and regulations, with
         reasonable care and diligence, and in accordance with the Credit and
         Collection Policies. The Servicer shall set aside, for the account of
         each Purchaser Group, the amount of the Collections to which each such
         Purchaser Group is entitled in accordance with ARTICLE I. The Servicer
         may, in accordance with the applicable Credit and Collection Policy,
         take such action as the Servicer may determine to be appropriate to
         maximize Collections thereof or reflect adjustments required under the
         applicable Contract; PROVIDED, HOWEVER, that: (i) such action shall not
         change the number of days such Pool Receivable has remained unpaid from

                                       17
<PAGE>

         the date of the original due date related to such Pool Receivable and
         (ii) such action shall not alter the status of such Pool Receivable as
         a Delinquent Receivable or a Defaulted Receivable or limit the rights
         of the Administrator or any Purchaser Group under this Agreement. The
         Seller shall deliver to the Servicer and the Servicer shall hold for
         the benefit of the Seller and the Administrator (individually and for
         the benefit of each Purchaser Group), in accordance with their
         respective interests, all records and documents (including computer
         tapes or disks) with respect to each Pool Receivable. Notwithstanding
         anything to the contrary contained herein, the Administrator may direct
         the Servicer (whether the Servicer is Greetings, AGSC, any Originator
         or any other Person) to commence or settle any legal action to enforce
         collection of any Pool Receivable or to foreclose upon or repossess any
         Related Security; PROVIDED, HOWEVER, that no such direction may be
         given unless either: (A) a Termination Event has occurred or (B) the
         Administrator believes in good faith that failure to commence, settle
         or effect such legal action, foreclosure or repossession could
         adversely affect Receivables constituting a material portion of the
         Pool Receivables.

                  (b) The Servicer shall, as soon as practicable following
         actual receipt of collected funds, turn over to the Seller the
         collections of any indebtedness that is not a Pool Receivable, less, if
         Greetings, AGSC, any Originator or an Affiliate thereof is not the
         Servicer, all reasonable and appropriate out-of-pocket costs and
         expenses of such Servicer of servicing, collecting and administering
         such collections. The Servicer, if other than Greetings, AGSC, any
         Originator or an Affiliate thereof, shall, as soon as practicable upon
         demand, deliver to the Seller all records in its possession that
         evidence or relate to any indebtedness that is not a Pool Receivable,
         and copies of records in its possession that evidence or relate to any
         indebtedness that is a Pool Receivable.

                  (c) The Servicer's obligations hereunder shall terminate on
         the later of: (i) the Facility Termination Date and (ii) the date on
         which all amounts required to be paid to the Purchaser Agents, each
         Purchaser, the Administrator and any other Indemnified Party or
         Affected Person hereunder shall have been paid in full.

         After such termination, if Greetings, AGSC, any Originator or an
Affiliate thereof was not the Servicer on the date of such termination, the
Servicer shall promptly deliver to the Seller all books, records and related
materials that the Seller previously provided to the Servicer, or that have been
obtained by the Servicer, in connection with this Agreement.

         Section 4.3. LOCK-BOX ACCOUNT ARRANGEMENTS. On the Closing Date (or,
solely in the case of Lock-Box Banks used solely for Plus Mark, Inc.
Receivables, the Plus Mark Addition Date), the Seller shall have entered into
Lock-Box Agreements with all of the Lock-Box Banks and delivered original
counterparts of each to the Administrator and each Purchaser Agent. Upon the
occurrence of a Termination Event, the Administrator may (with the consent of a
Simple Majority of the Purchasers) or shall (upon the direction of a Simple
Majority of the Purchasers) at any time thereafter give notice to each Lock-Box
Bank that the Administrator is exercising its rights under the Lock-Box
Agreements to do any or all of the following: (a) to have the exclusive
ownership and control of the

                                       18
<PAGE>

Lock-Box Accounts transferred to the Administrator (for the benefit of the
Purchasers) and to exercise exclusive dominion and control over the funds
deposited therein, (b) to have the proceeds that are sent to the respective
Lock-Box Accounts redirected pursuant to the Administrator's instructions rather
than deposited in the applicable Lock-Box Account, and (c) to take any or all
other actions permitted under the applicable Lock-Box Agreement. The Seller
hereby agrees that if the Administrator at any time takes any action set forth
in the preceding sentence, the Administrator shall have exclusive control (for
the benefit of the Purchasers) of the proceeds (including Collections) of all
Pool Receivables and the Seller hereby further agrees to take any other action
that the Administrator or any Purchaser Agent may reasonably request to transfer
such control. Any proceeds of Pool Receivables received by the Seller or the
Servicer thereafter shall be sent immediately to the Administrator. The parties
hereto hereby acknowledge that if at any time the Administrator takes control of
any Lock-Box Account, the Administrator shall not have any rights to the funds
therein in excess of the unpaid amounts due to the Administrator, the Purchaser
Groups, any Indemnified Party or any other Person hereunder, and the
Administrator shall distribute or cause to be distributed such funds in
accordance with SECTION 4.2(b) and ARTICLE I (in each case as if such funds were
held by the Servicer thereunder).

         Section 4.4. ENFORCEMENT RIGHTS.

                  (a) At any time following the occurrence of a Termination
         Event:

                      (i) the Administrator may (with the consent or at the
                  direction of the Majority Purchasers) direct the Obligors that
                  payment of all amounts payable under any Pool Receivable is to
                  be made directly to the Administrator or its designee,

                      (ii) the Administrator may (with the consent or at the
                  direction of the Majority Purchasers) instruct the Seller or
                  the Servicer to give notice of the Purchaser Groups' interest
                  in Pool Receivables to each Obligor, which notice shall direct
                  that payments be made directly to the Administrator or its
                  designee (on behalf of such Purchaser Groups), and the Seller
                  or the Servicer, as the case may be, shall give such notice at
                  the expense of the Seller or the Servicer, as the case may be;
                  PROVIDED, that if the Seller or the Servicer, as the case may
                  be, fails to so notify each Obligor, the Administrator (at the
                  Seller's or the Servicer's, as the case may be, expense) may
                  so notify the Obligors, and

                      (iii) the Administrator may (with the consent or at the
                  direction of the Majority Purchasers) request the Servicer to,
                  and upon such request the Servicer shall: (A) assemble all of
                  the records necessary or desirable to collect the Pool
                  Receivables and the Related Security, and transfer or license
                  to a successor Servicer the use of all software necessary or
                  desirable to collect the Pool Receivables and the Related
                  Security, and make the same available to the Administrator or
                  its designee (for the benefit of the Purchasers) at a place
                  selected by the Administrator, and (B) segregate all cash,
                  checks and other instruments received by it from time to time

                                       19
<PAGE>

                  constituting Collections in a manner acceptable to the
                  Administrator and, promptly upon receipt, remit all such cash,
                  checks and instruments, duly endorsed or with duly executed
                  instruments of transfer, to the Administrator or its designee.

                  (b) The Seller hereby authorizes the Administrator (on behalf
         of each Purchaser Group), and irrevocably appoints the Administrator as
         its attorney-in-fact with full power of substitution and with full
         authority in the place and stead of the Seller, which appointment is
         coupled with an interest, to take any and all steps in the name of the
         Seller and on behalf of the Seller necessary or desirable, in the
         determination of the Administrator, after the occurrence of a
         Termination Event, to collect any and all amounts or portions thereof
         due under any and all Pool Assets, including endorsing the name of the
         Seller on checks and other instruments representing Collections and
         enforcing such Pool Assets. Notwithstanding anything to the contrary
         contained in this subsection, none of the powers conferred upon such
         attorney-in-fact pursuant to the preceding sentence shall subject such
         attorney-in-fact to any liability if any action taken by it shall prove
         to be inadequate or invalid, nor shall they confer any obligations upon
         such attorney-in-fact in any manner whatsoever.

         Section 4.5. RESPONSIBILITIES OF THE SELLER.

                  (a) Anything herein to the contrary notwithstanding, the
         Seller shall: (i) perform all of its obligations, if any, under the
         Contracts related to the Pool Receivables to the same extent as if
         interests in such Pool Receivables had not been transferred hereunder,
         and the exercise by the Administrator, the Purchaser Agents or the
         Purchasers of their respective rights hereunder shall not relieve the
         Seller from such obligations, and (ii) pay when due any taxes,
         including any sales taxes payable in connection with the Pool
         Receivables and their creation and satisfaction. The Administrator, the
         Purchaser Agents or any of the Purchasers shall not have any obligation
         or liability with respect to any Pool Asset, nor shall any of them be
         obligated to perform any of the obligations of the Seller, Servicer,
         Greetings, AGSC, or the Originators thereunder.

                  (b) Greetings hereby irrevocably agrees that if at any time it
         shall cease to be the Servicer hereunder, it shall act, and shall cause
         any former or current Sub-Servicers to act, (if the then-current
         Servicer so requests) as the data-processing agent of the Servicer and,
         in such capacity, Greetings shall conduct, and shall cause the former
         or current Sub-Servicers to conduct, the data-processing functions of
         the administration of the Receivables and the Collections thereon in
         substantially the same way that Greetings conducted such data-
         processing functions while it acted as the Servicer.

         Section 4.6. SERVICING FEE. (a) Subject to CLAUSE (b), the Servicer
shall be paid a fee (the "SERVICING FEE") equal to the lesser of (i) 1.50% PER
ANNUM of the daily average aggregate Outstanding Balance of the Pool Receivables
and (ii) 110% of the aggregate reasonable costs and expenses incurred by
Servicer in connection with performance of its obligations as Servicer. The
Aggregate of each Purchaser Group's Ratable Share of such fee shall be paid
through the

                                       20
<PAGE>

distributions contemplated by SECTION 1.4(d), and the Seller's Share of such fee
shall be paid by the Seller.

         (b) If the Servicer ceases to be Greetings or an Affiliate thereof, the
servicing fee shall be the greater of: (i) the amount calculated pursuant to
CLAUSE (a), and (ii) an alternative amount specified by the successor Servicer
not to exceed 110% of the aggregate reasonable costs and expenses incurred by
such successor Servicer in connection with the performance of its obligations as
Servicer.

                                    ARTICLE V
                                   THE AGENTS

         Section 5.1. APPOINTMENT AND AUTHORIZATION. (a) Each Purchaser and
Purchaser Agent hereby irrevocably designates and appoints PNC as the
"Administrator" hereunder and authorizes the Administrator to take such actions
and to exercise such powers as are delegated to the Administrator hereby and to
exercise such other powers as are reasonably incidental thereto. The
Administrator shall hold, in its name, for the benefit of each Purchaser,
ratably, the Purchased Interest. The Administrator shall not have any duties
other than those expressly set forth herein or any fiduciary relationship with
any Purchaser or Purchaser Agent, and no implied obligations or liabilities
shall be read into this Agreement, or otherwise exist, against the
Administrator. The Administrator does not assume, nor shall it be deemed to have
assumed, any obligation to, or relationship of trust or agency with, the Seller
or Servicer. Notwithstanding any provision of this Agreement or any other
Transaction Document to the contrary, in no event shall the Administrator ever
be required to take any action which exposes the Administrator to personal
liability or which is contrary to the provision of any Transaction Document or
applicable law.

                  (b) Each Purchaser hereby irrevocably designates and appoints
the respective institution identified as the Purchaser Agent for such
Purchaser's Purchaser Group on the signature pages hereto or in the Assumption
Agreement or Transfer Supplement pursuant to which such Purchaser becomes a
party hereto, and each authorizes such Purchaser Agent to take such action on
its behalf under the provisions of this Agreement and to exercise such powers
and perform such duties as are expressly delegated to such Purchaser Agent by
the terms of this Agreement, if any, together with such other powers as are
reasonably incidental thereto. Notwithstanding any provision to the contrary
elsewhere in this Agreement, no Purchaser Agent shall have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Purchaser or other Purchaser Agent or the Administrator,
and no implied covenants, functions, responsibilities, duties, obligations or
liabilities on the part of such Purchaser Agent shall be read into this
Agreement or otherwise exist against such Purchaser Agent.

                  (c) Except as otherwise specifically provided in this
Agreement, the provisions of this Article V are solely for the benefit of the
Purchaser Agents, the Administrator and the Purchasers,

                                       21
<PAGE>

and none of the Seller or Servicer shall have any rights as a third-party
beneficiary or otherwise under any of the provisions of this ARTICLE V, except
that this ARTICLE V shall not affect any obligations which any Purchaser Agent,
the Administrator or any Purchaser may have to the Seller or the Servicer under
the other provisions of this Agreement. Furthermore, no Purchaser shall have any
rights as a third-party beneficiary or otherwise under any of the provisions
hereof in respect of a Purchaser Agent which is not the Purchaser Agent for such
Purchaser.

                  (d) In performing its functions and duties hereunder, the
Administrator shall act solely as the agent of the Purchasers and the Purchaser
Agents and does not assume nor shall be deemed to have assumed any obligation or
relationship of trust or agency with or for the Seller or Servicer or any of
their successors and assigns. In performing its functions and duties hereunder,
each Purchaser Agent shall act solely as the agent of its respective Purchaser
and does not assume nor shall be deemed to have assumed any obligation or
relationship of trust or agency with or for the Seller, the Servicer, any other
Purchaser, any other Purchaser Agent or the Administrator, or any of their
respective successors and assigns.

         Section 5.2. DELEGATION OF DUTIES. The Administrator may execute any
of its duties through agents or attorneys-in-fact and shall be entitled to
advice of counsel concerning all matters pertaining to such duties. The
Administrator shall not be responsible for the negligence or misconduct of any
agents or attorneys-in-fact selected by it with reasonable care.

         Section 5.3. EXCULPATORY PROVISIONS. None of the Purchaser Agents, the
Administrator or any of their directors, officers, agents or employees shall be
liable for any action taken or omitted (i) with the consent or at the direction
of the Majority Purchasers (or in the case of any Purchaser Agent, the
Purchasers within its Purchaser Group that have a majority of the aggregate
Commitment of such Purchaser Group) or (ii) in the absence of such Person's
gross negligence or willful misconduct. The Administrator shall not be
responsible to any Purchaser, Purchaser Agent or other Person for (i) any
recitals, representations, warranties or other statements made by the Seller,
Servicer, or any of their Affiliates, (ii) the value, validity, effectiveness,
genuineness, enforceability or sufficiency of any Transaction Document, (iii)
any failure of the Seller, AGSC, any Originator, Greetings or any of their
Affiliates to perform any obligation or (iv) the satisfaction of any condition
specified in EXHIBIT II. The Administrator shall not have any obligation to any
Purchaser or Purchaser Agent to ascertain or inquire about the observance or
performance of any agreement contained in any Transaction Document or to inspect
the properties, books or records of the Seller, Greetings, Servicer, AGSC, any
Originator or any of their Affiliates.

         Section 5.4. RELIANCE BY AGENTS. Each Purchaser Agent and the
Administrator shall in all cases be entitled to rely, and shall be fully
protected in relying, upon any document or other writing or conversation
believed by it to be genuine and correct and to have been signed, sent or made
by the proper Person and upon advice and statements of legal counsel (including
counsel to the Seller), independent accountants and other experts selected by
the Administrator. Each Purchaser Agent and the Administrator shall in all cases
be fully justified in failing or refusing to take any action under any
Transaction Document unless it shall first receive such advice or concurrence of
the Majority

                                       22
<PAGE>

Purchasers (or in the case of any Purchaser Agent, the Purchasers within its
Purchaser Group that have a majority of the aggregate Commitment of such
Purchaser Group), and assurance of its indemnification, as it deems appropriate.

                  (b) The Administrator shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement in accordance with a
request of the Majority Purchasers or the Purchaser Agents, and such request and
any action taken or failure to act pursuant thereto shall be binding upon all
Purchasers, the Administrator and Purchaser Agents.

                  (c) The Purchasers within each Purchaser Group with a majority
of the Commitment of such Purchaser Group shall be entitled to request or direct
the related Purchaser Agent to take action, or refrain from taking action, under
this Agreement on behalf of such Purchasers. Such Purchaser Agent shall in all
cases be fully protected in acting, or in refraining from acting, under this
Agreement in accordance with a request of such majority Purchasers, and such
request and any action taken or failure to act pursuant thereto shall be binding
upon all of such Purchaser Agent's Purchasers.

                  (d) Unless otherwise advised in writing by a Purchaser Agent
or by any Purchaser on whose behalf such Purchaser Agent is purportedly acting,
each party to this Agreement may assume that (i) such Purchaser Agent is acting
for the benefit of each of the Purchasers in respect of which such Purchaser
Agent is identified as being the "Purchaser Agent" in the definition of
"Purchaser Agent" hereto, as well as for the benefit of each assignee or other
transferee from any such Person, and (ii) each action taken by such Purchaser
Agent has been duly authorized and approved by all necessary action on the part
of the Purchasers on whose behalf it is purportedly acting. Each Purchaser Agent
and its Purchaser(s) shall agree amongst themselves as to the circumstances and
procedures for removal, resignation and replacement of such Purchaser Agent.

         Section 5.5. NOTICE OF TERMINATION EVENTS. Neither any Purchaser Agent
nor the Administrator shall be deemed to have knowledge or notice of the
occurrence of any Termination Event or Unmatured Termination Event unless such
Administrator has received notice from any Purchaser, Purchaser Agent, the
Servicer or the Seller stating that a Termination Event or Unmatured Termination
Event has occurred hereunder and describing such Termination Event or Unmatured
Termination Event. In the event that the Administrator receives such a notice,
it shall promptly give notice thereof to each Purchaser Agent whereupon each
such Purchaser Agent shall promptly give notice thereof to its Purchasers. In
the event that a Purchaser Agent receives such a notice (other than from the
Administrator), it shall promptly give notice thereof to the Administrator. The
Administrator shall take such action concerning a Termination Event or Unmatured
Termination Event as may be directed by the Majority Purchasers unless such
action otherwise requires the consent of all Purchasers), but until the
Administrator receives such directions, the Administrator may (but shall not be
obligated to) take such action, or refrain from taking such action, as the
Administrator deems advisable and in the best interests of the Purchasers and
Purchaser Agents.

                                       23
<PAGE>

         Section 5.6. NON-RELIANCE ON ADMINISTRATOR, PURCHASER AGENTS AND OTHER
PURCHASERS. Each Purchaser expressly acknowledges that none of the
Administrator, the Purchaser Agents nor any of their respective officers,
directors, employees, agents, attorneys-in-fact or Affiliates has made any
representations or warranties to it and that no act by the Administrator, or any
Purchaser Agent hereafter taken, including any review of the affairs of the
Seller, Greetings, Servicer, AGSC, or any Originator, shall be deemed to
constitute any representation or warranty by the Administrator or such Purchaser
Agent, as applicable. Each Purchaser represents and warrants to the
Administrator and the Purchaser Agents that, independently and without reliance
upon the Administrator, Purchaser Agents or any other Purchaser and based on
such documents and information as it has deemed appropriate, it has made and
will continue to make its own appraisal of and investigation into the business,
operations, property, prospects, financial and other conditions and
creditworthiness of the Seller, Greetings, AGSC, Servicer or the Originators,
and the Receivables and its own decision to enter into this Agreement and to
take, or omit, action under any Transaction Document. Except for items
specifically required to be delivered hereunder, the Administrator shall not
have any duty or responsibility to provide any Purchaser Agent with any
information concerning the Seller, Greetings, AGSC, Servicer or the Originators
or any of their Affiliates that comes into the possession of the Administrator
or any of its officers, directors, employees, agents, attorneys-in-fact or
Affiliates.

         Section 5.7. ADMINISTRATORS AND AFFILIATES. Each of the Purchasers and
the Administrator and their Affiliates may extend credit to, accept deposits
from and generally engage in any kind of banking, trust, debt, equity or other
business with the Seller, Greetings, AGSC, Servicer or any Originator or any of
their Affiliates and PNC may exercise or refrain from exercising its rights and
powers as if it were not the Administrator. With respect to the acquisition of
the Eligible Receivables pursuant to this Agreement, each of the Purchaser
Agents and the Administrator shall have the same rights and powers under this
Agreement as any Purchaser and may exercise the same as though it were not such
an agent, and the terms "Purchaser" and "Purchasers" shall include each of the
Purchaser Agents and the Administrator in their individual capacities.

         Section 5.8. INDEMNIFICATION. Each Purchaser Group shall indemnify and
hold harmless the Administrator (but solely in its capacity as Administrator)
and its officers, directors, employees, representatives and agents (to the
extent not reimbursed by the Seller, Greetings AGSC, or Servicer and without
limiting the obligation of the Seller, Greetings, AGSC, or Servicer to do so),
ratably in accordance with its Ratable Share from and against any and all
liabilities, obligations, losses, damages, penalties, judgments, settlements,
costs, expenses and disbursements of any kind whatsoever (including in
connection with any investigative or threatened proceeding, whether or not the
Administrator or such Person shall be designated a party thereto) that may at
any time be imposed on, incurred by or asserted against the Administrator or
such Person as a result of, or related to, any of the transactions contemplated
by the Transaction Documents or the execution, delivery or performance of the
Transaction Documents or any other document furnished in connection therewith
(but excluding any such liabilities, obligations, losses, damages, penalties,
judgments, settlements, costs, expenses or disbursements resulting solely from
the gross negligence or willful misconduct of the Administrator or such Person
as finally determined by a court of competent jurisdiction); PROVIDED, that in
the case of each Purchaser that is a commercial paper conduit, such

                                       24
<PAGE>

indemnity shall be provided solely to the extent of amounts received by such
Purchaser under this Agreement which exceed the amounts required to repay such
Purchaser's outstanding Notes. Notwithstanding anything in this SECTION 5.8 to
the contrary, each of the Administrator, each Purchaser Agent and each Purchaser
hereby covenants and agrees that it shall not institute against, or join any
other Person in instituting against, any Conduit Purchaser any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding or other
proceedings under any federal or state bankruptcy or similar law, for one year
and a day after the latest maturing Note issued by such Conduit Purchaser is
paid in full.

         Section 5.9. SUCCESSOR ADMINISTRATOR. The Administrator may, upon at
least five (5) days notice to the Seller and each Purchaser and Purchaser Agent,
resign as Administrator. Such resignation shall not become effective until a
successor agent is appointed by the Majority Purchasers and has accepted such
appointment. Upon such acceptance of its appointment as Administrator hereunder
by a successor Administrator, such successor Administrator shall succeed to and
become vested with all the rights and duties of the retiring Administrator, and
the retiring Administrator shall be discharged from its duties and obligations
under the Transaction Documents. After any retiring Administrator's resignation
hereunder, the provisions of SECTIONS 3.1 and 3.2 and this Article V shall inure
to its benefit as to any actions taken or omitted to be taken by it while it was
the Administrator.

                                   ARTICLE VI
                                  MISCELLANEOUS

         Section 6.1. AMENDMENTS, ETC. No amendment or waiver of any provision
of this Agreement or any other Transaction Document, or consent to any departure
by the Seller or the Servicer therefrom, shall be effective unless in a writing
signed by the Administrator and each of the Majority Purchasers, and, in the
case of any amendment, by the other parties thereto; and then such amendment,
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; PROVIDED, HOWEVER, that, if required by any
Conduit Purchaser, no such material amendment shall be effective until both
Moody's and Standard & Poor's have notified the related Purchaser Agent in
writing that such action will not result in a reduction or withdrawal of the
rating of any Notes; PROVIDED, FURTHER that no such amendment or waiver shall,
without the consent of each affected Purchaser, (A) extend the date of any
payment or deposit of Collections by the Seller or the Servicer, (B) reduce the
rate or extend the time of payment of Yield, (C) reduce any fees payable to the
Administrator, any Purchaser Agent or any Purchaser pursuant to the applicable
Purchaser Group Fee Letter, (D) change (except as contemplated by Section 1.4)
the amount of Investment of any Purchaser, any Purchaser's pro rata share of the
Purchased Interest or (except as contemplated by Section 1.10) any Related
Committed Purchaser's Commitment, (E) amend, modify or waive any provision of
the definition of "Majority Purchaser" or this SECTION 6.1, (F) consent to or
permit the assignment or transfer by the Seller of any of its rights and
obligations under this Agreement, (G) change the definition of "Concentration
Percentage," "Specifically Reserved Dilution Amount," "Sales Based Loss Reserve

                                       25
<PAGE>

Percentage," "Receivables Based Loss Reserve Percentage, "Eligible Receivable,"
"Loss Reserve," "Loss Reserve Percentage," "Dilution Reserve," "Dilution Reserve
Percentage," "Termination Event," "Total Reserve," "Yield Reserve," or "Yield
Reserve Percentage", (H) amend or modify any defined term (or any defined term
used directly or indirectly in such defined term) used in clauses (A) through
(G) above in a manner that would circumvent the intention of the restrictions
set forth in such clauses, or (I) otherwise materially and adversely affect the
rights of any such Purchaser hereunder. No failure on the part of the Purchasers
or the Administrator to exercise, and no delay in exercising any right hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of
any right hereunder preclude any other or further exercise thereof or the
exercise of any other right.

         Section 6.2. NOTICES, ETC. All notices and other communications
hereunder shall, unless otherwise stated herein, be in writing (which shall
include facsimile communication) and be sent or delivered to each party hereto
at its address set forth under its name on the signature pages hereof (or in any
Assumption Agreement pursuant to which it became a party hereto) or at such
other address as shall be designated by such party in a written notice to the
other parties hereto. Notices and communications by facsimile shall be effective
when sent (and shall be followed by hard copy sent by first class mail), and
notices and communications sent by other means shall be effective when received.

         Section 6.3. SUCCESSORS AND ASSIGNS; PARTICIPATIONS; ASSIGNMENTS.

         (a) SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns. Except as otherwise provided herein, the Seller may not assign or
transfer any of its rights or delegate any of its duties hereunder or under any
Transaction Document without the prior consent of the Administrator, the
Purchaser Agents and the Purchasers.

         (b) PARTICIPATIONS. Any Purchaser may sell to one or more Persons (each
a "PARTICIPANT ") participating interests in the interests of such Purchaser
hereunder; provided, however, that no Purchaser shall grant any participation
under which the Participant shall have rights to approve any amendment to or
waiver of this Agreement or any other Transaction Document. Such Purchaser shall
remain solely responsible for performing its obligations hereunder, and the
Seller, each Purchaser Agent and the Administrator shall continue to deal solely
and directly with such Purchaser in connection with such Purchaser's rights and
obligations hereunder. A Purchaser shall not agree with a Participant to
restrict such Purchaser's right to agree to any amendment hereto, except
amendments that require the consent of all Purchasers.

         (c) ASSIGNMENTS BY CERTAIN RELATED COMMITTED PURCHASERS. Any Related
Committed Purchaser may assign to one or more Persons (each a "PURCHASING
RELATED COMMITTED PURCHASER "), reasonably acceptable to the related Purchaser
Agent in its sole discretion, any portion of its Commitment pursuant to a
supplement hereto, substantially in the form of ANNEX D with any changes as have
been approved by the parties thereto (a "TRANSFER SUPPLEMENT "), executed by
each such Purchasing Related Committed Purchaser, such selling Related Committed
Purchaser, such

                                       26
<PAGE>

related Purchaser Agent. Any such assignment by Related Committed Purchaser
cannot be for an amount less than $10,000,000. Upon (i) the execution of the
Transfer Supplement, (ii) delivery of an executed copy thereof to the Seller,
such related Purchaser Agent and the Administrator and (iii) payment by the
Purchasing Related Committed Purchaser to the selling Related Committed
Purchaser of the agreed purchase price, such selling Related Committed Purchaser
shall be released from its obligations hereunder to the extent of such
assignment and such Purchasing Related Committed Purchaser shall for all
purposes be a Related Committed Purchaser party hereto and shall have all the
rights and obligations of a Related Committed Purchaser hereunder to the same
extent as if it were an original party hereto. The amount of the Commitment of
the selling Related Committed Purchaser allocable to such Purchasing Related
Committed Purchaser shall be equal to the amount of the Commitment of the
selling Related Committed Purchaser transferred regardless of the purchase price
paid therefor. The Transfer Supplement shall be an amendment hereof only to the
extent necessary to reflect the addition of such Purchasing Related Committed
Purchaser as a "Related Committed Purchaser" and any resulting adjustment of the
selling Related Committed Purchaser's Commitment.

         (d) REPLACEABLE RELATED COMMITTED PURCHASER. If any Related Committed
Purchaser (a "REPLACEABLE RELATED COMMITTED PURCHASER ") shall (i) petition the
Seller for any amounts under SECTION 1.7 or 1.8 or (ii) cease to have a
short-term debt rating of "A-1" by Standard & Poor's and "P-1" by Moody's (if
such a rating is required by the related Purchaser's securitization program),
the related Purchaser Agent or the Administrator may designate a replacement
financial institution (a "REPLACEMENT RELATED COMMITTED PURCHASER "), to which
such Replaceable Related Committed Purchaser shall, subject to its receipt of an
amount equal to the aggregate outstanding principal balance of its Investment
and accrued and unpaid Discount thereon (and, if applicable, its receipt (unless
a later date for the remittance thereof shall be agreed upon by the Seller and
such Replaceable Related Committed Purchaser) of all amounts claimed under
SECTION 1.7 and/or 1.8) promptly assign all of its rights, obligations and
Commitment hereunder, together with all of its right, title and interest in, to
and under the Purchased Interest allocable to it, to the Replacement Related
Committed Purchaser in accordance with SECTION 6.3(c), above. Once such
assignment becomes effective, the Replacement Related Committed Purchaser shall
be deemed to be a "Related Committed Purchaser" for all purposes hereof and such
Replaceable Related Committed Purchaser shall cease to be "Related Committed
Purchaser" for all purposes hereof and shall have no further rights or
obligations hereunder.

         (e) ASSIGNMENT BY CONDUIT PURCHASERS. Each party hereto agrees and
consents (i) to any Conduit Purchaser's assignment, participation, grant of
security interests in or other transfers of any portion of, or any of its
beneficial interest in, the Purchased Interest (or portion thereof), including
without limitation to any Liquidity Provider or to any collateral agent in
connection with its commercial paper program and (ii) to the complete assignment
by any Conduit Purchaser of all of its rights and obligations hereunder to any
other Person, and upon such assignment such Conduit Purchaser shall be released
from all obligations and duties, if any, hereunder; provided, however, that such
Conduit Purchaser may not, without the prior consent of its Related Committed
Purchasers, make any such transfer of its rights hereunder unless the assignee
(i) is principally engaged in the

                                       27
<PAGE>

purchase of assets similar to the assets being purchased hereunder, (ii) has as
its Purchaser Agent the Purchaser Agent of the assigning Conduit Purchaser and
(iii) issues commercial paper or other Notes with credit ratings substantially
comparable to the ratings of the assigning Conduit Purchaser. Any assigning
Conduit Purchaser shall deliver to any assignee a supplement hereto,
substantially in the form of ANNEX D with any changes as have been approved by
the parties thereto (also, a "TRANSFER SUPPLEMENT "), duly executed by such
Conduit Purchaser, assigning any portion of its interest in the Purchased
Interest to its assignee. Such Conduit Purchaser shall promptly (i) notify each
of the other parties hereto of such assignment and (ii) take all further action
that the assignee reasonably requests in order to evidence the assignee's right,
title and interest in such interest in the Purchased Interest and to enable the
assignee to exercise or enforce any rights of such Conduit Purchaser hereunder.
Upon the assignment of any portion of its interest in the Purchased Interest,
the assignee shall have all of the rights hereunder with respect to such
interest (except that the Discount therefor shall thereafter accrue at the rate,
determined with respect to the assigning Conduit Purchaser unless the Seller,
the related Purchaser Agent and the assignee shall have agreed upon a different
Discount).

         (f) OPINIONS OF COUNSEL. If required by the Administrator or the
applicable Purchaser Agent or to maintain the ratings of any Conduit Purchaser,
each Transfer Supplement must be accompanied by an opinion of counsel of the
assignee as to such matters as the Administrator or such Purchaser Agent may
reasonably request.

         Section 6.4. COSTS, EXPENSES AND TAXES. In addition to the rights of
indemnification granted under SECTION 3.1, the Seller agrees to pay on demand
(which demand shall be accompanied by documentation thereof in reasonable
detail) all reasonable costs and expenses in connection with the preparation,
execution, delivery and administration (including periodic internal audits by
the Administrator of Pool Receivables) of this Agreement, the other Transaction
Documents and the other documents and agreements to be delivered hereunder (and
all reasonable costs and expenses in connection with any amendment, waiver or
modification of any thereof), including: (i) Attorney Costs for the
Administrator, each Purchaser Group and their respective Affiliates and agents
with respect thereto and with respect to advising the Administrator, each
Purchaser Group and their respective Affiliates and agents as to their rights
and remedies under this Agreement and the other Transaction Documents, and (ii)
all reasonable costs and expenses (including Attorney Costs), if any, of the
Administrator, each Purchaser Group and their respective Affiliates and agents
in connection with the enforcement of this Agreement and the other Transaction
Documents.

                  (a) In addition, the Seller shall pay on demand any and all
         stamp and other taxes and fees payable in connection with the
         execution, delivery, filing and recording of this Agreement or the
         other documents or agreements to be delivered hereunder, and agrees to
         save each Indemnified Party harmless from and against any liabilities
         with respect to or resulting from any delay in paying or omission to
         pay such taxes and fees.

         Section 6.5. NO PROCEEDINGS; LIMITATION ON PAYMENTS. Each of the
Seller, Greetings, the Servicer, the Administrator, the Purchaser Agents, the
Purchasers, each assignee of the Purchased Interest or any interest therein, and
each Person that enters into a commitment to purchase the

                                       28
<PAGE>

Purchased Interest or interests therein, hereby covenants and agrees that it
will not institute against, or join any other Person in instituting against, any
Conduit Purchaser any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceeding, or other proceeding under any federal or state
bankruptcy or similar law, for one year and one day after the latest maturing
Note issued by such Conduit Purchaser is paid in full. The provision of this
SECTION 6.5 shall survive any termination of this Agreement.

         Section 6.6. GOVERNING LAW AND JURISDICTION.

                  (a) THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER
         AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING
         FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS
         LAW OF THE STATE OF NEW YORK) EXCEPT TO THE EXTENT THAT THE VALIDITY OR
         PERFECTION OF A SECURITY INTEREST OR REMEDIES HEREUNDER, IN RESPECT OF
         ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF A JURISDICTION
         OTHER THAN THE STATE OF NEW YORK.

                  (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
         AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF
         THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK; AND, BY
         EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE PARTIES HERETO
         CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE
         NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF THE PARTIES HERETO
         IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY
         OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON
         THE GROUNDS OF FORUM NON CONVENIENS, THAT IT MAY NOW OR HEREAFTER HAVE
         TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN
         RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. EACH OF THE
         PARTIES HERETO WAIVES PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR
         OTHER PROCESS, WHICH SERVICE MAY BE MADE BY ANY OTHER MEANS PERMITTED
         BY NEW YORK LAW.

         Section 6.7. EXECUTION IN COUNTERPARTS. This Agreement may be executed
in any number of counterparts, each of which, when so executed, shall be deemed
to be an original, and all of which, when taken together, shall constitute one
and the same agreement.

         Section 6.8. SURVIVAL OF TERMINATION. The provisions of SECTIONS 1.7,
1.8, 3.1, 3.2, 6.4, 6.5, 6.6, 6.9 and 6.14 shall survive any termination of this
Agreement.

         Section 6.9. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO WAIVES
THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF

                                       29
<PAGE>

ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY IN ANY ACTION, PROCEEDING OR OTHER LITIGATION
OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES,
WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE. EACH OF THE
PARTIES HERETO AGREES THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A
COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, EACH OF THE PARTIES
HERETO FURTHER AGREES THAT ITS RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY
OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING
THAT SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF
THIS AGREEMENT OR ANY PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

         Section 6.10. SHARING OF RECOVERIES. Each Purchaser agrees that if it
receives any recovery, through set-off, judicial action or otherwise, on any
amount payable or recoverable hereunder in a greater proportion than should have
been received hereunder or otherwise inconsistent with the provisions hereof,
then the recipient of such recovery shall purchase for cash an interest in
amounts owing to the other Purchasers (as return of Investment or otherwise),
without representation or warranty except for the representation and warranty
that such interest is being sold by each such other Purchaser free and clear of
any Adverse Claim created or granted by such other Purchaser, in the amount
necessary to create proportional participation by the Purchaser in such
recovery. If all or any portion of such amount is thereafter recovered from the
recipient, such purchase shall be rescinded and the purchase price restored to
the extent of such recovery, but without interest.

         Section 6.11. RIGHT OF SETOFF. During a Termination Event, each
Purchaser is hereby authorized (in addition to any other rights it may have) to
setoff, appropriate and apply (without presentment, demand, protest or other
notice which are hereby expressly waived) any deposits and any other
indebtedness held or owing by such Purchaser (including by any branches or
agencies of such Purchaser) to, or for the account of, the Seller against
amounts owing by the Seller hereunder (even if contingent or unmatured).

         Section 6.12. ENTIRE AGREEMENT. This Agreement and the other
Transaction Documents embody the entire agreement and understanding between the
parties hereto, and supersede all prior or contemporaneous agreements and
understandings of such Persons, verbal or written, relating to the subject
matter hereof and thereof.

         Section 6.13. HEADINGS. The captions and headings of this Agreement and
any Exhibit, Schedule or Annex hereto are for convenience of reference only and
shall not affect the interpretation hereof or thereof.

         Section 6.14. PURCHASER GROUPS' LIABILITIES. The obligations of each
Purchaser Agent and each Purchaser under the Transaction Documents are solely
the corporate obligations of such Person.

                                       30
<PAGE>

Except with respect to any claim arising out of the willful misconduct or gross
negligence of the Administrator, any Purchaser Agent or any Purchaser, no claim
may be made by the Seller or the Servicer or any other Person against the
Administrator, any Purchaser Agent or any Purchaser or their respective
Affiliates, directors, officers, employees, attorneys or agents for any special,
indirect, consequential or punitive damages in respect of any claim for breach
of contract or any other theory of liability arising out of or related to the
transactions contemplated by the Agreement or any other Transaction Document, or
any act, omission or event occurring in connection therewith; and each of Seller
and Servicer hereby waives, releases, and agrees not to sue upon any claim for
any such damages, whether or not accrued and whether or not known or suspected
to exist in its favor.

         Section 6.15. CALL OPTION. The Seller shall have the right to
repurchase the Purchased Interest from the Purchasers on any Settlement Date on
the terms hereinafter set forth in this SECTION 6.15. The Seller shall give the
Administrator at least ten Business Days' prior written notice of such
repurchase and upon payment of the repurchase price for the Purchased Interest,
as hereinafter provided, the Purchasers shall be deemed to have reconveyed the
Purchased Interest to the Seller without recourse, representation or warranty
except for a representation from each Purchaser that the Purchased Interest
assigned is (or concurrently with the Administrator's receipt of such repurchase
price shall become) free of any Adverse Claim created by such Purchaser. The
Seller shall pay such repurchase price for the Purchased Interest in immediately
available funds to the Administrator (for the benefit of the Purchasers or the
Administrator, as the case may be) in an amount equal to the sum of (i) the
aggregate of the Aggregate Discount accrued for each Portion of Investment for
each Purchaser accrued to and including the repurchase date, (ii) the Aggregate
Investment for each Purchaser, (iii) the amounts payable pursuant to SECTIONS
1.5, 1.7 and 1.8, or Article III (of which the Seller has notice) related to the
Purchased Interest accrued to and including the repurchase date, (iv) all other
obligations that are then due and payable and (v) if Greetings is not the
Servicer, the Servicing Fee allocated to the Purchased Interest that has accrued
to and including the repurchase date.

                    [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       31
<PAGE>

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

                                 AGC FUNDING CORPORATION, as Seller

                                 By: /s/ William S. Meyer
                                     ----------------------------------
                                     Name: William S. Meyer
                                     Title: President

                                     Address:

                                         Attention:
                                         Telephone:
                                         Facsimile:

                                 AMERICAN GREETINGS CORPORATION, as Servicer

                                 By: William S. Meyer
                                     ----------------------------------
                                     Name: William S. Meyer
                                     Title: Senior Vice President & CFO

                                     Address:

                                         Attention:
                                         Telephone:
                                         Facsimile:

                                      S-1
<PAGE>

                                 PNC BANK, NATIONAL ASSOCIATION,
                                 as Administrator

                                 By: /s/ John T. Smathers
                                     ----------------------------------
                                     Name: John T. Smathers
                                     Title: Vice President

                                     Address:

                                         PNC Bank, National Association
                                         One PNC Plaza
                                         249 Fifth Avenue
                                         Pittsburgh, Pennsylvania 15222-2707

                                         Attention: John Smathers
                                         Telephone: (412) 762-6440
                                         Facsimile: (412) 762-9184

                                      S-2
<PAGE>
                          PURCHASER

                          MARKET STREET FUNDING CORPORATION, as a
                          Conduit Purchaser and as a Related Committed Purchaser

                          By: /s/ Douglas K. Johnson
                              ----------------------------------
                              Name: Douglas K. Johnson
                              Title: President

                              Address:

                                  Market Street Funding Corporation
                                  c/o AMACAR Group, L.L.C.
                                  6525 Morrison Blvd., Suite 318
                                  Charlotte, North Carolina 28211

                                  Attention: Douglas K. Johnson
                                  Telephone: (704) 365-0569
                                  Facsimile No.: (704) 365-1362

                              With a copy to:

                                  PNC Bank, National Association
                                  One PNC Plaza
                                  249 Fifth Avenue
                                  Pittsburgh, Pennsylvania 15222-2707

                                  Attention: John Smathers
                                  Telephone: (412) 762-6440
                                  Facsimile: (412) 762-9184

                                      Commitment $250,000,000

                                      S-3
<PAGE>
                        PNC BANK, NATIONAL ASSOCIATION,
                        as Purchaser Agent for Market Street Funding Corporation

                        By: /s/ John T. Smathers
                            ----------------------
                            Name: John T. Smathers
                            Title: Vice President

                            Address:

                                  PNC Bank, National Association
                                  One PNC Plaza
                                  249 Fifth Avenue
                                  Pittsburgh, Pennsylvania 15222-2707

                                  Attention: John Smathers
                                  Telephone No.: (412) 762-6440
                                  Facsimile No.: (412) 762-9184

                                      S-4
<PAGE>
                                    EXHIBIT I
                                   DEFINITIONS

         As used in the Agreement (including its Exhibits, Schedules and
Annexes), the following terms shall have the following meanings (such meanings
to be equally applicable to both the singular and plural forms of the terms
defined). Unless otherwise indicated, all Section, Annex, Exhibit and Schedule
references in this Exhibit are to Sections of and Annexes, Exhibits and
Schedules to the Agreement.

         "ADMINISTRATOR" has the meaning set forth in the preamble to the
Agreement.

         "ADMINISTRATOR'S ACCOUNT" means the account (account number 1002422076
ABA 043000096) of the Administrator maintained at the office of PNC at One PNC
Plaza, 249 Fifth Avenue, Pittsburgh, Pennsylvania 15222-2707, or such other
account as may be so designated in writing by the Administrator to the Servicer.

         "ADVERSE CLAIM" means a lien, security interest or other charge or
encumbrance, or any other type of preferential arrangement; it being understood
that any thereof in favor of the Administrator (for the benefit of the
Purchasers ) shall not constitute an Adverse Claim.

         "AFFECTED PERSON" has the meaning set forth in SECTION 1.7 of the
Agreement.

         "AFFILIATE" means, as to any Person: (a) any Person that, directly or
indirectly, is in control of, is controlled by or is under common control with
such Person, or (b) who is a director or officer: (i) of such Person or (ii) of
any Person described in CLAUSE (a), except that, in the case of each Conduit
Purchaser, Affiliate shall mean the holder of its capital stock. For purposes of
this definition, control of a Person shall mean the power, direct or indirect:
(x) to vote 25% or more of the securities having ordinary voting power for the
election of directors of such Person, or (y) to direct or cause the direction of
the management and policies of such Person, in either case whether by ownership
of securities, contract, proxy or otherwise.

         "AGGREGATE DISCOUNT" at any time, means the sum of the aggregate for
each Purchaser of the accrued and unpaid Discount with respect to each such
Purchaser's Investment at such time.

         "AGGREGATE INVESTMENT" means the amount paid to the Seller in respect
of the Purchased Interest or portion thereof by each Purchaser pursuant to the
Agreement, as reduced from time to time by Collections distributed and applied
on account of such Aggregate Investment pursuant to SECTION 1.4(d) of the
Agreement; PROVIDED, that if such Aggregate Investment shall have been reduced
by any distribution, and thereafter all or a portion of such distribution is
rescinded or must otherwise be returned for any reason, such Aggregate
Investment shall be increased by the amount of such rescinded or returned
distribution as though it had not been made.

                                      I-1
<PAGE>

         "AGREEMENT" has the meaning set forth in the preamble to the Agreement.

         "AGSC" means American Greetings Services Corp., a Delaware
corporation.

         "AGSC ASSIGNMENT CERTIFICATE" has the meaning set forth in the Sale
and Contribution Agreement.

         "ASSUMPTION AGREEMENT" means an agreement substantially in the form
set forth in Annex C to the Agreement.

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

         "BANKRUPTCY CODE" means the United States Bankruptcy Reform Act of 1978
(11 U.S.C. ss.101, et seq.), as amended from time to time.

         "BASE RATE" means, for any day, (i) in the case of the Purchaser Group
including Market Street, the Market Street Base Rate and (ii) in the case of
each other Purchaser Group, shall mean the rate set forth as the Base Rate for
such Purchaser Group in the related Purchaser Group Fee Letter.

         "BBA" means the British Bankers' Association.

         "BENEFIT PLAN" means any employee benefit pension plan as defined in
Section 3(2) of ERISA in respect of which the Seller, any Originator, Greetings,
AGSC or any ERISA Affiliate is, or at any time during the immediately preceding
six years was, an "employer" as defined in Section 3(5) of ERISA.

         "BUSINESS DAY" means any day (other than a Saturday or Sunday) on
which: (a) banks are not authorized or required to close in New York City, New
York or Pittsburgh, Pennsylvania and (b) if this definition of "Business Day" is
utilized in connection with the Euro-Rate, dealings are carried out in the
London interbank market.

         "CHANGE IN CONTROL" means (i) with respect to Seller, that at any time
Greetings shall fail to own, directly or indirectly through one or more
wholly-owned Subsidiaries free and clear of any Adverse Claim, 100% of the
shares of outstanding voting stock of the Seller on a fully diluted basis, (ii)
with respect to AGSC, that at any time Greetings shall fail to own, directly or
indirectly through one or more wholly-owned subsidiaries, free and clear of any
Adverse Claim, 100% of the shares of outstanding voting stock of AGSC on a fully
diluted basis, (iii) with respect to any Originator other than Greetings, that
at any time Greetings shall fail to own, directly or indirectly through one or
more wholly-owned Subsidiaries free and clear of any Adverse Claim, 100% of the
share of outstanding voting stock of such Originator on a fully diluted basis,
and (iv) with respect to Greetings, the acquisition by any Person or its
Affiliates of 20% or more of the stock (or equivalent

                                      I-2
<PAGE>

ownership or controlling interest) having by the terms thereof ordinary voting
power to elect a majority of the directors of Greetings (irrespective of whether
or not at the time the stock of any class or classes of Greetings will have or
might have voting power by reason of the happening or any contingency).

         "CLOSING DATE" means August 7, 2001.

         "COLLECTIONS" means, with respect to any Pool Receivable: (a) all funds
that are received by any Originator, Greetings, AGSC, the Seller or the Servicer
in payment of any amounts owed in respect of such Receivable (including purchase
price, finance charges, interest and all other charges), or that are applied to
amounts owed in respect of such Receivable (including insurance payments and net
proceeds of the sale or other disposition of repossessed goods or other
collateral or property of the related Obligor or any other Person directly or
indirectly liable for the payment of such Pool Receivable and available to be
applied thereon), (b) all amounts deemed to have been received pursuant to
SECTION 1.4(e) of the Agreement and (c) all other proceeds of such Pool
Receivable.

         "COMMITMENT" means, with respect to each Related Committed Purchaser,
the maximum amount which such Purchaser is obligated to pay hereunder on
account of any Purchase, as set forth below its signature to this Agreement or
in the Assumption Agreement pursuant to which it became a Purchaser, as such
amount may be modified in connection with any subsequent assignment pursuant to
SECTION 6.3(c) or in connection with a change in the Purchase Limit pursuant to
SECTIONS 1.1(b) or 1.2(e).

         "COMMITMENT PERCENTAGE" means, for each Related Committed Purchaser in
a Purchaser Group, such Related Committed Purchaser's Commitment divided by the
total of all Commitments of all Related Committed Purchasers in such Purchaser
Group.

         "CONCENTRATION PERCENTAGE" means for any Obligor which is (i) Target
Corporation, 40%, so long as (a) it would be considered a Group A Obligor and
(b) the sum of the Loss Reserve Percentage and the Dilution Reserve Percentage
is greater than or equal to 40%, (ii) any other Group A Obligor, 30%, (iii) a
Group B Obligor, 20%, (iv) a Group C Obligor, 10%, or (v) a Group D Obligor, 5%.

         "CONDUIT PURCHASERS" means each commercial paper conduit that is a
party to the Agreement, as a purchaser, or that becomes a party to the
Agreement, as a purchaser pursuant to an Assumption Agreement.

         "CONTRACT" means, with respect to any Receivable, any and all
contracts, instruments, agreements, leases, invoices, notes or other writings
pursuant to which such Receivable arises or that evidence such Receivable or
under which an Obligor becomes or is obligated to make payment in respect of
such Receivable.

                                      I-3
<PAGE>

         "CP RATE" for any Yield Period for any Portion of Investment (i) in
the case of the Purchaser Group including Market Street, means the Market Street
CP Rate, and (ii) in the case of each other Purchaser Group, shall mean the rate
set forth as the CP Rate for such Purchaser Group in the related Purchaser Group
Fee Letter.

         "CREDIT AGREEMENT" means the Credit Agreement dated as August 7, 2001
among American Greetings Corporation, as Borrower, the financial institutions
named therein, as Lenders, National City Bank, as US Agent and Global Agent,
KeyBank National Association, as Documentation Agent, and National City Bank and
Goldman Sachs Credit Partners L.P., as Joint-Lead Arrangers and Co- Syndication
Agents, as it may be amended, supplemented or otherwise modified from time to
time.

         "CREDIT AND COLLECTION POLICY" means, as the context may require,
those receivables credit and collection policies and practices of AGSC (with
respect to Receivables sold to it pursuant to the Purchase and Sale Agreement)
and Plus Mark, Inc. (with respect to Receivables originated by it) in effect on
the date of the Agreement and described in SCHEDULE I to the Agreement, as
modified in compliance with the Agreement.

         "DAYS' SALES OUTSTANDING" means, at any time, an amount computed as of
the last day of each calendar month equal to: (a) the average of the Outstanding
Balance of all Pool Receivables as of the last day of each of the three most
recent calendar months ended on the last day of such calendar month divided by
(b)(i) the aggregate credit sales made by the Originator during the three
calendar months ended on or before the last day of such calendar month divided
by (ii) 90.

         "DEBT" means: (a) indebtedness for borrowed money, (b) obligations
evidenced by bonds, debentures, notes or other similar instruments, (c)
obligations to pay the deferred purchase price of property or services, (d)
obligations as lessee under leases that shall have been or should be, in
accordance with generally accepted accounting principles, recorded as capital
leases, and (e) obligations under direct or indirect guaranties in respect of,
and obligations (contingent or otherwise) to purchase or otherwise acquire, or
otherwise to assure a creditor against loss in respect of, indebtedness or
obligations of others of the kinds referred to in CLAUSES (a) through (d).

         "DEFAULTED RECEIVABLE" means a Receivable:

                  (a) as to which any payment, or part thereof, remains unpaid
         for more than 150 days, in each case from the due date for such
         payment, or

                  (b) without duplication (i) as to which an Insolvency
         Proceeding shall have occurred with respect to the Obligor thereof or
         any other Person obligated thereon or owning any Related Security with
         respect thereto, (ii) that has been charged-off as uncollectible or
         (iii) that should have been charged-off as uncollectible pursuant to
         the Credit and Collection Policy.

                                      I-4
<PAGE>

         "DELINQUENCY RATIO" means the ratio (expressed as a percentage and
rounded to the nearest 1/100 of 1%, with 5/1000th of 1% rounded upward) computed
as of the last day of each calendar month by dividing: (a) the aggregate
Outstanding Balance of all Pool Receivables that were Delinquent Receivables on
such day by (b) the aggregate Outstanding Balance of all Pool Receivables on
such day.

         "DELINQUENT RECEIVABLE" means a Receivable (a) as to which any
payment, or part thereof, remains unpaid for more than 90 days from the due date
for such payment or (b) without duplication, which has been (or consistent with
the Credit and Collection Policy, would be) classified as a Delinquent
Receivable by the applicable Originator.

         "DILUTION RATIO" means the ratio (expressed as a percentage and
rounded to the nearest 1/100th of 1%, with 5/1000th of 1% rounded upward),
computed as of the last day of each calendar month by dividing: (a) the
aggregate amount of payments made or owed by the Seller pursuant to SECTION
1.4(e)(i) of the Agreement (other than Specifically Reserved Dilution Amounts)
during such calendar month, by (b) the aggregate credit sales made by the
Originators during the calendar months that are two and three months prior to
such calendar month.

         "DILUTION RESERVE" means, on any day, an amount equal to: (a) the
Aggregate Investment at the close of business of the Servicer on such date
MULTIPLIED BY (b) (i) the Dilution Reserve Percentage on such date, DIVIDED BY
(ii) 100% minus the Dilution Reserve Percentage on such date.

         "DILUTION RESERVE PERCENTAGE" means, on any date, the greater of (a)
10.0%, or (b) the percentage determined by the following formula:

         (2.0 x ED) + ((DS-ED) x DS/ED)) x DHR + 0.02 x CS

         ED       =        the "Expected Dilution," which shall be equal to the
                           12-month rolling average Dilution Ratio, expressed
                           as a percentage;

         DS       =        the "Dilution Spike," which shall be equal to the
                           highest one month Dilution Ratio over the immediately
                           preceding 12 months, expressed as a percentage; and

         CS       =        the aggregate credit sales made by the Originators
                           during the most recent calendar month divided by the
                           Net Receivables Pool Balance for such calendar month.

         DHR      =        the "Dilution Horizon Ratio," which shall be equal
                           to the aggregate credit sales made by the Originators
                           during the two preceding calendar months divided by
                           the Net Receivables Pool Balance as of the last day
                           of most recent calendar month.

                                      I-5
<PAGE>

         "DISCOUNT" means with respect to any Purchaser:

                  (a) for any Portion of Investment for any Yield Period with
         respect to any Purchaser to the extent such Portion of Investment will
         be funded by such Purchaser during such Yield Period through the
         issuance of Notes:

                                CPR x I x ED/360

                  (b) for any Portion of Investment for any Yield Period with
         respect to any Purchaser to the extent such Portion of Investment will
         not be funded by such Purchaser during such Yield Period through the
         issuance of Notes:

                              YR x I x ED/Year + TF

         where:

                  YR     =    the Yield Rate, as applicable, for such Portion
                              of Investment for such Yield Period with respect
                              to such Purchaser,

                  I      =    the Investment with respect to such Portion of
                              Investment during such Yield Period with respect
                              to such Purchaser,

                  CPR    =    the CP Rate for the Portion of Investment for
                              such Yield Period with respect to such Purchaser,

                  ED     =    the actual number of days during such Yield
                              Period,

                  Year   =    if such Portion of Investment is funded based
                              upon: (i) the Euro-Rate, 360 days, and (ii) the
                              Base Rate, 365 or 366 days, as applicable, and

                  TF     =    the Termination Fee, if any, for the Portion of
                              Investment for such Yield Period with respect to
                              such Purchaser;

PROVIDED, that no provision of the Agreement shall require the payment or
permit the collection of Discount in excess of the maximum permitted by
applicable law; and PROVIDED FURTHER, that Discount for any Portion of
Investment shall not be considered paid by any distribution to the extent that
at any time all or a portion of such distribution is rescinded or must otherwise
be returned for any reason.

         "DISPUTED DEFAULT RATIO" means the ratio (expressed as a percentage
and rounded to the nearest 1/100th of 1% with 5/1000th of 1% rounded upwards)
computed as of the last day of each calendar month by dividing: (a) the
aggregate Outstanding Balance of all Pool Receivables identified by the Seller
or Servicer on the most recent Information Package as Receivables relating to
amounts

                                      I-6
<PAGE>

categorized as "deductions" or "recharges" that became Defaulted Receivables
during such month, by (b) the aggregate Outstanding Balance of all Pool
Receivables six months prior to such month.

         "ELIGIBLE RECEIVABLE" means, at any time, a Pool Receivable:

                  (a) the Obligor of which is (i) a Person resident in or with a
         place of business in the United States, (ii) not a government or a
         governmental subdivision, affiliate or agency, (iii) not subject to any
         action of the type described in PARAGRAPH (f) of Exhibit V to the
         Agreement and (iv) not an Affiliate of Greetings,

                  (b) that is denominated and payable only in U.S. dollars in
         the United States,

                  (c) that is either a Seasonal Sale or a Receivable in which
         the Obligor is Target Corporation, or does not have a stated maturity
         which is more than 38 days after the original invoice date of such
         Receivable; PROVIDED, HOWEVER, that (i) Receivables not related to
         Seasonal Sales in which the Obligor is K Mart and (ii) up to 25% of the
         aggregate Outstanding Balance of all Receivables (not including
         Receivables with respect to which K Mart or Target is the Obligor) may
         have a stated maturity which is more than 38 days but not more than 68
         days from the original invoice date of such Receivable.

                  (d) that arises under a duly authorized Contract for the sale
         and delivery of goods and services in the ordinary course of an
         Originator's business,

                  (e) that arises under a duly authorized Contract that is in
         full force and effect and that is a legal, valid and binding obligation
         of the related Obligor, enforceable against such Obligor in accordance
         with its terms,

                  (f) that conforms in all material respects with all applicable
         laws, rulings and regulations in effect,

                  (g) that is not the subject of any asserted dispute or offset
         (but only to the extent of the disputed or offset amount, and only to
         the extent such amount has not been deemed a collection pursuant to
         Section 1.4(e)) or any hold back defense, Adverse Claim or other
         similar claim,

                  (h) that satisfies all applicable requirements of the
         applicable Credit and Collection Policy,

                  (i) that has not been modified, waived or restructured since
         its creation, except as permitted pursuant to SECTION 4.2 of the
         Agreement and SECTION 2(d) of EXHIBIT IV to the Agreement,

                                      I-7
<PAGE>

                  (j) in which the Seller owns good and marketable title, free
         and clear of any Adverse Claims, and that is freely assignable by the
         Seller (including without any consent of the related Obligor),

                  (k) for which the Administrator (for the benefit of each
         Purchaser) shall have a valid and enforceable undivided percentage
         ownership or security interest, to the extent of the Purchased
         Interest, and a valid and enforceable first priority perfected security
         interest therein and in the Related Security and Collections with
         respect thereto, in each case free and clear of any Adverse Claim,

                  (l) that constitutes an account as defined in the UCC, and
         that is not evidenced by instruments or chattel paper,

                  (m) that is not a Defaulted Receivable or a Delinquent
         Receivable,

                  (n) for which none of the Originator thereof, the Seller and
         the Servicer has established any offset arrangements with the related
         Obligor,

                  (o) for which Defaulted Receivables of the related Obligor do
         not exceed 35% of the Outstanding Balance of all such Obligor's
         Receivables; provided that solely for purposes of making such
         determination, amounts that would otherwise be considered Defaulted
         Receivables which are the subject of disputes between the Obligor and
         the Seller or Servicer which continue to be investigated and
         negotiated, shall not be considered Defaulted Receivables,

                  (p) that represents amounts earned and payable by the Obligor
         that are not subject to the performance of additional services by the
         Originator or Servicer thereof, and

                  (q) that was acquired or deemed acquired by AGSC pursuant to
         the Purchase and Sale Agreement or (at any time on or after a future
         date to be set by the Administrator and agreed to by the Servicer) was
         originated by Plus Mark, Inc. and sold by Greetings pursuant to the
         Sale and Contribution Agreement.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and any successor statute of similar import, together
with the regulations thereunder, in each case as in effect from time to time.
References to sections of ERISA also refer to any successor sections.

         "ERISA AFFILIATE" means: (a) any corporation that is a member of the
same controlled group of corporations (within the meaning of Section 414(b) of
the Internal Revenue Code) as the Seller, any Originator, AGSC or Greetings, (b)
a trade or business (whether or not incorporated) under common control (within
the meaning of Section 414(c) of the Internal Revenue Code) with the Seller, any
Originator, AGSC or Greetings, or (c) a member of the same affiliated service
group

                                      I-8
<PAGE>

(within the meaning of Section 414(m) of the Internal Revenue Code) as the
Greetings, Seller, any Originator, AGSC any corporation described in CLAUSE (a)
or any trade or business described in CLAUSE (b).

         "EURO-RATE" means with respect to any Yield Period, the interest rate
per annum determined by the Administrator by dividing (the resulting quotient
rounded upwards, if necessary, to the nearest 1/100th of 1% per annum) (i) the
rate of interest determined by the applicable Purchaser Agent in accordance with
its usual procedures (which determination shall be conclusive absent manifest
error) to be the average of the London interbank market offered rates for U.S.
dollars quoted by the BBA as set forth on Dow Jones Markets Service (formerly
known as Telerate) (or appropriate successor or, if BBA or its successor ceases
to provide display page 3750 (or such other display page on the Dow Jones
Markets Service system as may replace display page 3750) at or about 11:00 a.m.
(London time) on the Business Day which is two (2) Business Days prior to the
first day of such Yield Period for an amount comparable to the Portion of
Investment to be funded at the Yield Rate and based upon the Euro-Rate during
such Yield Period by (ii) a number equal to 1.00 minus the Euro-Rate Reserve
Percentage. The Euro-Rate may also be expressed by the following formula:

                           Average of London interbank offered rates quoted by
                           BBA as shown on Dow Jones Markets Service display
                           page 3750 or appropriate successor
         Euro-Rate =
                      ---------------------------------------------------------

                                1.00 - Euro-Rate Reserve Percentage

where "EURO-RATE RESERVE PERCENTAGE" means, the maximum effective percentage in
effect on such day as prescribed by the Board of Governors of the Federal
Reserve System (or any successor) for determining the reserve requirements
(including without limitation, supplemental, marginal, and emergency reserve
requirements) with respect to eurocurrency funding (currently referred to as
"EUROCURRENCY LIABILITIES "). The Euro-Rate shall be adjusted with respect to
any Portion of Investment funded at the Yield Rate and based upon the Euro-Rate
that is outstanding on the effective date of any change in the Euro-Rate Reserve
Percentage as of such effective date. The applicable Purchaser Agent shall give
prompt notice to the Seller of the Euro-Rate as determined or adjusted in
accordance herewith (which determination shall be conclusive absent manifest
error).

         "EVERYDAY DEFAULT RATIO" means the ratio (expressed as a percentage
and rounded to the nearest 1/100 of 1%, with 5/1000th of 1% rounded upward)
computed as of the last day of each calendar month by dividing: (a) the
aggregate Outstanding Balance of all Pool Receivables identified by the Seller
or the Servicer on the most recent Information Package as Receivables relating
to everyday invoices and manual invoices that became Defaulted Receivables
during such month by (b) the aggregate credit sales other than Seasonal Sales
made by the Originators during the month that is six months before such month.

                                      I-9
<PAGE>

         "EXCESS CONCENTRATION" means, on any date, the sum of the amounts by
which the Outstanding Balance of Eligible Receivables of each Obligor then in
the Receivables Pool exceeds an amount equal to: (a) the applicable
Concentration Percentage for such Obligor multiplied by (b) the Outstanding
Balance of all Eligible Receivables, on such date.

         "EXCESS RETURN AMOUNT" means, for any calendar month, an amount equal
to 106% of the Seasonal Dilution Estimate at the beginning of such calendar
month.

         "EXITING PURCHASER" has the meaning set forth in SECTION 1.4(b)(ii).

         "FACILITY TERMINATION DATE" means the earliest to occur of: (a) with
respect to each Purchaser August 7, 2004, subject to any extension pursuant to
SECTION 1.10 of the Agreement (it being understood that if any such Purchaser
does not extend its Commitment hereunder then the Purchase Limit shall be
reduced ratably with respect to the Purchasers in each Purchaser Group by an
amount equal to the Commitment of such Exiting Purchaser and the Commitment
Percentages and Group Commitments of the Purchasers within each Purchaser Group
shall be appropriately adjusted), (b) the date determined pursuant to SECTION
2.2 of the Agreement, (c) the date the Purchase Limit reduces to zero pursuant
to Section 1.1(b) of the Agreement, (d) with respect to each Purchaser Group,
the date that the commitments of all of the Liquidity Providers terminate under
the related Liquidity Agreements or the date one or more of such Purchaser
Group's Program Support Agreements terminate and (e) with respect to each
Purchaser Group, the date that the commitment, of all of the Related Committed
Purchasers of such Purchaser Group terminate pursuant to SECTION 1.10.

         "Federal Funds Rate" means, for any day, the per annum rate set forth
in the weekly statistical release designated as H.15(519), or any successor
publication, published by the Federal Reserve Board (including any such
successor, "H.15(519)") for such day opposite the caption "Federal Funds
(Effective)." If on any relevant day such rate is not yet published in
H.15(519), the rate for such day will be the rate set forth in the daily
statistical release designated as the Composite 3:30 p.m. Quotations for U.S.
Government Securities, or any successor publication, published by the Federal
Reserve Bank of New York (including any such successor, the "Composite 3:30 p.m.
Quotations") for such day under the caption "Federal Funds Effective Rate." If
on any relevant day the appropriate rate is not yet published in either
H.15(519) or the Composite 3:30 p.m. Quotations, the rate for such day will be
the arithmetic mean as determined by the applicable Purchaser Agent of the rates
for the last transaction in overnight Federal funds arranged before 9:00 a.m.
(New York time) on that day by each of three leading brokers of Federal funds
transactions in New York City selected by such Purchaser Agent.

         "FEDERAL RESERVE BOARD" means the Board of Governors of the Federal
Reserve System, or any entity succeeding to any of its principal functions.

         "FEES" means the fees payable by the Seller to each Purchaser Group
pursuant to the applicable Purchaser Group Fee Letter.

                                      I-10
<PAGE>

         "GAAP" means the generally accepted accounting principles and practices
in the United States, consistently applied.

         "GOVERNMENTAL AUTHORITY" means any nation or government, any state or
other political subdivision thereof, any central bank (or similar monetary or
regulatory authority) thereof, any body or entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government, including any court, and any Person owned or controlled, through
stock or capital ownership or otherwise, by any of the foregoing.

         "GREETINGS" has the meaning set forth in the preamble to the Agreement.

         "GROUP A OBLIGOR" means an Obligor with a short-term senior unsecured
         indebtedness rating
(or, if such Obligor does not have such a short-term rating, a long-term senior
unsecured indebtedness rating) of at least "A-1" (or "A+") by Standard & Poor's
and "P-1" (or "A1") by Moody's.

         "GROUP B OBLIGO" means an Obligor with a short-term senior unsecured
indebtedness rating (or, if such Obligor does not have such a short-term
rating, a long-term senior unsecured indebtedness rating) of at least "A-2" (or
"BBB+") by Standard & Poor's and "P-2" (or "Baa1") by Moody's, that is not a
Group A Obligor.

         "GROUP C OBLIGOR" means an Obligor with a short-term senior unsecured
indebtedness rating (or, if such Obligor does not have such a short-term rating,
a long-term senior unsecured indebtedness rating) of at least "A-3" (or "BBB-")
by Standard & Poor's and "P-3" (or "Baa3") by Moody's, that is not a Group A
Obligor or a Group B Obligor.

         "GROUP COMMITMENT" means with respect to any Purchaser Group the
aggregate of the Commitments of each Purchaser within such Purchaser Group.

         "GROUP D OBLIGOR" means an Obligor which is not a Group A Obligor, a
Group B Obligor or a Group C Obligor.

         "GROUP INVESTMENT" means with respect to any Purchaser Group, an
amount equal to the aggregate of all Investments of the Purchasers within such
Purchaser Group.

         "INDEMNIFIED AMOUNTS" has the meaning set forth in SECTION 3.1 of the
         Agreement.

         "INDEMNIFIED PARTY" has the meaning set forth in SECTION 3.1 of the
Agreement.

         "INDEPENDENT DIRECTOR" has the meaning set forth in PARAGRAPH 3(c) of
EXHIBIT IV to the Agreement.

                                      I-11
<PAGE>

         "INFORMATION PACKAGE" means a report, in substantially the form of
ANNEX A to the Agreement, furnished to the Administrator pursuant to the
Agreement.

         "INSOLVENCY PROCEEDING" means: (a) any case, action or proceeding
before any court or other Governmental Authority relating to bankruptcy,
reorganization, insolvency, liquidation, receivership, dissolution, winding-up
or relief of debtors, or (b) any general assignment for the benefit of creditors
of a Person or, composition, marshaling of assets for creditors of a Person, or
other, similar arrangement in respect of its creditors generally or any
substantial portion of its creditors, in each of cases (a) and (b) undertaken
under U.S. Federal, state or foreign law, including the Bankruptcy Code.

         "INTERNAL REVENUE CODE" means the Internal Revenue Code of 1986, as
amended from time to time, and any successor statute of similar import, together
with the regulations thereunder, in each case as in effect from time to time.
References to sections of the Internal Revenue Code also refer to any successor
sections.

         "INVESTMENT" means with respect to any Purchaser the amount paid to
the Seller by such Purchaser pursuant to the Agreement, or such amount divided
or combined in accordance with the Agreement, in each case reduced from time to
time by Collections distributed and applied on account of such Investment
pursuant to SECTION 1.4(d) of the Agreement; provided, that if such Investment
shall have been reduced by any distribution and thereafter all or a portion of
such distribution is rescinded or must otherwise be returned for any reason,
such Investment shall be increased by the amount of such rescinded or returned
distribution as though it had not been made.

         "LIQUIDITY AGENT" means each of the banks acting as agent for the
various Liquidity Banks under each Liquidity Agreement.

         "LIQUIDITY AGREEMENT" means any agreement entered into in connection
with this Agreement pursuant to which a Liquidity Provider agrees to make
purchases or advances to, or purchase assets from, any Conduit Purchaser in
order to provide liquidity for such Conduit Purchaser's Purchases.

         "LIQUIDITY PROVIDER" means each bank or other financial institution
that provides liquidity support to any Conduit Purchaser pursuant to the terms
of a Liquidity Agreement.

         "LOCK-BOX ACCOUNT" means an account maintained at a bank or other
financial institution for the purpose of, directly or indirectly, receiving
Collections.

         "LOCK-BOX AGREEMENT" means an agreement among the Seller, the
applicable Originator, the Servicer, the Administrator and a Lock-Box Bank.

         "LOCK-BOX BANK" means any of the banks or other financial institutions
holding one or more Lock-Box Accounts.

                                      I-12
<PAGE>

         "LOSS RESERVE" means, on any date, an amount equal to (a) the Aggregate
Investment at the close of business of the Servicer on such date MULTIPLIED by
(b) (i) the Loss Reserve Percentage on such date DIVIDED by (ii) 100% minus the
Loss Reserve Percentage on such date.

         "LOSS RESERVE PERCENTAGE" means, on any date, the greater of 20% or
the sum of the Sales Based Loss Reserve Percentage and the Receivables Based
Loss Reserve Percentage.

         "MAJORITY PURCHASERS" means, at any time, Purchasers whose Commitments
aggregate 2/3rds or more of the aggregate of the Commitments of all Purchasers;
provided, however, that so long as any Purchaser's Commitment is greater than
50% of the aggregate Commitments, then "Majority Purchasers" shall mean a
minimum of two Purchasers whose Commitments aggregate more than 50% of the
aggregate Commitments.

         "MARKET STREET" has the meaning set forth in the preamble to the
Agreement.

         "MARKET STREET BASE RATE" means, in the case of Market Street or any
Purchaser in its Purchaser Group, for any day, a fluctuating interest rate per
annum as shall be in effect from time to time, which rate shall be at all times
equal to the higher of:

                  (a) the rate of interest in effect for such day as publicly
         announced from time to time by PNC in Pittsburgh, Pennsylvania as its
         "prime rate." Such "prime rate" is set by PNC based upon various
         factors, including PNC's costs and desired return, general economic
         conditions and other factors, and is used as a reference point for
         pricing some loans, which may be priced at, above or below such
         announced rate, and

                  (b) 0.50% per annum above the latest Federal Funds Rate.

         "MARKET STREET CP RATE" means, with respect to Market Street for any
Yield Period with respect to any Portion of Investment, the per annum rate
equivalent to the "weighted average cost" (as defined below) related to the
issuance of Market Street's Notes that are allocated, in whole or in part, by
Market Street (or by its Purchaser Agent) to fund or maintain such Portion of
Investment (and which may also be allocated in part to the funding of other
Portions of Investment hereunder or of other assets of Market Street); PROVIDED,
HOWEVER, that if any component of such rate is a discount rate, in calculating
the "MARKET STREET CP RATE" for such Portion of Investment for such Yield
Period, Market Street shall for such component use the rate resulting from
converting such discount rate to an interest bearing equivalent rate per annum.
As used in this definition, Market Street's "WEIGHTED AVERAGE COST" shall
consist of (x) the actual interest rate (or discount) paid to purchasers of
Market Street's Notes, together with the commissions of placement agents and
dealers in respect of such Notes, to the extent such commissions are allocated,
in whole or in part, to such Notes by Market Street (or by its Purchaser Agent)
and (y) any incremental carrying costs incurred with respect to Market Street's
Notes maturing on dates other than those on which corresponding funds are
received by Market Street. Notwithstanding the foregoing, the "Market Street CP
Rate"

                                      I-13
<PAGE>

for any day while a Termination Event exists shall be an interest rate equal to
2% above the Base Rate in effect on such day.

         "MARKET STREET YIELD RATE" for any Yield Period for any Portion of
Investment of the Purchased Interest in the case of Market Street or any
Purchaser in its Purchaser Group, means an interest rate per annum equal to, at
Seller's option: (a) the rate set forth as the "Applicable Margin" in the
Purchaser Group Fee Letter relating to Market Street above the Euro-Rate for
such Yield Period, or (b) the Base Rate for such Yield Period; PROVIDED,
HOWEVER, that in the case of:

                           (i) any Yield Period on or before the first day of
                  which the Administrator shall have been notified by any
                  Purchaser or other Program Support Provider that the
                  introduction of or any change in or in the interpretation of
                  any law or regulation makes it unlawful, or any central bank
                  or other Governmental Authority asserts that it is unlawful,
                  for such Person, to fund any Euro-Rate Portion of Investment
                  (and such Person shall not have subsequently notified the
                  Administrator that such circumstances no longer exist),

                           (ii) any Yield Period of one to (and including) 29
                  days,

                           (iii) any Yield Period as to which the Administrator
                  does not receive notice before noon (New York City time) on
                  the third Business Day preceding the first day of such Yield
                  Period that the Seller desires that the related Portion of
                  Investment be a Euro-Rate Portion of Investment, or

                           (iv) any Yield Period relating to a Portion of
                  Investment that is less than $5,000,000,

the "Yield Rate" for each such Yield Period shall be an interest rate per annum
equal to the Base Rate in effect on each day of such Yield Period. The "Yield
Rate" for any day while a Termination Event exists shall be an interest rate
equal to 2% per annum above the applicable Base Rate in effect on such day.

         "MATERIAL ADVERSE EFFECT" means a material adverse effect on:

                  (a) the assets, operations, business or financial condition of
         the Seller, the Servicer, AGSC, any Originator or Greetings.

                  (b) the ability of Seller, Servicer, AGSC, Originator or
         Greetings to perform its obligations under the Agreement or any other
         Transaction Document to which it is a party,

                  (c) as to Seller, Servicer, AGSC, any Originator or Greetings,
         the validity or enforceability of any other Transaction Document, or
         the validity, enforceability or collectibility of a material portion of
         the Pool Receivables, or

                                      I-14
<PAGE>

                  (d) the status, perfection, enforceability or priority of any
         Purchaser's, AGSC's or the Seller's interest in the Pool Assets.

         "MOODY'S" means Moody's Investors Service, Inc.

         "NET RECEIVABLES POOL BALANCE" means, at any time: (a) the Outstanding
Balance of Eligible Receivables then in the Receivables Pool minus (b) the
Excess Concentration; provided that such calculation shall exclude the
Receivables for which the related Obligor has a net credit balance.

         "NOTES" means short-term promissory notes issued, or to be issued, by
each Conduit Purchaser to fund its investments in accounts receivable or other
financial assets.

         "OBLIGOR" means, with respect to any Receivable, the Person obligated
to make payments pursuant to the Contract relating to such Receivable.

         "ORIGINATOR" means the "Originators" party in such capacity to any of
the Receivables Sale Agreement, the Purchase and Sale Agreement or the Sale and
Contribution Agreement from time to time.

         "ORIGINATOR ASSIGNMENT CERTIFICATE" means each assignment, (i) in
substantially the form of Exhibit C to the Receivables Sale Agreement, (ii) in
substantially the form of EXHIBIT C to the Purchase and Sale Agreement,
evidencing AGSC's ownership of the Receivables generated by an Originator, (iii)
in substantially the form of EXHIBIT C to the Sale and Contribution Agreement,
evidencing Seller's ownership of the Receivables generated by an Originator or
acquired by AGSC, in each case as the same may be amended, supplemented, amended
and restated, or otherwise modified from time to time in accordance with the
Purchase and Sale Agreement.

         "OUTSTANDING BALANCE" of any Receivable at any time means the then
outstanding principal balance thereof.

         "PERMITTED LOCK-BOX BANK" means any of the Banks listed on Schedule II
and identified as such.

         "PERSON" means an individual, partnership, corporation (including a
business trust), joint stock company, trust, unincorporated association, joint
venture, limited liability company or other entity, or a government or any
political subdivision or agency thereof.

         "PLUS MARK ADDITION DATE" means a date determined by the Administrator
and consented to by the Servicer.

         "PNC" has the meaning set forth in the preamble to the Agreement.

         "POOL ASSETS" has the meaning set forth in SECTION 1.2(d) of the
Agreement.

                                      I-15
<PAGE>

         "POOL RECEIVABLE" means a Receivable in the Receivables Pool.

         "PORTION OF INVESTMENT" means, with respect to any Purchaser and its
related Investment, the portion of such Investment being funded or maintained by
such Purchaser by reference to a particular interest rate basis.

         "PROGRAM SUPPORT AGREEMENT" means and includes any Liquidity Agreement
and any other agreement entered into by any Program Support Provider providing
for: (a) the issuance of one or more letters of credit for the account of any
Conduit Purchaser, (b) the issuance of one or more surety bonds for which the
such Conduit Purchaser is obligated to reimburse the applicable Program Support
Provider for any drawings thereunder, (c) the sale by such Conduit Purchaser to
any Program Support Provider of the Purchased Interest (or portions thereof)
maintained by such Conduit Purchaser and/or (d) the making of loans and/or other
extensions of credit to any Conduit Purchaser in connection with such Conduit
Purchaser's securitization program contemplated in the Agreement, together with
any letter of credit, surety bond or other instrument issued thereunder (but
excluding any discretionary advance facility provided by the Administrator).

         "PROGRAM SUPPORT PROVIDER" means and includes with respect to each
Conduit Purchaser any Liquidity Provider and any other Person (other than any
customer of such Conduit Purchaser) now or hereafter extending credit or having
a commitment to extend credit to or for the account of, or to make purchases
from, such Conduit Purchaser pursuant to any Program Support Agreement.

         "PURCHASE" is defined in SECTION 1.1(a).

         "PURCHASE AND SALE AGREEMENT" means the Purchase and Sale Agreement,
dated as of August 7, among AGSC, the Originators party thereto as amended
through the date of the Agreement and as such agreement may be amended, amended
and restated, supplemented or otherwise modified from time to time.

         "PURCHASE AND SALE INDEMNIFIED AMOUNTS" has the meaning set forth in
SECTION 9.1 of the Purchase and Sale Agreement.

         "PURCHASE AND SALE INDEMNIFIED PARTY" has the meaning set forth in
SECTION 9.1 of the Purchase and Sale Agreement.

         "PURCHASE AND SALE TERMINATION DATE" has the meaning set forth in
SECTION 1.4 of the Purchase and Sale Agreement.

         "PURCHASE AND SALE TERMINATION EVENT" has the meaning set forth in
SECTION 8.1 of the Purchase and Sale Agreement.

         "PURCHASE DATE" means the date of which a Purchase or a reinvestment
is made pursuant to the Agreement.

                                      I-16
<PAGE>

         "PURCHASE LIMIT" means $250,000,000, as such amount may be reduced
pursuant to SECTIONS 1.1(b) or 1.10 of the Agreement or increased pursuant to
Section 1.2(e) of the Agreement. References to the unused portion of the
Purchase Limit shall mean, at any time, the Purchase Limit minus the then
outstanding Aggregate Investment.

         "PURCHASED INTEREST" means, at any time, the undivided percentage
ownership interest in: (a) each and every Pool Receivable now existing or
hereafter arising, (b) all Related Security with respect to such Pool
Receivables and (c) all Collections with respect to, and other proceeds of, such
Pool Receivables and Related Security. Such undivided percentage interest shall
be computed as:

                      Aggregate Investment + Total Reserves
                      -------------------------------------
                          Net Receivables Pool Balance

The Purchased Interest shall be determined from time to time pursuant to SECTION
1.3 of the Agreement.

         "PURCHASER" means each Conduit Purchaser and/or each Related Committed
Purchaser, as applicable.

         "PURCHASER AGENT" means each Person acting as agent on behalf of a
Purchaser Group and designated as a Purchaser Agent for such Purchaser Group on
the signature pages to the Agreement or any other Person who becomes a party to
this Agreement as a Purchaser Agent pursuant to an Assumption Agreement or a
Transfer Supplement.

         "PURCHASER GROUP" means, for each Conduit Purchaser, such Conduit
Purchaser, its Related Committed Purchasers and its related Purchaser Agent.

         "PURCHASER GROUP FEE LETTER" has the meaning set forth in SECTION 1.5
of the Agreement. "PURCHASERS' SHARE" of any amount means such amount multiplied
by the Purchased Interest at the time of determination.

         "RATABLE SHARE" means, for each Purchaser Group, such Purchaser
Group's aggregate Commitments divided by the aggregate Commitments of all
Purchaser Groups.

         "RATING AGENCY CONDITION" means, with respect to any material event or
occurrence, receipt by the Administrator (or the applicable Purchaser Agent) of
written confirmation from each of Standard & Poor's and Moody's that such event
or occurrence shall not cause the rating on the then outstanding Notes of any
applicable Purchaser to be downgraded or withdrawn.

         "RECEIVABLE" means any indebtedness and other obligations owed to the
Seller, AGSC or any Originator (excluding, until the Plus Mark Addition Date,
Plus Mark, Inc.) by, or any right of the Seller, AGSC or any Originator
(excluding, until the Plus Mark Addition Date, Plus Mark, Inc.) to

                                      I-17
<PAGE>

payment from or on behalf of, an Obligor, whether constituting an account,
chattel paper, instrument or general intangible, arising in connection with the
sale of goods or the rendering of services by an Originator (excluding until the
Plus Mark Addition Date, Plus Mark, Inc.), and includes the obligation to pay
any finance charges, fees and other charges with respect thereto. Indebtedness
and other obligations arising from any one transaction, including indebtedness
and other obligations represented by an individual invoice or agreement, shall
constitute a Receivable separate from a Receivable consisting of the
indebtedness and other obligations arising from any other transaction; provided
that Receivables shall not include obligations in respect of payments
denominated in Canadian dollars due and owing from or on behalf of Obligors in
respect of businesses located in Canada.

         "RECEIVABLES BASED LOSS RESERVE PERCENTAGE" means, on any date the
percentage determined by the following formula:

         2.0 x (DDR x RP) / NRPB

         DDR   =     the highest Disputed Default Ratio for any three
                     consecutive calendar months during the twelve most
                     recent calendar months

         RP    =     the aggregate Outstanding Balance of all Pool
                     Receivables as of the date of such calculation

         NRPB  =     the Net Receivables Pool Balance as of the date of such
                     calculation

         "RECEIVABLES POOL" means, at any time, all of the then outstanding
Receivables purchased by the Seller pursuant to the Sale and Contribution
Agreement prior to the Facility Termination Date.

         "RECEIVABLES SALE AGREEMENT" means the Receivables Sale Agreement,
dated as of August 7, 2001, among Greetings and the Originators party thereto as
such agreement may be amended, amended and restated, supplemented or otherwise
modified from time to time.

         "RECEIVABLES SALE INDEMNIFIED AMOUNTS" has the meaning set forth in
SECTION 9.1 of the Receivables and Sale Agreement.

         "RECEIVABLES SALE INDEMNIFIED PARTY" has the meaning set forth in
SECTION 9.1 of the Receivables Sale Agreement.

         "RECEIVABLES SALE TERMINATION DATE" has the meaning set forth in
SECTION 1.4 of the Receivables Sale Agreement.

         "RECEIVABLES SALE TERMINATION EVENT" has the meaning set forth in
SECTION 8.1 of the Receivables Sale Agreement.

                                      I-18
<PAGE>

         "RELATED COMMITTED PURCHASER" means each Person listed as such (and
its respective Commitment) for each Conduit Purchaser as set forth on the
signature pages of the Agreement or in any Assumption Agreement or Transfer
Supplement.

         "RELATED RIGHTS" has the meaning set forth in SECTION 1.1 of the Sale
and Contribution Agreement.

         "RELATED SECURITY" means, with respect to any Receivable:

                  (a) all of the Seller's, AGSC's and the Originator thereof's
         interest in any goods (including returned goods), and documentation of
         title evidencing the shipment or storage of any goods (including
         returned goods), relating to any sale giving rise to such Receivable,

                  (b) all instruments and chattel paper that may evidence such
         Receivable,

                  (c) all other security interests or liens and property subject
         thereto from time to time purporting to secure payment of such
         Receivable, whether pursuant to the Contract related to such Receivable
         or otherwise, together with all UCC financing statements or similar
         filings relating thereto, and

                  (d) all of the Seller's AGSC's and the Originator thereof's
         rights, interests and claims under the Contracts and all guaranties,
         indemnities, insurance and other agreements (including the related
         Contract) or arrangements of whatever character from time to time
         supporting or securing payment of such Receivable or otherwise relating
         to such Receivable, whether pursuant to the Contract related to such
         Receivable or otherwise.

         "SALE AND CONTRIBUTION AGREEMENT" means the Sale and Contribution
Agreement dated as of August 7, 2001 between AGSC, and Seller, as amended
through the date of the Agreement and as such agreement may be amended, amended
and restated, supplemented or otherwise modified from time to time.

         "SALE AND CONTRIBUTION INDEMNIFIED AMOUNTS" has the meaning set forth
in SECTION 9.1 of the Sale and Contribution Agreement.

         "SALE AND CONTRIBUTION INDEMNIFIED PARTY" has the meaning set forth in
SECTION 9.1 of the Sale and Contribution Agreement.

         "SALE AND CONTRIBUTION NOTE" has the meaning set forth in SECTION 3.1
of the Sale and Contribution Agreement.

         "SALE AND CONTRIBUTION TERMINATION DATE " has the meaning set forth in
SECTION 1.4 of the Sale and Contribution Agreement.

                                      I-19
<PAGE>

         "SALE AND CONTRIBUTION TERMINATION EVENT" has the meaning set forth in
SECTION 8.1 of the Sale and Contribution Agreement.

         "SALES BASED LOSS RESERVE PERCENTAGE" means, on any date the
percentage determined by the following formula:

         2.0 x ((EDR x ESDH) + (SDR x SSDH)) / NRPB

         EDR       =       the highest Everyday Default Ratio for any three
                           consecutive calendar months during the twelve most
                           recent calendar months

         ESDH      =       the aggregate credit sales, other than Seasonal
                           Sales, made by the Originators during the six most
                           recent calendar months

         SDR       =       the highest Seasonal Default Ratio for any three
                           consecutive calendar months during the twelve most
                           recent calendar months

         SSDH      =       the aggregate Seasonal Sales made by the
                           Originators during the seven most recent calendar
                           months

         NRPB      =       the Net Receivables Pool Balance as of the date of
                           such calculation

         "SEASONAL DEFAULT RATIO" means the ratio (expressed as a percentage
and rounded to the nearest 1/100th of 1% with 5/1000th of 1% rounded upwards)
computed as of the last day of each calendar month by dividing (a) the aggregate
Outstanding Balance of all Seasonal Sales that became Defaulted Receivables
during such month, by (b) the aggregate Outstanding Balance of all Seasonal
Sales made by the Originators during the two months that are seven and eight
months before such month.

         "SEASONAL DILUTION ESTIMATE "means, at any time, the balance as of the
most recent calendar month-end of reserves or liabilities maintained on the
books and records of the Seller or Servicer in the ordinary course of business
according to policies consistently applied and reported on the Information
Package related to, or in anticipation of, seasonal returns affecting the
Receivables.

         "SEASONAL RECEIVABLE" means a Pool Receivable sold pursuant to the
Purchase and Sale Agreement which was included, should have been included or
should be included in the calculation of Seasonal Sales.

         "SEASONAL SALES" means those amounts identified by the Seller or
Servicer on the periodic Information Packages as invoices related to specific
seasonal shipments.

         "SELLER" has the meaning set forth in the preamble to the Agreement.

                                      I-20
<PAGE>

         "SELLER'S SHARE" of any amount means the greater of: (a) $0 and (b)
such amount minus the product of (i) such amount multiplied by (ii) the
Purchased Interest.

         "SERVICER" has the meaning set forth in the preamble to the Agreement.

         "SERVICING FEE" shall mean the fee referred to in SECTION 4.6 of the
         Agreement.

         "SETTLEMENT DATE" means the 22nd Day of each calendar month or, if such
day is not a Business Day, the first Business Day thereafter or such other
Business Day as otherwise consented to by the Administrator, the Purchasers, the
Seller and the Servicer.

         "SIMPLE MAJORITY" means, at any time, Purchasers whose Commitments
aggregate 51% or more of the aggregate of the Commitments of all Purchasers.

         "SOLVENT" means, with respect to any Person at any time, a condition
under which:

                  (i) the fair value and present fair saleable value of such
         Person's total assets is, on the date of determination, greater than
         such Person's total liabilities (including contingent and unliquidated
         liabilities) at such time;

                  (ii) the fair value and present fair saleable value of such
         Person's assets is greater than the amount that will be required to pay
         such Person's probable liability on its existing debts as they become
         absolute and matured ("debts," for this purpose, includes all legal
         liabilities, whether matured or unmatured, liquidated or unliquidated,
         absolute, fixed, or contingent);

                  (iii) such Person is and shall continue to be able to pay all
         of its liabilities as such liabilities mature; and

                  (iv) such Person does not have unreasonably small capital with
         which to engage in its current and in its anticipated business.

         For purposes of this definition:

                  (A) the amount of a Person's contingent or unliquidated
         liabilities at any time shall be that amount which, in light of all the
         facts and circumstances then existing, represents the amount which can
         reasonably be expected to become an actual or matured liability;

                  (B) the "fair value" of an asset shall be the amount which may
         be realized within a reasonable time either through collection or sale
         of such asset at its regular market value;

                                      I-21
<PAGE>

                  (C) the "regular market value" of an asset shall be the amount
         which a capable and diligent business person could obtain for such
         asset from an interested buyer who is willing to Purchase such asset
         under ordinary selling conditions; and

                  (D) the "present fair saleable value" of an asset means the
         amount which can be obtained if such asset is sold with reasonable
         promptness in an arm's-length transaction in an existing and not
         theoretical market.

         "SPECIFICALLY RESERVED DILUTION AMOUNT" means the greater of (A) the
sum of (i) $15,000,000 and (ii) 75% of the total credits issued for seasonal
returns in the 10th and 11th months prior to the current month or (B) the sum of
(i) the balance as of the most recent calendar month-end of reserves or
liabilities maintained on the books and records of the Seller or Servicer and
reported on the Information Package related to, or in anticipation of, (a)
advertising allowances, (b) volume rebates and (c) Plus Mark, Inc. specific
factors affecting the Receivables plus (ii) (a) the Seasonal Dilution Estimate
times (b) 106%.

         "STANDARD & POOR'S" means Standard & Poor's, a division of The
McGraw-Hill Companies, Inc.

         "SUBSIDIARY" means, as to any Person, a corporation, partnership,
limited liability company or other entity of which shares of stock of each class
or other interests having ordinary voting power (other than stock or other
interests having such power only by reason of the happening of a contingency) to
elect a majority of the Board of Directors or other managers of such entity are
at the time owned, or management of which is otherwise controlled: (a) by such
Person, (b) by one or more Subsidiaries of such Person or (c) by such Person and
one or more Subsidiaries of such Person.

         "TANGIBLE NET WORTH" means, with respect to any Person, the tangible
net worth of such Person as determined in accordance with GAAP.

         "TERMINATION DAY" means: (a) each day on which the conditions set forth
in Section 2 of EXHIBIT II to the Agreement are not satisfied or (b) each day
that occurs on or after the Facility Termination Date.

         "TERMINATION EVENT" has the meaning specified in EXHIBIT V to the
Agreement.

         "TERMINATION FEE" means, for any Yield Period, with respect to any
Purchaser, the amount, if any, by which: (a) the additional Discount related to
such Purchaser's Investment (calculated without taking into account any
Termination Fee or any shortened duration of such Yield Period) that would have
accrued during such Yield Period on the reductions of Investment relating to
such Yield Period had such reductions not been made, exceeds (b) the income, if
any, received by such Purchaser from investing the proceeds of such reductions
of Investment, as determined by the such Purchaser's Purchaser Agent, which
determination shall be binding and conclusive for all purposes, absent manifest
error.

                                      I-22
<PAGE>

         "TOTAL RESERVES" means, at any time, the sum of (a) the Yield Reserve,
(b) the sum of the Loss Reserve and the Dilution Reserve and (c) the
Specifically Reserved Dilution Amount.

         "TRANSACTION DOCUMENTS" means the Agreement, the Lock-Box Agreements,
each Purchaser Group Fee Letter, the Receivables Sale Agreement, the Purchase
and Sale Agreement, the Sale and Contribution Agreement and all other
certificates, instruments, UCC financing statements, reports, notices,
agreements and documents executed or delivered under or in connection with any
of the foregoing, in each case as the same may be amended, supplemented or
otherwise modified from time to time in accordance with the Agreement.

         "TRANSFER SUPPLEMENT" has the respective meanings set forth in
SECTIONS 6.3(c) and 6.3(e).

         "UCC" means the Uniform Commercial Code as from time to time in effect
in the applicable jurisdiction.

         "UNMATURED PURCHASE AND SALE TERMINATION EVENT" means any event which,
with the giving of notice or lapse of time, or both, would become a Purchase and
Sale Termination Event.

         "UNMATURED RECEIVABLES SALE TERMINATION EVENT" means any event which,
with the giving of notice or lapse of time, or both, would become a Receivables
Sale Termination Event.

         "UNMATURED SALE AND CONTRIBUTION TERMINATION EVENT" means any event
which, with the giving of notice or lapse of time, or both, would become a Sale
and Contribution Termination Event.

         "UNMATURED TERMINATION EVENT" means an event that, with the giving of
notice or lapse of time, or both, would constitute a Termination Event.

         "YIELD PERIOD" means, with respect to each Portion of Investment: (a)
before the Facility Termination Date: (i) initially the period commencing on the
date of the initial Purchase pursuant to SECTION 1.2 of the Agreement (or in the
case of any fees payable hereunder, commencing on the Closing Date) and ending
on (but not including) the next Settlement Date, and (ii) thereafter, each
period commencing on such Settlement Date and ending on (but not including) the
next Settlement Date, and (b) on and after the Facility Termination Date, such
period (including a period of one day) as shall be selected from time to time by
the Administrator or, in the absence of any such selection, each period of 30
days from the last day of the preceding Yield Period.

         "YIELD RATE" for any Yield Period for any Portion of Investment of the
Purchased Interest (i) in the case of the Purchaser Group including Market
Street, means the Market Street Yield Rate, and (ii) in the case of each other
Purchaser Group, shall mean the rate set forth as the Yield Rate for such
Purchaser Group in the related Purchaser Group Fee Letter.

         "YIELD RESERVE" shall be equal to the Aggregate Investment multiplied
by a percentage equal to (i) the Yield Reserve Percentage divided by (ii) 100%
minus the Yield Reserve Percentage.

                                      I-23
<PAGE>

         "YIELD RESERVE PERCENTAGE" means, on any date, an amount equal to (i)
the sum of the weighted average Base Rate for the most recent period plus 1.5%,
multiplied by (ii) the product of 1.5 times the Days Sales Outstanding, divided
by (iii) 360.

         OTHER TERMS. All accounting terms not specifically defined herein
shall be construed in accordance with generally accepted accounting principles.
All terms used in Article 9 of the UCC in the State of New York, and not
specifically defined herein, are used herein as defined in such Article 9.
Unless the context otherwise requires, "or" means "and/or," and "including" (and
with correlative meaning "include" and "includes") means including without
limiting the generality of any description preceding such term.

                                      I-24
<PAGE>

                                   EXHIBIT II
                             CONDITIONS OF PURCHASES

         1. CONDITIONS PRECEDENT TO INITIAL PURCHASE. The initial Purchase
under this Agreement is subject to the following conditions precedent that the
Administrator and each Purchaser Agent shall have received on or before the date
of such Purchase (other than with respect to the condition set forth in
PARAGRAPH (g), which such condition must be satisfied within 30 days of such
Purchase), each in form and substance (including the date thereof) satisfactory
to the Administrator and each Purchaser Agent:

                  (a) A counterpart of the Agreement and the other Transaction
         Documents executed by the parties thereto.

                  (b) Certified copies of: (i) the resolutions of the Board of
         Directors of each of the Seller, the Originators, AGSC and Greetings
         authorizing the execution, delivery and performance by the Seller, such
         Originator, AGSC and Greetings, as the case may be, of the Agreement
         and the other Transaction Documents to which it is a party; (ii) all
         documents evidencing other necessary organizational action and
         governmental approvals, if any, with respect to the Agreement and the
         other Transaction Documents and (iii) the certificate of incorporation
         and by-laws or certificate of formation and limited liability company
         agreement or any other organizational document, as applicable, of the
         Seller, each Originator, AGSC and Greetings.

                  (c) A certificate of the Secretary or Assistant Secretary of
         the Seller, the Originators, AGSC and Greetings certifying the names
         and true signatures of its officers who are authorized to sign the
         Agreement and the other Transaction Documents. Until the Administrator
         and each Purchaser Agent receives a subsequent incumbency certificate
         from the Seller, an Originator, AGSC or Greetings, as the case may be,
         the Administrator and each Purchaser Agent shall be entitled to rely on
         the last such certificate delivered to it by the Seller, such
         Originator, AGSC or Greetings, as the case may be.

                  (d) Acknowledgment copies, or time stamped receipt copies, of
         proper financing statements, duly filed on or before the date of such
         initial purchase under the UCC of all jurisdictions that the
         Administrator may deem necessary or desirable in order to perfect the
         interests of the Seller, Greetings and the Administrator (on behalf of
         each Purchaser) contemplated by the Agreement, the Sale and
         Contribution Agreement, the Receivables Sale Agreement and the Purchase
         and Sale Agreement.

                  (e) Acknowledgment copies, or time-stamped receipt copies, of
         proper financing statements, if any, necessary to release all security
         interests and other rights of any Person

                                      II-1
<PAGE>

         in the Receivables, Contracts or Related Security previously granted by
         the Originators, AGSC, Greetings or the Seller.

                  (f) Completed UCC search reports, dated on or shortly before
         the date of the initial purchase hereunder, listing the financing
         statements filed in all applicable jurisdictions referred to in
         SUBSECTION (e) above that name the Originators, AGSC or the Seller as
         debtor, together with copies of such other financing statements, and
         similar search reports with respect to judgment liens, federal tax
         liens and liens of the Pension Benefit Guaranty Corporation in such
         jurisdictions, as the Administrator or any Purchaser Agent may request,
         showing no Adverse Claims on any Pool Assets.

                  (g) Copies of executed Lock-Box Agreements with each Lock-Box
         Bank (other than Lock-Box Banks with respect to Plus-Mark, Inc. prior
         to the Plus-Mark Addition Date).

                  (h) Favorable opinions of Jones Day Reavis & Pogue, counsel
         for the Seller, the Originators, AGSC, Greetings and the Servicer, in
         form and substance reasonably satisfactory to the Administrator and
         each Purchaser Agent.

                  (i) Satisfactory results of a review and audit (performed by
         representatives of each Purchaser Agent) of the Servicer's collection,
         operating and reporting systems, the Credit and Collection Policy of
         each Originator (other than Plus Mark, Inc.) and AGSC, historical
         receivables data and accounts, including satisfactory results of a
         review of the Servicer's operating location(s).

                  (j) A pro forma Information Package representing the
         performance of the Receivables Pool for the calendar month before
         closing.

                  (k) Evidence of payment by the Seller of all accrued and
         unpaid fees (including those contemplated by each Purchaser Group Fee
         Letter), costs and expenses to the extent then due and payable on the
         date thereof, including any such costs, fees and expenses arising under
         or referenced in SECTION 6.4 of the Agreement and the Fee Letter.

                  (l) Each Purchaser Group Fee Letter (received only by the
         related Purchaser Group Agent) duly executed by the Seller and the
         Servicer.

                  (m) Good standing certificates with respect to each of the
         Seller, AGSC, the Originators and the Servicer issued by the Secretary
         of State (or similar official) of the state of each such Person's
         organization and principal place of business.

                  (n) To the extent required by each Conduit Purchaser's
         commercial paper program, letters from each of the rating agencies then
         rating the Notes confirming the rating of such Notes after giving
         effect to the transaction contemplated by the Agreement.

                                      II-2
<PAGE>

                  (o) Each Liquidity Agreement (received only by the related
         Purchaser Group Agent) and all other Transaction Documents duly
         executed by the parties thereto.

                  (p) A computer file containing all information with respect to
         the Receivables as the Administrator or any Purchaser Agent may
         reasonably request.

                  (q) Such other approvals, opinions or documents as the
         Administrator or any Purchaser Agent may reasonably request.

         2. CONDITIONS PRECEDENT TO ALL PURCHASES AND REINVESTMENTS. Each
Purchase (including the initial Purchase) and each reinvestment shall be subject
to the further conditions precedent that:

                  (a) in the case of each purchase, the Servicer shall have
         delivered to the Administrator and each Purchaser Agent on or before
         such purchase, in form and substance satisfactory to the Administrator
         and such Purchaser Agent, a completed pro forma Information Package to
         reflect the level of Investment with respect to each Purchaser Group
         and related reserves and the calculation of the Purchased Interest
         after such subsequent purchase and a completed purchase notice in the
         form of Annex B; and

                  (b) on the date of such purchase or reinvestment the following
         statements shall be true (and acceptance of the proceeds of such
         purchase or reinvestment shall be deemed a representation and warranty
         by the Seller that such statements are then true):

                           (i) the representations and warranties contained in
                  Exhibit III to the Agreement are true and correct in all
                  material respects on and as of the date of such purchase or
                  reinvestment as though made on and as of such date (except to
                  the extent that such representations and warranties relate
                  expressly to an earlier date, and in which case such
                  representations and warranties shall be true and correct in
                  all material respects as of such earlier date); and

                           (ii) no event has occurred and is continuing, or
                  would result from such purchase or reinvestment, that
                  constitutes a Termination Event or an Unmatured Termination
                  Event.

                                      II-3
<PAGE>

                                   EXHIBIT III
                         REPRESENTATIONS AND WARRANTIES

         1.       REPRESENTATIONS AND WARRANTIES OF THE SELLER. The Seller
represents and warrants as follows:

                  (a) The Seller is a corporation duly incorporated, validly
         existing and in good standing under the laws of the State of Delaware,
         and is duly qualified to do business and is in good standing as a
         foreign corporation in every jurisdiction where the nature of its
         business requires it to be so qualified, except where the failure to be
         so qualified would not have a Material Adverse Effect.

                  (b) The execution, delivery and performance by the Seller of
         the Agreement and the other Transaction Documents to which it is a
         party, including its use of the proceeds of purchases and
         reinvestments: (i) are within its corporate powers; (ii) have been duly
         authorized by all necessary corporate action; (iii) do not contravene
         or result in a default under or conflict with: (A) its charter or
         by-laws, (B) any law, rule or regulation applicable to it, (C) any
         indenture, loan agreement, mortgage, deed of trust or other material
         agreement or instrument to which it is a party or by which it is bound,
         or (D) any order, writ, judgment, award, injunction or decree binding
         on or affecting it or any of its property; and (iv) do not result in or
         require the creation of any Adverse Claim upon or with respect to any
         of its properties. The Agreement and the other Transaction Documents to
         which it is a party have been duly executed and delivered by the
         Seller.

                  (c) No authorization, approval or other action by, and no
         notice to or filing with, any Governmental Authority or other Person is
         required for its due execution, delivery and performance by the Seller
         of the Agreement or any other Transaction Document to which it is a
         party, other than the Uniform Commercial Code filings referred to in
         Exhibit II to the Agreement, all of which shall have been filed on or
         before the date of the first purchase hereunder.

                  (d) Each of the Agreement and the other Transaction Documents
         to which the Seller is a party constitutes its legal, valid and binding
         obligation of the Seller enforceable against the Seller in accordance
         with its terms, except as enforceability may be limited by bankruptcy,
         insolvency, reorganization or other similar laws from time to time in
         effect affecting the enforcement of creditors' rights generally and by
         general principles of equity, regardless of whether such enforceability
         is considered in a proceeding in equity or at law.

                  (e) There is no pending or, to Seller's best knowledge,
         threatened action or proceeding affecting Seller or any of its
         properties before any Governmental Authority or arbitrator.

                                     III-1
<PAGE>

                  (f) No proceeds of any purchase or reinvestment will be used
         to acquire any equity security of a class that is registered pursuant
         to Section 12 of the Securities Exchange Act of 1934.

                  (g) The Seller is the legal and beneficial owner of the Pool
         Receivables and Related Security, free and clear of any Adverse Claim.
         Upon each purchase or reinvestment, Administrator (for the benefit of
         each Purchaser) shall acquire a valid and enforceable perfected
         undivided percentage ownership or security interest, to the extent of
         the Purchased Interest, in each Pool Receivable then existing or
         thereafter arising and in the Related Security, Collections and other
         proceeds with respect thereto, free and clear of any Adverse Claim. The
         Agreement creates a security interest in favor of the Administrator
         (for the benefit of each Purchaser) in the Pool Assets, and the
         Administrator (for the benefit of each Purchaser) has a first priority
         perfected security interest in the Pool Assets, free and clear of any
         Adverse Claims. No effective financing statement or other instrument
         similar in effect covering any Pool Asset is on file in any recording
         office, except those filed in favor of Greetings pursuant to the
         Receivables Sale Agreement, AGSC pursuant to the Purchase and Sale
         Agreement, the Seller pursuant to the Sale and Contribution Agreement
         and the Administrator (for the benefit of each Purchaser) relating to
         the Agreement, or in respect of which the Administrator has received
         evidence satisfactory to the Administrator of acknowledgment copies, or
         time-stamped receipt copies, of proper financing statements releasing
         or terminating, as applicable, all security interests and other rights
         of any Person in such Pool Asset.

                  (h) Each Information Package (if prepared by the Seller or one
         of its Affiliates, or to the extent that information contained therein
         is supplied by the Seller or an Affiliate), information, exhibit,
         financial statement, document, book, record or report furnished or to
         be furnished at any time by or on behalf of the Seller to the
         Administrator or any Purchaser Agent in connection with the Agreement
         or any other Transaction Document to which it is a party is or will be
         complete and accurate in all material respects as of its date or as of
         the date so furnished, and does not and will not contain any material
         misstatement of fact or omit to state a material fact or any fact
         necessary to make the statements contained therein not misleading.

                  (i) [RESERVED].

                  (j) The names and addresses of all the Lock-Box Banks,
         together with the account numbers of the Lock-Box Accounts at such
         Lock-Box Banks, are specified in Schedule II to the Agreement (or at
         such other Lock-Box Banks and/or with such other Lock- Box Accounts as
         have been notified to the Administrator in accordance with the
         Agreement) and all Lock-Box Accounts are subject to Lock-Box Agreements
         (except as otherwise agreed to in writing by the Administrator and each
         Purchaser Agent or as provided in SECTION 4.3). Seller has not granted
         to any Person, other than the Administrator as contemplated by the

                                     III-2
<PAGE>

         Agreement, dominion and control of any Lock-Box Account, or the right
         to take dominion and control of any such account at a future time or
         upon the occurrence of a future event.

                  (k) The Seller is not in violation of any order of any court,
         arbitrator or Governmental Authority.

                  (l) Neither the Seller nor any of its Affiliates has any
         direct or indirect ownership or other financial interest in any
         Purchaser.

                  (m) No proceeds of any purchase or reinvestment will be used
         for any purpose that violates any applicable law, rule or regulation,
         including Regulations T, U or X of the Federal Reserve Board.

                  (n) Each Pool Receivable included as an Eligible Receivable in
         the calculation of the Net Receivables Pool Balance is an Eligible
         Receivable.

                  (o) No event has occurred and is continuing that constitutes a
         Termination Event or an Unmatured Termination Event and no event would
         result from a purchase in respect of, or reinvestment in respect of,
         the Purchased Interest or from the application of the proceeds
         therefrom that constitutes a Termination Event or an Unmatured
         Termination Event.

                  (p) The Seller has complied in all material respects with the
         applicable Credit and Collection Policy.

                  (q) The Seller has complied in all material respects with all
         of the terms, covenants and agreements contained in the Agreement and
         the other Transaction Documents that are applicable to it and all laws,
         rules, regulations and orders that are applicable to it.

                  (r) The Seller's complete corporate name is set forth in the
         preamble to the Agreement, and it does not use and has not during the
         last six years used any other corporate name, trade name,
         doing-business name or fictitious name, except as set forth on Schedule
         III to the Agreement and except for names first used after the date of
         the Agreement and set forth in a notice delivered to the Administrator
         pursuant to SECTION 1(k)(iv) of EXHIBIT IV to the Agreement.

                  (s) The Seller is not an "investment company," or a company
         "controlled" by an "investment company" within the meaning of the
         Investment Company Act of 1940, as amended. In addition, the Seller is
         not a "holding company," a "subsidiary company" of a "holding company"
         or an "affiliate" of a "holding company" or of a "subsidiary company"
         of a "holding company" within the meaning of the Public Utility Holding
         Company Act of 1935, as amended.

                                     III-3
<PAGE>

                  (t) With respect to each Receivable transferred to the Seller
         under the Sale and Contribution Agreement, Seller has given reasonably
         equivalent value to AGSC thereof in consideration therefor and such
         transfer was not made for or on account of an antecedent debt. No
         transfer by AGSC of any Receivable under the Sale and Contribution
         Agreement is or may be voidable under any section of the Bankruptcy
         Code.

                  (u) Each Contract with respect to each Receivable is effective
         to create, and has created, a legal, valid and binding obligation of
         the related Obligor to pay the Outstanding Balance of the Receivable
         created thereunder and any accrued interest thereon, enforceable
         against the Obligor in accordance with its terms, except as such
         enforcement may be limited by applicable bankruptcy, insolvency,
         reorganization or other similar laws relating to or limiting creditors'
         rights generally and by general principles of equity (regardless of
         whether enforcement is sought in a proceeding in equity or at law).

                  (v) Since its most recent fiscal year end, there has been no
         material adverse change in the business, operations, financial
         condition, properties or assets of the Seller.

         2.       REPRESENTATIONS AND WARRANTIES OF GREETINGS (INCLUDING IN ITS
CAPACITY AS THE SERVICER). Greetings, individually and in its capacity as the
Servicer, represents and warrants as follows:

                  (a) Greetings is a corporation duly incorporated, validly
         existing and in good standing under the laws of the State of Ohio, and
         is duly qualified to do business and is in good standing as a foreign
         corporation in every jurisdiction where the nature of its business
         requires it to be so qualified, except where the failure to be so
         qualified would not have a Material Adverse Effect.

                  (b) The execution, delivery and performance by Greetings, of
         the Agreement and the other Transaction Documents to which it is a
         party, including the Servicer's use of the proceeds of purchases and
         reinvestments: (i) are within its corporate powers; (ii) have been duly
         authorized by all necessary corporate action; (iii) do not contravene
         or result in a default under or conflict with: (A) its charter or
         by-laws, (B) any law, rule or regulation applicable to it, (C) any
         material indenture, loan agreement, mortgage, deed of trust or other
         material agreement or instrument to which it is a party or by which it
         is bound, or (D) any order, writ, judgment, award, injunction or decree
         binding on or affecting it or any of its property; and (iv) do not
         result in or require the creation of any Adverse Claim upon or with
         respect to any of its properties. The Agreement and the other
         Transaction Documents to which Greetings is a party have been duly
         executed and delivered by Greetings.

                  (c) No authorization, approval or other action by, and no
         notice to or filing with any Governmental Authority or other Person, is
         required for the due execution, delivery and performance by Greetings
         of the Agreement or any other Transaction Document to which it is a
         party.

                                     III-4
<PAGE>

                  (d) Each of the Agreement and the other Transaction Documents
         to which Greetings is a party constitutes the legal, valid and binding
         obligation of Greetings enforceable against Greetings in accordance
         with its terms, except as enforceability may be limited by bankruptcy,
         insolvency, reorganization or other similar laws from time to time in
         effect affecting the enforcement of creditors' rights generally and by
         general principles of equity, regardless of whether such enforceability
         is considered in a proceeding in equity or at law.

                  (e) The balance sheets of Greetings and its consolidated
         Subsidiaries as at February 28, 2001, and the related statements of
         income and retained earnings for the fiscal year then ended, copies of
         which have been furnished to the Administrator and each Purchaser
         Agent, fairly present the financial condition of Greetings and its
         consolidated Subsidiaries as at such date and the results of the
         operations of Greetings and its Subsidiaries for the period ended on
         such date, all in accordance with generally accepted accounting
         principles consistently applied, and since February 28, 2001, there has
         been no event or circumstances which have had a Material Adverse
         Effect.

                  (f) Except as disclosed in the most recent audited financial
         statements of Greetings furnished to the Administrator and each
         Purchaser Agent, there is no pending or, to its best knowledge,
         threatened action or proceeding affecting it or any of its Subsidiaries
         before any Governmental Authority or arbitrator that could reasonably
         be expected to have a Material Adverse Effect.

                  (g) No proceeds of any purchase or reinvestment will be used
         to acquire any equity security of a class that is registered pursuant
         to Section 12 of the Securities Exchange Act of 1934.

                  (h) Each Information Package (if prepared by Greetings or one
         of its Affiliates, or to the extent that information contained therein
         is supplied by Greetings or an Affiliate), information, exhibit,
         financial statement, document, book, record or report furnished or to
         be furnished at any time by or on behalf of the Servicer to the
         Administrator, any Purchaser or any Purchaser Agent in connection with
         the Agreement is or will be complete and accurate in all material
         respects as of its date or as of the date so furnished and does not and
         will not contain any material misstatement of fact or omit to state a
         material fact or any fact necessary to make the statements contained
         therein not materially misleading.

                  (i) The principal place of business and chief executive office
         (as such terms are used in the UCC) of Greetings and the office where
         it keeps its records concerning the Receivables are located at the
         address referred to in SECTION 2(b) of EXHIBIT IV to the Agreement.

                                     III-5
<PAGE>

                  (j) Greetings is not in violation of any order of any court,
         arbitrator or Governmental Authority, which could have a Material
         Adverse Effect.

                  (k) Neither Greetings nor any of its Affiliates has any direct
         or indirect ownership or other financial interest in any Purchaser.

                  (l) The Servicer has complied in all material respects with
         the applicable Credit and Collection Policy.

                  (m) Greeting has complied in all material respects with all of
         the terms, covenants and agreements contained in the Agreement and the
         other Transaction Documents that are applicable to it.

                  (n) Greetings is not an "investment company" or a company
         "controlled" by an "investment company" within the meaning of the
         Investment Company Act of 1940, as amended. In addition, Greetings is
         not a "holding company," a "subsidiary company" of a "holding company,"
         or an "affiliate" of a "holding company" or of a "subsidiary company"
         of a "holding company" within the meaning of the Public Utility Holding
         Company Act of 1935, as amended.

                  (o) Since its most recent fiscal year end, there has been no
         change in the business, operations, financial condition, properties or
         assets of the Servicer which would have a Material Adverse Effect on
         its ability to perform its obligations under the Agreement or any other
         Transaction Document to which it is a party or materially and adversely
         affect the transactions contemplated under the Agreement or such other
         Transaction Documents.

                  (p) No license or approval is required for the Administrator
         or any successor Servicer to use any program used by the Servicer in
         the servicing of the Receivables, other than such licenses and
         approvals that have been obtained and are in full force and effect.

                                     III-6
<PAGE>

                                   EXHIBIT IV
                                    COVENANTS

         1.       COVENANTS OF THE SELLER. Until the latest of the Facility
Termination Date, the date on which no Investment of or Discount in respect of
the Purchased Interest shall be outstanding or the date all other amounts owed
by the Seller under the Agreement to any Purchaser, Purchaser Agent, the
Administrator and any other Indemnified Party or Affected Person shall be paid
in full:

                  (a) COMPLIANCE WITH LAWS, ETC. The Seller shall comply with
         all applicable laws, rules, regulations and orders, and preserve and
         maintain its corporate existence, rights, franchises, qualifications
         and privileges, except to the extent that the failure so to comply with
         such laws, rules and regulations or the failure so to preserve and
         maintain such rights, franchises, qualifications and privileges would
         not have a Material Adverse Effect.

                  (b) OFFICES, RECORDS AND BOOKS OF ACCOUNT, ETC. The Seller:
         (i) shall not move its principal place of business and chief executive
         office (as such terms or similar terms are used in the UCC) and the
         office where it keeps its records concerning the Receivables to an
         address other than the address of the Seller set forth under its name
         on the signature page to the Agreement or, pursuant to CLAUSE (k)(iv)
         below, at any other locations in jurisdictions where all actions
         reasonably requested by the Administrator to protect and perfect the
         interest of the Administrator (for the benefit of the Purchasers) in
         the Receivables and related items (including the Pool Assets) have been
         taken and completed and (ii) shall provide the Administrator with at
         least 30 days' written notice before making any change in the Seller's
         name or making any other change in the Seller's identity or corporate
         structure (including a Change in Control) that could render any UCC
         financing statement filed in connection with this Agreement "seriously
         misleading" as such term (or similar term) is used in the UCC; each
         notice to the Administrator pursuant to this sentence shall set forth
         the applicable change and the effective date thereof. The Seller also
         will maintain and implement (or cause the Servicer to maintain and
         implement) administrative and operating procedures (including an
         ability to recreate records evidencing Receivables and related
         Contracts in the event of the destruction of the originals thereof),
         and keep and maintain (or cause the Servicer to keep and maintain) all
         documents, books, records, computer tapes and disks and other
         information reasonably necessary or advisable for the collection of all
         Receivables (including records adequate to permit the daily
         identification of each Receivable and all Collections of and
         adjustments to each existing Receivable). The Seller will (and will
         cause each Originator and AGSC to) on or prior to the date of the
         Agreement, mark its master data processing records and other books and
         records relating to the Purchased Interest (and at all times thereafter
         (until the latest of the Facility Termination Date or the date all
         other amounts owed by the Seller under the Agreement shall be paid in
         full) continue to maintain such records) with a legend, acceptable to
         the Administrator, describing the Purchased Interest.

                                      IV-1
<PAGE>

                  (c) PERFORMANCE AND COMPLIANCE WITH CONTRACTS AND CREDIT AND
         COLLECTION POLICY. The Seller shall (and shall cause the Servicer to),
         at its expense, (i) timely perform and comply in all material respects
         with all provisions, covenants and other promises required to be
         observed by it under the Contracts related to the Receivables unless
         the failure to so perform or comply does not involve a material portion
         of such Receivables, and the Seller shall have complied with its
         obligations with respect to such Receivables set forth in SECTION
         1.4(e), and (ii) timely comply in all material respects with the
         applicable Credit and Collection Policies with regard to each
         Receivable.

                  (d) OWNERSHIP INTEREST, ETC. The Seller shall (and shall cause
         the Servicer to), at its expense, take all action necessary or
         desirable to establish and maintain a valid and enforceable undivided
         percentage ownership or security interest, to the extent of the
         Purchased Interest which shall not be greater than 100%, in the Pool
         Receivables, the Related Security and Collections with respect thereto,
         and a first priority perfected security interest in the Pool Assets, in
         each case free and clear of any Adverse Claim, in favor of the
         Administrator (for the benefit of the Purchasers), including taking
         such action to perfect, protect or more fully evidence the interest of
         the Administrator (for the benefit of the Purchasers) as the
         Administrator, may reasonably request.

                  (e) SALES, LIENS, ETC. The Seller shall not sell, assign (by
         operation of law or otherwise) or otherwise dispose of, or create or
         suffer to exist any Adverse Claim upon or with respect to, any or all
         of its right, title or interest in, to or under any Pool Assets
         (including the Seller's undivided interest in any Receivable, Related
         Security or Collections, or upon or with respect to any account to
         which any Collections of any Receivables are sent), or assign any right
         to receive income in respect of any items contemplated by this
         paragraph.

                  (f) EXTENSION OR AMENDMENT OF RECEIVABLES. Except as provided
         in the Agreement, the Seller shall not, and shall not permit the
         Servicer to, extend the maturity or adjust the Outstanding Balance or
         otherwise modify the terms of any Pool Receivable, or amend, modify or
         waive any term or condition of any related Contract in any manner that
         would modify the terms of any Pool Receivable.

                  (g) CHANGE IN BUSINESS OR CREDIT AND COLLECTION POLICY. The
         Seller shall not make (or permit any Originator or AGSC to make) any
         change in the character of its business or any change in any Credit and
         Collection Policy that would have a Material Adverse Effect with
         respect to the Receivables. The Seller shall not make (or permit any
         Originator or AGSC to make) any other change in any Credit and
         Collection Policy without giving prior written notice thereof to the
         Administrator and each Purchaser Agent.

                  (h) AUDITS. The Seller shall (and shall cause each Originator
         and AGSC to), from time to time during regular business hours, as
         reasonably requested in advance (unless a Termination Event or
         Unmatured Termination Event exists) by the Administrator or any
         Purchaser, permit the Administrator, any Purchaser, any Purchaser
         Agent, or any agent or

                                      IV-2
<PAGE>

         representatives of the foregoing: (i) to examine and make copies of and
         abstracts from all books, records and documents (including computer
         tapes and disks) in the possession or under the control of the Seller
         (or AGSC or any such Originator) relating to Receivables and the
         Related Security, including the related Contracts, and (ii) to visit
         the offices and properties of the Seller, AGSC and the Originators for
         the purpose of examining such materials described in CLAUSE (i) above,
         and to discuss matters relating to Receivables and the Related Security
         or the Seller's, Greetings', AGSC's or an Originator's performance
         under the Transaction Documents or under the Contracts with any of the
         officers, employees, agents or contractors of the Seller, Greetings,
         AGSC or an Originator having knowledge of such matters and (iii)
         without limiting CLAUSES (i) and (ii) above, to engage certified public
         accountants or other auditors acceptable to the Seller and the
         Administrator to conduct, at the Seller's expense, a review of the
         Seller's books and records with respect to such Receivables.

                  (i) CHANGE IN LOCK-BOX BANKS, LOCK-BOX ACCOUNTS AND PAYMENT
         INSTRUCTIONS TO OBLIGORS. The Seller shall not, and shall not permit
         the Servicer, AGSC or any Originator to, add or terminate any bank as a
         Lock-Box Bank or any account as a Lock-Box Account from those listed in
         SCHEDULE II to the Agreement, or make any change in its instructions to
         Obligors regarding payments to be made to the Seller, AGSC the
         Originators, the Servicer or any Lock-Box Account (or related post
         office box), unless the Administrator and a Simple Majority shall have
         consented thereto in writing, which consent shall not be unreasonably
         withheld or delayed, and the Administrator shall have received copies
         of all agreements and documents (including Lock-Box Agreements) that it
         may request in connection therewith. Notwithstanding anything contained
         in this PARAGRAPH (i) to the contrary, the Seller may add an account as
         a Lock-Box Account at a Lock-Box Bank, without the consent of the
         Administrator and the Purchasers upon delivery to the Administrator of
         a Lock-Box Agreement in form and substance reasonably acceptable to the
         Administrator.

                  (j) DEPOSITS TO LOCK-BOX ACCOUNTS. The Seller shall (or shall
         cause the Servicer to): (i) mail, wire or otherwise transfer, or cause
         to be so transferred, any Collections received by it, the Servicer,
         AGSC or any Originator to Lock-Box Accounts not later than one Business
         Day after receipt thereof and (ii) instruct all Obligors (other than,
         for a period no longer than 120 days after the Closing Date, Kinko's)
         to make payments of all Receivables to one or more Lock-Box Accounts or
         to post office boxes to which only Lock- Box Banks have access (and
         shall instruct the Lock-Box Banks to cause all items and amounts
         relating to such Receivables received in such post office boxes to be
         removed and deposited into a Lock-Box Account on a daily basis). Except
         as otherwise agreed to in writing by the Administrator and the Majority
         Purchasers, each Lock-Box Account shall at all times be subject to a
         Lock-Box Agreement. The Seller will not (and will not permit the
         Servicer to) deposit or otherwise credit, or cause or permit to be so
         deposited or credited, to any Lock-Box Account cash or cash proceeds
         other than Collections.

                                      IV-3
<PAGE>

                  (k) REPORTING REQUIREMENTS. The Seller will provide to the
         Administrator (in multiple copies, if requested by the Administrator)
         and each Purchaser Agent the following:

                      (i) as soon as available and in any event within 120 days
                  after the end of each fiscal year of the Seller, unaudited
                  financial statements for such year certified as to accuracy by
                  the president or treasurer of the Seller;

                      (ii) as soon as possible and in any event within five days
                  after the occurrence of each Termination Event or Unmatured
                  Termination Event, a statement of the president or any vice
                  president of the Seller setting forth details of such
                  Termination Event or Unmatured Termination Event and the
                  action that the Seller has taken and proposes to take with
                  respect thereto;

                      (iii) promptly after the filing or receiving thereof,
                  copies of all reports and notices that the Seller or any
                  Affiliate files under ERISA with the Internal Revenue Service,
                  the Pension Benefit Guaranty Corporation or the U.S.
                  Department of Labor or that the Seller or any Affiliate
                  receives from any of the foregoing or from any multiemployer
                  plan (within the meaning of Section 4001(a)(3) of ERISA) to
                  which the Seller or any of its Affiliates is or was, within
                  the preceding five years, a contributing employer, in each
                  case in respect of the assessment of withdrawal liability or
                  an event or condition that could result in the imposition of
                  liability on the Seller and/or any such Affiliate;

                      (iv) at least 30 days before any change in the Seller's
                  name or any other change requiring the amendment of UCC
                  financing statements, a notice setting forth such changes and
                  the effective date thereof;

                      (v) promptly after the Seller obtains knowledge thereof,
                  notice of any: (A) adverse litigation, investigation or
                  proceeding that may exist at any time between the Seller and
                  any Person or (B) material litigation or proceeding relating
                  to any Transaction Document;

                      (vi) promptly after the occurrence thereof, notice of a
                  Material Adverse Effect in the business, operations, property
                  or financial or other condition of the Seller, the Servicer,
                  any Originator, AGSC or Greetings; and

                      (vii) such other information respecting the Receivables or
                  the condition or operations, financial or otherwise, of the
                  Seller, the Servicer, any Originator, AGSC or any of their
                  Affiliates as the Administrator or any Purchaser Agent may
                  from time to time reasonably request.

                  (l) CERTAIN AGREEMENTS. Without the prior written consent of
         the Administrator and the Majority Purchasers, the Seller will not (and
         will not permit any Originator,

                                      IV-4
<PAGE>

         Greetings or AGSC to) amend, modify, waive, revoke or terminate any
         Transaction Document to which it is a party or any provision of
         Seller's certificate of incorporation or by- laws.

                  (m) RESTRICTED PAYMENTS. (i) Except pursuant to CLAUSE (ii)
         below, the Seller will not: (A) purchase or redeem any shares of its
         capital stock, (B) declare or pay any dividend or set aside any funds
         for any such purpose, (C) prepay, purchase or redeem any Debt, (D) lend
         or advance any funds or (E) repay any loans or advances to, for or from
         any of its Affiliates (the amounts described in CLAUSES (A) through (E)
         being referred to as "RESTRICTED PAYMENTS ").

                      (ii) Subject to the limitations set forth in CLAUSE (iii)
                  below, the Seller may make Restricted Payments so long as such
                  Restricted Payments are made only in one or more of the
                  following ways: (A) the Seller may make cash payments
                  (including prepayments) on the Sale and Contribution Notes in
                  accordance with their terms, and (B) if no amounts are then
                  outstanding under the Sale and Contribution Notes, the Seller
                  may declare and pay dividends.

                      (iii) The Seller may make Restricted Payments only out of
                  the funds it receives pursuant to SECTIONS 1.4(b)(ii) and (iv)
                  of the Agreement. Furthermore, the Seller shall not pay, make
                  or declare: (A) any dividend if, after giving effect thereto,
                  the Seller's tangible net worth would be less than $10,000,000
                  or (B) any Restricted Payment (including any dividend) if,
                  after giving effect thereto, any Termination Event or
                  Unmatured Termination Event shall have occurred and be
                  continuing.

                  (n) OTHER BUSINESS. The Seller will not: (i) engage in any
         business other than the transactions contemplated by the Transaction
         Documents; (ii) create, incur or permit to exist any Debt of any kind
         (or cause or permit to be issued for its account any letters of credit
         or bankers' acceptances) other than pursuant to this Agreement or the
         Sale and Contribution Notes; or (iii) form any Subsidiary or make any
         investments in any other Person; provided, however, that the Seller
         shall be permitted to incur minimal obligations to the extent necessary
         for the day-to-day operations of the Seller (such as expenses for
         stationery, audits, maintenance of legal status, etc.).

                  (o) USE OF SELLER'S SHARE OF COLLECTIONS. The Seller shall
         apply the Seller's Share of Collections to make payments in the
         following order of priority: (i) the payment of its expenses (including
         all obligations payable to the Purchaser Groups and the Administrator
         under the Agreement and under each Purchaser Group Fee Letter); (ii)
         the payment of accrued and unpaid interest on the Sale and Contribution
         Notes; and (iii) other legal and valid corporate purposes.

                  (p) TANGIBLE NET WORTH. The Seller will not permit its
         tangible net worth, at any time, to be less than $10,000,000.

                                      IV-5
<PAGE>

         2.       COVENANTS OF THE SERVICER AND GREETINGS. Until the latest of
the Facility Termination Date, the date on which no Investment of or Discount in
respect of the Purchased Interest shall be outstanding or the date all other
amounts owed by the Seller under the Agreement to the Purchaser Agents, the
Purchasers, the Administrator and any other Indemnified Party or Affected Person
shall be paid in full:

                  (a) COMPLIANCE WITH LAWS, ETC. The Servicer and, to the extent
         that it ceases to be the Servicer, Greetings shall comply (and shall
         cause each Originator and AGSC to comply) in all material respects with
         all applicable laws, rules, regulations and orders, and preserve and
         maintain its corporate existence, rights, franchises, qualifications
         and privileges, except to the extent that the failure so to comply with
         such laws, rules and regulations or the failure so to preserve and
         maintain such existence, rights, franchises, qualifications and
         privileges would not have a Material Adverse Effect.

                  (b) OFFICES, RECORDS AND BOOKS OF ACCOUNT, ETC. Servicer and,
         to the extent that it ceases to be the Servicer, Greetings, shall keep
         (and shall cause each Originator and AGSC to keep) its principal place
         of business and chief executive office (as such terms or similar terms
         are used in the applicable UCC) and the office where it keeps its
         records concerning the Receivables at the address of the Servicer set
         forth under its name on the signature page to the Agreement or, upon at
         least 30 days' prior written notice of a proposed change to the
         Administrator, at any other locations in jurisdictions where all
         actions reasonably requested by the Administrator to protect and
         perfect the interest of the Administrator (for the benefit of each
         Purchaser) in the Receivables and related items (including the Pool
         Assets) have been taken and completed. The Servicer and, to the extent
         that it ceases to be the Servicer, Greetings, also will (and will cause
         each Originator and AGSC to) maintain and implement administrative and
         operating procedures (including an ability to recreate records
         evidencing Receivables and related Contracts in the event of the
         destruction of the originals thereof), and keep and maintain all
         documents, books, records, computer tapes and disks and other
         information reasonably necessary or advisable for the collection of all
         Receivables (including records adequate to permit the daily
         identification of each Receivable and all Collections of and
         adjustments to each existing Receivable).

                  (c) PERFORMANCE AND COMPLIANCE WITH CONTRACTS AND CREDIT AND
         COLLECTION POLICY. The Servicer and, to the extent that it ceases to be
         the Servicer, Greetings, shall (and shall cause each Originator and
         AGSC to), at its expense, (i) timely perform and comply in all material
         respects with all provisions, covenants and other promises required to
         be observed by it under the Contracts related to the Receivables unless
         the failure to so perform or comply does not involve a material portion
         of such Receivables, and the Seller shall have complied with its
         obligations with respect to such Receivables set forth in SECTION
         1.4(e), and (ii) timely comply in all material respects with the
         applicable Credit and Collection Policies with regard to each
         Receivable.

                                      IV-6
<PAGE>

                  (d) EXTENSION OR AMENDMENT OF RECEIVABLES. Except as provided
         in the Agreement, the Servicer and, to the extent that it ceases to be
         the Servicer, Greetings, shall not extend (and shall not permit any
         Originator or AGSC to extend), the maturity or adjust the Outstanding
         Balance or otherwise modify the terms of any Pool Receivable, or amend,
         modify or waive any term or condition of any related Contract in any
         manner that would modify the terms of any Pool Receivable.

                  (e) CHANGE IN BUSINESS OR CREDIT AND COLLECTION POLICY. The
         Servicer and, to the extent that it ceases to be the Servicer,
         Greetings, shall not make (and shall not permit any Originator to make)
         any change in the character of its business or in any Credit and
         Collection Policy that would have a Material Adverse Effect. The
         Servicer and, to the extent that it ceases to be the Servicer,
         Greetings, shall not make (and shall not permit any Originator or AGSC
         to make) any other change in any Credit and Collection Policy without
         giving prior written notice thereof to the Administrator and each
         Purchaser Agent.

                  (f) AUDITS. The Servicer and, to the extent that it ceases to
         be the Servicer, Greetings, shall (and shall cause each Originator and
         AGSC to), from time to time during regular business hours, (unless a
         Termination Event or Unmatured Termination Event exists) by the
         Administrator, Purchaser or any Purchaser Agent, permit (and cause each
         Originator and AGSC) the Administrator, any Purchaser, any Purchaser
         Agent or any agent or representative of the foregoing: (i) to examine
         and make copies of and abstracts from all books, records and documents
         (including computer tapes and disks) in its possession or under its
         control (or the control of AGSC or an Originator) relating to
         Receivables and the Related Security, including the related Contracts;
         and (ii) to visit its offices and properties (and the offices and
         property of AGSC and the Originators) for the purpose of examining such
         materials described in CLAUSE (i) above, and to discuss matters
         relating to Receivables and the Related Security or Greetings', AGSC's
         or any Originator's performance under the Transaction Documents or
         under the Contracts with any of their respective officers, employees,
         agents or contractors having knowledge of such matters and (iii)
         without limiting CLAUSES (i) and (ii) above, to engage certified public
         accountants or other auditors acceptable to the Servicer and the
         Administrator to conduct, at the Servicer's expense, a review of the
         Servicer's books and records with respect to such Receivables.

                  (g) CHANGE IN LOCK-BOX BANKS, LOCK-BOX ACCOUNTS AND PAYMENT
         INSTRUCTIONS TO OBLIGORS. The Servicer and, to the extent that it
         ceases to be the Servicer, Greetings, shall not (and shall not permit
         any Originator or AGSC to) add or terminate any bank as a Lock- Box
         Bank or any account as a Lock-Box Account from those listed in SCHEDULE
         II to the Agreement, or make any change in its instructions to Obligors
         regarding payments to be made to the Servicer or any Lock-Box Account
         (or related post office box), unless the Administrator and a Simple
         Majority shall have consented thereto in writing, which consent shall
         not be unreasonably withheld or delayed, and the Administrator shall
         have received copies of all agreements and documents (including
         Lock-Box Agreements) that it may request in connection therewith.
         Notwithstanding anything contained in this PARAGRAPH (g)

                                      IV-7
<PAGE>

         to the contrary, the Servicer may add an account as a Lock-Box Account
         at a Lock-Box Bank, without the consent of the Administrator and the
         Purchasers upon delivery to the Administrator of a Lock-Box Agreement
         in form and substance reasonably acceptable to the Administrator.

                  (h) DEPOSITS TO LOCK-BOX ACCOUNTS. The Servicer shall: (i)
         mail, wire or otherwise transfer, or cause to be so transferred, any
         Collections received by it to Lock-Box Accounts not later than one
         Business Day after receipt thereof and (ii) instruct all Obligors
         (other than, for a period no longer than 120 days after the Closing
         Date, Kinko's) to make payments of all Receivables to one or more
         Lock-Box Accounts or to post office boxes to which only Lock-Box Banks
         have access (and shall instruct the Lock-Box Banks to cause all items
         and amounts relating to such Receivables received in such post office
         boxes to be removed and deposited into a Lock-Box Account on a daily
         basis). Except as otherwise agreed to in writing by the Administrator
         and the Majority Purchasers, each Lock-Box Account shall at all times
         be subject to a Lock-Box Agreement. The Servicer will not deposit or
         otherwise credit, or cause or permit to be so deposited or credited, to
         any Lock- Box Account cash or cash proceeds other than Collections.

                      (i) REPORTING REQUIREMENTS. Greetings shall provide to the
                  Administrator (in multiple copies, if requested by the
                  Administrator) and each Purchaser Agent the following:

                      (i) as soon as available and in any event within 60 days
                  after the end of the first three quarters of each fiscal year
                  of Greetings, balance sheets of Greetings and its consolidated
                  Subsidiaries, each Originator, AGSC and Seller as of the end
                  of such quarter and statements of income, retained earnings
                  and cash flow of Greetings and its consolidated Subsidiaries,
                  each Originator, and AGSC for the period commencing at the end
                  of the previous fiscal year and ending with the end of such
                  quarter, certified by the chief financial officer of such
                  Person;

                      (ii) as soon as available and in any event within 120 days
                  after the end of each fiscal year of Greetings and of Seller,
                  a copy of the annual report for such year for Greetings and
                  its consolidated Subsidiaries, each Originator, and AGSC,
                  containing financial statements for such year audited by
                  independent certified public accountants of nationally
                  recognized standing;

                      (iii) as to the Servicer only, as soon as available and in
                  any event not later than two Business Days prior to the
                  Settlement Date, an Information Package as of the last day of
                  such month or, within 10 Business Days of a request by the
                  Administrator or any Purchaser Agent, an Information Package
                  for such periods as is specified by the Administrator or such
                  Purchaser Agent (including on a semi-monthly, weekly or daily
                  basis);

                                      IV-8
<PAGE>

                      (iv) as soon as possible and in any event within five days
                  after becoming aware of the occurrence of each Termination
                  Event or Unmatured Termination Event, a statement of the chief
                  financial officer of Greetings setting forth details of such
                  Termination Event or Unmatured Termination Event and the
                  action that such Person has taken and proposes to take with
                  respect thereto;

                      (v) promptly after the sending or filing thereof, copies
                  of all reports that Greetings sends to any of its security
                  holders, and copies of all reports and registration statements
                  that Greetings or any Subsidiary files with the Securities and
                  Exchange Commission or any national securities exchange;

                      (vi) promptly after the filing or receiving thereof,
                  copies of all reports and notices that Greetings or any of its
                  Affiliate files under ERISA with the Internal Revenue Service,
                  the Pension Benefit Guaranty Corporation or the U.S.
                  Department of Labor or that such Person or any of its
                  Affiliates receives from any of the foregoing or from any
                  multiemployer plan (within the meaning of Section 4001(a)(3)
                  of ERISA) to which such Person or any of its Affiliate is or
                  was, within the preceding five years, a contributing employer,
                  in each case in respect of the assessment of withdrawal
                  liability or an event or condition that could result in the
                  imposition of a liability on Greetings and/or any such
                  Affiliate;

                      (vii) at least thirty days before any change in
                  Greetings's, any Originator's or AGSC's name or any other
                  change requiring the amendment of UCC financing statements, a
                  notice setting forth such changes and the effective date
                  thereof;

                      (viii) promptly after Greetings obtains knowledge thereof,
                  notice of any: (A) litigation, investigation or proceeding
                  that may exist at any time between Greetings or any of its
                  Subsidiaries and any Governmental Authority that, if not cured
                  or if adversely determined, as the case may be, would
                  reasonably be expected to result in a Material Adverse Effect;
                  (B) litigation or proceeding adversely affecting such Person
                  or any of its Subsidiaries in which the amount involved is
                  more than $2,000,000 and not covered by insurance or in which
                  injunctive or similar relief is sought; or (C) litigation or
                  proceeding relating to any Transaction Document;

                      (ix) promptly after the occurrence thereof, notice of any
                  Material Adverse Effect;

                      (x) such other information respecting the Receivables or
                  the condition or operations, financial or otherwise, of
                  Greetings, any Originator or AGSC or any of their respective
                  Affiliates as the Administrator or any Purchaser Agent may
                  from time to time reasonably request; and

                                      IV-9
<PAGE>

                      (xi) promptly after the occurrence thereof, notice of any
                  material acquisition or investment by Greetings of or in any
                  Person, business or operation.

         3.       SEPARATE EXISTENCE. Each of the Seller and Greetings hereby
acknowledges that the Purchasers, the Purchaser Agents, the Administrator and
the Liquidity Providers are entering into the transactions contemplated by this
Agreement and the other Transaction Documents in reliance upon the Seller's and
AGSC's identity as a legal entity separate from Greetings and its Affiliates.
Therefore, from and after the date hereof, each of the Seller and Greetings
shall take all steps specifically required by the Agreement or reasonably
required by the Administrator to continue the Seller's and AGSC's identity as a
separate legal entity and to make it apparent to third Persons that each of the
Seller and AGSC is an entity with assets and liabilities distinct from those of
Greetings and any other Person, and is not a division of Greetings, its
Affiliates or any other Person. Without limiting the generality of the foregoing
and in addition to and consistent with the other covenants set forth herein,
each of the Seller and Greetings shall take such actions as shall be required in
order that:

                  (a) The Seller will be a limited purpose corporation whose
         primary activities are restricted in its certificate of incorporation
         to: (i) purchasing or otherwise acquiring from the Originators, owning,
         holding, granting security interests or selling interests in Pool
         Assets, (ii) entering into agreements for the selling and servicing of
         the Receivables Pool, and (iii) conducting such other activities as it
         deems necessary or appropriate to carry out its primary activities;

                  (b) Seller shall not engage in any business or activity, or
         incur any indebtedness or liability, other than as expressly permitted
         by the Transaction Documents;

                  (c) Not less than one member of the Seller's Board of
         Directors (the "INDEPENDENT DIRECTOR") shall be an individual who is
         not a direct, indirect or beneficial stockholder, officer, director,
         employee, affiliate, associate or supplier of Greetings or any of its
         Affiliates. The certificate of incorporation of the Seller shall
         provide that: (i) the Seller's Board of Directors shall not approve, or
         take any other action to cause the filing of, a voluntary bankruptcy
         petition with respect to the Seller unless the Independent Director
         shall approve the taking of such action in writing before the taking of
         such action, and (ii) such provision cannot be amended without the
         prior written consent of the Independent Director;

                  (d) The Independent Director shall not at any time serve as a
         trustee in bankruptcy for the Seller, Greetings or any Affiliate
         thereof;

                  (e) Any employee, consultant or agent of the Seller or AGSC
         will be compensated from the Seller's or AGSC's (as appropriate) funds
         for services provided to the Seller or AGSC. Seller will not engage any
         agents other than its attorneys, auditors and other professionals and a
         servicer and any other agent contemplated by the Transaction Documents

                                     IV-10
<PAGE>

         for the Receivables Pool, which servicer will be fully compensated for
         its services by payment of the Servicing Fee;

                  (f) The Seller will contract with the Servicer to perform for
         the Seller all operations required on a daily basis to service the
         Receivables Pool. The Seller will pay the Servicer the Servicing Fee
         pursuant to the Agreement. The Seller will not incur any material
         indirect or overhead expenses for items shared with Greetings (or any
         other Affiliate thereof) that are not reflected in the Servicing Fee.
         To the extent, if any, that the Seller, AGSC (or any Affiliate thereof)
         shares items of expenses not reflected in the Servicing Fee, such as
         legal, auditing and other professional services, such expenses will be
         allocated to the extent practical on the basis of actual use or the
         value of services rendered, and otherwise on a basis reasonably related
         to the actual use or the value of services rendered; it being
         understood that Greetings shall pay all expenses relating to the
         preparation, negotiation, execution and delivery of the Transaction
         Documents, including legal, agency and other fees;

                  (g) Neither the Seller's nor AGSC's operating expenses will be
         paid by Greetings or any other Affiliate thereof;

                  (h) All of the Seller's and AGSC's business correspondence and
         other communications shall be conducted in their respective names and
         on their own separate stationery;

                  (i) The Seller's and AGSC's books and records will be
         maintained separately from those of Greetings and any other Affiliate
         thereof;

                  (j) All financial statements of Greetings or any Affiliate
         thereof that are consolidated to include Seller or AGSC will contain
         detailed notes clearly stating that: (i) each is a special purpose
         corporation and a Subsidiary of Greetings, and (ii) the Originators
         have sold receivables and other related assets to AGSC (who has in turn
         sold receivables and related assets to Seller) or Seller that, in turn,
         has sold undivided interests therein to certain financial institutions
         and other entities;

                  (k) The Seller's and AGSC's assets will be maintained in a
         manner that facilitates their identification and segregation from those
         of Greetings or any Affiliate thereof;

                  (l) Each of the Seller and AGSC will strictly observe
         corporate formalities in its dealings with Greetings or any Affiliate
         thereof, and funds or other assets of the Seller and AGSC will not be
         commingled with those of Greetings or any Affiliate thereof except as
         permitted by the Agreement in connection with servicing the Pool
         Receivables. The Seller shall not maintain joint bank accounts or other
         depository accounts to which Greetings and/or any Affiliate thereof
         (other than Greetings in its capacity as the Servicer and any permitted
         Sub-Servicer) has independent access. Neither the Seller nor AGSC is
         named, and has entered into any agreement to be named, directly or
         indirectly, as a direct or contingent

                                     IV-11
<PAGE>

         beneficiary or loss payee on any insurance policy with respect to any
         loss relating to the property of Greetings or any Subsidiary or other
         Affiliate of Greetings. Each of the Seller and AGSC will pay to the
         appropriate Affiliate their respective share of the marginal increase
         or, in the absence of such increase, the market amount of their
         respective share of the portion of the premium payable with respect to
         any insurance policy that covers the Seller and/or AGSC and such
         Affiliate;

                  (m) The Seller and AGSC will maintain arm's-length
         relationships with Greetings (and any Affiliate thereof). Any Person
         that renders or otherwise furnishes services to the Seller and/or AGSC
         will be compensated by the Seller or AGSC (as appropriate) at market
         rates for such services it renders or otherwise furnishes to the Seller
         or AGSC (as appropriate). Neither the Seller, AGSC nor Greetings will
         be or will hold itself out to be responsible for the debts of the other
         or the decisions or actions respecting the daily business and affairs
         of the other. The Seller, AGSC and Greetings will immediately correct
         any known misrepresentation with respect to the foregoing, and they
         will not operate or purport to operate as an integrated single economic
         unit with respect to each other or in their dealing with any other
         entity; and

                  (n) Greetings shall not pay the salaries of Seller's or AGSC's
         employees, if any.

                                     IV-12
<PAGE>

                                    EXHIBIT V
                               TERMINATION EVENTS

         Each of the following shall be a "TERMINATION EVENT ":

         (a) (i) the Seller, Greetings, any Originator, AGSC or the Servicer
shall fail to perform or observe any term, covenant or agreement under the
Agreement or any other Transaction Document, (ii) the Seller or the Servicer
shall fail to make when due any payment or deposit to be made by it under the
Agreement and such failure shall continue unremedied for one Business Day or
(iii) Greetings shall resign as Servicer, and no successor Servicer reasonably
satisfactory to the Administrator and the Majority Purchasers shall have been
appointed; PROVIDED that at all times when Administrator is not permitted to
demand that the Servicer segregate Collections pursuant to SECTION 1.4(b), no
Termination Event or Unmatured Termination Event shall arise solely from the
Seller's or Servicer's (whether as Greetings or as Servicer) failure to comply
with the first sentence of SECTIONS 1(j) or 2(h) of Exhibit IV to this Agreement
(respectively) with respect to Collections received as wire transfers, unless
and until (A) during the period from the Closing Date until earlier of 120 days
following the Closing Date or Kinko's makes payments on Receivables owing from
it directly to a Lock-Box Account (the "INTERIM PERIOD '), the aggregate amount
of such Collections held by the Servicer shall exceed $300,000, (B) during the
Interim Period, the Servicer shall fail to transfer Collections received by it
during any calendar week no later than the second Business Day of the next
following calendar week, or (C) at all times after the Interim Period, the
Servicer shall fail to transfer Collections received by it at any time the
aggregate amount of such Collections during any calendar month and not
previously transferred shall exceed $100,000 for such calendar month; PROVIDED,
FURTHER, that with respect to the failure described in clause (a)(i)
hereinabove, if such failure may be cured without any potential or actual
detriment to any Purchaser, then the Seller, Greetings, any Originator, AGSC or
the Servicer, as applicable, shall have ten days from the earlier of (A) such
Person's knowledge of such failure and (B) notice to such Person of such failure
to so cure any such failure before a Termination Event shall occur, so long as
such Person is diligently attempting to effect such cure.

         (b) Greetings (or any Affiliate thereof) shall fail to transfer to any
successor Servicer when required any rights pursuant to the Agreement that
Greetings (or such Affiliate) then has as Servicer;

         (c) any representation or warranty made or deemed made by the Seller,
Greetings, AGSC or any Originator (or any of their respective officers) under or
in connection with the Agreement or any other Transaction Document, or any
information or report delivered by the Seller, Greetings, AGSC or any Originator
or the Servicer pursuant to the Agreement or any other Transaction Document,
shall prove to have been incorrect or untrue in any material respect when made
or deemed made or delivered; PROVIDED, HOWEVER, that if the representation and
warranty contained in SECTIONS 1(g), 1(n) or 1(v) of EXHIBIT III to this
Agreement shall prove to have been incorrect or

                                      V-1
<PAGE>

untrue in any material respect when made or deemed made or delivered, such
breach shall not constitute a Termination Event if the Seller shall have
complied with its obligations with respect to such Receivable set forth in
SECTION 1.4(e); PROVIDED, FURTHER, that if such breach may be cured without any
potential or actual detriment to any Purchaser, then the Seller, Greetings, AGSC
or any Originator, as applicable, shall have ten days from the earlier of (A)
such Person's knowledge of such breach and (B) notice to such Person of such
breach to so cure any such breach before a Termination Event shall occur, so
long as such Person is diligently attempting to effect such cure.

         (d) the Seller or the Servicer shall fail to deliver the Information
Package pursuant to the Agreement, and such failure shall remain unremedied for
two Business Days;

         (e) the Agreement or any purchase or reinvestment pursuant to the
Agreement shall for any reason: (i) cease to create, or the Purchased Interest
shall for any reason cease to be, a valid and enforceable perfected undivided
percentage ownership or security interest to the extent of the Purchased
Interest in each Pool Receivable, the Related Security and Collections with
respect thereto, free and clear of any Adverse Claim, or (ii) cease to create
with respect to the Pool Assets, or the interest of the Administrator (for the
benefit of the Purchasers) with respect to such Pool Assets shall cease to be, a
valid and enforceable first priority perfected security interest, free and clear
of any Adverse Claim;

         (f) the Seller, Greetings, AGSC or any Originator shall generally not
pay its debts as such debts become due, or shall admit in writing its inability
to pay its debts generally, or shall make a general assignment for the benefit
of creditors; or any proceeding shall be instituted by or against the Seller,
Greetings, AGSC or any Originator seeking to adjudicate it a bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of it or its debts under any law
relating to bankruptcy, insolvency or reorganization or relief of debtors, or
seeking the entry of an order for relief or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part
of its property and, in the case of any such proceeding instituted against it
(but not instituted by it), either such proceeding shall remain undismissed or
unstayed for a period of 60 days, or any of the actions sought in such
proceeding (including the entry of an order for relief against, or the
appointment of a receiver, trustee, custodian or other similar official for, it
or for any substantial part of its property) shall occur; or the Seller,
Greetings, AGSC or any Originator shall take any organizational action to
authorize any of the actions set forth above in this paragraph;

         (g) (i) (A) the Everyday Default Ratio shall exceed 5.0%, (B) the
Disputed Default Ratio shall exceed 3.0%, (C) the Seasonal Default Ratio shall
exceed 3.0%, (D) the Delinquency Ratio shall exceed 48% or (ii) the average for
three consecutive calendar months of (A) the Everyday Default Ratio shall exceed
4.0%, (B) the Disputed Default Ratio shall exceed 2.5%, (C) the Seasonal Default
Ratio shall exceed 2.5%, (D) the Delinquency Ratio shall exceed 44%, or (E) the
Dilution Ratio shall exceed 7%; or (iii) Days Sales Outstanding shall exceed
100.

                                      V-2
<PAGE>

         (h) a Change in Control shall occur with respect to Seller, any
Originator, AGSC or Greetings;

         (i) at any time (i) the sum of (A) the Aggregate Investment plus (B)
the Total Reserves, exceeds (ii) the sum of (A) the Net Receivables Pool Balance
at such time plus (B) the Purchasers' Share of the amount of Collections then on
deposit in the Lock-Box Accounts (other than amounts set aside therein
representing Discount and Fees), and such circumstance shall not have been cured
within two Business Days;

         (j) (i) Greetings or any of its Subsidiaries shall fail to pay any
principal of or premium or interest on any of its Debt that is outstanding in a
principal amount of at least $10,000,000 in the aggregate when the same becomes
due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise), and such failure shall continue after the
applicable grace period, if any, specified in the agreement, mortgage, indenture
or instrument relating to such Debt (and shall have not been waived); or (ii)
any other event shall occur or condition shall exist under any agreement,
mortgage, indenture or instrument relating to any such Debt and shall continue
after the applicable grace period, if any, specified in such agreement,
mortgage, indenture or instrument (and shall have not been waived), if, in
either case: (a) the effect of such non-payment, event or condition is to give
the applicable debtholders the right (whether acted upon or not) to accelerate
the maturity of such Debt, or (b) any such Debt shall be declared to be due and
payable, or required to be prepaid (other than by a regularly scheduled required
prepayment), redeemed, purchased or defeased, or an offer to repay, redeem,
purchase or defease such Debt shall be required to be made, in each case before
the stated maturity thereof;

         (k) either: (i) a contribution failure shall occur with respect to any
Benefit Plan sufficient to give rise to a lien under Section 302(f) of ERISA,
(ii) the Internal Revenue Service shall file a notice of lien asserting a claim
or claims pursuant to the Internal Revenue Code with regard to any of the assets
of Seller, any Originator, AGSC, Greetings or any ERISA Affiliate and such lien
shall have been filed and not released within 10 days, or (iii) the Pension
Benefit Guaranty Corporation shall, or shall indicate its intention in writing
to the Seller, any Originator, AGSC, Greetings or any ERISA Affiliate to, either
file a notice of lien asserting a claim pursuant to ERISA with regard to any
assets of the Seller, any Originator, AGSC, Greetings or any ERISA Affiliate or
terminate any Benefit Plan that has unfunded benefit liabilities, or any steps
shall have been taken to terminate any Benefit Plan subject to Title IV of ERISA
so as to result in any liability in excess of $1,000,000 and such lien shall
have been filed and not released within 10 days;

         (l) one or more final judgments for the payment of money shall be
entered against the Seller or (ii) one or more final judgments for the payment
of money in an amount in excess of $20,000,000, individually or in the
aggregate, shall be entered against the Servicer on claims not covered by
insurance or as to which the insurance carrier has denied its responsibility,
and such judgment shall continue unsatisfied and in effect for sixty (60)
consecutive days without a stay of execution;

                                      V-3
<PAGE>

         (m) the "Receivables Sale Termination Date" under and as defined in the
Receivables Sale Agreement shall occur under the Receivables Sale Agreement or
any Originator shall for any reason (other than as a result of or in connection
with its merger into, or its transfer of all or substantially all of its assets
or business to, another Originator) cease to transfer, or cease to have the
legal capacity to transfer, or otherwise be incapable of transferring
Receivables to AGSC under the Receivables Sale Agreement;

         (n) the "Purchase and Sale Termination Date" under and as defined in
the Purchase and Sale Agreement shall occur under the Purchase and Sale
Agreement or any Originator shall for any reason (other than as a result of or
in connection with its merger into, or its transfer of all or substantially all
of its assets or business to, another Originator) cease to transfer, or cease to
have the legal capacity to transfer, or otherwise be incapable of transferring
Receivables to AGSC under the Purchase and Sale Agreement;

         (o) the "Sale and Contribution Termination Date" under and as defined
in the Sale and Contribution Agreement shall occur under the Sale and
Contribution Agreement or AGSC or any Originator shall for any reason (other
than as a result of or in connection with its merger into, or its transfer of
all or substantially all of its assets or business to, another Originator) cease
to transfer, or cease to have the legal capacity to transfer, or otherwise be
incapable of transferring Receivables to the Seller under the Sale and
Contribution Agreement;

         (p) Moody's or Standard & Poor's shall request any amendment,
supplement or other modification of the Agreement or any other Transaction
Document which is not made within 10 Business Days after the applicable
Purchaser Agent has provided notice thereof to the parties hereto; or

         (q) the amount of dilutions recorded on any Information Package (i)
with respect to Receivables originated by any Originator other than Plus Mark,
Inc., for any of (a) seasonal returns, (b) advertising allowances or (c) volume
rebates or (ii) with respect to Receivables originated by Plus Mark, Inc., for
any of the Plus Mark, Inc. specific factors, exceeds the reserves or liabilities
reported on the immediately prior Information Package related to such dilution
category.

                                       V-4
<PAGE>

                                   SCHEDULE I
                          CREDIT AND COLLECTION POLICY

                                  Schedule I-1

<PAGE>

                                   SCHEDULE II
                      LOCK-BOX BANKS AND LOCK-BOX ACCOUNTS

        Lock-Box Bank              Lock-Box                    Account
        -------------              --------                    -------

                                  Schedule II-1
<PAGE>

                                  SCHEDULE III
                                   TRADE NAMES

Organizational Name                    Trade Names / Fictitious Names
-------------------                    ------------------------------

                                 Schedule III-1

<PAGE>

                                                                         ANNEX A
                                               TO RECEIVABLES PURCHASE AGREEMENT

                           FORM OF INFORMATION PACKAGE

                                    Annex A-1

<PAGE>

                                                                         ANNEX B
                                               TO RECEIVABLES PURCHASE AGREEMENT

                             FORM OF PURCHASE NOTICE

                                    Annex B-1

<PAGE>

                                                                         ANNEX C
                                               TO RECEIVABLES PURCHASE AGREEMENT

                          FORM OF ASSUMPTION AGREEMENT

                                    Annex C-1

<PAGE>

                                                                         ANNEX D
                                               TO RECEIVABLES PURCHASE AGREEMENT

                           FORM OF TRANSFER SUPPLEMENT

                                    Annex D-1

<PAGE>

                                                                         ANNEX E
                                               TO RECEIVABLES PURCHASE AGREEMENT

                             FORM OF PAYDOWN NOTICE

                                    Annex D-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]