Document:

<PAGE>   1

                                                                    EXHIBIT 10.6

                                                                    RESTATED AND
                                                              AS AMENDED THROUGH
                                                                   JULY 25, 2000

                               CRAWFORD & COMPANY
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
                   AS AMENDED AND RESTATED AS OF JULY 25, 2000

                                    Section 1

                                     PURPOSE

         Crawford & Company hereby amends and restates the Crawford & Company
Supplemental Executive Retirement Plan as originally effective as of January 1,
1986 and as thereafter amended. The primary purpose of this SERP is to provide a
supplemental retirement benefit to the Participants described in Exhibit A to
supplement the benefits payable to each of them under the Retirement Plan to the
extent such Retirement Plan benefits are limited by the application of Code
ss.ss. 401(a)(17) and 415.

                                    Section 2

                                   DEFINITIONS

         The capitalized terms used in this SERP shall have the same meanings
assigned to those terms in the Retirement Plan except that the following terms
shall have the following meanings:

         2.1      SERP - means this Crawford & Company Supplemental Executive
Retirement Plan, as amended from time to time.

         2.2      Retirement Plan - means the Crawford & Company Retirement Plan
and Trust Agreement, as amended from time to time.

         2.3      Deferred Compensation Plan - means the Crawford & Company
Deferred Compensation Plan, and any successor plan, as amended from time to
time.

                                    Section 3

                                  PARTICIPATION

         The Senior Compensation and Stock Option Committee of the Board of
Directors shall have the power to designate an executive as a Participant in
this SERP and such designations shall be reflected on Exhibit A to this SERP.

<PAGE>   2

                                    Section 4

                                     BENEFIT

         4.1      SERP Benefit. A benefit shall be payable under this SERP to,
or on behalf of, each Participant, which benefit shall equal the excess, if any,
of (a) over (b) where

         (a) equals the aggregate of the benefits which would have been payable
to him, or on his behalf, under (A) the Retirement Plan, plus (B) Restoration
Benefits under the Deferred Compensation Plan in the form elected by him, or his
Beneficiary, under the terms of the Retirement Plan and Deferred Compensation
Plan absent the limitations of Code ss.ss.401(a)(17) and 415, without regard to
when such executive became a participant; and

         (b) equals the aggregate benefits actually payable to him, or on his
behalf, in such form under (A) the Retirement Plan, and (B) the Restoration
Benefits provisions of the Deferred Compensation Plan.

         4.2      Payment. The benefit payable to, or on behalf of, a
Participant under this ss.4 shall be paid as of the same date, in the same
benefit payment form and to the same person as his benefit under the Retirement
Plan or Deferred Compensation Plan and no payment shall be made to, or on behalf
of, a Participant under this ss.4 unless and until a benefit is paid to him, or
on his behalf, under the Retirement Plan.

         4.3      Previously Retired Participants. Notwithstanding the
foregoing, if an executive, at the time of his designation as a Participant, is
currently receiving benefits under the Retirement Plan, he shall not receive any
benefits under this SERP until such time as such Participant's employment
terminates following his or her designation as a Participant ("Subsequent
Retirement"). Such Participant's SERP benefits under ss.4.1 shall, at the time
of the Subsequent Retirement, be determined by including all periods of
employment up to the Subsequent Retirement, without regard to any previous
retirement, as if the Participant first started receiving benefits under the
Retirement Plan as of the time of his or her Subsequent Retirement. Any
Participant who retires and then returns to employment shall receive additional
SERP benefits in accordance with ss.4.1 with respect to such period of
subsequent employment if designated a continuing Participant by the Committee.

                                    Section 5

                           SOURCE OF BENEFIT PAYMENTS

         All benefits payable under the terms of this SERP shall be paid by
Crawford & Company from its general assets. No person shall have any right or
interest or claims whatsoever to the payment of a benefit under this SERP from
any person whomsoever other than Crawford & Company, and no Participant or
beneficiary shall have any right or interest whatsoever to the payment of a
benefit under this SERP which is superior in any manner to the right of any
other general and unsecured creditor of Crawford & Company.

<PAGE>   3

                                    Section 6

                          NOT A CONTRACT OF EMPLOYMENT

         Participation in this SERP shall not grant to any Participant the right
to remain an employee for any specific term of employment or in any specific
capacity or at any specific rate of compensation.

                                    Section 7

                           NO ALIENATION OR ASSIGNMENT

         A Participant or a beneficiary under this SERP shall have no right or
power to alienate, commute, anticipate or otherwise assign at law or equity all
or any portion of any benefit otherwise payable under this SERP, and the Senior
Compensation and Stock Option Committee of the Board of Directors shall have the
right in light of any such action to suspend temporarily or terminate
permanently the payment of benefits to, or on behalf of, any Participant or
beneficiary who attempts to do so.

                                    Section 8

                                      ERISA

         Crawford & Company intends that this SERP come within the various
exceptions and exemptions of ERISA and for an unfunded deferred compensation
plan maintained primarily for a select group of management or highly compensated
employees within the meaning of ERISA ss. 201(2), ss. 302(a)(3) and ss.
401(a)(1) and any ambiguities in this SERP shall be construed to effect that
intent.

                                    Section 9

                    ADMINISTRATION, AMENDMENT AND TERMINATION

         Crawford & Company shall have all powers necessary to administer this
SERP in its absolute discretion and shall have the right, by action of the
Senior Compensation and Stock Option Committee of the Board of Directors, to
amend this SERP from time to time in any respect whatsoever and to terminate
this SERP at any time; provided, however, that any such amendment or termination
shall not be applied retroactively to deprive a Participant of benefits accrued
under this Plan to the date of such amendment or termination. This SERP shall be
binding on any successor in interest to Crawford & Company.

<PAGE>   4

                                   Section 10

                                  CONSTRUCTION

         This SERP shall be construed in accordance with the laws of the State
of Georgia, and the masculine shall include the feminine and the singular the
plural whenever appropriate.

                                   Section 11

                                    EXECUTION

         Crawford & Company, as the SERP sponsor, has executed this SERP to
evidence the adoption of this amendment and restatement by the Senior
Compensation and Stock Option Committee of its Board of Directors this 1st day
of February, 2000.

                                          CRAWFORD & COMPANY

                                          By  /s/ Archie Meyers, Jr.

                                          Title:  Chairman & CEO

<PAGE>   5

                                    EXHIBIT A

                 CRAWFORD & COMPANY SUPPLEMENTAL RETIREMENT PLAN
                        AS AMENDED AND RESTATED EFFECTIVE
                               AS OF JULY 25, 2000

NAME OF PARTICIPANT

T. G. Germany
F. L. Minix
R. P. Albright
P. A. Bollinger
D. R. Chapman
J. F. Osten
D. A. Smith
J. F. Giblin
A. L. Meyers, Jr.
G. L. Davis
J. A. McGee
H. L. Rogers
S. V. Festa
Victoria Holland
Gregory P. Hodson<PAGE>   1

                                                                   EXHIBIT 10.46

                                CREDIT AGREEMENT

                          Dated as of November 3, 2000

                                      among

                             TRACTOR SUPPLY COMPANY,
                                  as Borrower,

                                      AND

                      CERTAIN SUBSIDIARIES OF THE BORROWER
                        FROM TIME TO TIME PARTY HERETO,
                                 as Guarantors,

                              THE SEVERAL LENDERS
                         FROM TIME TO TIME PARTY HERETO

                                      AND

                            BANK OF AMERICA, N. A.,
                            as Administrative Agent

                        BANC OF AMERICA SECURITIES LLC,
                       as Lead Arranger and Book Manager

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<S>        <C>                                                                                                       <C>
SECTION 1  DEFINITIONS.............................................................................................   1
         1.1      Definitions......................................................................................   1
         1.2      Computation of Time Periods......................................................................  20
         1.3      Accounting Terms.................................................................................  21

SECTION 2  CREDIT FACILITIES.......................................................................................  21
         2.1      Revolving Loans..................................................................................  21
         2.2      Letter of Credit Subfacility.....................................................................  23
         2.3      Swingline Loans Subfacility......................................................................  28
         2.4      Extension Option.................................................................................  29

SECTION 3  OTHER PROVISIONS RELATING TO CREDIT FACILITIES..........................................................  31
         3.1      Default Rate.....................................................................................  31
         3.2      Extension and Conversion.........................................................................  31
         3.3      Prepayments......................................................................................  32
         3.4      Termination and Reduction of Revolving Committed Amount; Increase of Revolving Committed Amount..  32
         3.5      Fees.............................................................................................  34
         3.6      Capital Adequacy.................................................................................  35
         3.7      Limitation on Eurodollar Loans...................................................................  35
         3.8      Illegality.......................................................................................  36
         3.9      Requirements of Law..............................................................................  36
         3.10     Treatment of Affected Loans......................................................................  37
         3.11     Taxes............................................................................................  38
         3.12     Compensation.....................................................................................  40
         3.13     Pro Rata Treatment...............................................................................  40
         3.14     Sharing of Payments..............................................................................  41
         3.15     Payments, Computations, Etc......................................................................  42
         3.16     Evidence of Debt.................................................................................  44

SECTION 4  GUARANTY................................................................................................  44
         4.1      The Guaranty.....................................................................................  44
         4.2      Obligations Unconditional........................................................................  45
         4.3      Reinstatement....................................................................................  46
         4.4      Certain Additional Waivers.......................................................................  46
         4.5      Remedies.........................................................................................  46
         4.6      Rights of Contribution...........................................................................  47
         4.7      Guarantee of Payment; Continuing Guarantee.......................................................  48

SECTION 5  CONDITIONS..............................................................................................  48
         5.1      Closing Conditions...............................................................................  48
         5.2      Conditions to all Extensions of Credit...........................................................  50

SECTION 6  REPRESENTATIONS AND WARRANTIES..........................................................................  51
         6.1      Financial Condition..............................................................................  51
</TABLE>

                                       i
<PAGE>   3

<TABLE>
<S>        <C>                                                                                                       <C>
         6.2      No Material Change...............................................................................  51
         6.3      Organization and Good Standing; Compliance with Law..............................................  51
         6.4      Power; Authorization; Enforceable Obligations....................................................  52
         6.5      No Conflicts.....................................................................................  52
         6.6      Ownership........................................................................................  52
         6.7      Indebtedness.....................................................................................  53
         6.8      Litigation.......................................................................................  53
         6.9      Taxes............................................................................................  53
         6.10     Compliance with Law..............................................................................  53
         6.11     ERISA............................................................................................  53
         6.12     Subsidiaries.....................................................................................  55
         6.13     Governmental Regulations, Etc....................................................................  55
         6.14     Purpose of Loans and Letters of Credit...........................................................  56
         6.15     Environmental Matters............................................................................  56
         6.16     Intellectual Property............................................................................  57
         6.17     Solvency.........................................................................................  57
         6.18     Investments......................................................................................  58
         6.19     Location of Assets...............................................................................  58
         6.20     Disclosure.......................................................................................  58
         6.21     No Burdensome Restrictions.......................................................................  58
         6.22     Brokers' Fees....................................................................................  58
         6.23     Labor Matters....................................................................................  58

SECTION 7  AFFIRMATIVE COVENANTS...................................................................................  59
         7.1      Financial Statements.............................................................................  59
         7.2      Preservation of Existence and Franchises.........................................................  61
         7.3      Books and Records................................................................................  61
         7.4      Compliance with Law..............................................................................  61
         7.5      Payment of Taxes and Other Indebtedness..........................................................  62
         7.6      Insurance........................................................................................  62
         7.7      Maintenance of Property..........................................................................  62
         7.8      Performance of Obligations.......................................................................  62
         7.9      Use of Proceeds..................................................................................  62
         7.10     Audits/Inspections...............................................................................  62
         7.11     Financial Covenants..............................................................................  63
         7.12     Additional Credit Parties........................................................................  63
         7.13     Environmental Laws...............................................................................  63

SECTION 8  NEGATIVE COVENANTS......................................................................................  64
         8.1      Indebtedness.....................................................................................  64
         8.2      Liens............................................................................................  65
         8.3      Nature of Business...............................................................................  65
         8.4      Consolidation, Merger, Dissolution, etc..........................................................  65
         8.5      Asset Dispositions...............................................................................  66
         8.6      Investments......................................................................................  66
         8.7      Restricted Payments..............................................................................  66
         8.8      Prepayments of Indebtedness, etc.................................................................  66
</TABLE>

                                       ii
<PAGE>   4

<TABLE>
<S>        <C>                                                                                                       <C>
         8.9      Transactions with Affiliates.....................................................................  66
         8.10     Fiscal Year; Organizational Documents............................................................  67
         8.11     Limitation on Restricted Actions.................................................................  67
         8.12     Ownership of Subsidiaries........................................................................  67
         8.13     Sale Leasebacks..................................................................................  68
         8.14     Capital Expenditures.............................................................................  68
         8.15     No Further Negative Pledges......................................................................  68

SECTION 9  EVENTS OF DEFAULT.......................................................................................  68
         9.1      Events of Default................................................................................  68
         9.2      Acceleration; Remedies...........................................................................  71

SECTION 10  AGENCY PROVISIONS......................................................................................  72
         10.1     Appointment, Powers and Immunities...............................................................  72
         10.2     Reliance by Administrative Agent.................................................................  72
         10.3     Defaults.........................................................................................  73
         10.4     Rights as a Lender...............................................................................  73
         10.5     Indemnification..................................................................................  73
         10.6     Non-Reliance on Administrative Agent and Other Lenders...........................................  74
         10.7     Successor Administrative Agent...................................................................  74

SECTION 11  MISCELLANEOUS..........................................................................................  75
         11.1     Notices..........................................................................................  75
         11.2     Right of Set-Off; Adjustments....................................................................  76
         11.3     Benefit of Agreement.............................................................................  76
         11.4     No Waiver; Remedies Cumulative...................................................................  78
         11.5     Expenses; Indemnification........................................................................  78
         11.6     Amendments, Waivers and Consents.................................................................  79
         11.7     Counterparts.....................................................................................  80
         11.8     Headings.........................................................................................  81
         11.9     Survival.........................................................................................  81
         11.10    Governing Law; Submission to Jurisdiction; Venue.................................................  81
         11.11    Severability.....................................................................................  82
         11.12    Entirety.........................................................................................  82
         11.13    Binding Effect; Termination......................................................................  82
         11.14    Confidentiality..................................................................................  82
         11.15    Use of Sources...................................................................................  83
         11.16    Conflict.........................................................................................  83
</TABLE>

                                      iii
<PAGE>   5

                                    SCHEDULES

<TABLE>
<S>                        <C>
Schedule 1.1(a)            Liens
Schedule 2.1(a)            Lenders
Schedule 6.12              Subsidiaries
Schedule 6.19              Chief Executive Offices/Principal Places of Business
Schedule 6.23              Labor Matters
Schedule 7.6               Insurance
Schedule 8.1               Indebtedness
Schedule 8.9               Transactions with Affiliates
</TABLE>

                                    EXHIBITS

<TABLE>
<S>                        <C>
Exhibit 2.1(b)(i)          Form of Notice of Borrowing
Exhibit 2.1(e)             Form of Revolving Note
Exhibit 2.3(b)             Form of Swingline Loan Request
Exhibit 2.3(e)             Form of Swingline Note
Exhibit 3.2                Form of Notice of Extension/Conversion
Exhibit 3.4(b)             Form of New Commitment Agreement
Exhibit 7.1(c)             Form of Officer's Compliance Certificate
Exhibit 7.12               Form of Joinder Agreement
Exhibit 11.3(b)            Form of Assignment and Acceptance
</TABLE>

                                       iv
<PAGE>   6

                                CREDIT AGREEMENT

         THIS CREDIT AGREEMENT, dated as of November 3, 2000 (as amended,
modified, restated or supplemented from time to time, the "Credit Agreement"),
is by and among TRACTOR SUPPLY COMPANY, a Delaware corporation (the "Borrower"),
the Subsidiary Guarantors (as defined herein), the Lenders (as defined herein)
and BANK OF AMERICA, N.A., as Administrative Agent for the Lenders (in such
capacity, the "Administrative Agent").

                               W I T N E S S E T H

         WHEREAS, the Borrower has requested that the Lenders provide a
$125,000,000 credit facility for the purposes hereinafter set forth; and

         WHEREAS, the Lenders have agreed to make the requested credit facility
available to the Borrower on the terms and conditions hereinafter set forth;

         NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

                                    SECTION 1

                                   DEFINITIONS

         1.1      DEFINITIONS.

         As used in this Credit Agreement, the following terms shall have the
meanings specified below unless the context otherwise requires:

                  "30-Day Interbank Offered Rate" means, for any Swingline Loan,
         the rate per annum (rounded, if necessary, to the nearest one-one
         hundredth (1/100) of one percent) appearing each day on Page 3750 (or
         any successor page) of the Dow Jones Market Service as the London
         interbank offered rate for deposits in Dollars at approximately 11:00
         a.m. (London time) for a term of thirty (30) days. If for any reason
         such rate is not available, the term "30-Day Interbank Offered Rate"
         shall mean the rate per annum (rounded, if necessary, to the nearest
         1/100 of 1%) appearing each day on Reuters Screen LIBO Page as the
         London interbank offered rate for deposits in Dollars at approximately
         11:00 a.m. (London time) for a term of thirty (30) days; provided,
         however, if more than one rate is specified on Reuters Screen LIBO
         Page, the applicable rate shall be the arithmetic mean of all such
         rates (rounded, if necessary, to the nearest 1/100 of 1%). As to any
         date on which no such rates are available, the term "30-Day Interbank
         Offered Rate" shall mean such rate as determined on the next proceeding
         Business Day when such rate was determinable.

                                       1
<PAGE>   7

                  "Additional Credit Party" means each Person that becomes a
         Subsidiary Guarantor after the Closing Date by execution of a Joinder
         Agreement.

                  "Additional Revolving Commitment" means, with respect to any
         Person which executes a New Commitment Agreement in accordance with
         Section 3.4(b), the commitment of such Person in an aggregate principal
         amount up to the amount specified in such New Commitment Agreement to
         make Revolving Loans in accordance with the provisions of Section
         2.1(a).

                  "Adjusted Base Rate" means the Base Rate plus the Applicable
         Percentage.

                  "Adjusted Eurodollar Rate" means the Eurodollar Rate plus the
         Applicable Percentage.

                  "Affiliate" means, with respect to any Person, any other
         Person (i) directly or indirectly controlling or controlled by or under
         direct or indirect common control with such Person or (ii) directly or
         indirectly owning or holding five percent (5%) or more of the Capital
         Stock in such Person. For purposes of this definition, "control" when
         used with respect to any Person means the power to direct the
         management and policies of such Person, directly or indirectly, whether
         through the ownership of voting securities, by contract or otherwise;
         and the terms "controlling" and "controlled" have meanings correlative
         to the foregoing.

                  "Administrative Agent" shall have the meaning assigned to such
         term in the heading hereof, together with any successors or assigns.

                  "Applicable Lending Office" means, for each Lender, the office
         of such Lender (or of an Affiliate of such Lender) as such Lender may
         from time to time specify to the Administrative Agent and the Borrower
         by written notice as the office by which its Eurodollar Loans are made
         and maintained.

                                       2
<PAGE>   8

                  "Applicable Percentage" means, for purposes of calculating the
         applicable interest rate for any day for any Revolving Loan, the
         applicable rate for any day for any Swingline Loan, the applicable rate
         of the Unused Fee for any day for purposes of Section 3.5(b), the
         applicable rate of the Standby Letter of Credit Fee for any day for
         purposes of Section 3.5(c)(i) or the applicable rate for the Trade
         Letter of Credit Fee for any day for purposes of Section 3.5(c)(ii),
         the appropriate applicable percentage corresponding to the Leverage
         Ratio in effect as of the most recent Calculation Date:

<TABLE>
<CAPTION>
PRICING        LEVERAGE          APPLICABLE        APPLICABLE      APPLICABLE     APPLICABLE    APPLICABLE
 LEVEL           RATIO         PERCENTAGE FOR      PERCENTAGE      PERCENTAGE     PERCENTAGE    PERCENTAGE
                              EURODOLLAR LOANS        FOR             FOR         FOR TRADE     FOR UNUSED
                                    AND            BASE RATE        STANDBY       LETTER OF        FEES
                              SWINGLINE LOANS        LOANS         LETTER OF     CREDIT FEES
                                                                  CREDIT FEES
-------     ----------------  ----------------     ----------     -----------    -----------    ----------
<S>         <C>               <C>                  <C>            <C>            <C>            <C>
   I             <2.50              0.75%             0.0%            0.75%          0.25%          0.20%
-------     ----------------  ----------------     ----------     -----------    -----------    ----------
  II        > 2.50 but < 3.0       0.875%             0.0%           0.875%          0.25%          0.25%
            -
-------     ----------------  ----------------     ----------     -----------    -----------    ----------
  III       > 3.0 but < 3.50        1.00%             0.0%            1.00%          0.25%          0.25%
            -
-------     ----------------  ----------------     ----------     -----------    -----------    ----------
  IV        > 3.50 but < 4.0        1.25%             0.0%            1.25%          0.25%          0.30%
            -
-------     ----------------  ----------------     ----------     -----------    -----------    ----------
   V             > 4.0              1.50%             0.0%            1.50%          0.25%          0.35%
                 -
=======     ================  ================     ==========     ===========    ===========    ==========
</TABLE>

         The Applicable Percentages shall be determined and adjusted quarterly
         on the date (each a "Calculation Date") five Business Days after the
         date by which the Borrower is required to provide the officer's
         certificate in accordance with the provisions of Section 7.1(c) for the
         most recently ended fiscal quarter of the Consolidated Parties;
         provided, however, (i) until the first Calculation Date to occur
         subsequent to September 30, 2000, the Applicable Percentages shall be
         0.30% with respect to the Unused Fee, 1.25% with respect to the
         Eurodollar Loans, Swingline Loans and the Standby Letter of Credit Fee,
         0.0% with respect to the Base Rate Loans and 0.25% with respect to the
         Trade Letter of Credit Fee, and (ii) if the Borrower fails to provide
         the officer's certificate as required by Section 7.1(c) for the last
         day of the most recently ended fiscal quarter of the Consolidated
         Parties, the Applicable Percentage from such Calculation Date shall be
         based on Pricing Level V until such time as an appropriate officer's
         certificate is provided, whereupon the Applicable Percentage shall be
         determined by the Leverage Ratio as of the last day of the most
         recently ended fiscal quarter of the Consolidated Parties preceding
         such Calculation Date. Each Applicable Percentage shall be effective
         from one Calculation Date until the next Calculation Date. Any
         adjustment in the Applicable Percentages shall be applicable to all
         existing Loans as well as any new Loans made or issued.

                  "Bank of America" means Bank of America, N.A. and its
         successors.

                  "Bankruptcy Code" means the Bankruptcy Code in Title 11 of the
         United States Code, as amended, modified, succeeded or replaced from
         time to time.

                  "Bankruptcy Event" means, with respect to any Person, the
         occurrence of any of the following with respect to such Person: (i) a
         court or governmental agency having jurisdiction in the premises shall
         enter a decree or order for relief in respect of such Person in an
         involuntary case under any applicable bankruptcy, insolvency or other
         similar law now

                                       3
<PAGE>   9

         or hereafter in effect, or appointing a receiver, liquidator, assignee,
         custodian, trustee, sequestrator (or similar official) of such Person
         or for any substantial part of its Property or ordering the winding up
         or liquidation of its affairs; or (ii) there shall be commenced against
         such Person an involuntary case under any applicable bankruptcy,
         insolvency or other similar law now or hereafter in effect, or any
         case, proceeding or other action for the appointment of a receiver,
         liquidator, assignee, custodian, trustee, sequestrator (or similar
         official) of such Person or for any substantial part of its Property or
         for the winding up or liquidation of its affairs, and such involuntary
         case or other case, proceeding or other action shall remain
         undismissed, undischarged or unbonded for a period of sixty (60)
         consecutive days; or (iii) such Person shall commence a voluntary case
         under any applicable bankruptcy, insolvency or other similar law now or
         hereafter in effect, or consent to the entry of an order for relief in
         an involuntary case under any such law, or consent to the appointment
         or taking possession by a receiver, liquidator, assignee, custodian,
         trustee, sequestrator (or similar official) of such Person or for any
         substantial part of its Property or make any general assignment for the
         benefit of creditors; or (iv) such Person shall be unable to, or shall
         admit in writing its inability to, pay its debts generally as they
         become due.

                  "Base Rate" means, for any day, the rate per annum equal to
         the higher of (a) the Federal Funds Rate for such day plus one-half of
         one percent (0.5%) and (b) the Prime Rate for such day. Any change in
         the Base Rate due to a change in the Prime Rate or the Federal Funds
         Rate shall be effective on the effective date of such change in the
         Prime Rate or Federal Funds Rate.

                  "Base Rate Loan" means any Loan bearing interest at a rate
         determined by reference to the Base Rate.

                  "Borrower" means the Person identified as such in the heading
         hereof, together with any permitted successors and assigns.

                  "Business Day" means a day other than a Saturday, Sunday or
         other day on which commercial banks in Charlotte, North Carolina or
         Nashville, Tennessee are authorized or required by law to close, except
         that, when used in connection with a Eurodollar Loan, such day shall
         also be a day on which dealings between banks are carried on in U.S.
         dollar deposits in London, England.

                  "Capital Lease" means, as applied to any Person, any lease of
         any Property (whether real, personal or mixed) by that Person as lessee
         which, in accordance with GAAP, is or should be accounted for as a
         capital lease on the balance sheet of that Person.

                  "Capital Stock" means (i) in the case of a corporation,
         capital stock, (ii) in the case of an association or business entity,
         any and all shares, interests, participations, rights or other
         equivalents (however designated) of capital stock, (iii) in the case of
         a partnership, partnership interests (whether general or limited), (iv)
         in the case of a limited liability company, membership interests and
         (v) any other interest or participation that confers on a Person the
         right to receive a share of the profits and losses of, or distributions
         of assets of, the issuing Person.

                                       4
<PAGE>   10

                  "Cash Equivalents" means (a) securities issued or directly and
         fully guaranteed or insured by the United States of America or any
         agency or instrumentality thereof (provided that the full faith and
         credit of the United States of America is pledged in support thereof)
         having maturities of not more than twelve months from the date of
         acquisition, (b) U.S. dollar denominated time deposits and certificates
         of deposit of (i) any Lender, (ii) any domestic commercial bank of
         recognized standing having capital and surplus in excess of
         $500,000,000 or (iii) any bank whose short-term commercial paper rating
         from S&P is at least A-1 or the equivalent thereof or from Moody's is
         at least P-1 or the equivalent thereof (any such bank being an
         "Approved Bank"), in each case with maturities of not more than 270
         days from the date of acquisition, (c) commercial paper and variable or
         fixed rate notes issued by any Approved Bank (or by the parent company
         thereof) or any variable rate notes issued by, or guaranteed by, any
         domestic corporation rated A-1 (or the equivalent thereof) or better by
         S&P or P-1 (or the equivalent thereof) or better by Moody's and
         maturing within six months of the date of acquisition, (d) repurchase
         agreements entered into by any Person with a bank or trust company
         (including any of the Lenders) or recognized securities dealer having
         capital and surplus in excess of $500,000,000 for direct obligations
         issued by or fully guaranteed by the United States of America in which
         such Person shall have a perfected first priority security interest
         (subject to no other Liens) and having, on the date of purchase
         thereof, a fair market value of at least 100% of the amount of the
         repurchase obligations and (e) Investments, classified in accordance
         with GAAP as current assets, in money market investment programs
         registered under the Investment Company Act of 1940, as amended, which
         are administered by reputable financial institutions having capital of
         at least $500,000,000 and the portfolios of which are limited to
         Investments of the character described in the foregoing subdivisions
         (a) through (d).

                  "Change of Control" means the occurrence of any of the
         following events: (i) any Person or two or more Persons acting in
         concert shall have acquired "beneficial ownership," directly or
         indirectly, of, or shall have acquired by contract or otherwise, or
         shall have entered into a contract or arrangement that, upon
         consummation, will result in its or their acquisition of, control over,
         Voting Stock of the Borrower (or other securities convertible into such
         Voting Stock) representing 25% or more of the combined voting power of
         all Voting Stock of the Borrower, or (ii) during any period of up to 24
         consecutive months, commencing after the Closing Date, individuals who
         at the beginning of such 24 month period were directors of the Borrower
         (together with any new director whose election by the Borrower's Board
         of Directors or whose nomination for election by the Borrower's
         shareholders was approved by a vote of at least two-thirds of the
         directors then still in office who either were directors at the
         beginning of such period or whose election or nomination for election
         was previously so approved) cease for any reason to constitute a
         majority of the directors of the Borrower then in office. As used
         herein, "beneficial ownership" shall have the meaning provided in Rule
         13d-3 of the Securities and Exchange Commission under the Securities
         Act of 1934.

                  "Closing Date" means the date hereof.

                                       5
<PAGE>   11

                  "Code" means the Internal Revenue Code of 1986, as amended,
         and any successor statute thereto, as interpreted by the rules and
         regulations issued thereunder, in each case as in effect from time to
         time. References to sections of the Code shall be construed also to
         refer to any successor sections.

                  "Commitment" means the Revolving Commitment, the Swingline
         Commitment and the LOC Commitment.

                  "Consolidated Capital Expenditures" means, for any period, all
         capital expenditures of the Consolidated Parties on a consolidated
         basis for such period, as determined in accordance with GAAP.

                  "Consolidated EBITDA" means, for any period, the sum of (a)
         Consolidated Net Income for such period, plus (b) an amount which, in
         the determination of Consolidated Net Income for such period, has been
         deducted for (i) Consolidated Interest Expense, (ii) total federal,
         state, local and foreign income, value added and similar taxes and
         (iii) depreciation and amortization expense.

                  "Consolidated EBITR" means, for any period, the sum of (a)
         Consolidated Net Income for such period, plus (b) an amount which, in
         the determination of Consolidated Net Income for such period, has been
         deducted for (i) Consolidated Interest Expense, (ii) total federal,
         state, local and foreign income, value added and similar taxes and
         (iii) Consolidated Rental Expense for such period.

                  "Consolidated Interest Expense" means, for any period, all
         interest expense (including the interest component under Capital Leases
         and Synthetic Leases) of the Consolidated Parties on a consolidated
         basis for such period, as determined in accordance with GAAP (except
         with respect to the interest component under Synthetic Leases).

                  "Consolidated Parties" means a collective reference to the
         Borrower and its Subsidiaries, and "Consolidated Party" means any one
         of them.

                  "Consolidated Net Income" means, for any period, net income
         (excluding extraordinary items) after taxes for such period of the
         Consolidated Parties on a consolidated basis, as determined in
         accordance with GAAP.

                  "Consolidated Rental Expense" means, for any period, rental
         expense under Operating Leases (excluding any Synthetic Lease) of the
         Consolidated Parties on a consolidated basis for such period, as
         determined in accordance with GAAP.

                  "Consolidated Revenues" means, as of the end of any fiscal
         quarter of the Consolidated Parties for the twelve month period ending
         on such date, revenues of the Consolidated Parties on a consolidated
         basis, as determined in accordance with GAAP.

                  "Credit Documents" means a collective reference to this Credit
         Agreement, the Notes, the LOC Documents, each Joinder Agreement, the
         Administrative Agent's Fee

                                       6
<PAGE>   12

         Letter and all other related agreements and documents issued or
         delivered hereunder or thereunder or pursuant hereto or thereto (in
         each case as the same may be amended, modified, restated, supplemented,
         extended, renewed or replaced from time to time), and "Credit Document"
         means any one of them.

                  "Credit Parties" means a collective reference to the Borrower
         and the Guarantors, and "Credit Party" means any one of them.

                  "Credit Party Obligations" means, without duplication, (i) all
         of the obligations of the Credit Parties to the Lenders (including the
         Issuing Lender and the Swingline Lender) and the Administrative Agent,
         whenever arising, under this Credit Agreement, the Notes or any of the
         other Credit Documents (including, but not limited to, any interest
         accruing after the occurrence of a Bankruptcy Event with respect to any
         Credit Party, regardless of whether such interest is an allowed claim
         under the Bankruptcy Code) and (ii) all liabilities and obligations,
         whenever arising, owing from the Borrower to any Lender, or any
         Affiliate of a Lender, arising under any Hedging Agreement relating to
         the Revolving Obligations hereunder.

                  "Current Assets" means, as of any date, the total amount of
         current assets of the Consolidated Parties on a consolidated basis, as
         determined in accordance with GAAP.

                  "Current Liabilities" means, as of any date, the total amount
         of current liabilities of the Consolidated Parties on a consolidated
         basis, as determined in accordance with GAAP.

                  "Current Ratio" means, at any time, the ratio of (a) Current
         Assets to (b) the sum of (i) Current Liabilities plus (ii) the
         aggregate principal amount of the Revolving Obligations outstanding.

                  "Default" means any event, act or condition which with notice
         or lapse of time, or both, would constitute an Event of Default.

                  "Defaulting Lender" means, at any time, any Lender that (a)
         has failed to make a Loan or purchase a Participation Interest required
         pursuant to the term of this Credit Agreement within one Business Day
         of when due, (b) other than as set forth in (a) above, has failed to
         pay to the Administrative Agent or any Lender an amount owed by such
         Lender pursuant to the terms of this Credit Agreement within one
         Business Day of when due, unless such amount is subject to a good faith
         dispute or (c) has been deemed insolvent or has become subject to a
         bankruptcy or insolvency proceeding or with respect to which (or with
         respect to any of assets of which) a receiver, trustee or similar
         official has been appointed.

                  "Dollars" and "$" means dollars in lawful currency of the
         United States of America.

                  "Domestic Subsidiary" means, with respect to any Person, any
         Subsidiary of such Person which is incorporated or organized under the
         laws of any State of the United States or the District of Columbia.

                                       7
<PAGE>   13

                  "Eligible Assignee" means (i) a Lender; (ii) an Affiliate of a
         Lender; and (iii) any other Person approved by the Administrative
         Agent, the Issuing Lender and, unless an Event of Default has occurred
         and is continuing at the time any assignment is effected in accordance
         with Section 11.3, the Borrower (such approval not to be unreasonably
         withheld or delayed by the Borrower and such approval to be deemed
         given by the Borrower if no objection is received by the assigning
         Lender and the Administrative Agent from the Borrower within two
         Business Days after notice of such proposed assignment has been
         provided by the assigning Lender to the Borrower); provided, however,
         that neither the Borrower nor an Affiliate of the Borrower shall
         qualify as an Eligible Assignee.

                  "Environmental Laws" means any and all lawful and applicable
         Federal, state, local and foreign statutes, laws, regulations,
         ordinances, rules, judgments, orders, decrees, permits, concessions,
         grants, franchises, licenses, agreements or other governmental
         restrictions relating to the environment or to emissions, discharges,
         releases or threatened releases of pollutants, contaminants, chemicals,
         or industrial, toxic or hazardous substances or wastes into the
         environment including, without limitation, ambient air, surface water,
         ground water, or land, or otherwise relating to the manufacture,
         processing, distribution, use, treatment, storage, disposal, transport,
         or handling of pollutants, contaminants, chemicals, or industrial,
         toxic or hazardous substances or wastes.

                  "Equity Issuance" means any issuance by any Consolidated Party
         to any Person which is not a Credit Party of (a) shares of its Capital
         Stock, (b) any shares of its Capital Stock pursuant to the exercise of
         options or warrants or (c) any shares of its Capital Stock pursuant to
         the conversion of any debt securities to equity.

                  "ERISA" means the Employee Retirement Income Security Act of
         1974, as amended, and any successor statute thereto, as interpreted by
         the rules and regulations thereunder, all as the same may be in effect
         from time to time. References to sections of ERISA shall be construed
         also to refer to any successor sections.

                  "ERISA Affiliate" means an entity which is under common
         control with any Consolidated Party within the meaning of Section
         4001(a)(14) of ERISA, or is a member of a group which includes any
         Consolidated Party and which is treated as a single employer under
         Sections 414(b) or (c) of the Code.

                  "ERISA Event" means (i) with respect to any Plan, the
         occurrence of a Reportable Event or the substantial cessation of
         operations (within the meaning of Section 4062(e) of ERISA); (ii) the
         withdrawal by any Consolidated Party or any ERISA Affiliate from a
         Multiple Employer Plan during a plan year in which it was a substantial
         employer (as such term is defined in Section 4001(a)(2) of ERISA), or
         the termination of a Multiple Employer Plan; (iii) the distribution of
         a notice of intent to terminate or the actual termination of a Plan
         pursuant to Section 4041(a)(2) or 4041A of ERISA; (iv) the institution
         of proceedings to terminate or the actual termination of a Plan by the
         PBGC under Section 4042 of ERISA;

                                       8
<PAGE>   14

         (v) any event or condition which might constitute grounds under Section
         4042 of ERISA for the termination of, or the appointment of a trustee
         to administer, any Plan; (vi) the complete or partial withdrawal of any
         Consolidated Party or any ERISA Affiliate from a Multiemployer Plan;
         (vii) the conditions for imposition of a lien under Section 302(f) of
         ERISA exist with respect to any Plan; or (viii) the adoption of an
         amendment to any Plan requiring the provision of security to such Plan
         pursuant to Section 307 of ERISA.

                  "Eurodollar Loan" means any Loan that bears interest at a rate
         based upon the Eurodollar Rate.

                  "Eurodollar Rate" means, for any Eurodollar Loan for any
         Interest Period therefor, the rate per annum (rounded, if necessary, to
         the nearest 1/100 of 1%) determined by the Administrative Agent to be
         equal to the quotient obtained by dividing (a) the Interbank Offered
         Rate for such Eurodollar Loan for such Interest Period by (b) 1 minus
         the Eurodollar Reserve Requirement for such Eurodollar Loan for such
         Interest Period.

                  "Eurodollar Reserve Requirement" means, at any time, the
         maximum rate at which reserves (including, without limitation, any
         marginal, special, supplemental, or emergency reserves) are required to
         be maintained under regulations issued from time to time by the Board
         of Governors of the Federal Reserve System (or any successor) by member
         banks of the Federal Reserve System against "Eurodollar liabilities"
         (as such term is used in Regulation D). Without limiting the effect of
         the foregoing, the Eurodollar Reserve Requirement shall reflect any
         other reserves required to be maintained by such member banks with
         respect to (i) any category of liabilities which includes deposits by
         reference to which the Adjusted Eurodollar Rate is to be determined, or
         (ii) any category of extensions of credit or other assets which include
         Eurodollar Loans. The Adjusted Eurodollar Rate shall be adjusted
         automatically on and as of the effective date of any change in the
         Eurodollar Reserve Requirement.

                  "Event of Default" shall have the meaning as defined in
         Section 9.1.

                  "Fees" means all fees payable pursuant to Section 3.5.

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

                  "Fixed Charge Coverage Ratio" means, with respect to the
         Consolidated Parties on a consolidated basis, the ratio of (a)
         Consolidated EBITR for the prior twelve month period to

                                       9
<PAGE>   15

         (b) the sum of (i) Consolidated Interest Expense for the prior twelve
         month period plus (ii) Scheduled Funded Debt Payments for the prior
         twelve month period plus (iii) Consolidated Rental Expense for the
         prior twelve month period.

                  "Foreign Subsidiary" means, with respect to any Person, any
         Subsidiary of such Person which is not a Domestic Subsidiary of such
         Person.

                  "Funded Indebtedness" means, with respect to any Person,
         without duplication, (a) all Indebtedness of such Person other than
         Indebtedness of the types referred to in clause (e), (f), (g), (i), and
         (l) of the definition of "Indebtedness" set forth in this Section 1.1,
         (b) all Indebtedness of another Person of the type referred to in
         clause (a) above secured by (or for which the holder of such Funded
         Indebtedness has an existing right, contingent or otherwise, to be
         secured by) any Lien on, or payable out of the proceeds of production
         from, Property owned or acquired by such Person, whether or not the
         obligations secured thereby have been assumed, (c) all Guaranty
         Obligations of such Person with respect to Indebtedness of the type
         referred to in clause (a) above of another Person and (d) Indebtedness
         of the type referred to in clause (a) above of any partnership or
         unincorporated joint venture in which such Person is a general partner
         or a joint venturer.

                  "GAAP" means generally accepted accounting principles in the
         United States applied on a consistent basis and subject to the terms of
         Section 1.3.

                  "Governmental Authority" means any Federal, state, local or
         foreign court or governmental agency, authority, instrumentality or
         regulatory body.

                  "Guarantors" means a collective reference to each of the
         Subsidiary Guarantors and "Guarantor" means any one of them.

                  "Guaranty Obligations" means, with respect to any Person,
         without duplication, any obligations of such Person (other than
         endorsements in the ordinary course of business of negotiable
         instruments for deposit or collection) guaranteeing or intended to
         guarantee any Indebtedness of any other Person in any manner, whether
         direct or indirect, and including without limitation any obligation,
         whether or not contingent, (a) to purchase any such Indebtedness or any
         Property constituting security therefor, (b) to advance or provide
         funds or other support for the payment or purchase of any such
         Indebtedness or to maintain working capital, solvency or other balance
         sheet condition of such other Person (including without limitation keep
         well agreements, maintenance agreements, comfort letters or similar
         agreements or arrangements) for the benefit of any holder of
         Indebtedness of such other Person, (c) to lease or purchase Property,
         securities or services primarily for the purpose of assuring the holder
         of such Indebtedness, or (d) to otherwise assure or hold harmless the
         holder of such Indebtedness against loss in respect thereof. The amount
         of any Guaranty Obligation hereunder shall (subject to any limitations
         set forth therein) be deemed to be an amount equal to the outstanding
         principal amount (or maximum principal amount, if larger) of the
         Indebtedness in respect of which such Guaranty Obligation is made.

                                       10
<PAGE>   16

                  "Hedging Agreements" means any interest rate protection
         agreement or foreign currency exchange agreement.

                  "Indebtedness" means, with respect to any Person, without
         duplication, (a) all obligations of such Person for borrowed money, (b)
         all obligations of such Person evidenced by bonds, debentures, notes or
         similar instruments, or upon which interest payments are customarily
         made, (c) all obligations of such Person under conditional sale or
         other title retention agreements relating to Property purchased by such
         Person (other than customary reservations or retentions of title under
         agreements with suppliers entered into in the ordinary course of
         business), (d) all obligations of such Person issued or assumed as the
         deferred purchase price of Property or services purchased by such
         Person (other than trade debt incurred in the ordinary course of
         business and due within six months of the incurrence thereof) which
         would appear as liabilities on a balance sheet of such Person, (e) all
         obligations of such Person under take-or-pay or similar arrangements or
         under commodities agreements, (f) all Indebtedness of others secured by
         (or for which the holder of such Indebtedness has an existing right,
         contingent or otherwise, to be secured by) any Lien on, or payable out
         of the proceeds of production from, Property owned or acquired by such
         Person, whether or not the obligations secured thereby have been
         assumed, (g) all Guaranty Obligations of such Person, (h) the principal
         portion of all obligations of such Person under Capital Leases, (i) all
         obligations of such Person under Hedging Agreements, (j) the maximum
         amount of all standby letters of credit issued or bankers' acceptances
         facilities created for the account of such Person and, without
         duplication, all drafts drawn thereunder (to the extent unreimbursed),
         (k) the principal portion of all obligations of such Person under
         Synthetic Leases and (l) the Indebtedness of any partnership or
         unincorporated joint venture in which such Person is a general partner
         or a joint venturer.

                  "Interbank Offered Rate" means, for any Eurodollar Loan for
         any Interest Period therefor, the rate per annum (rounded, if
         necessary, to the nearest 1/100 of 1%) appearing on Page 3750 (or any
         successor page) of the Dow Jones Market Services as the London
         interbank offered rate for deposits in Dollars at approximately 11:00
         a.m. (London time) two Business Days prior to the first day of such
         Interest Period for a term comparable to such Interest Period. If for
         any reason such rate is not available, the term "Interbank Offered
         Rate" shall mean, for any Eurodollar Loan for any Interest Period
         therefor, the rate per annum (rounded, if necessary, to the nearest
         1/100 of 1%) appearing on Reuters Screen LIBO Page as the London
         interbank offered rate for deposits in Dollars at approximately 11:00
         a.m. (London time) two Business Days prior to the first day of such
         Interest Period for a term comparable to such Interest Period;
         provided, however, if more than one rate is specified on Reuters Screen
         LIBO Page, the applicable rate shall be the arithmetic mean of all such
         rates (rounded, if necessary, to the nearest 1/100 of 1%).

                  "Interest Payment Date" means (a) as to Base Rate Loans, the
         last day of each calendar month, the date of repayment of principal of
         such Loan and the Maturity Date, and (b) as to Eurodollar Loans, the
         last day of each applicable Interest Period, the date of repayment of
         principal of such Loan and the Maturity Date, and in addition, where
         the applicable Interest Period for a Eurodollar Loan is greater than
         three months, then also the

                                       11
<PAGE>   17

         date three months from the beginning of the Interest Period and each
         three months thereafter.

                  "Interest Period" means, as to Eurodollar Loans, a period of
         one, two, three or six months' duration, as the Borrower may elect,
         commencing, in each case, on the date of the borrowing (including
         continuations and conversions thereof); provided, however, (a) if any
         Interest Period would end on a day which is not a Business Day, such
         Interest Period shall be extended to the next succeeding Business Day
         (except that where the next succeeding Business Day falls in the next
         succeeding calendar month, then on the next preceding Business Day),
         (b) no Interest Period shall extend beyond the Maturity Date, and (c)
         where an Interest Period begins on a day for which there is no
         numerically corresponding day in the calendar month in which the
         Interest Period is to end, such Interest Period shall end on the last
         Business Day of such calendar month.

                  "Investment" means (a) the acquisition (whether for cash,
         property, services, assumption of Indebtedness, securities or
         otherwise) of assets, Capital Stock, bonds, notes, debentures,
         partnership, joint ventures or other ownership interests or other
         securities of any Person or (b) any deposit with, or advance, loan or
         other extension of credit to, any Person (other than deposits made in
         connection with the purchase of equipment or other assets in the
         ordinary course of business) or (c) any other capital contribution to
         or investment in any Person, including, without limitation, any
         Guaranty Obligations (including any support for a letter of credit
         issued on behalf of such Person) incurred for the benefit of such
         Person.

                  "ISP98" shall have the meaning assigned to such term in
         Section 2.2(h).

                  "Issuing Lender" means Bank of America.

                  "Issuing Lender Fees" shall have the meaning assigned to such
         term in Section 3.5(c)(ii).

                  "Joinder Agreement" means a Joinder Agreement substantially in
         the form of Exhibit 7.12 hereto, executed and delivered by an
         Additional Credit Party in accordance with the provisions of Section
         7.12.

                  "Lender" means any of the Persons identified as a "Lender" on
         the signature pages hereto, and any Person which may become a Lender by
         way of assignment in accordance with the terms hereof, together with
         their successors and permitted assigns.

                  "Letter of Credit" means any letter of credit issued by the
         Issuing Lender for the account of the Borrower in accordance with the
         terms of Section 2.2.

                  "Leverage Ratio" means, with respect to the Consolidated
         Parties on a consolidated basis for the twelve month period ending on
         the last day of any fiscal quarter, the ratio of (a) the sum of (i)
         Funded Indebtedness on the last day of such period plus (ii)
         Consolidated Rental Expense for such period multiplied by six to (b)
         the sum of (i) Consolidated EBITDA for such period plus (ii)
         Consolidated Rental Expense for such period.

                                       12
<PAGE>   18

                  "Lien" means any mortgage, pledge, hypothecation, assignment,
         deposit arrangement, security interest, encumbrance, lien (statutory or
         otherwise), preference, priority or charge of any kind (including any
         agreement to give any of the foregoing, any conditional sale or other
         title retention agreement, any financing or similar statement or notice
         filed under the Uniform Commercial Code as adopted and in effect in the
         relevant jurisdiction or other similar recording or notice statute, and
         any lease in the nature thereof).

                  "Loan" or "Loans" means the Revolving Loans (or a portion of
         any Revolving Loan bearing interest at the Adjusted Base Rate or the
         Adjusted Eurodollar Rate) and/or any Swingline Loan, individually or
         collectively, as appropriate.

                  "LOC Commitment" means the commitment of the Issuing Lender to
         issue Letters of Credit, and to honor payment obligations under,
         Letters of Credit hereunder in an aggregate face amount at any time
         outstanding (together with the amounts of any unreimbursed drawings
         thereon) of up to the LOC Committed Amount and with respect to each
         Lender, the commitment of each Lender to purchase participation
         interests in the Letters of Credit.

                  "LOC Committed Amount" means FIVE MILLION DOLLARS
         ($5,000,000).

                  "LOC Documents" means, with respect to any Letter of Credit,
         such Letter of Credit, any amendments thereto, any documents delivered
         in connection therewith, any application therefor, and any agreements,
         instruments, guarantees or other documents (whether general in
         application or applicable only to such Letter of Credit) governing or
         providing for (i) the rights and obligations of the parties concerned
         or at risk or (ii) any collateral security for such obligations.

                  "LOC Obligations" means, at any time, the sum of (i) the
         maximum amount which is, or at any time thereafter may become,
         available to be drawn under Letters of Credit then outstanding,
         assuming compliance with all requirements for drawings referred to in
         such Letters of Credit plus (ii) the aggregate amount of all drawings
         under Letters of Credit honored by the Issuing Lender but not
         theretofore reimbursed by the Borrower.

                  "Material Adverse Effect" means a material adverse effect on
         (a) the business, operations, assets, property, condition (financial or
         otherwise), liabilities or prospects of the Borrower and its
         Subsidiaries taken as a whole, (b) the ability of any Credit Party to
         perform any material obligation under the Credit Documents to which it
         is a party or (c) the material rights and remedies of the Lenders under
         the Credit Documents.

                  "Materials of Environmental Concern" means any gasoline or
         petroleum (including crude oil or any fraction thereof) or petroleum
         products or any hazardous or toxic substances, materials or wastes,
         defined or regulated as such in or under any Environmental Laws,
         including, without limitation, asbestos, polychlorinated biphenyls and
         urea-formaldehyde insulation.

                                       13
<PAGE>   19

                  "Maturity Date" means November 3, 2003, as such date may be
         extended pursuant to Section 2.4.

                  "Moody's" means Moody's Investors Service, Inc., or any
         successor or assignee of the business of such company in the business
         of rating securities.

                  "Multiemployer Plan" means a Plan which is a multiemployer
         plan as defined in Sections 3(37) or 4001(a)(3) of ERISA.

                  "Multiple Employer Plan" means a Plan which any Consolidated
         Party or any ERISA Affiliate and at least one employer other than the
         Consolidated Parties or any ERISA Affiliate are contributing sponsors.

                  "Net Cash Proceeds" means the aggregate cash proceeds received
         by the Consolidated Parties in respect of any Equity Issuance, net of
         (a) direct costs (including, without limitation, legal, accounting and
         investment banking fees, and sales commissions) and (b) taxes paid or
         payable as a result thereof; it being understood that "Net Cash
         Proceeds" shall include, without limitation, any cash received upon the
         sale or other disposition of any non-cash consideration received by the
         Consolidated Parties in any Equity Issuance.

                  "Net Worth" means, as of any date with respect to the
         Consolidated Parties on a consolidated basis, shareholder's equity or
         net worth, as determined in accordance with GAAP.

                  "New Commitment Agreement" shall have the meaning assigned to
         such term in Section 3.4(b).

                  "Note" or "Notes" means the Revolving Notes and/or the
         Swingline Note, individually or collectively, as appropriate.

                  "Notice of Borrowing" means a written notice of borrowing in
         substantially the form of Exhibit 2.1(b)(i), as required by Section
         2.1(b)(i).

                  "Notice of Extension/Conversion" means the written notice of
         extension or conversion in substantially the form of Exhibit 3.2, as
         required by Section 3.2.

                  "Operating Lease" means, as applied to any Person, any lease
         (including, without limitation, leases which may be terminated by the
         lessee at any time) of any Property (whether real, personal or mixed)
         which is not a Capital Lease other than any such lease in which that
         Person is the lessor.

                  "Other Taxes" shall have the meaning assigned to such term in
         Section 3.11.

                                       14
<PAGE>   20

                  "Participation Interest" means a purchase by a Lender of a
         participation in Letters of Credit or LOC Obligations as provided in
         Section 2.2, in Swingline Loans as provided in Section 2.3, or in any
         Loans as provided in Section 3.14.

                  "PBGC" means the Pension Benefit Guaranty Corporation
         established pursuant to Subtitle A of Title IV of ERISA and any
         successor thereof.

                  "Permitted Investments" means Investments which are either (i)
         cash and Cash Equivalents; (ii) accounts receivable created, acquired
         or made by any Consolidated Party in the ordinary course of business
         and payable or dischargeable in accordance with customary trade terms;
         (iii) Investments consisting of Capital Stock, obligations, securities
         or other property received by any Consolidated Party in settlement of
         accounts receivable (created in the ordinary course of business) from
         bankrupt obligors; and (iv) investments in any Credit Party.

                  "Permitted Liens" means:

                           (i) Liens (other than Liens created or imposed under
                  ERISA) for taxes, assessments or governmental charges or
                  levies not yet due or Liens for taxes being contested in good
                  faith by appropriate proceedings for which adequate reserves
                  determined in accordance with GAAP have been established (and
                  as to which the Property subject to any such Lien is not yet
                  subject to foreclosure, sale or loss on account thereof);

                           (ii) statutory Liens of landlords and Liens of
                  carriers, warehousemen, mechanics, materialmen and suppliers
                  and other Liens imposed by law or pursuant to customary
                  reservations or retentions of title arising in the ordinary
                  course of business, provided that such Liens secure only
                  amounts not yet due and payable or, if due and payable, are
                  unfiled and no other action has been taken to enforce the same
                  or are being contested in good faith by appropriate
                  proceedings for which adequate reserves determined in
                  accordance with GAAP have been established (and as to which
                  the Property subject to any such Lien is not yet subject to
                  foreclosure, sale or loss on account thereof);

                           (iii) Liens (other than Liens created or imposed
                  under ERISA) incurred or deposits made by any Consolidated
                  Party in the ordinary course of business in connection with
                  workers' compensation, unemployment insurance and other types
                  of social security, or to secure the performance of tenders,
                  statutory obligations, bids, leases, government contracts,
                  performance and return-of-money bonds and other similar
                  obligations (exclusive of obligations for the payment of
                  borrowed money);

                           (iv) Liens in connection with attachments or
                  judgments (including judgment or appeal bonds) provided that
                  the judgments secured shall, within 30 days after the entry
                  thereof, have been discharged or execution thereof stayed

                                       15
<PAGE>   21

                  pending appeal, or shall have been discharged within 30 days
                  after the expiration of any such stay;

                           (v) easements, rights-of-way, restrictions (including
                  zoning restrictions), minor defects or irregularities in title
                  and other similar charges or encumbrances not, in any material
                  respect, impairing the use of the encumbered Property for its
                  intended purposes;

                           (vi) Liens on Property securing purchase money
                  Indebtedness (including Capital Leases) to the extent
                  permitted under Section 8.1(b), provided that any such Lien
                  attaches to such Property concurrently with or within 90 days
                  after the acquisition thereof;

                           (vii) Liens on Property securing Indebtedness to the
                  extent permitted under Section 8.1(f), provided that any such
                  Lien attaches to such Property concurrently with or within 90
                  days after the incurrence of such Indebtedness;

                           (viii) leases or subleases granted to others not
                  interfering in any material respect with the business of any
                  Consolidated Party;

                           (ix) any interest of title of a lessor under, and
                  Liens arising from UCC financing statements (or equivalent
                  filings, registrations or agreements in foreign jurisdictions)
                  relating to, leases permitted by this Credit Agreement;

                           (x) normal and customary rights of setoff upon
                  deposits of cash in favor of banks or other depository
                  institutions;

                           (xi) Liens of a collecting bank arising under Section
                  4-210 of the Uniform Commercial Code on items in the course of
                  collection; and

                           (xii) Liens existing as of the Closing Date and set
                  forth on Schedule 1.1(a); provided that (a) no such Lien shall
                  at any time be extended to or cover any Property other than
                  the Property subject thereto on the Closing Date and (b) the
                  principal amount of the Indebtedness secured by such Liens
                  shall not be extended, renewed, refunded or refinanced.

                  "Person" means any individual, partnership, joint venture,
         firm, corporation, limited liability company, business trust,
         association, trust or other enterprise (whether or not incorporated) or
         any Governmental Authority.

                  "Plan" means any employee benefit plan (as defined in Section
         3(3) of ERISA) which is covered by ERISA and with respect to which any
         Consolidated Party or any ERISA Affiliate is (or, if such plan were
         terminated at such time, would under Section 4069 of ERISA be deemed to
         be) an "employer" within the meaning of Section 3(5) of ERISA.

                                       16
<PAGE>   22

                  "Prime Rate" means the per annum rate of interest established
         from time to time by Bank of America as its prime rate, which rate may
         not be the lowest rate of interest charged by Bank of America to its
         customers.

                  "Property" means any interest in any kind of property or
         asset, whether real, personal or mixed, or tangible or intangible.

                  "Register" shall have the meaning given such term in Section
         11.3(c).

                  "Regulation T, U, or X" means Regulation T, U or X,
         respectively, of the Board of Governors of the Federal Reserve System
         as from time to time in effect and any successor to all or a portion
         thereof.

                  "Release" means any spilling, leaking, pumping, pouring,
         emitting, emptying, discharging, injecting, escaping, leaching, dumping
         or disposing into the environment (including the abandonment or
         discarding of barrels, containers and other closed receptacles) of any
         Materials of Environmental Concern.

                  "Reportable Event" means any of the events set forth in
         Section 4043(c) of ERISA, other than those events as to which the
         notice requirement has been waived by regulation.

                  "Required Lenders" means, at any time, 50% or more of the
         aggregate number of Lenders which are holding in the aggregate at least
         662/3% of the Credit Exposure (as hereinafter defined) of all Lenders
         at such time; provided, however, that if any Lender shall be a
         Defaulting Lender at such time then there shall be excluded from the
         determination of Required Lenders the aggregate principal amount of
         Credit Exposure of such Lender at such time. For purposes of the
         preceding sentence, the term "Credit Exposure" as applied to each
         Lender shall mean (a) at any time prior to the termination of the
         Commitments, the sum of the Revolving Commitment Percentage of such
         Lender multiplied by the Revolving Committed Amount and (b) at any time
         after the termination of the Commitments, the sum of (i) the principal
         balance of the outstanding Loans of such Lender plus (ii) such Lender's
         Participation Interests in the face amount of the outstanding Letters
         of Credit and Swingline Loans.

                  "Requirement of Law" means, as to any Person, the certificate
         of incorporation and by-laws or other organizational or governing
         documents of such Person, and any law, treaty, rule or regulation or
         determination of an arbitrator or a court or other Governmental
         Authority, in each case applicable to or binding upon such Person or to
         which any of its material property is subject.

                  "Restricted Payment" means (i) any dividend or other payment
         or distribution, direct or indirect, on account of any shares of any
         class of Capital Stock of any Consolidated Party, now or hereafter
         outstanding (including without limitation any payment in connection
         with any merger or consolidation involving any Consolidated Party), or
         to the direct or indirect holders of any shares of any class of Capital
         Stock of any Consolidated Party, now or hereafter outstanding, in their
         capacity as such (other than dividends or distributions payable

                                       17
<PAGE>   23

         in the same class of Capital Stock of the applicable Person or to any
         Credit Party (directly or indirectly through Subsidiaries), (ii) any
         redemption, retirement, sinking fund or similar payment, purchase or
         other acquisition for value, direct or indirect, of any shares of any
         class of Capital Stock of any Consolidated Party, now or hereafter
         outstanding and (iii) any payment made to retire, or to obtain the
         surrender of, any outstanding warrants, options or other rights to
         acquire shares of any class of Capital Stock of any Consolidated Party,
         now or hereafter outstanding.

                  "Revolving Commitment" means, with respect to each Lender, the
         commitment of such Lender in an aggregate principal amount at any time
         outstanding of up to such Lender's Revolving Commitment Percentage of
         the Revolving Committed Amount, (i) to make Revolving Loans in
         accordance with the provisions of Section 2.1(a), (ii) to purchase
         Participation Interests in Letters of Credit in accordance with the
         provisions of Section 2.2(c) and (iii) to purchase Participation
         Interests in Swingline Loans in accordance with the provisions of
         Section 2.3(c).

                  "Revolving Commitment Percentage" means, for any Lender, the
         percentage identified as its Revolving Commitment Percentage on
         Schedule 2.1(a), as such percentage may be modified in connection with
         any assignment made in accordance with the provisions of Section 11.3.

                  "Revolving Committed Amount" means ONE HUNDRED FIFTEEN MILLION
         DOLLARS ($115,000,000) as such amount may be reduced or increased
         pursuant to Section 3.4.

                  "Revolving Loans" shall have the meaning assigned to such term
         in Section 2.1(a).

                  "Revolving Note" or "Revolving Notes" means the promissory
         notes of the Borrower in favor of each of the Lenders evidencing the
         Revolving Loans provided pursuant to Section 2.1(e), individually or
         collectively, as appropriate, as such promissory notes may be amended,
         modified, restated, supplemented, extended, renewed or replaced from
         time to time.

                  "Revolving Obligations" means, collectively, the Revolving
         Loans, the Swingline Loans and the LOC Obligations.

                  "S&P" means Standard & Poor's Ratings Group, a division of
         McGraw Hill, Inc., or any successor or assignee of the business of such
         division in the business of rating securities.

                  "Scheduled Funded Debt Payments" means, as of the end of each
         fiscal quarter of the Borrower, for the Borrower and its Subsidiaries
         on a consolidated basis, the sum of all scheduled payments of principal
         on Funded Indebtedness for the applicable period ending on such date
         (including the principal component of payments due on Capital Leases
         during the applicable period ending on such date); it being understood
         that Scheduled Funded Debt Payments shall not include voluntary
         prepayments or the mandatory prepayments required pursuant to Section
         3.3.

                                       18
<PAGE>   24

                  "Single Employer Plan" means any Plan which is covered by
         Title IV of ERISA, but which is not a Multiemployer Plan or a Multiple
         Employer Plan.

                  "Solvent" or "Solvency" means, with respect to any Person as
         of a particular date, that on such date (i) such Person is able to
         realize upon its assets and pay its debts and other liabilities,
         contingent obligations and other commitments as they mature in the
         normal course of business, (ii) such Person does not intend to, and
         does not believe that it will, incur debts or liabilities beyond such
         Person's ability to pay as such debts and liabilities mature in their
         ordinary course, (iii) such Person is not engaged in a business or a
         transaction, and is not about to engage in a business or a transaction,
         for which such Person's Property would constitute unreasonably small
         capital after giving due consideration to the prevailing practice in
         the industry in which such Person is engaged or is to engage, (iv) the
         fair value of the Property of such Person is greater than the total
         amount of liabilities, including, without limitation, contingent
         liabilities, of such Person and (v) the present fair salable value of
         the assets of such Person is not less than the amount that will be
         required to pay the probable liability of such Person on its debts as
         they become absolute and matured. In computing the amount of contingent
         liabilities at any time, it is intended that such liabilities will be
         computed at the amount which, in light of all the facts and
         circumstances existing at such time, represents the amount that can
         reasonably be expected to become an actual or matured liability.

                  "Standby Letter of Credit Fee" shall have the meaning assigned
         to such term in Section 3.5(c)(i).

                  "Subsidiary" means, as to any Person at any time, (a) any
         corporation more than 50% of whose Capital Stock of any class or
         classes having by the terms thereof ordinary voting power to elect a
         majority of the directors of such corporation (irrespective of whether
         or not at such time, any class or classes of such corporation shall
         have or might have voting power by reason of the happening of any
         contingency) is at such time owned by such Person directly or
         indirectly through Subsidiaries, and (b) any partnership, association,
         joint venture or other entity of which such Person directly or
         indirectly through Subsidiaries owns at such time more than 50% of the
         Capital Stock.

                  "Subsidiary Guarantor" means each of the Persons identified as
         a "Subsidiary Guarantor" on the signature pages hereto and each
         Additional Credit Party which may hereafter execute a Joinder
         Agreement, together with their successors and permitted assigns, and
         "Subsidiary Guarantor" means any one of them.

                  "SunTrust Loan Agreement" means that certain Amended and
         Restated Loan Agreement dated as of November 3, 2000 between the
         Borrower and SunTrust Bank.

                  "Swingline Committed Amount" means Five Million Dollars
         ($5,000,000).

                  "Swingline Lender" means Bank of America, together with any
         successors or assigns.

                                       19
<PAGE>   25

                  "Swingline Loan Request" means a request by the Borrower for a
         Swingline Loan in substantially the form of Exhibit 2.3(b).

                  "Swingline Loans" means the loans made by the Swingline Lender
         pursuant to Section 2.3.

                  "Swingline Note" means the promissory note of the Borrower in
         favor of the Swingline Lender evidencing the Swingline Loans provided
         pursuant to Section 2.3, as such promissory note may be amended,
         modified, supplemented, extended, renewed or replaced from time to
         time.

                  "Synthetic Lease" means any synthetic lease, tax retention
         operating lease, off-balance sheet loan or similar off-balance sheet
         financing product where such transaction is considered borrowed money
         indebtedness for tax purposes but is classified as an Operating Lease.

                  "Taxes" shall have the meaning assigned to such term in
         Section 3.11.

                  "Trade Letter of Credit Fee" shall have the meaning assigned
         to such term in Section 3.5(c)(ii).

                  "Unused Fee" shall have the meaning assigned to such term in
         Section 3.5(a).

                  "Unused Fee Calculation Period" shall have the meaning
         assigned to such term in Section 3.5(a).

                  "Unused Revolving Committed Amount" means, for any period, the
         amount by which (a) the then applicable Revolving Committed Amount
         exceeds (b) the daily average sum for such period of (i) the
         outstanding aggregate principal amount of all Revolving Loans plus (ii)
         the outstanding aggregate principal amount of all LOC Obligations.

                  "Voting Stock" means, with respect to any Person, Capital
         Stock issued by such Person the holders of which are ordinarily, in the
         absence of contingencies, entitled to vote for the election of
         directors (or persons performing similar functions) of such Person,
         even though the right so to vote has been suspended by the happening of
         such a contingency.

                  "Wholly Owned Subsidiary" of any Person means any Subsidiary
         100% of whose Voting Stock or other equity interest is at the time
         owned by such Person directly or indirectly through other Wholly Owned
         Subsidiary.

         1.2      COMPUTATION OF TIME PERIODS.

         For purposes of computation of periods of time hereunder, the word
"from" means "from and including" and the words "to" and "until" each mean "to
but excluding."

                                       20
<PAGE>   26

         1.3      ACCOUNTING TERMS.

         Except as otherwise expressly provided herein, all accounting terms
used herein shall be interpreted, and all financial statements and certificates
and reports as to financial matters required to be delivered to the Lenders
hereunder shall be prepared, in accordance with GAAP applied on a consistent
basis. All calculations made for the purposes of determining compliance with
this Credit Agreement shall (except as otherwise expressly provided herein) be
made by application of GAAP applied on a basis consistent with the most recent
annual or quarterly financial statements delivered pursuant to Section 7.1 (or,
prior to the delivery of the first financial statements pursuant to Section 7.1,
consistent with the financial statements as at January 1, 2000); provided,
however, if (a) the Credit Parties shall object to determining such compliance
on such basis at the time of delivery of such financial statements due to any
change in GAAP or the rules promulgated with respect thereto or (b) the
Administrative Agent or the Required Lenders shall so object in writing within
60 days after delivery of such financial statements, then such calculations
shall be made on a basis consistent with the most recent financial statements
delivered by the Credit Parties to the Lenders as to which no such objection
shall have been made.

                                    SECTION 2

                                CREDIT FACILITIES

         2.1      REVOLVING LOANS.

                  (a) Revolving Commitment. Subject to the terms and conditions
         hereof and in reliance upon the representations and warranties set
         forth herein, each Lender severally agrees to make available to the
         Borrower such Lender's Revolving Commitment Percentage of revolving
         credit loans requested by the Borrower in Dollars ("Revolving Loans")
         from time to time from the Closing Date until the Maturity Date, or
         such earlier date as the Revolving Commitments shall have been
         terminated as provided herein; provided, however, that (i) with regard
         to the Lenders collectively, the amount of the Revolving Obligations
         outstanding shall not exceed the Revolving Committed Amount; provided,
         further, (ii) with regard to each Lender individually, such Lender's
         Revolving Commitment Percentage of the sum of the Revolving Loans plus
         LOC Obligations outstanding plus Swingline Loans outstanding shall not
         exceed such Lender's Revolving Commitment Percentage of the Revolving
         Committed Amount. Revolving Loans may consist of Base Rate Loans or
         Eurodollar Loans, or a combination thereof, as the Borrower may
         request; provided, however, that no more than five Eurodollar Loans
         shall be outstanding hereunder at any time (it being understood that,
         for purposes hereof, Eurodollar Loans with different Interest Periods
         shall be considered as separate Eurodollar Loans, even if they begin on
         the same date, although borrowings, extensions and conversions may, in
         accordance with the provisions hereof, be combined at the end of
         existing Interest Periods to constitute a new Eurodollar Loan with a
         single Interest Period). Revolving Loans hereunder may be repaid and
         reborrowed in accordance with the provisions hereof.

                                       21
<PAGE>   27

                  (b)      Revolving Loan Borrowings.

                           (i) Notice of Borrowing. The Borrower shall request a
                  Revolving Loan borrowing by written notice (or telephonic
                  notice promptly confirmed in writing) to the Administrative
                  Agent not later than 12:00 Noon (Charlotte, North Carolina
                  time) on the Business Day of the requested borrowing in the
                  case of Base Rate Loans, and on the second Business Day prior
                  to the date of the requested borrowing in the case of
                  Eurodollar Loans. Each such request for borrowing shall be
                  irrevocable and shall specify (A) that a Revolving Loan is
                  requested, (B) the date of the requested borrowing (which
                  shall be a Business Day), (C) the aggregate principal amount
                  to be borrowed, and (D) whether the borrowing shall be
                  comprised of Base Rate Loans, Eurodollar Loans or a
                  combination thereof, and if Eurodollar Loans are requested,
                  the Interest Period(s) therefor. If the Borrower shall fail to
                  specify in any such Notice of Borrowing (I) an applicable
                  Interest Period in the case of a Eurodollar Loan, then such
                  notice shall be deemed to be a request for an Interest Period
                  of one month, or (II) the type of Revolving Loan requested,
                  then such notice shall be deemed to be a request for a Base
                  Rate Loan hereunder. The Administrative Agent shall give
                  notice to each affected Lender promptly upon receipt of each
                  Notice of Borrowing pursuant to this Section 2.1(b)(i), the
                  contents thereof and each such Lender's share of any borrowing
                  to be made pursuant thereto.

                           (ii) Minimum Amounts. Each Base Rate Loan that is a
                  Revolving Loan shall be in a minimum aggregate principal
                  amount of $100,000 and integral multiples of $1,000 in excess
                  thereof (or the remaining amount of the Revolving Committed
                  Amount, if less), and each Eurodollar Loan that is a Revolving
                  Loan shall be in a minimum aggregate principal amount of
                  $2,500,000 and integral multiples of $1,000,000 in excess
                  thereof (or the remaining amount of the Revolving Committed
                  Amount, if less).

                           (iii) Advances. Each Lender will make its Revolving
                  Commitment Percentage of each Revolving Loan borrowing
                  available to the Administrative Agent for the account of the
                  Borrower as specified in Section 3.15(a), or in such other
                  manner as the Administrative Agent may specify in writing, by
                  1:00 p.m. (Charlotte, North Carolina time) on the date
                  specified in the applicable Notice of Borrowing in Dollars and
                  in funds immediately available to the Administrative Agent.
                  Such borrowing will then be made available to the Borrower by
                  the Administrative Agent by crediting the account of the
                  Borrower on the books of such office with the aggregate of the
                  amounts made available to the Administrative Agent by the
                  Lenders and in like funds as received by the Administrative
                  Agent.

                  (c) Repayment. The principal amount of all Revolving Loans
         shall be due and payable in full on the Maturity Date, unless
         accelerated sooner pursuant to Section 9.2.

                                       22
<PAGE>   28

                  (d) Interest. Subject to the provisions of Section 3.1,

                           (i) Base Rate Loans. During such periods as Revolving
                  Loans shall be comprised in whole or in part of Base Rate
                  Loans, such Base Rate Loans shall bear interest at a per annum
                  rate equal to the Adjusted Base Rate.

                           (ii) Eurodollar Loans. During such periods as
                  Revolving Loans shall be comprised in whole or in part of
                  Eurodollar Loans, such Eurodollar Loans shall bear interest at
                  a per annum rate equal to the Adjusted Eurodollar Rate.

         Interest on Revolving Loans shall be payable in arrears on each
         applicable Interest Payment Date (or at such other times as may be
         specified herein).

                  (e) Revolving Notes. The Revolving Loans made by each Lender
         shall be evidenced by a duly executed promissory note of the Borrower
         to such Lender in an original principal amount equal to such Lender's
         Revolving Commitment Percentage of the Revolving Committed Amount and
         in substantially the form of Exhibit 2.1(e).

         2.2      LETTER OF CREDIT SUBFACILITY.

                  (a) Issuance. Subject to the terms and conditions hereof and
         of the LOC Documents, if any, and any other terms and conditions which
         the Issuing Lender may reasonably require and in reliance upon the
         representations and warranties set forth herein, the Issuing Lender
         agrees to issue, and each Lender severally agrees to participate in the
         issuance by the Issuing Lender of Letters of Credit in Dollars from
         time to time from the Closing Date until the Maturity Date as the
         Borrower may request, in a form reasonably acceptable to the Issuing
         Lender; provided, however, that (i) the LOC Obligations outstanding
         shall not at any time exceed the LOC Committed Amount, (ii) with regard
         to the Lenders collectively, the sum of the aggregate outstanding
         principal amount of Revolving Obligations shall not exceed the
         Revolving Committed Amount and (iii) with regard to each Lender
         individually, such Lender's Revolving Commitment Percentage of the sum
         of the Revolving Loans plus LOC Obligations outstanding plus Swingline
         Loans outstanding shall not exceed such Lender's Revolving Commitment
         Percentage of the Revolving Committed Amount. No Letter of Credit shall
         (x) have an original expiry date more than one year from the date of
         issuance or (y) as originally issued or as extended, have an expiry
         date extending beyond the Maturity Date. Each Letter of Credit (1)
         shall comply with the related LOC Documents and (2) may be issued only
         for the purposes set forth in Section 6.14 hereof. The issuance and
         expiry dates of each Letter of Credit shall be a Business Day.

                  (b) Notice and Reports. The request for the issuance of a
         Letter of Credit shall be submitted by the Borrower to the Issuing
         Lender at least three (3) Business Days prior to the requested date of
         issuance. The Issuing Lender will, at least quarterly and more
         frequently upon request, disseminate to each of the Lenders a detailed
         report specifying the Letters of Credit which are then issued and
         outstanding and any activity with respect thereto which may have
         occurred since the date of the prior report, and including therein,
         among

                                       23
<PAGE>   29

         other things, the beneficiary, the face amount and the expiry date, as
         well as any payment or expirations which may have occurred.

                  (c) Participation. Each Lender, upon issuance of a Letter of
         Credit, shall be deemed to have purchased without recourse a
         Participation Interest from the Issuing Lender in such Letter of Credit
         and the obligations arising thereunder and any collateral relating
         thereto, in each case in an amount equal to its pro rata share of the
         obligations under such Letter of Credit (based on the respective
         Revolving Commitment Percentages of the Lenders) and shall absolutely,
         unconditionally and irrevocably assume and be obligated to pay to the
         Issuing Lender and discharge when due, its pro rata share of the
         obligations arising under such Letter of Credit. Without limiting the
         scope and nature of each Lender's Participation Interest in any Letter
         of Credit, to the extent that the Issuing Lender has not been
         reimbursed as required hereunder or under any such Letter of Credit,
         each such Lender shall pay to the Issuing Lender its pro rata share of
         such unreimbursed drawing in same day funds on the day of notification
         by the Issuing Lender of an unreimbursed drawing pursuant to the
         provisions of subsection (d) below. The obligation of each Lender to so
         reimburse the Issuing Lender shall be absolute and unconditional and
         shall not be affected by the occurrence of a Default, an Event of
         Default or any other occurrence or event. Any such reimbursement shall
         not relieve or otherwise impair the obligation of the Borrower to
         reimburse the Issuing Lender under any Letter of Credit, together with
         interest as hereinafter provided.

                  (d) Reimbursement. In the event of any drawing under any
         Letter of Credit, the Issuing Lender will promptly notify the Borrower.
         Unless the Borrower shall immediately notify the Issuing Lender that
         the Borrower intends to otherwise reimburse the Issuing Lender for such
         drawing, the Borrower shall be deemed to have requested that the
         Lenders make a Revolving Loan in the amount of the drawing as provided
         in subsection (e) below on the related Letter of Credit, the proceeds
         of which will be used to satisfy the related reimbursement obligations.
         The Borrower promises to reimburse the Issuing Lender on the day of
         drawing under any Letter of Credit (either with the proceeds of a
         Revolving Loan obtained hereunder or otherwise) in same day funds. If
         the Borrower shall fail to reimburse the Issuing Lender as provided
         hereinabove, the unreimbursed amount of such drawing shall bear
         interest at a per annum rate equal to the Adjusted Base Rate plus 2%.
         The Borrower's reimbursement obligations hereunder shall be absolute
         and unconditional under all circumstances irrespective of any rights of
         setoff, counterclaim or defense to payment the Borrower may claim or
         have against the Issuing Lender, the Administrative Agent, the Lenders,
         the beneficiary of the Letter of Credit drawn upon or any other Person,
         including without limitation any defense based on any failure of the
         Borrower or any other Credit Party to receive consideration or the
         legality, validity, regularity or unenforceability of the Letter of
         Credit. The Issuing Lender will promptly notify the other Lenders of
         the amount of any unreimbursed drawing and each Lender shall promptly
         pay to the Administrative Agent for the account of the Issuing Lender
         in Dollars and in immediately available funds, the amount of such
         Lender's pro rata share of such unreimbursed drawing. Such payment
         shall be made on the day such notice is received by such Lender from
         the Issuing Lender if such notice is received at or before 2:00 p.m.
         (Charlotte, North Carolina time) otherwise such payment shall be made
         at or before 12:00 Noon (Charlotte, North Carolina time) on the

                                       24
<PAGE>   30

         Business Day next succeeding the day such notice is received. If such
         Lender does not pay such amount to the Issuing Lender in full upon such
         request, such Lender shall, on demand, pay to the Administrative Agent
         for the account of the Issuing Lender interest on the unpaid amount
         during the period from the date of such drawing until such Lender pays
         such amount to the Issuing Lender in full at a rate per annum equal to,
         if paid within two (2) Business Days of the date that such Lender is
         required to make payments of such amount pursuant to the preceding
         sentence, the Federal Funds Rate and thereafter at a rate equal to the
         Base Rate. Each Lender's obligation to make such payment to the Issuing
         Lender, and the right of the Issuing Lender to receive the same, shall
         be absolute and unconditional, shall not be affected by any
         circumstance whatsoever and without regard to the termination of this
         Credit Agreement or the Commitments hereunder, the existence of a
         Default or Event of Default or the acceleration of the obligations of
         the Borrower hereunder and shall be made without any offset, abatement,
         withholding or reduction whatsoever. Simultaneously with the making of
         each such payment by a Lender to the Issuing Lender, such Lender shall,
         automatically and without any further action on the part of the Issuing
         Lender or such Lender, acquire a Participation Interest in an amount
         equal to such payment (excluding the portion of such payment
         constituting interest owing to the Issuing Lender) in the related
         unreimbursed drawing portion of the LOC Obligation and in the interest
         thereon and in the related LOC Documents, and shall have a claim
         against the Borrower with respect thereto.

                  (e) Repayment with Revolving Loans. On any day on which the
         Borrower shall have requested, or been deemed to have requested, a
         Revolving Loan advance to reimburse a drawing under a Letter of Credit,
         the Administrative Agent shall give notice to the Lenders that a
         Revolving Loan has been requested or deemed requested by the Borrower
         to be made in connection with a drawing under a Letter of Credit, in
         which case a Revolving Loan advance comprised of Base Rate Loans (or
         Eurodollar Loans to the extent the Borrower has complied with the
         procedures of Section 2.1(b)(i) with respect thereto) shall be
         immediately made to the Borrower by all Lenders (notwithstanding any
         termination of the Commitments pursuant to Section 9.2) pro rata based
         on the respective Revolving Commitment Percentages of the Lenders
         (determined before giving effect to any termination of the Commitments
         pursuant to Section 9.2) and the proceeds thereof shall be paid
         directly to the Issuing Lender for application to the respective LOC
         Obligations. Each such Lender hereby irrevocably agrees to make its pro
         rata share of each such Revolving Loan immediately upon any such
         request or deemed request in the amount, in the manner and on the date
         specified in the preceding sentence notwithstanding (i) the amount of
         such borrowing may not comply with the minimum amount for advances of
         Revolving Loans otherwise required hereunder, (ii) whether any
         conditions specified in Section 5.2 are then satisfied, (iii) whether a
         Default or an Event of Default then exists, (iv) failure for any such
         request or deemed request for Revolving Loan to be made by the time
         otherwise required hereunder, (v) whether the date of such borrowing is
         a date on which Revolving Loans are otherwise permitted to be made
         hereunder or (vi) any termination of the Commitments relating thereto
         immediately prior to or contemporaneously with such borrowing. In the
         event that any Revolving Loan cannot for any reason be made on the date
         otherwise required above (including, without limitation, as a result of
         the commencement of a proceeding under the Bankruptcy Code with respect
         to the Borrower or any other Credit Party), then each such Lender
         hereby agrees that it shall forthwith purchase (as of the date such
         borrowing would

                                       25
<PAGE>   31

         otherwise have occurred, but adjusted for any payments received from
         the Borrower on or after such date and prior to such purchase) from the
         Issuing Lender such Participation Interests in the outstanding LOC
         Obligations as shall be necessary to cause each such Lender to share in
         such LOC Obligations ratably (based upon the respective Revolving
         Commitment Percentages of the Lenders (determined before giving effect
         to any termination of the Commitments pursuant to Section 9.2)),
         provided that at the time any purchase of Participation Interests
         pursuant to this sentence is actually made, the purchasing Lender shall
         be required to pay to the Issuing Lender, to the extent not paid to the
         Issuer by the Borrower in accordance with the terms of subsection (d)
         above, interest on the principal amount of Participation Interests
         purchased for each day from and including the day upon which such
         borrowing would otherwise have occurred to but excluding the date of
         payment for such Participation Interests, at the rate equal to, if paid
         within two (2) Business Days of the date of the Revolving Loan advance,
         the Federal Funds Rate, and thereafter at a rate equal to the Base
         Rate.

                  (f) Designation of Credit Parties as Account Parties.
         Notwithstanding anything to the contrary set forth in this Credit
         Agreement, including without limitation Section 2.2(a), a Letter of
         Credit issued hereunder may contain a statement to the effect that such
         Letter of Credit is issued for the account of a Credit Party other than
         the Borrower, provided that notwithstanding such statement, the
         Borrower shall be the actual account party for all purposes of this
         Credit Agreement for such Letter of Credit and such statement shall not
         affect the Borrower's reimbursement obligations hereunder with respect
         to such Letter of Credit.

                  (g) Renewal, Extension. The renewal or extension of any Letter
         of Credit shall, for purposes hereof, be treated in all respects the
         same as the issuance of a new Letter of Credit hereunder.

                  (h) Uniform Customs and Practices. The Issuing Lender may have
         the Letters of Credit be subject to The Uniform Customs and Practice
         for Documentary Credits (the "UCP") or the International Standby
         Practices 1998 (the "ISP98"), in either case, as published as of the
         date of issue by the International Chamber of Commerce, in which case
         the UCP or ISP98 may be incorporated therein and deemed in all respects
         to be a part thereof.

                  (i) Indemnification; Nature of Issuing Lender's Duties.

                           (i) In addition to its other obligations under this
                  Section 2.2, the Borrower hereby agrees to pay, and protect,
                  indemnify and save each Lender harmless from and against, any
                  and all claims, demands, liabilities, damages, losses, costs,
                  charges and expenses (including reasonable attorneys' fees)
                  that such Lender may incur or be subject to as a consequence,
                  direct or indirect, of (A) the issuance of any Letter of
                  Credit or (B) the failure of such Lender to honor a drawing
                  under a Letter of Credit as a result of any act or omission,
                  whether rightful or wrongful, of any present or future de jure
                  or de facto government or Governmental Authority (all such
                  acts or omissions, herein called "Government Acts").

                                       26
<PAGE>   32

                           (ii) As between the Borrower and the Lenders
                  (including the Issuing Lender), the Borrower shall assume all
                  risks of the acts, omissions or misuse of any Letter of Credit
                  by the beneficiary thereof. No Lender (including the Issuing
                  Lender) shall be responsible: (A) for the form, validity,
                  sufficiency, accuracy, genuineness or legal effect of any
                  document submitted by any party in connection with the
                  application for and issuance of any Letter of Credit, even if
                  it should in fact prove to be in any or all respects invalid,
                  insufficient, inaccurate, fraudulent or forged; (B) for the
                  validity or sufficiency of any instrument transferring or
                  assigning or purporting to transfer or assign any Letter of
                  Credit or the rights or benefits thereunder or proceeds
                  thereof, in whole or in part, that may prove to be invalid or
                  ineffective for any reason; (C) for errors, omissions,
                  interruptions or delays in transmission or delivery of any
                  messages, by mail, cable, telegraph, telex or otherwise,
                  whether or not they be in cipher; (D) for any loss or delay in
                  the transmission or otherwise of any document required in
                  order to make a drawing under a Letter of Credit or of the
                  proceeds thereof; and (E) for any consequences arising from
                  causes beyond the control of such Lender, including, without
                  limitation, any Government Acts. None of the above shall
                  affect, impair, or prevent the vesting of the Issuing Lender's
                  rights or powers hereunder.

                           (iii) In furtherance and extension and not in
                  limitation of the specific provisions hereinabove set forth,
                  any action taken or omitted by any Lender (including the
                  Issuing Lender), under or in connection with any Letter of
                  Credit or the related certificates, if taken or omitted in
                  good faith, shall not put such Lender under any resulting
                  liability to the Borrower or any other Credit Party. It is the
                  intention of the parties that this Credit Agreement shall be
                  construed and applied to protect and indemnify each Lender
                  (including the Issuing Lender) against any and all risks
                  involved in the issuance of the Letters of Credit, all of
                  which risks are hereby assumed by the Borrower (on behalf of
                  itself and each of the other Credit Parties), including,
                  without limitation, any and all Government Acts. No Lender
                  (including the Issuing Lender) shall, in any way, be liable
                  for any failure by such Lender or anyone else to pay any
                  drawing under any Letter of Credit as a result of any
                  Government Acts or any other cause beyond the control of such
                  Lender.

                           (iv) Nothing in this subsection (i) is intended to
                  limit the reimbursement obligations of the Borrower contained
                  in subsection (d) above. The obligations of the Borrower under
                  this subsection (i) shall survive the termination of this
                  Credit Agreement. No act or omission of any current or prior
                  beneficiary of a Letter of Credit shall in any way affect or
                  impair the rights of the Lenders (including the Issuing
                  Lender) to enforce any right, power or benefit under this
                  Credit Agreement.

                           (v) Notwithstanding anything to the contrary
                  contained in this subsection (i), the Borrower shall have no
                  obligation to indemnify any Lender (including the Issuing
                  Lender) in respect of any liability incurred by such Lender
                  (A) arising solely out of the gross negligence or willful
                  misconduct of such Lender, as determined by a court of
                  competent jurisdiction, or (B) caused by such Lender's

                                       27
<PAGE>   33

                  failure to pay under any Letter of Credit after presentation
                  to it of a request strictly complying with the terms and
                  conditions of such Letter of Credit, as determined by a court
                  of competent jurisdiction, unless such payment is prohibited
                  by any law, regulation, court order or decree.

                  (j) Responsibility of Issuing Lender. It is expressly
         understood and agreed that the obligations of the Issuing Lender
         hereunder to the Lenders are only those expressly set forth in this
         Credit Agreement and that the Issuing Lender shall be entitled to
         assume that the conditions precedent set forth in Section 5.2 have been
         satisfied unless it shall have acquired actual knowledge that any such
         condition precedent has not been satisfied; provided, however, that
         nothing set forth in this Section 2.2 shall be deemed to prejudice the
         right of any Lender to recover from the Issuing Lender any amounts made
         available by such Lender to the Issuing Lender pursuant to this Section
         2.2 in the event that it is determined by a court of competent
         jurisdiction that the payment with respect to a Letter of Credit
         constituted gross negligence or willful misconduct on the part of the
         Issuing Lender.

                  (k) Conflict with LOC Documents. In the event of any conflict
         between this Credit Agreement and any LOC Document (including any
         letter of credit application), this Credit Agreement shall control.

         2.3      SWINGLINE LOANS SUBFACILITY.

                  (a) Swingline Loans. Subject to the terms and conditions set
         forth herein and in the other Credit Documents and in reliance upon the
         representations and warranties set forth herein, the Swingline Lender
         hereby agrees to make loans to the Borrower in Dollars at any time and
         from time to time from the Closing Date to but not including the
         Maturity Date, or such earlier date as the Revolving Commitments shall
         have been terminated as provided herein (each such loan, a "Swingline
         Loan" and collectively, the "Swingline Loans"); provided that (i) the
         aggregate principal amount of the Swingline Loans outstanding at any
         one time shall not exceed the Swingline Committed Amount and (ii) with
         regard to the Lenders collectively, the amount of Revolving Obligations
         outstanding shall not exceed the Revolving Committed Amount. Prior to
         the Maturity Date, Swingline Loans may be repaid and reborrowed by the
         Borrower in accordance with the provisions hereof.

                  (b) Method of Borrowing and Funding Swingline Loans. By no
         later than 1:00 p.m. (Charlotte, North Carolina time), on the date of
         the requested borrowing of Swingline Loans, the Borrower shall
         telephone the Swingline Lender as well as submit a Swingline Loan
         Request to the Swingline Lender in the form of Exhibit 2.3(b) setting
         forth (i) the amount of the requested Swingline Loan and (ii) the date
         of the requested Swingline Loan and complying in all respects with
         Section 5.2. The Swingline Lender shall initiate the transfer of funds
         representing the Swingline Loan advance to the Borrower by 3:00 p.m. on
         the Business Day of the requested borrowing. Each Swingline Loan shall
         be in a minimum amount of $100,000 and in integral multiples of $1,000
         in excess thereof.

                  (c) Repayment and Participations of Swingline Loans. The
         Borrower agrees to repay all Swingline Loans within five Business Days
         of demand therefor by the Swingline

                                       28
<PAGE>   34

         Lender. Each repayment of a Swingline Loan may be accomplished by
         requesting Revolving Loans which request is not subject to the
         conditions set forth in Section 5.2. In the event that the Borrower
         shall fail to timely repay any Swingline Loan, and in any event upon
         (i) a request by the Swingline Lender, (ii) the occurrence of an Event
         of Default described in Section 9.1(f) or (iii) the acceleration of any
         Loan or termination of any Commitment pursuant to Section 9.2, each
         other Lender shall irrevocably and unconditionally purchase from the
         Swingline Lender, without recourse or warranty, an undivided interest
         and participation in such Swingline Loan in an amount equal to such
         other Lender's Revolving Commitment Percentage thereof, by directly
         purchasing a participation in such Swingline Loan in such amount
         (regardless of whether the conditions precedent thereto set forth in
         Section 5.2 are then satisfied, whether or not the Borrower has
         submitted a Notice of Borrowing and whether or not the Commitments are
         then in effect, any Event of Default exists or all the Loans have been
         accelerated) and paying the proceeds thereof to the Swingline Lender at
         the address provided in Section 11.1, or at such other address as the
         Swingline Lender may designate, in Dollars and in immediately available
         funds. If such amount is not in fact made available to the Swingline
         Lender by any Lender, the Swingline Lender shall be entitled to recover
         such amount on demand from such Lender, together with accrued interest
         thereon for each day from the date of demand thereof, at the Federal
         Funds Rate. If such Lender does not pay such amount forthwith upon the
         Swingline Lender's demand therefor, and until such time as such Lender
         makes the required payment, the Swingline Lender shall be deemed to
         continue to have outstanding Swingline Loans in the amount of such
         unpaid participation obligation for all purposes of the Credit
         Documents other than those provisions requiring the other Lenders to
         purchase a participation therein. Further, such Lender shall be deemed
         to have assigned any and all payments made of principal and interest on
         its Loans, and any other amounts due to it hereunder to the Swingline
         Lender to fund Swingline Loans in the amount of the participation in
         Swingline Loans that such Lender failed to purchase pursuant to this
         Section 2.3(c) until such amount has been purchased (as a result of
         such assignment or otherwise). The principal amount of all Swingline
         Loans shall be due and payable in full on the Maturity Date, unless
         accelerated sooner pursuant to Section 9.2 or required to be repaid by
         the Swingline Lender pursuant to the foregoing terms of this Section
         2.3(c).

                  (d) Interest. Subject to the provisions of Section 3.1, each
         Swingline Loan shall bear interest at a per annum rate equal to the
         30-Day Interbank Offered Rate plus the Applicable Percentage.

                  (e) Swingline Note. The Swingline Loans made by the Swingline
         Lender shall be evidenced by a duly executed promissory note of the
         Borrower to the Swingline Lender in the face amount of the Swingline
         Committed Amount and in substantially the form of Exhibit 2.3(e).

         2.4      EXTENSION OPTION.

                  (a) First Extension Option. The Borrower may, by notice to the
         Lenders, given not more than 90 days and not less than 45 days prior to
         the first anniversary of the Closing Date request that the Lenders
         extend the Maturity Date for an additional 364

                                       29
<PAGE>   35

         days from the existing Maturity Date. Each Lender shall, by notice to
         the Borrower and the Administrative Agent given not later than the 30th
         day prior to the first anniversary of the Closing Date, advise the
         Borrower whether or not it agrees to extend the Maturity Date for an
         additional 364 days. Each decision by a Lender shall be in the sole
         discretion of such Lender, and any Lender that has not so advised the
         Administrative Agent by the 30th day prior to the first anniversary of
         the Closing Date shall be deemed to have declined to agree to such
         extension. If all of the Lenders timely agree in writing to extend the
         existing Maturity Date for an additional 364 day period, then the
         Maturity Date shall be extended to the date 364 days from the existing
         Maturity Date pursuant to a duly executed written amendment to this
         Credit Agreement.

                  (b) Second Extension Option. The Borrower may, by notice to
         the Lenders, given not more than 90 days and not less than 45 days
         prior to the second anniversary of the Closing Date request that the
         Lenders extend the Maturity Date for an additional 364 days from the
         existing Maturity Date. Each Lender shall, by notice to the Borrower
         and the Administrative Agent given not later than the 30th day prior to
         the second anniversary of the Closing Date, advise the Borrower whether
         or not it agrees to extend the Maturity Date for an additional 364
         days. Each decision by a Lender shall be in the sole discretion of such
         Lender, and any Lender that has not so advised the Administrative Agent
         by the 30th day prior to the second anniversary of the Closing Date
         shall be deemed to have declined to agree to such extension. If all of
         the Lenders timely agree in writing to extend the existing Maturity
         Date for an additional 364 day period, then the Maturity Date shall be
         extended to the date 364 days from the existing Maturity Date pursuant
         to a duly executed written amendment to this Credit Agreement.

                  (c) Replacement of Lenders. So long as no Default or Event of
         Default then exists, the Borrower may, not later than the 20th day
         prior to the first anniversary of the existing Maturity Date and the
         second anniversary of the existing Maturity Date, as applicable, by
         writing addressed to the Administrative Agent and any Lender which
         shall have advised or been deemed to advise the Borrower that it will
         not agree to an extension of the existing Maturity Date (each a
         "Non-Extending Lender") nominate or propose an Eligible Assignee that
         is willing to become the assignee of the Commitment and other
         obligations of such Non-Extending Lender (the "Replacement Lender")
         pursuant to Section 11.3. Each such Non-Extending Lender and
         Replacement Lender shall execute and deliver to the Administrative
         Agent an Assignment Agreement and such other documentation as the
         Administrative Agent shall specify to evidence such assignment, unless
         the Administrative Agent shall have notified the Borrower and the
         Non-Extending Lender that the proposed Replacement Lender is not
         reasonably acceptable to the Administrative Agent; provided, that in no
         event will (i) any Lender be required to enter into an Assignment
         Agreement at a price less than par plus accrued interest and prorated
         fees and other costs due hereunder to the effective date of such
         Assignment Agreement, (ii) the Administrative Agent or any
         Non-Extending Lender be obligated to assist the Borrower in identifying
         any Eligible Assignees that are willing to become a Replacement Lender
         or (iii) any such assignment be required if the consummation thereof
         conflicts with any Requirement of Law.

                                       30
<PAGE>   36
                                    SECTION 3

                 OTHER PROVISIONS RELATING TO CREDIT FACILITIES

         3.1      DEFAULT RATE.

         Upon the occurrence, and during the continuance, of an Event of
Default, the principal of and, to the extent permitted by law, interest on the
Loans and any other amounts owing hereunder or under the other Credit Documents
shall bear interest, payable on demand, at a per annum rate 2% greater than the
rate which would otherwise be applicable (or if no rate is applicable, whether
in respect of interest, fees or other amounts, then the Adjusted Base Rate plus
2%).

         3.2      EXTENSION AND CONVERSION.

         The Borrower shall have the option, on any Business Day, to extend
existing Loans into a subsequent permissible Interest Period or to convert Loans
into Loans of another interest rate type; provided, however, that (i) except as
provided in Section 3.8, Eurodollar Loans may be converted into Base Rate Loans
or extended as Eurodollar Loans for new Interest Periods only on the last day of
the Interest Period applicable thereto, (ii) without the consent of the Required
Lenders, Eurodollar Loans may be extended, and Base Rate Loans may be converted
into Eurodollar Loans, only if the conditions precedent set forth in Section 5.2
are satisfied on the date of extension or conversion, (iii) Loans extended as,
or converted into, Eurodollar Loans shall be subject to the terms of the
definition of "Interest Period" set forth in Section 1.1 and shall be in such
minimum amounts as provided in Section 2.1(b)(ii), (iv) no more than five
Eurodollar Loans shall be outstanding hereunder at any time (it being understood
that, for purposes hereof, Eurodollar Loans with different Interest Periods
shall be considered as separate Eurodollar Loans, even if they begin on the same
date, although borrowings, extensions and conversions may, in accordance with
the provisions hereof, be combined at the end of existing Interest Periods to
constitute a new Eurodollar Loan with a single Interest Period) and (v) any
request for extension or conversion of a Eurodollar Loan which shall fail to
specify an Interest Period shall be deemed to be a request for an Interest
Period of one month. Each such extension or conversion shall be effected by the
Borrower by giving a Notice of Extension/Conversion (or telephonic notice
promptly confirmed in writing) to the office of the Administrative Agent
specified in specified in Schedule 2.1(a), or at such other office as the
Administrative Agent may designate in writing, prior to 12:00 Noon (Charlotte,
North Carolina time) on the Business Day of, in the case of the conversion of a
Eurodollar Loan into a Base Rate Loan, and on the second Business Day prior to,
in the case of the extension of a Eurodollar Loan as, or conversion of a Base
Rate Loan into, a Eurodollar Loan, the date of the proposed extension or
conversion, specifying the date of the proposed extension or conversion, the
Loans to be so extended or converted, the types of Loans into which such Loans
are to be converted and, if appropriate, the applicable Interest Periods with
respect thereto. Each request for extension or conversion shall be irrevocable
and shall constitute a representation and warranty by the Borrower of the
matters specified in subsections (b), (c), (d), (e) and (f) of Section 5.2. In
the event the Borrower fails to request extension or conversion of any
Eurodollar Loan in accordance with this Section, or any such conversion or
extension is not permitted or required by this Section, then such Eurodollar
Loan shall be automatically converted into a Base Rate Loan at the end of the
Interest

                                       31
<PAGE>   37

Period applicable thereto. The Administrative Agent shall give each Lender
notice as promptly as practicable of any such proposed extension or conversion
affecting any Loan.

         3.3      PREPAYMENTS.

                  (a)      Voluntary Prepayments. The Borrower shall have the
         right to prepay Loans in whole or in part from time to time; provided,
         however, that each partial prepayment of Loans shall be in a minimum
         principal amount of $1,000,000 and integral multiples of $100,000.
         Subject to the foregoing terms, amounts prepaid under this Section
         3.3(a) shall be applied as the Borrower may elect; provided that if the
         Borrower fails to specify a voluntary prepayment then such prepayment
         shall be applied to Revolving Loans, in each case first to Base Rate
         Loans and then to Eurodollar Loans in direct order of Interest Period
         maturities. All prepayments under this Section 3.3(a) shall be subject
         to Section 3.12, but otherwise without premium or penalty.

                  (b)      Mandatory Prepayments.

                           (i)      Revolving Committed Amount. If at any time
                  (A) the sum of the aggregate amount of the outstanding
                  Revolving Loans plus LOC Obligations outstanding plus
                  Swingline Loans outstanding shall exceed the Revolving
                  Committed Amount, (B) the aggregate amount of LOC Obligations
                  outstanding shall exceed the LOC committed Amount or (C) the
                  aggregate amount of Swingline Loans outstanding shall exceed
                  the Swingline Committed Amount, the Borrower shall immediately
                  make payment on the Loans and/or cash collateralize the LOC
                  Obligations in an amount sufficient to eliminate such excess.

                           (ii)     Application of Mandatory Prepayments. All
                  amounts required to be paid pursuant to Section 3.3(b) shall
                  be applied first to the Loans and then to a cash collateral
                  account to secure LOC Obligations. Within the parameters of
                  the applications set forth above, prepayments shall be applied
                  first to Base Rate Loans and then to Eurodollar Loans in
                  direct order of Interest Period maturities. All prepayments
                  under this Section 3.3(b) shall be subject to Section 3.12.

         3.4      TERMINATION AND REDUCTION OF REVOLVING COMMITTED AMOUNT;
         INCREASE OF REVOLVING COMMITTED AMOUNT.

                  (a)      The Borrower may from time to time permanently reduce
         or terminate the Revolving Committed Amount in whole or in part (in
         minimum aggregate amounts of $5,000,000 or in integral multiples of
         $1,000,000 in excess thereof (or, if less, the full remaining amount of
         the then applicable Revolving Committed Amount)) upon five Business
         Days' prior written notice to the Administrative Agent; provided, that,
         no such termination or reduction shall be made which would cause the
         sum of the aggregate principal amount of the outstanding Revolving
         Loans plus LOC Obligations plus Swingline Loans to exceed the Revolving
         Committed Amount or unless, concurrently with such termination or
         reduction, the Loans are repaid to the extent necessary to eliminate
         such excess. The Administrative Agent shall promptly notify each
         affected

                                       32
<PAGE>   38

         Lender of receipt by the Administrative Agent of any notice from the
         Borrower pursuant to this Section 3.4(a).

                  (b)      Increase in Revolving Committed Amount. The Borrower
         shall have the right to cause the Revolving Committed Amount to be
         increased to an aggregate amount of not more than $125,000,000 in one
         or more separate increases prior to the Maturity Date, subject,
         however, in any such case, to satisfaction of the following conditions
         precedent:

                           (i)      no Event of Default shall have occurred and
                  be continuing on the date on which such Revolving Committed
                  Amount increase is to become effective;

                           (ii)     the representations and warranties set forth
                  in Section 6 of this Credit Agreement shall be true and
                  correct in all material respects on and as of the date on
                  which such increase is to become effective (except for those
                  which expressly relate to an earlier date);

                           (iii)    on or before the date on which such increase
                  is to become effective, the Administrative Agent shall have
                  received (A) for its own account, the mutually acceptable fees
                  and expenses to be paid in connection with such increase and
                  (B) for the account of each Person providing an Additional
                  Revolving Commitment, a commitment fee on the amount of such
                  Additional Revolving Commitment in an amount to be determined
                  at such time;

                           (iv)     the aggregate amount of such increase
                  hereunder shall be in a minimum amount of $1,000,000;

                           (v)      such requested increase shall be effective
                  on such date only to the extent that, on or before such date,
                  the Administrative Agent shall have received and accepted from
                  (A) one or more Lenders hereunder or (B) with respect to any
                  lender, reasonably acceptable to the Administrative Agent and
                  the Borrower, that is not at such time a Lender hereunder, an
                  agreement in the form of Exhibit 3.4(b) hereto (each such
                  agreement a "New Commitment Agreement"), with respect to the
                  Additional Revolving Commitment of such Person; and

                           (vi)     upon the execution of any New Commitment
                  Agreement, the Borrower shall deliver an appropriate new
                  Revolving Note to such Person making an Additional Revolving
                  Commitment, which, in the case of an existing Lender holding a
                  Revolving Commitment, shall replace the Revolving Note
                  previously issued to such Lender.

                  (c)      Upon the effectiveness of the increase in the
         Revolving Committed Amount pursuant to subsection (b), the Revolving
         Commitment Percentage of the Revolving Commitment of each Lender shall
         be automatically adjusted to give effect to such increase, provided,
         that with respect to each Lender (other than a Lender whose Revolving

                                       33
<PAGE>   39

         Commitment shall have been increased in connection with such increase
         in the Revolving Committed Amount), (i) the product of the Revolving
         Commitment Percentage of the Revolving Commitment of each Lender
         multiplied by the Revolving Committed Amount for each Lender, prior to
         giving effect to such adjustment, shall be equal to (ii) the product of
         the Revolving Commitment Percentage of the Revolving Commitment of each
         Lender multiplied by the Revolving Committed Amount for each such
         Lender, after giving effect to such adjustment. Schedule 2.1(a) shall
         be deemed changed in accordance with the changes to the Revolving
         Commitment Percentages of the Revolving Committed Amount effected by
         this subsection (c).

                  (d)      If and when any adjustment is made to the Revolving
         Commitment Percentage of the Revolving Commitment of any Lender
         pursuant to subsection (c) at any time when any Revolving Loans are
         outstanding, the Borrower, the Administrative Agent and the Lenders
         will use all commercially reasonable efforts to assign and assume
         outstanding Revolving Loans to conform the respective amounts thereof
         held by each Lender to the respective Revolving Commitment Percentages
         as so adjusted, it being understood that the parties hereto shall use
         commercially reasonable efforts to avoid prepayment or assignment of
         any Revolving Loan that is a Eurodollar Loan on a day other than the
         last day of the Interest Period applicable thereto.

         3.5      FEES.

                  (a)      Unused Fee. In consideration of the Revolving
         Commitments of the Lenders hereunder, the Borrower agrees to pay to the
         Administrative Agent for the account of each Lender a fee (the "Unused
         Fee") equal to the Applicable Percentage per annum for Unused Fees then
         in effect on the Unused Revolving Committed Amount for each day during
         the applicable Unused Fee Calculation Period (hereinafter defined). The
         Unused Fee shall commence to accrue on the Closing Date and shall be
         due and payable in arrears on the last business day of each March,
         June, September and December (and any date that the Revolving Committed
         Amount is reduced as provided in Section 3.4(a) and the Maturity Date)
         for the immediately preceding quarter (or portion thereof) (each such
         quarter or portion thereof for which the Unused Fee is payable
         hereunder being herein referred to as an "Unused Fee Calculation
         Period"), beginning with the first of such dates to occur after the
         Closing Date. For purposes of computation of the Unused Fees, the
         Swingline Loans shall not be counted toward or considered usage of the
         Revolving Committed Amount.

                  (b)      Letter of Credit Fees.

                           (i)      Standby Letter of Credit Issuance Fee. In
                  consideration of the issuance of standby Letters of Credit
                  hereunder, the Borrower promises to pay to the Administrative
                  Agent for the account of each Lender a fee (the "Letter of
                  Credit Fee") on such Lender's Revolving Commitment Percentage
                  of the average daily maximum amount available to be drawn
                  under each such standby Letter of Credit computed at a per
                  annum rate for each day from the date of issuance to the date
                  of expiration equal to the Applicable Percentage. The Standby
                  Letter of Credit Fee will be payable quarterly in arrears on
                  the last Business Day of each March, June,

                                       34
<PAGE>   40

                  September and December for the immediately preceding quarter
                  (or a portion thereof).

                           (ii)     Trade Letter of Credit Drawing Fee. In
                  consideration of the issuance of trade Letters of Credit
                  hereunder, the Borrower promises to pay to the Administrative
                  Agent for the account of each Lender a fee (the "Trade Letter
                  of Credit Fee") on such Lender's Revolving Commitment
                  Percentage of the average daily maximum amount available to be
                  drawn under each such trade Letter of Credit computed at a per
                  annum rate for each day from the date of issuance to the date
                  of expiration equal to the Applicable Percentage. The Trade
                  Letter of Credit Fee will be payable quarterly in arrears on
                  the last Business Day of each March, June, September and
                  December for the immediately preceding quarter (or a portion
                  thereof).

                           (iii)    Issuing Lender Fees. In addition to the
                  Standby Letter of Credit Fee payable pursuant to clause (i)
                  above and the Trade Letter of Credit Fee payable pursuant to
                  clause (ii) above, the Borrower promises to pay to the Issuing
                  Lender for its own account without sharing by the other
                  Lenders (A) a letter of credit fronting fee of one-eighth
                  percent (1/8%) per annum on the average daily maximum amount
                  available to be drawn under outstanding Letters of Credit
                  payable quarterly in arrears with the Letter of Credit Fee,
                  and (B) customary charges from time to time of the Issuing
                  Lender with respect to the issuance, amendment, transfer,
                  administration, cancellation and conversion of, and drawings
                  under, such Letters of Credit (collectively, the "Issuing
                  Lender Fees").

         3.6      CAPITAL ADEQUACY.

         If any Lender has determined, after the date hereof, that the adoption
or the becoming effective of, or any change in, or any change by any
Governmental Authority, central bank or comparable agency charged with the
interpretation or administration thereof in the interpretation or administration
of, any applicable law, rule or regulation regarding capital adequacy, or
compliance by such Lender 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 assets as a consequence of its commitments or
obligations hereunder to a level below that which such Lender could have
achieved but for such adoption, effectiveness, change or compliance (taking into
consideration such Lender's policies with respect to capital adequacy), then,
upon notice from such Lender to the Borrower, the Borrower shall be obligated to
pay to such Lender such additional amount or amounts as will compensate such
Lender for such reduction. Each determination by any such Lender of amounts
owing under this Section shall, absent manifest error, be conclusive and binding
on the parties hereto.

         3.7      LIMITATION ON EURODOLLAR LOANS.

         If on or prior to the first day of any Interest Period for any
Eurodollar Loan:

                                       35
<PAGE>   41

                  (a)      the Administrative Agent determines (which
         determination shall be conclusive) that by reason of circumstances
         affecting the relevant market, adequate and reasonable means do not
         exist for ascertaining the Eurodollar Rate for such Interest Period; or

                  (b)      the Required Lenders determine (which determination
         shall be conclusive) and notify the Agent that the Eurodollar Rate will
         not adequately and fairly reflect the cost to the Lenders of funding
         Eurodollar Loans for such Interest Period;

then the Administrative Agent shall give the Borrower prompt notice thereof, and
so long as such condition remains in effect, the Lenders shall be under no
obligation to make additional Eurodollar Loans, continue Eurodollar Loans, or to
convert Base Rate Loans into Eurodollar Loans and the Borrower shall, on the
last day(s) of the then current Interest Period(s) for the outstanding
Eurodollar Loans, either prepay such Eurodollar Loans or convert such Eurodollar
Loans into Base Rate Loans in accordance with the terms of this Credit
Agreement.

         3.8      ILLEGALITY.

                  Notwithstanding any other provision herein, if the adoption of
or any change in any Requirement of Law or in the interpretation or application
thereof occurring after the Closing Date shall make it unlawful for any Lender
to make or maintain Eurodollar Loans as contemplated by this Credit Agreement,
(a) such Lender shall promptly give written notice of such circumstances to the
Borrower and the Administrative Agent (which notice shall be withdrawn whenever
such circumstances no longer exist), (b) the commitment of such Lender hereunder
to make Eurodollar Loans, continue Eurodollar Loans as such and convert a Base
Rate Loan to Eurodollar Loans, shall forthwith be canceled and, until such time
as it shall no longer be unlawful for such Lender to make or maintain Eurodollar
Loans, such Lender shall then have a commitment only to make a Base Rate Loan
when a Eurodollar Loan is requested and (c) such Lender's Loans then outstanding
as Eurodollar Loans, if any, shall be converted automatically to Base Rate Loans
on the respective last days of the then current Interest Periods with respect to
such Loans or within such earlier period as required by law. If any such
conversion of a Eurodollar Loan occurs on a day which is not the last day of the
then current Interest Period with respect thereto, the Borrower shall pay to
such Lender such amounts, if any, as may be required pursuant to Section 3.12.

         3.9      REQUIREMENTS OF LAW.

         If, after the date hereof, the adoption of any applicable law, rule, or
regulation, or any change in any applicable law, rule, or regulation, 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 Applicable Lending
Office) with any request or directive (whether or not having the force of law)
of any such Governmental Authority, central bank, or comparable agency:

                           (i)      shall subject such Lender (or its Applicable
         Lending Office) to any tax, duty, or other charge with respect to any
         Eurodollar Loans, its Notes, or its obligation to make Eurodollar
         Loans, or change the basis of taxation of any amounts payable to such

                                       36
<PAGE>   42

         Lender (or its Applicable Lending Office) under this Credit Agreement
         or its Notes in respect of any Eurodollar Loans (other than taxes
         imposed on the overall net income of such Lender by the jurisdiction in
         which such Lender has its principal office or such Applicable Lending
         Office);

                           (ii)     shall impose, modify, or deem applicable any
         reserve, special deposit, assessment, or similar requirement (other
         than the Eurodollar Reserve Requirement utilized in the determination
         of the Adjusted Eurodollar Rate) relating to any extensions of credit
         or other assets of, or any deposits with or other liabilities or
         commitments of, such Lender (or its Applicable Lending Office),
         including the Commitment of such Lender hereunder; or

                           (iii)    shall impose on such Lender (or its
         Applicable Lending Office) or the London interbank market any other
         condition affecting this Credit Agreement or its Notes or any of such
         extensions of credit or liabilities or commitments;

and the result of any of the foregoing is to increase the cost to such Lender
(or its Applicable Lending Office) of making, converting into, continuing, or
maintaining any Eurodollar Loans or to reduce any sum received or receivable by
such Lender (or its Applicable Lending Office) under this Credit Agreement or
its Notes with respect to any Eurodollar Loans, then the Borrower shall pay to
such Lender on demand such amount or amounts as will compensate such Lender for
such increased cost or reduction. If any Lender requests compensation by the
Borrower under this Section 3.9, the Borrower may, by notice to such Lender
(with a copy to the Administrative Agent), suspend the obligation of such Lender
to make or continue Eurodollar Loans, or to convert Base Rate Loans into
Eurodollar Loans, until the event or condition giving rise to such request
ceases to be in effect (in which case the provisions of Section 3.10 shall be
applicable); provided that such suspension shall not affect the right of such
Lender to receive the compensation so requested. Each Lender shall promptly
notify the Borrower and the Administrative Agent of any event of which it has
knowledge, occurring after the date hereof, which will entitle such Lender to
compensation pursuant to this Section 3.9 and will designate a different
Applicable Lending Office if such designation will avoid the need for, or reduce
the amount of, such compensation and will not, in the reasonable judgment of
such Lender, be otherwise disadvantageous to it. Any Lender claiming
compensation under this Section 3.9 shall furnish to the Borrower and the
Administrative Agent a statement setting forth the additional amount or amounts
to be paid to it hereunder which shall be conclusive in the absence of manifest
error. In determining such amount, such Lender may use any reasonable averaging
and attribution methods.

         3.10     TREATMENT OF AFFECTED LOANS.

         If the obligation of any Lender to make any Eurodollar Loan or to
continue, or to convert Base Rate Loans into, Eurodollar Loans shall be
suspended pursuant to Section 3.8 or 3.9 hereof, such Lender's Eurodollar Loans
shall be automatically converted into Base Rate Loans on the last day(s) of the
then current Interest Period(s) for such Eurodollar Loans (or, in the case of a
conversion required by Section 3.8 hereof, on such earlier date as such Lender
may specify to the Borrower with a copy to the Administrative Agent) and, unless
and until such Lender gives notice

                                       37
<PAGE>   43

as provided below that the circumstances specified in Section 3.8 or 3.9 hereof
that gave rise to such conversion no longer exist:

                  (a)      to the extent that such Lender's Eurodollar Loans
         have been so converted, all payments and prepayments of principal that
         would otherwise be applied to such Lender's Eurodollar Loans shall be
         applied instead to its Base Rate Loans; and

                  (b)      all Loans that would otherwise be made or continued
         by such Lender as Eurodollar Loans shall be made or continued instead
         as Base Rate Loans, and all Base Rate Loans of such Lender that would
         otherwise be converted into Eurodollar Loans shall remain as Base Rate
         Loans.

If such Lender gives notice to the Borrower (with a copy to the Administrative
Agent) that the circumstances specified in Section 3.8 or 3.9 hereof that gave
rise to the conversion of such Lender's Eurodollar Loans pursuant to this
Section 3.10 no longer exist (which such Lender agrees to do promptly upon such
circumstances ceasing to exist) at a time when Eurodollar Loans made by other
Lenders are outstanding, such Lender's Base Rate Loans shall be automatically
converted, on the first day(s) of the next succeeding Interest Period(s) for
such outstanding Eurodollar Loans, to the extent necessary so that, after giving
effect thereto, all Loans held by the Lenders holding Eurodollar Loans and by
such Lender are held pro rata (as to principal amounts, interest rate basis, and
Interest Periods) in accordance with their respective Commitments.

         3.11     TAXES.

                  (a)      Any and all payments by any Credit Party to or for
         the account of any Lender or the Administrative Agent hereunder or
         under any other Credit Document shall be made free and clear of and
         without deduction for any and all present or future taxes, duties,
         levies, imposts, deductions, charges or withholdings, and all
         liabilities with respect thereto, excluding, in the case of each Lender
         and the Administrative Agent, taxes imposed on its income, and
         franchise taxes imposed on it, by the jurisdiction under the laws of
         which such Lender (or its Applicable Lending Office) or the
         Administrative Agent (as the case may be) is organized or any political
         subdivision thereof (all such non-excluded taxes, duties, levies,
         imposts, deductions, charges, withholdings, and liabilities being
         hereinafter referred to as "Taxes"). If any Credit Party shall be
         required by law to deduct any Taxes from or in respect of any sum
         payable under this Credit Agreement or any other Credit Document to any
         Lender or the Administrative Agent, (i) the sum payable shall be
         increased as necessary so that after making all required deductions
         (including deductions applicable to additional sums payable under this
         Section 3.11) such Lender or the Administrative Agent receives an
         amount equal to the sum it would have received had no such deductions
         been made, (ii) such Credit Party shall make such deductions, (iii)
         such Credit Party shall pay the full amount deducted to the relevant
         taxation authority or other authority in accordance with applicable
         law, and (iv) such Credit Party shall furnish to the Administrative
         Agent, at its address referred to in Section 11.1, the original or a
         certified copy of a receipt evidencing payment thereof.

                                       38
<PAGE>   44

                  (b)      In addition, the Borrower agrees to pay any and all
         present or future stamp or documentary taxes and any other excise or
         property taxes or charges or similar levies which arise from any
         payment made under this Credit Agreement or any other Credit Document
         or from the execution or delivery of, or otherwise with respect to,
         this Credit Agreement or any other Credit Document (hereinafter
         referred to as "Other Taxes").

                  (c)      The Borrower agrees to indemnify each Lender and the
         Administrative Agent for the full amount of Taxes and Other Taxes
         (including, without limitation, any Taxes or Other Taxes imposed or
         asserted by any jurisdiction on amounts payable under this Section
         3.11) paid by such Lender or the Administrative Agent (as the case may
         be) and any liability (including penalties, interest, and expenses)
         arising therefrom or with respect thereto.

                  (d)      Each Lender that is not a United States person under
         Section 7701(a)(30) of the Code, on or prior to the date of its
         execution and delivery of this Credit Agreement in the case of each
         Lender listed on the signature pages hereof and on or prior to the date
         on which it becomes a Lender in the case of each other Lender, and from
         time to time thereafter if requested in writing by the Borrower or the
         Administrative Agent (but only so long as such Lender remains lawfully
         able to do so), shall provide the Borrower and the Administrative Agent
         with (i) Internal Revenue Service Form 1001 or 4224, as appropriate, or
         any successor form prescribed by the Internal Revenue Service,
         certifying that such Lender is entitled to benefits under an income tax
         treaty to which the United States is a party which reduces the rate of
         withholding tax on payments of interest or certifying that the income
         receivable pursuant to this Credit Agreement is effectively connected
         with the conduct of a trade or business in the United States, (ii)
         Internal Revenue Service Form W-8 or W-9, as appropriate, or any
         successor form prescribed by the Internal Revenue Service, and (iii)
         any other form or certificate required by any taxing authority
         (including any certificate required by Sections 871(h) and 881(c) of
         the Internal Revenue Code), certifying that such Lender is entitled to
         an exemption from or a reduced rate of tax on payments pursuant to this
         Credit Agreement or any of the other Credit Documents.

                  (e)      For any period with respect to which a Lender has
         failed to provide the Borrower and the Administrative Agent with the
         appropriate form pursuant to Section 3.11(d) (unless such failure is
         due to a change in treaty, law, or regulation occurring subsequent to
         the date on which a form originally was required to be provided), such
         Lender shall not be entitled to indemnification under Section 3.11(a)
         or 3.11(b) with respect to Taxes imposed by the United States;
         provided, however, that should a Lender, which is otherwise exempt from
         or subject to a reduced rate of withholding tax, become subject to
         Taxes because of its failure to deliver a form required hereunder, the
         Borrower shall take such steps as such Lender shall reasonably request
         to assist such Lender to recover such Taxes.

                  (f)      If any Credit Party is required to pay additional
         amounts to or for the account of any Lender pursuant to this Section
         3.11, then such Lender will agree to use reasonable efforts to change
         the jurisdiction of its Applicable Lending Office so as to eliminate or
         reduce any such additional payment which may thereafter accrue if such

                                       39
<PAGE>   45

         change, in the reasonable judgment of such Lender, is not otherwise
         disadvantageous to such Lender.

                  (g)      Within thirty (30) days after the date of any payment
         of Taxes, the applicable Credit Party shall furnish to the
         Administrative Agent the original or a certified copy of a receipt
         evidencing such payment.

                  (h)      Without prejudice to the survival of any other
         agreement of the Credit Parties hereunder, the agreements and
         obligations of the Credit Parties contained in this Section 3.11 shall
         survive the repayment of the Loans, LOC Obligations and other
         obligations under the Credit Documents and the termination of the
         Commitments hereunder.

         3.12     COMPENSATION.

         Upon the request of any Lender, the Borrower shall pay to such Lender
such amount or amounts as shall be sufficient (in the reasonable opinion of such
Lender) to compensate it for any loss, cost, or expense (including loss of
anticipated profits) incurred by it as a result of:

                  (a)      any payment, prepayment, or conversion of a
         Eurodollar Loan for any reason (including, without limitation, the
         acceleration of the Loans pursuant to Section 9.2) on a date other than
         the last day of the Interest Period for such Loan; or

                  (b)      any failure by the Borrower for any reason
         (including, without limitation, the failure of any condition precedent
         specified in Section 5 to be satisfied) to borrow, convert, continue,
         or prepay a Eurodollar Loan on the date for such borrowing, conversion,
         continuation, or prepayment specified in the relevant notice of
         borrowing, prepayment, continuation, or conversion under this Credit
         Agreement.

With respect to Eurodollar Loans, such indemnification may include an amount
equal to the excess, if any, of (a) the amount of interest which would have
accrued on the amount so prepaid, or not so borrowed, converted or continued,
for the period from the date of such prepayment or of such failure to borrow,
convert or continue to the last day of the applicable Interest Period (or, in
the case of a failure to borrow, convert or continue, the Interest Period that
would have commenced on the date of such failure) in each case at the applicable
rate of interest for such Eurodollar Loans provided for herein (excluding,
however, the Applicable Percentage included therein, if any) over (b) the amount
of interest (as reasonably determined by such Lender) which would have accrued
to such Lender on such amount by placing such amount on deposit for a comparable
period with leading banks in the interbank Eurodollar market. The covenants of
the Borrower set forth in this Section 3.12 shall survive the repayment of the
Loans, LOC Obligations and other obligations under the Credit Documents and the
termination of the Commitments hereunder.

         3.13     PRO RATA TREATMENT.

         Except to the extent otherwise provided herein:

                                       40
<PAGE>   46

                  (a)      Loans. Each Loan, each payment or (subject to the
         terms of Section 3.3) prepayment of principal of any Loan or
         reimbursement obligations arising from drawings under Letters of
         Credit, each payment of interest on the Loans or reimbursement
         obligations arising from drawings under Letters of Credit, each payment
         of Unused Fees, each payment of the Standby Letter of Credit Fee, each
         payment of the Trade Letter of Credit Fee, each reduction in
         Commitments and each conversion or extension of any Loan, shall be
         allocated pro rata among the Lenders in accordance with the respective
         principal amounts of their outstanding Revolving Loans and
         Participation Interests.

                  (b)      Advances. No Lender shall be responsible for the
         failure or delay by any other Lender in its obligation to make its
         ratable share of a borrowing hereunder; provided, however, that the
         failure of any Lender to fulfill its obligations hereunder shall not
         relieve any other Lender of its obligations hereunder. Unless the
         Administrative Agent shall have been notified in writing by any Lender
         prior to the date of any requested borrowing that such Lender does not
         intend to make available to the Administrative Agent its ratable share
         of such borrowing to be made on such date, the Administrative Agent may
         assume that such Lender has made such amount available to the
         Administrative Agent on the date of such borrowing, and the
         Administrative Agent in reliance upon such assumption, may (in its sole
         discretion but without any obligation to do so) make available to the
         Borrower a corresponding amount. If such corresponding amount is not in
         fact made available to the Administrative Agent, the Administrative
         Agent shall be able to recover such corresponding amount from such
         Lender. If such Lender does not pay such corresponding amount forthwith
         upon the Administrative Agent's demand therefor, the Administrative
         Agent will promptly notify the Borrower, and the Borrower shall
         immediately pay such corresponding amount to the Administrative Agent.
         The Administrative Agent shall also be entitled to recover from the
         Lender or the Borrower, as the case may be, interest on such
         corresponding amount in respect of each day from the date such
         corresponding amount was made available by the Administrative Agent to
         the Borrower to the date such corresponding amount is recovered by the
         Administrative Agent at a per annum rate equal to (i) from the Borrower
         at the applicable rate for the applicable borrowing pursuant to the
         Notice of Borrowing and (ii) from a Lender at the Federal Funds Rate.

         3.14     SHARING OF PAYMENTS.

         The Lenders agree among themselves that, in the event that any Lender
shall obtain payment in respect of any Loan, LOC Obligations or any other
obligation owing to such Lender under this Credit Agreement through the exercise
of a right of setoff, banker's lien or counterclaim, or pursuant to a secured
claim under Section 506 of Title 11 of the United States Code or other security
or interest arising from, or in lieu of, such secured claim, received by such
Lender under any applicable bankruptcy, insolvency or other similar law or
otherwise, or by any other means, in excess of its pro rata share of such
payment as provided for in this Credit Agreement, such Lender shall promptly
purchase from the other Lenders a Participation Interest in such Loans, LOC
Obligations and other obligations in such amounts, and make such other
adjustments from time to time, as shall be equitable to the end that all Lenders
share such payment in accordance with their respective ratable shares as
provided for in this Credit Agreement. The Lenders further agree among
themselves that if payment to a Lender obtained by such Lender through the
exercise of a

                                       41
<PAGE>   47

right of setoff, banker's lien, counterclaim or other event as aforesaid shall
be rescinded or must otherwise be restored, each Lender which shall have shared
the benefit of such payment shall, by repurchase of a Participation Interest
theretofore sold, return its share of that benefit (together with its share of
any accrued interest payable with respect thereto) to each Lender whose payment
shall have been rescinded or otherwise restored. The Borrower agrees that any
Lender so purchasing such a Participation Interest may, to the fullest extent
permitted by law, exercise all rights of payment, including setoff, banker's
lien or counterclaim, with respect to such Participation Interest as fully as if
such Lender were a holder of such Loan, LOC Obligations or other obligation in
the amount of such Participation Interest. Except as otherwise expressly
provided in this Credit Agreement, if any Lender or the Administrative Agent
shall fail to remit to the Administrative Agent or any other Lender an amount
payable by such Lender or the Administrative Agent to the Administrative Agent
or such other Lender pursuant to this Credit Agreement on the date when such
amount is due, such payments shall be made together with interest thereon for
each date from the date such amount is due until the date such amount is paid to
the Administrative Agent or such other Lender at a rate per annum equal to the
Federal Funds Rate. If under any applicable bankruptcy, insolvency or other
similar law, any Lender receives a secured claim in lieu of a setoff to which
this Section 3.14 applies, such Lender shall, to the extent practicable,
exercise its rights in respect of such secured claim in a manner consistent with
the rights of the Lenders under this Section 3.14 to share in the benefits of
any recovery on such secured claim.

         3.15     PAYMENTS, COMPUTATIONS, ETC.

                  (a)      Except as otherwise specifically provided herein, all
         payments hereunder shall be made to the Administrative Agent in Dollars
         in immediately available funds, without setoff, deduction, counterclaim
         or withholding of any kind, at the Administrative Agent's office
         specified in Schedule 2.1(a) not later than 2:00 p.m. (Charlotte, North
         Carolina time) on the date when due. Payments received after such time
         shall be deemed to have been received on the next succeeding Business
         Day. The Administrative Agent may (but shall not be obligated to) debit
         the amount of any such payment which is not made by such time to any
         ordinary deposit account of the Borrower or any other Credit Party
         maintained with the Administrative Agent (with notice to the Borrower
         or such other Credit Party). The Borrower shall, at the time it makes
         any payment under this Credit Agreement, specify to the Administrative
         Agent the Loans, LOC Obligations, Fees, interest or other amounts
         payable by the Borrower hereunder to which such payment is to be
         applied (and in the event that it fails so to specify, or if such
         application would be inconsistent with the terms hereof, the
         Administrative Agent shall distribute such payment to the Lenders in
         such manner as the Administrative Agent may determine to be appropriate
         in respect of obligations owing by the Borrower hereunder, subject to
         the terms of Section 3.13(a)). The Administrative Agent will distribute
         such payments to such Lenders, if any such payment is received prior to
         2:00 p.m. (Charlotte, North Carolina time) on a Business Day in like
         funds as received prior to the end of such Business Day and otherwise
         the Administrative Agent will distribute such payment to such Lenders
         on the next succeeding Business Day. Whenever any payment hereunder
         shall be stated to be due on a day which is not a Business Day, the due
         date thereof shall be extended to the next succeeding Business Day
         (subject to accrual of interest and Fees for the period of such
         extension), except that in the case of Eurodollar Loans, if the
         extension would cause the payment to be made in the next

                                       42
<PAGE>   48

         following calendar month, then such payment shall instead be made on
         the next preceding Business Day. Except as expressly provided otherwise
         herein, all computations of interest and fees shall be made on the
         basis of actual number of days elapsed over a year of 360 days.
         Interest shall accrue from and include the date of borrowing, but
         exclude the date of payment.

                  (b)      Allocation of Payments After Event of Default.
         Notwithstanding any other provisions of this Credit Agreement to the
         contrary, after the occurrence and during the continuance of an Event
         of Default, all amounts collected or received by the Administrative
         Agent or any Lender on account of the Credit Party Obligations or any
         other amounts outstanding under any of the Credit Documents or in
         respect of the Collateral shall be paid over or delivered as follows:

                  FIRST, to the payment of all reasonable out-of-pocket costs
         and expenses (including without limitation reasonable attorneys' fees)
         of the Administrative Agent in connection with enforcing the rights of
         the Lenders under the Credit Documents;

                  SECOND, to payment of any fees owed to the Administrative
         Agent;

                  THIRD, to the payment of all reasonable out-of-pocket costs
         and expenses (including without limitation, reasonable attorneys' fees)
         of each of the Lenders in connection with enforcing its rights under
         the Credit Documents or otherwise with respect to the Credit Party
         Obligations owing to such Lender;

                  FOURTH, to the payment of all of the Credit Party Obligations
         consisting of accrued fees and interest;

                  FIFTH, to the payment of the outstanding principal amount of
         the Credit Party Obligations (including the payment or cash
         collateralization of the outstanding LOC Obligations);

                  SIXTH, to all other Credit Party Obligations and other
         obligations which shall have become due and payable under the Credit
         Documents or otherwise and not repaid pursuant to clauses "FIRST"
         through "FIFTH" above; and

                  SEVENTH, to the payment of the surplus, if any, to whoever may
         be lawfully entitled to receive such surplus.

         In carrying out the foregoing, (i) amounts received shall be applied in
         the numerical order provided until exhausted prior to application to
         the next succeeding category; (ii) each of the Lenders shall receive an
         amount equal to its pro rata share (based on the proportion that the
         then outstanding Loans and LOC Obligations held by such Lender bears to
         the aggregate then outstanding Loans and LOC Obligations) of amounts
         available to be applied pursuant to clauses "THIRD", "FOURTH", "FIFTH"
         and "SIXTH" above; and (iii) to the extent that any amounts available
         for distribution pursuant to clause "FIFTH" above are attributable to
         the issued but undrawn amount of outstanding Letters of Credit,

                                       43
<PAGE>   49

         such amounts shall be held by the Administrative Agent in a cash
         collateral account and applied (A) first, to reimburse the Issuing
         Lender from time to time for any drawings under such Letters of Credit
         and (B) then, following the expiration of all Letters of Credit, to all
         other obligations of the types described in clauses "FIFTH" and "SIXTH"
         above in the manner provided in this Section 3.15(b).

         3.16     EVIDENCE OF DEBT.

                  (a)      Each Lender shall maintain an account or accounts
         evidencing each Loan made by such Lender to the Borrower from time to
         time, including the amounts of principal and interest payable and paid
         to such Lender from time to time under this Credit Agreement. Each
         Lender will make reasonable efforts to maintain the accuracy of its
         account or accounts and to promptly update its account or accounts from
         time to time, as necessary.

                  (b)      The Administrative Agent shall maintain the Register
         pursuant to Section 11.3(c), and a subaccount for each Lender, in which
         Register and subaccounts (taken together) shall be recorded (i) the
         amount, type and Interest Period of each such Loan hereunder, (ii) the
         amount of any principal or interest due and payable or to become due
         and payable to each Lender hereunder and (iii) the amount of any sum
         received by the Administrative Agent hereunder from or for the account
         of any Credit Party and each Lender's share thereof. The Administrative
         Agent will make reasonable efforts to maintain the accuracy of the
         subaccounts referred to in the preceding sentence and to promptly
         update such subaccounts from time to time, as necessary.

                  (c)      The entries made in the accounts, Register and
         subaccounts maintained pursuant to subsection (b) of this Section 3.16
         (and, if consistent with the entries of the Administrative Agent,
         subsection (a)) shall be prima facie evidence of the existence and
         amounts of the obligations of the Credit Parties therein recorded;
         provided, however, that the failure of any Lender or the Administrative
         Agent to maintain any such account, such Register or such subaccount,
         as applicable, or any error therein, shall not in any manner affect the
         obligation of the Credit Parties to repay the Credit Party obligations
         owing to such Lender.

                                    SECTION 4

                                    GUARANTY

         4.1      THE GUARANTY.

         Each of the Guarantors hereby jointly and severally guarantees to each
Lender, each Affiliate of a Lender that enters into a Hedging Agreement, and the
Administrative Agent as hereinafter provided, as primary obligor and not as
surety, the prompt payment of the Credit Party Obligations in full when due
(whether at stated maturity, as a mandatory prepayment, by acceleration, as a
mandatory cash collateralization or otherwise) strictly in accordance with the
terms thereof. The Guarantors hereby further agree that if any of the Credit
Party Obligations are

                                       44
<PAGE>   50

not paid in full when due (whether at stated maturity, as a mandatory
prepayment, by acceleration, as a mandatory cash collateralization or
otherwise), the Guarantors will, jointly and severally, promptly pay the same,
without any demand or notice whatsoever, and that in the case of any extension
of time of payment or renewal of any of the Credit Party Obligations, the same
will be promptly paid in full when due (whether at extended maturity, as a
mandatory prepayment, by acceleration, as a mandatory cash collateralization or
otherwise) in accordance with the terms of such extension or renewal.

         Notwithstanding any provision to the contrary contained herein or in
any other of the Credit Documents or Hedging Agreements, the obligations of each
Guarantor hereunder shall be limited to an aggregate amount equal to the largest
amount that would not render its obligations hereunder subject to avoidance
under Section 548 of the Bankruptcy Code or any comparable provisions of any
applicable state law.

         4.2      OBLIGATIONS UNCONDITIONAL.

         The obligations of the Guarantors under Section 4.1 are joint and
several, absolute and unconditional, irrespective of the value, genuineness,
validity, regularity or enforceability of any of the Credit Documents or Hedging
Agreements, or any other agreement or instrument referred to therein, or any
substitution, release, impairment or exchange of any other guarantee of or
security for any of the Credit Party Obligations, and, to the fullest extent
permitted by applicable law, irrespective of any other circumstance whatsoever
which might otherwise constitute a legal or equitable discharge or defense of a
surety or guarantor, it being the intent of this Section 4.2 that the
obligations of the Guarantors hereunder shall be absolute and unconditional
under any and all circumstances. Each Guarantor agrees that such Guarantor shall
have no right of subrogation, indemnity, reimbursement or contribution against
the Borrower or any other Guarantor for amounts paid under this Section 4 until
such time as the Lenders (and any Affiliates of Lenders entering into Hedging
Agreements) have been paid in full, all Commitments under this Credit Agreement
have been terminated and no Person or Governmental Authority shall have any
right to request any return or reimbursement of funds from the Lenders in
connection with monies received under the Credit Documents or Hedging
Agreements. Without limiting the generality of the foregoing, it is agreed that,
to the fullest extent permitted by law, the occurrence of any one or more of the
following shall not alter or impair the liability of any Guarantor hereunder
which shall remain absolute and unconditional as described above:

                  (a)      at any time or from time to time, without notice to
         any Guarantor, the time for any performance of or compliance with any
         of the Credit Party Obligations shall be extended, or such performance
         or compliance shall be waived;

                  (b)      any of the acts mentioned in any of the provisions of
         any of the Credit Documents, any Hedging Agreement or any other
         agreement or instrument referred to in the Credit Documents or Hedging
         Agreements shall be done or omitted;

                  (c)      the maturity of any of the Credit Party Obligations
         shall be accelerated, or any of the Credit Party Obligations shall be
         modified, supplemented or amended in any respect, or any right under
         any of the Credit Documents, any Hedging Agreement or any

                                       45
<PAGE>   51

         other agreement or instrument referred to in the Credit Documents or
         Hedging Agreements shall be waived or any other guarantee of any of the
         Credit Party Obligations or any security therefor shall be released,
         impaired or exchanged in whole or in part or otherwise dealt with;

                  (d)      any Lien granted to, or in favor of, the
         Administrative Agent or any Lender or Lenders as security for any of
         the Credit Party Obligations shall fail to attach or be perfected; or

                  (e)      any of the Credit Party Obligations shall be
         determined to be void or voidable (including, without limitation, for
         the benefit of any creditor of any Guarantor) or shall be subordinated
         to the claims of any Person (including, without limitation, any
         creditor of any Guarantor).

With respect to its obligations hereunder, each Guarantor hereby expressly
waives diligence, presentment, demand of payment, protest and all notices
whatsoever, and any requirement that the Administrative Agent or any Lender
exhaust any right, power or remedy or proceed against any Person under any of
the Credit Documents, any Hedging Agreement or any other agreement or instrument
referred to in the Credit Documents or Hedging Agreements, or against any other
Person under any other guarantee of, or security for, any of the Credit Party
Obligations.

         4.3      REINSTATEMENT.

         The obligations of the Guarantors under this Section 4 shall be
automatically reinstated if and to the extent that for any reason any payment by
or on behalf of any Person in respect of the Credit Party Obligations is
rescinded or must be otherwise restored by any holder of any of the Credit Party
Obligations, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise, and each Guarantor agrees that it will indemnify
the Administrative Agent and each Lender on demand for all reasonable costs and
expenses (including, without limitation, fees and expenses of counsel) incurred
by the Administrative Agent or such Lender in connection with such rescission or
restoration, including any such costs and expenses incurred in defending against
any claim alleging that such payment constituted a preference, fraudulent
transfer or similar payment under any bankruptcy, insolvency or similar law.

         4.4      CERTAIN ADDITIONAL WAIVERS.

         Each Guarantor agrees that such Guarantor shall have no right of
recourse to security for the Credit Party Obligations, except through the
exercise of rights of subrogation pursuant to Section 4.2 and through the
exercise of rights of contribution pursuant to Section 4.6.

         4.5      REMEDIES.

         The Guarantors agree that, to the fullest extent permitted by law, as
between the Guarantors, on the one hand, and the Administrative Agent and the
Lenders, on the other hand, the Credit Party Obligations may be declared to be
forthwith due and payable as provided in Section 9.2 (and shall be deemed to
have become automatically due and payable in the circumstances provided in said
Section 9.2) for purposes of Section 4.1 notwithstanding any stay, injunction or
other prohibition

                                       46
<PAGE>   52

preventing such declaration (or preventing the Credit Party Obligations from
becoming automatically due and payable) as against any other Person and that, in
the event of such declaration (or the Credit Party Obligations being deemed to
have become automatically due and payable), the Credit Party Obligations
(whether or not due and payable by any other Person) shall forthwith become due
and payable by the Guarantors for purposes of Section 4.1.

         4.6      RIGHTS OF CONTRIBUTION.

         The Guarantors hereby agree as among themselves that, if any Guarantor
shall make an Excess Payment (as defined below), such Guarantor shall have a
right of contribution from each other Guarantor in an amount equal to such other
Guarantor's Contribution Share (as defined below) of such Excess Payment. The
payment obligations of any Guarantor under this Section 4.6 shall be subordinate
and subject in right of payment to the prior payment in full to the
Administrative Agent and the Lenders of the Guaranteed Obligations, and none of
the Guarantors shall exercise any right or remedy under this Section 4.6 against
any other Guarantor until payment and satisfaction in full of all of such
Guaranteed Obligations. For purposes of this Section 4.6, (a) "Guaranteed
Obligations" shall mean any obligations arising under the other provisions of
this Section 4; (b) "Excess Payment" shall mean the amount paid by any Guarantor
in excess of its Pro Rata Share of any Guaranteed Obligations; (c) "Pro Rata
Share" shall mean, for any Guarantor in respect of any payment of Guaranteed
Obligations, the ratio (expressed as a percentage) as of the date of such
payment of Guaranteed Obligations of (i) the amount by which the aggregate
present fair salable value of all of its assets and properties exceeds the
amount of all debts and liabilities of such Guarantor (including contingent,
subordinated, unmatured, and unliquidated liabilities, but excluding the
obligations of such Guarantor hereunder) to (ii) the amount by which the
aggregate present fair salable value of all assets and other properties of all
of the Credit Parties exceeds the amount of all of the debts and liabilities
(including contingent, subordinated, unmatured, and unliquidated liabilities,
but excluding the obligations of the Credit Parties hereunder) of the Credit
Parties; provided, however, that, for purposes of calculating the Pro Rata
Shares of the Guarantors in respect of any payment of Guaranteed Obligations,
any Guarantor that became a Guarantor subsequent to the date of any such payment
shall be deemed to have been a Guarantor on the date of such payment and the
financial information for such Guarantor as of the date such Guarantor became a
Guarantor shall be utilized for such Guarantor in connection with such payment;
and (d) "Contribution Share" shall mean, for any Guarantor in respect of any
Excess Payment made by any other Guarantor, the ratio (expressed as a
percentage) as of the date of such Excess Payment of (i) the amount by which the
aggregate present fair salable value of all of its assets and properties exceeds
the amount of all debts and liabilities of such Guarantor (including contingent,
subordinated, unmatured, and unliquidated liabilities, but excluding the
obligations of such Guarantor hereunder) to (ii) the amount by which the
aggregate present fair salable value of all assets and other properties of the
Credit Parties other than the maker of such Excess Payment exceeds the amount of
all of the debts and liabilities (including contingent, subordinated, unmatured,
and unliquidated liabilities, but excluding the obligations of the Credit
Parties) of the Credit Parties other than the maker of such Excess Payment;
provided, however, that, for purposes of calculating the Contribution Shares of
the Guarantors in respect of any Excess Payment, any Guarantor that became a
Guarantor subsequent to the date of any such Excess Payment shall be deemed to
have been a Guarantor on the date of such Excess Payment and the financial
information for such

                                       47
<PAGE>   53

Guarantor as of the date such Guarantor became a Guarantor shall be utilized for
such Guarantor in connection with such Excess Payment. This Section 4.6 shall
not be deemed to affect any right of subrogation, indemnity, reimbursement or
contribution that any Guarantor may have under applicable law against the
Borrower in respect of any payment of Guaranteed Obligations.

         4.7      GUARANTEE OF PAYMENT; CONTINUING GUARANTEE.

         The guarantee in this Section 4 is a guaranty of payment and not of
collection, is a continuing guarantee, and shall apply to all Credit Party
Obligations whenever arising.

                                    SECTION 5

                                   CONDITIONS

         5.1      CLOSING CONDITIONS.

         The obligation of the Lenders to enter into this Credit Agreement and
to make the initial Loans or the Issuing Lender to issue the initial Letter of
Credit, whichever shall occur first, shall be subject to satisfaction of the
following conditions (in form and substance acceptable to the Lenders):

                  (a)      Executed Credit Documents. Receipt by the
         Administrative Agent of duly executed copies of: (i) this Credit
         Agreement, (ii) the Notes and (iii) all other Credit Documents, each in
         form and substance acceptable to the Administrative Agent in its sole
         discretion.

                  (b)      Corporate Documents. Receipt by the Administrative
         Agent of the following:

                           (i)      Charter Documents. Copies of the articles or
                  certificates of incorporation or other charter documents of
                  each Credit Party certified to be true and complete as of a
                  recent date by the appropriate Governmental Authority of the
                  state or other jurisdiction of its incorporation and certified
                  by a secretary or assistant secretary of such Credit Party to
                  be true and correct as of the Closing Date.

                           (ii)     Bylaws. A copy of the bylaws of each Credit
                  Party certified by a secretary or assistant secretary of such
                  Credit Party to be true and correct as of the Closing Date.

                           (iii)    Resolutions. Copies of resolutions of the
                  Board of Directors of each Credit Party approving and adopting
                  the Credit Documents to which it is a party, the transactions
                  contemplated therein and authorizing execution and delivery
                  thereof, certified by a secretary or assistant secretary of
                  such Credit Party to be true and correct and in force and
                  effect as of the Closing Date.

                           (iv)     Good Standing. Copies of certificates of
                  good standing, existence or its equivalent with respect to
                  each Credit Party certified as of a recent date by the

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<PAGE>   54

                  appropriate Governmental Authorities of the state or other
                  jurisdiction of incorporation and Tennessee and each other
                  jurisdiction in which the failure to so qualify and be in good
                  standing could have a Material Adverse Effect.

                           (v)      Incumbency. An incumbency certificate of
                  each Credit Party certified by a secretary or assistant
                  secretary to be true and correct as of the Closing Date.

                  (c)      Financial Statements. Receipt by the Administrative
         Agent of (i) the consolidated and consolidating financial statements of
         the Borrower and its Subsidiaries, including balance sheets and income
         and cash flow statements for the fiscal year 1999 and audited by
         nationally recognized independent public accountants and containing an
         unqualified opinion of such firm that such statements present fairly
         the consolidated and consolidating financial position of the Borrower
         and its Subsidiaries and are prepared in conformity with GAAP and (ii)
         such other information relating to the Borrower and its Subsidiaries as
         the Administrative Agent may reasonably require in connection with the
         structuring and syndication of credit facilities of the type described
         herein.

                  (d)      Opinions of Counsel. The Administrative Agent shall
         have received a legal opinion in form and substance reasonably
         satisfactory to the Administrative Agent dated as of the Closing Date
         from counsel to the Credit Parties.

                  (e)      Lien Searches. The Administrative Agent shall have
         received with respect to the Borrower searches of Uniform Commercial
         Code filings in Delaware, Tennessee and Texas, copies of the financing
         statements on file in such jurisdictions and evidence that no Liens
         exist other than Permitted Liens.

                  (f)      Evidence of Insurance. Receipt by the Administrative
         Agent of copies of insurance policies or certificates of insurance of
         the Consolidated Parties evidencing liability and casualty insurance
         meeting the requirements set forth in the Credit Documents.

                  (g)      Material Adverse Effect. No material adverse change
         shall have occurred since January 1, 2000 in the condition (financial
         or otherwise), business, assets, liabilities, operations, management or
         prospects of the Consolidated Parties taken as a whole.

                  (h)      Litigation. There shall not exist any pending or
         threatened action, suit, investigation or proceeding against a
         Consolidated Party that could have a Material Adverse Effect.

                  (i)      Officer's Certificates. The Administrative Agent
         shall have received a certificate or certificates executed by the chief
         financial officer of the Borrower as of the Closing Date stating that
         (A) each Credit Party is in compliance with all existing financial
         obligations, (B) all governmental, shareholder and third party consents
         and approvals, if any, with respect to the Credit Documents and the
         transactions contemplated thereby have been obtained, (C) no action,
         suit, investigation or proceeding is pending or threatened in any court
         or before any arbitrator or governmental instrumentality that purports
         to affect any

                                       49
<PAGE>   55

         Credit Party or any transaction contemplated by the Credit Documents,
         if such action, suit, investigation or proceeding could have a Material
         Adverse Effect, and (D) immediately after giving effect to this Credit
         Agreement, the other Credit Documents and all the transactions
         contemplated therein to occur on such date, (1) each of the Credit
         Parties is Solvent, (2) no Default or Event of Default exists, (3) all
         representations and warranties contained herein and in the other Credit
         Documents are true and correct in all material respects, and (4) the
         Credit Parties are in compliance with each of the financial covenants
         set forth in Section 7.11.

                  (j)      Fees and Expenses. Payment by the Credit Parties of
         all fees and expenses owed by them to the Lenders and the
         Administrative Agent, including, without limitation, payment to the
         Administrative Agent of the fees set forth in the Fee Letter.

                  (k)      Other. Receipt by the Lenders of such other
         documents, instruments, agreements or information as reasonably
         requested by any Lender, including, but not limited to, information
         regarding litigation, tax, accounting, labor, insurance, pension
         liabilities (actual or contingent), real estate leases, material
         contracts, debt agreements, property ownership and contingent
         liabilities of the Consolidated Parties.

         5.2      CONDITIONS TO ALL EXTENSIONS OF CREDIT.

         The obligations of each Lender to make, convert or extend any Loan and
of the Issuing Lender to issue or extend any Letter of Credit (including the
initial Loans and the initial Letter of Credit) are subject to satisfaction of
the following conditions in addition to satisfaction on the Closing Date of the
conditions set forth in Section 5.1:

                  (a)      The Borrower shall have delivered (i) in the case of
         any Revolving Loan, an appropriate Notice of Borrowing or Notice of
         Extension/Conversion or (ii) in the case of any Letter of Credit, the
         Issuing Lender shall have received an appropriate request for issuance
         in accordance with the provisions of Section 2.2(b);

                  (b)      The representations and warranties set forth in
         Section 6 shall, subject to the limitations set forth therein, be true
         and correct in all material respects as of such date (except for those
         which expressly relate to an earlier date);

                  (c)      There shall not have been commenced against any
         Consolidated Party an involuntary case under any applicable bankruptcy,
         insolvency or other similar law now or hereafter in effect, or any
         case, proceeding or other action for the appointment of a receiver,
         liquidator, assignee, custodian, trustee, sequestrator (or similar
         official) of such Person or for any substantial part of its Property or
         for the winding up or liquidation of its affairs, and such involuntary
         case or other case, proceeding or other action shall remain
         undismissed, undischarged or unbonded;

                  (d)      No Default or Event of Default shall exist and be
         continuing either prior to or after giving effect thereto;

                                       50
<PAGE>   56

                  (e)      No circumstances, events or conditions shall have
         occurred since January 1, 2000 which would have a Material Adverse
         Effect; and

                  (f)      Immediately after giving effect to the making of such
         Loan (and the application of the proceeds thereof) or to the issuance
         of such Letter of Credit, as the case may be, (i) the sum of the
         aggregate principal amount of outstanding Revolving Loans plus LOC
         Obligations outstanding plus outstanding Swingline Loans shall not
         exceed the Revolving Committed Amount and (ii) the LOC Obligations
         shall not exceed the LOC Committed Amount.

The delivery of each Notice of Borrowing, each Notice of Extension/Conversion
and each request for a Letter of Credit pursuant to Section 2.2(b) shall
constitute a representation and warranty by the Credit Parties of the
correctness of the matters specified in subsections (b), (c), (d), (e) and (f)
above.

                                    SECTION 6

                         REPRESENTATIONS AND WARRANTIES

         The Credit Parties hereby represent to the Administrative Agent and
each Lender that:

         6.1      FINANCIAL CONDITION.

         The financial statements delivered to the Lenders pursuant to Section
5.1(c) and Section 7.1(a) and (b), (i) have been prepared in accordance with
GAAP and (ii) present fairly (on the basis disclosed in the footnotes to such
financial statements) the consolidated and consolidating financial condition,
results of operations and cash flows of the Consolidated Parties as of such date
and for such periods.

         6.2      NO MATERIAL CHANGE.

         Since January 1, 2000, (a) there has been no development or event
relating to or affecting a Consolidated Party which has had or could reasonably
be expected to have a Material Adverse Effect and (b) except as otherwise
permitted under this Credit Agreement, no dividends or other distributions have
been declared, paid or made upon the Capital Stock in a Consolidated Party nor
has any of the Capital Stock in a Consolidated Party been redeemed, retired,
purchased or otherwise acquired for value.

         6.3      ORGANIZATION AND GOOD STANDING; COMPLIANCE WITH LAW.

         Each of the Consolidated Parties (a) is duly organized, validly
existing and is in good standing under the laws of the jurisdiction of its
incorporation or organization, (b) has the requisite power and authority to own
and operate all its property, to lease the property it operates as lessee and to
conduct the business in which it is currently engaged and (c) is duly qualified
to conduct business and in good standing under the laws of each jurisdiction
where its ownership, lease or

                                       51
<PAGE>   57

operation of property or the conduct of its business requires such qualification
except to the extent that the failure to so qualify or be in good standing could
not reasonably be expected to have a Material Adverse Effect.

         6.4      POWER; AUTHORIZATION; ENFORCEABLE OBLIGATIONS.

         Each of the Credit Parties has the corporate or other necessary power
and authority, to make, deliver and perform the Credit Documents to which it is
a party, and in the case of the Borrower, to obtain extensions of credit
hereunder, and has taken all necessary corporate action to authorize the
borrowings and other extensions of credit on the terms and conditions of this
Credit Agreement and to authorize the execution, delivery and performance of the
Credit Documents to which it is a party. No consent or authorization of, filing
with, notice to or other similar act by or in respect of, any Governmental
Authority or any other Person is required to be obtained or made by or on behalf
of any Credit Party in connection with the borrowings or other extensions of
credit hereunder or with the execution, delivery, performance, validity or
enforceability of the Credit Documents to which such Credit Party is a party.
This Credit Agreement has been, and each other Credit Document to which any
Credit Party is a party will be, duly executed and delivered on behalf of the
Credit Parties. This Credit Agreement constitutes, and each other Credit
Document to which any Credit Party is a party when executed and delivered will
constitute, a legal, valid and binding obligation of such Credit Party
enforceable against such party in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors' rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

         6.5      NO CONFLICTS.

         Neither the execution and delivery of the Credit Documents, nor the
consummation of the transactions contemplated therein, nor performance of and
compliance with the terms and provisions thereof by such Credit Party will (a)
violate or conflict with any provision of its articles or certificate of
incorporation or bylaws or other organizational or governing documents of such
Person, (b) violate, contravene or materially conflict with any Requirement of
Law or any other law, regulation (including, without limitation, Regulation U or
Regulation X), order, writ, judgment, injunction, decree or permit applicable to
it, (c) violate, contravene or conflict with contractual provisions of, or cause
an event of default under, any indenture, loan agreement, mortgage, deed of
trust, contract or other agreement or instrument to which it is a party or by
which it may be bound, the violation of which could have a Material Adverse
Effect, or (d) result in or require the creation of any Lien upon or with
respect to its properties. No Default or Event of Default has occurred and is
continuing.

         6.6      OWNERSHIP.

         Each Consolidated Party is the owner of, and has good and marketable
title to, all of its respective assets and none of such assets is subject to any
Lien other than Permitted Liens.

                                       52
<PAGE>   58

         6.7      INDEBTEDNESS.

         Except as otherwise permitted under Section 8.1, the Consolidated
Parties have no Indebtedness.

         6.8      LITIGATION.

         There are no actions, suits or legal, equitable, arbitration or
administrative proceedings, pending or, to the knowledge of any Credit Party,
threatened against any Consolidated Party which could reasonably be expected to
have a Material Adverse Effect.

         6.9      TAXES.

         Each Consolidated Party has filed, or caused to be filed, all tax
returns (federal, state, local and foreign) required to be filed and paid (a)
all amounts of taxes shown thereon to be due (including interest and penalties)
and (b) all other taxes, fees, assessments and other governmental charges
(including mortgage recording taxes, documentary stamp taxes and intangibles
taxes) owing by it, except for such taxes (i) which are not yet delinquent or
(ii) that are being contested in good faith and by proper proceedings, and
against which adequate reserves are being maintained in accordance with GAAP. No
Credit Party is aware as of the Closing Date of any proposed tax assessments
against it or any Consolidated Party.

         6.10     COMPLIANCE WITH LAW.

         Each Consolidated Party is in compliance with all Requirements of Law
and all other laws, rules, regulations, orders and decrees (including without
limitation Environmental Laws) applicable to it, or to its properties, unless
such failure to comply could not have a Material Adverse Effect.

         6.11     ERISA.

                  (a)      During the five-year period prior to the date on
         which this representation is made or deemed made: (i) no ERISA Event
         has occurred, and, to the best knowledge of the Credit Parties, no
         event or condition has occurred or exists as a result of which any
         ERISA Event could reasonably be expected to occur, with respect to any
         Plan; (ii) no "accumulated funding deficiency," as such term is defined
         in Section 302 of ERISA and Section 412 of the Code, whether or not
         waived, has occurred with respect to any Plan; (iii) each Plan has been
         maintained, operated, and funded in compliance with its own terms and
         in material compliance with the provisions of ERISA, the Code, and any
         other applicable federal or state laws; and (iv) no lien in favor of
         the PBGC or a Plan has arisen or is reasonably likely to arise on
         account of any Plan.

                  (b)      The actuarial present value of all "benefit
         liabilities" (as defined in Section 4001(a)(16) of ERISA), whether or
         not vested, under each Single Employer Plan, as of the last annual
         valuation date prior to the date on which this representation is made
         or deemed made (determined, in each case, in accordance with Financial
         Accounting Standards Board Statement 87, utilizing the actuarial
         assumptions used in such Plan's most recent

                                       53
<PAGE>   59

         actuarial valuation report), did not exceed as of such valuation date
         the fair market value of the assets of such Plan.

                  (c)      Neither any Consolidated Party nor any ERISA
         Affiliate has incurred, or, to the best knowledge of the Credit
         Parties, could be reasonably expected to incur, any withdrawal
         liability under ERISA to any Multiemployer Plan or Multiple Employer
         Plan. Neither any Consolidated Party nor any ERISA Affiliate would
         become subject to any withdrawal liability under ERISA if any
         Consolidated Party or any ERISA Affiliate were to withdraw completely
         from all Multiemployer Plans and Multiple Employer Plans as of the
         valuation date most closely preceding the date on which this
         representation is made or deemed made. Neither any Consolidated Party
         nor any ERISA Affiliate has received any notification that any
         Multiemployer Plan is in reorganization (within the meaning of Section
         4241 of ERISA), is insolvent (within the meaning of Section 4245 of
         ERISA), or has been terminated (within the meaning of Title IV of
         ERISA), and no Multiemployer Plan is, to the best knowledge of the
         Credit Parties, reasonably expected to be in reorganization, insolvent,
         or terminated.

                  (d)      No prohibited transaction (within the meaning of
         Section 406 of ERISA or Section 4975 of the Code) or breach of
         fiduciary responsibility has occurred with respect to a Plan which has
         subjected or may subject any Consolidated Party or any ERISA Affiliate
         to any liability under Sections 406, 409, 502(i), or 502(l) of ERISA or
         Section 4975 of the Code, or under any agreement or other instrument
         pursuant to which any Consolidated Party or any ERISA Affiliate has
         agreed or is required to indemnify any Person against any such
         liability.

                  (e)      Neither any Consolidated Party nor any ERISA
         Affiliates has any material liability with respect to "expected
         post-retirement benefit obligations" within the meaning of the
         Financial Accounting Standards Board Statement 106. Each Plan which is
         a welfare plan (as defined in Section 3(1) of ERISA) to which Sections
         601-609 of ERISA and Section 4980B of the Code apply has been
         administered in compliance in all material respects of such sections.

                  (f)      Neither the execution and delivery of this Credit
         Agreement nor the consummation of the financing transactions
         contemplated thereunder will involve any transaction which is subject
         to the prohibitions of Sections 404, 406 or 407 of ERISA or in
         connection with which a tax could be imposed pursuant to Section 4975
         of the Code. The representation by the Credit Parties in the preceding
         sentence is made in reliance upon and subject to the accuracy of the
         Lenders' representation in Section 11.15 with respect to their source
         of funds and is subject, in the event that the source of the funds used
         by the Lenders in connection with this transaction is an insurance
         company's general asset account, to the application of Prohibited
         Transaction Class Exemption 95-60, 60 Fed. Reg. 35,925 (1995),
         compliance with the regulations issued under Section 401(c)(1)(A) of
         ERISA, or the issuance of any other prohibited transaction exemption or
         similar relief, to the effect that assets in an insurance company's
         general asset account do not constitute assets of an "employee benefit
         plan" within the meaning of Section 3(3) of ERISA of a "plan" within
         the meaning of Section 4975(e)(1) of the Code.

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<PAGE>   60

         6.12     SUBSIDIARIES.

         Set forth on Schedule 6.12 is a complete and accurate list of all
Subsidiaries of each Consolidated Party. Information on Schedule 6.12 includes
jurisdiction of incorporation, the number of shares of each class of Capital
Stock outstanding, the number and percentage of outstanding shares of each class
owned (directly or indirectly) by such Credit Party; and the number and effect,
if exercised, of all outstanding options, warrants, rights of conversion or
purchase and all other similar rights with respect thereto. The outstanding
Capital Stock of all such Subsidiaries is validly issued, fully paid and
non-assessable and is owned by each such Consolidated Party, directly or
indirectly, free and clear of all Liens. Other than as set forth in Schedule
6.12, no Consolidated Party has outstanding any securities convertible into or
exchangeable for its Capital Stock nor does any such Person have outstanding any
rights to subscribe for or to purchase or any options for the purchase of, or
any agreements providing for the issuance (contingent or otherwise) of, or any
calls, commitments or claims of any character relating to its Capital Stock.
Schedule 6.12 may be updated from time to time by the Borrower by giving written
notice thereof to the Administrative Agent.

         6.13     GOVERNMENTAL REGULATIONS, ETC.

                  (a)      No part of the Letters of Credit or proceeds of the
         Loans will be used, directly or indirectly, for the purpose of
         purchasing or carrying any "margin stock" within the meaning of
         Regulation U, or for the purpose of purchasing or carrying or trading
         in any securities that are "margin stock" within the meaning of
         Regulation U. If requested by any Lender or the Administrative Agent,
         the Borrower will furnish to the Administrative Agent and each Lender a
         statement to the foregoing effect in conformity with the requirements
         of FR Form U-1 referred to in Regulation U. No indebtedness being
         reduced or retired out of the proceeds of the Loans was or will be
         incurred for the purpose of purchasing or carrying any margin stock
         within the meaning of Regulation U or any "margin security" within the
         meaning of Regulation T. "Margin stock" within the meaning of
         Regulation U does not constitute more than 25% of the value of the
         consolidated assets of the Consolidated Parties. None of the
         transactions contemplated by this Credit Agreement (including, without
         limitation, the direct or indirect use of the proceeds of the Loans)
         will violate or result in a violation of the Securities Act of 1933, as
         amended, or the Securities Exchange Act of 1934, as amended, or
         regulations issued pursuant thereto, or Regulation T, U or X.

                  (b)      No Consolidated Party is subject to regulation under
         the Public Utility Holding Company Act of 1935, the Federal Power Act
         or the Investment Company Act of 1940, each as amended. In addition, no
         Consolidated Party is (i) an "investment company" registered or
         required to be registered under the Investment Company Act of 1940, as
         amended, and is not controlled by such a company, or (ii) a "holding
         company", or a "subsidiary company" of a "holding company", or an
         "affiliate" of a "holding company" or of a "subsidiary" of a "holding
         company", within the meaning of the Public Utility Holding Company Act
         of 1935, as amended.

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<PAGE>   61

                  (c)      No director, executive officer or principal
         shareholder of any Consolidated Party is a director, executive officer
         or principal shareholder of any Lender. For the purposes hereof the
         terms "director", "executive officer" and "principal shareholder" (when
         used with reference to any Lender) have the respective meanings
         assigned thereto in Regulation O issued by the Board of Governors of
         the Federal Reserve System.

                  (d)      Each Consolidated Party has obtained and holds in
         full force and effect, all franchises, licenses, permits, certificates,
         authorizations, qualifications, accreditations, easements, rights of
         way and other rights, consents and approvals which are necessary for
         the ownership of its respective Property and to the conduct of its
         respective businesses as presently conducted.

                  (e)      No Consolidated Party is in violation of any
         applicable statute, regulation or ordinance of the United States of
         America, or of any state, city, town, municipality, county or any other
         jurisdiction, or of any agency thereof (including without limitation,
         environmental laws and regulations), which violation could have a
         Material Adverse Effect.

                  (f)      Each Consolidated Party is current with all material
         reports and documents, if any, required to be filed with any state or
         federal securities commission or similar securities agency and is in
         full compliance in all material respects with all applicable rules and
         regulations of such commissions.

         6.14     PURPOSE OF LOANS AND LETTERS OF CREDIT.

         The proceeds of the Loans hereunder shall be used solely by the
Borrower (i) for working capital, (ii) for general corporate purposes, (iii) to
make Consolidated Capital Expenditures and (iv) to refinance existing
Indebtedness of the Borrower. The Letters of Credit shall be used only for or in
connection with appeal bonds, reimbursement obligations arising in connection
with surety and reclamation bonds, reinsurance, domestic or international trade
transactions and obligations not otherwise aforementioned relating to
transactions entered into by the applicable account party in the ordinary course
of business.

         6.15     ENVIRONMENTAL MATTERS.

         Except as would not have or be reasonably expected to have a Material
Adverse Effect:

                  (a)      Each of the facilities and properties owned, leased
         or operated by the Consolidated Parties (the "Properties") and all
         operations at the Properties are in compliance with all applicable
         Environmental Laws, and there is no violation of any Environmental Law
         with respect to the Properties or the businesses operated by the
         Consolidated Parties (the "Businesses"), and there are no conditions
         relating to the Businesses or Properties that could give rise to
         liability under any applicable Environmental Laws.

                  (b)      None of the Properties contains, or has previously
         contained, any Materials of Environmental Concern at, on or under the
         Properties in amounts or concentrations that

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<PAGE>   62

         constitute or constituted a violation of, or could give rise to
         liability under, Environmental Laws.

                  (c)      No Consolidated Party has received any written or
         verbal notice of, or inquiry from any Governmental Authority regarding,
         any violation, alleged violation, non-compliance, liability or
         potential liability regarding environmental matters or compliance with
         Environmental Laws with regard to any of the Properties or the
         Businesses, nor does any Consolidated Party have knowledge or reason to
         believe that any such notice will be received or is being threatened.

                  (d)      Materials of Environmental Concern have not been
         transported or disposed of from the Properties, or generated, treated,
         stored or disposed of at, on or under any of the Properties or any
         other location, in each case by or on behalf of any Consolidated Party
         in violation of, or in a manner that could give rise to liability
         under, any applicable Environmental Law.

                  (e)      No judicial proceeding or governmental or
         administrative action is pending or, to the best knowledge of any
         Credit Party, threatened, under any Environmental Law to which any
         Consolidated Party is or will be named as a party, nor are there any
         consent decrees or other decrees, consent orders, administrative orders
         or other orders, or other administrative or judicial requirements
         outstanding under any Environmental Law with respect to the
         Consolidated Parties, the Properties or the Businesses.

                  (f)      There has been no release, or threat of release, of
         Materials of Environmental Concern at or from the Properties, or
         arising from or related to the operations (including, without
         limitation, disposal) of any Consolidated Party in connection with the
         Properties or otherwise in connection with the Businesses, in violation
         of or in amounts or in a manner that could give rise to liability under
         Environmental Laws.

         6.16     INTELLECTUAL PROPERTY.

         Each Consolidated Party owns, or has the legal right to use, all
trademarks, tradenames, copyrights, technology, know-how and processes (the
"Intellectual Property") necessary for each of them to conduct its business as
currently conducted except for those the failure to own or have such legal right
to use could not have a Material Adverse Effect. No claim has been asserted and
is pending by any Person challenging or questioning the use of any such
Intellectual Property or the validity or effectiveness of any such Intellectual
Property, nor does any Credit Party know of any such claim, and to the Credit
Parties' knowledge the use of such Intellectual Property by any Consolidated
Party does not infringe on the rights of any Person, except for such claims and
infringements that, in the aggregate, could not have a Material Adverse Effect.

         6.17     SOLVENCY.

         Each Consolidated Party is and, after consummation of the transactions
contemplated by this Credit Agreement, will be Solvent.

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<PAGE>   63

         6.18     INVESTMENTS.

         All Investments of each Consolidated Party are Permitted Investments.

         6.19     LOCATION OF ASSETS.

         Set forth on Schedule 6.19 is the chief executive office and principal
place of business of each Consolidated Party.

         6.20     DISCLOSURE.

         Neither this Credit Agreement nor any financial statements delivered to
the Lenders nor any other document, certificate or statement furnished to the
Lenders by or on behalf of any Consolidated Party in connection with the
transactions contemplated hereby contains any untrue statement of a material
fact or omits to state a material fact necessary in order to make the statements
contained therein or herein not misleading.

         6.21     NO BURDENSOME RESTRICTIONS.

         No Consolidated Party is a party to any agreement or instrument or
subject to any other obligation or any charter or corporate restriction or any
provision of any applicable law, rule or regulation which, individually or in
the aggregate, could reasonably be expected to have a Material Adverse Effect.

         6.22     BROKERS' FEES.

         None of the Borrower or any of its Subsidiaries has any obligation to
any Person in respect of any finder's, broker's, investment banking or other
similar fee in connection with any of the transactions contemplated under the
Credit Documents.

         6.23     LABOR MATTERS.

         (a)      Except as set forth on Schedule 6.23, there are no collective
bargaining agreements or Multiemployer Plans covering the employees of a
Consolidated Party, and (b) none of the Consolidated Parties (i) has suffered
any strikes, walkouts, work stoppages or other material labor difficulty within
the last five years, or (ii) has knowledge of any potential or pending strike,
walkout or work stoppage.

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                                    SECTION 7

                              AFFIRMATIVE COVENANTS

         Each Credit Party hereby covenants and agrees that, so long as this
Credit Agreement is in effect or any amounts payable hereunder or under any
other Credit Document shall remain outstanding, and until all of the Commitments
hereunder shall have terminated:

         7.1      FINANCIAL STATEMENTS.

         The Credit Parties will furnish, or cause to be furnished, to the
Administrative Agent and each of the Lenders:

                  (a)      Annual Financial Statements. As soon as available,
         and in any event within 90 days after the close of each fiscal year of
         the Consolidated Parties, the consolidated and consolidating balance
         sheet and income statement of the Consolidated Parties, as of the end
         of such fiscal year, together with related consolidated and
         consolidating statements of operations and retained earnings and of
         cash flows for such fiscal year, setting forth in comparative form
         consolidated and consolidating figures for the preceding fiscal year,
         all such financial information described above to be in reasonable form
         and detail and audited by independent certified public accountants of
         recognized national standing reasonably acceptable to the
         Administrative Agent and whose opinion shall be to the effect that such
         financial statements have been prepared in accordance with GAAP (except
         for changes with which such accountants concur) and shall not be
         limited as to the scope of the audit or qualified in any manner.

                  (b)      Quarterly Financial Statements. As soon as available,
         and in any event within 45 days after the close of each fiscal quarter
         of the Consolidated Parties (other than the fourth fiscal quarter, in
         which case 90 days after the end thereof) a consolidated and
         consolidating balance sheet and income statement of the Consolidated
         Parties, as of the end of such fiscal quarter, together with related
         consolidated and consolidating statements of operations and retained
         earnings and of cash flows for such fiscal quarter, in each case
         setting forth in comparative form consolidated and consolidating
         figures for the corresponding period of the preceding fiscal year, all
         such financial information described above to be in reasonable form and
         detail and reasonably acceptable to the Administrative Agent, and
         accompanied by a certificate of the chief financial officer of the
         Borrower to the effect that such quarterly financial statements fairly
         present in all material respects the financial condition of the
         Consolidated Parties and have been prepared in accordance with GAAP,
         subject to changes resulting from audit and normal year-end audit
         adjustments.

                  (c)      Officer's Certificate. At the time of delivery of the
         financial statements provided for in Sections 7.1(a) and 7.1(b) above,
         a certificate of the chief financial officer of the Borrower
         substantially in the form of Exhibit 7.1(c), (i) demonstrating
         compliance with the financial covenants contained in Section 7.11 by
         calculation thereof as of the end of each such fiscal period and (ii)
         stating that no Default or Event of Default exists, or if any Default

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<PAGE>   65

         or Event of Default does exist, specifying the nature and extent
         thereof and what action the Credit Parties propose to take with respect
         thereto.

                  (d)      Annual Budgets. At least 10 days prior to the end of
         each fiscal year of the Borrower, beginning with the fiscal year ending
         December 30, 2000, a budget of the Consolidated Parties containing,
         among other things, pro forma financial statements for the next fiscal
         year.

                  (e)      Accountant's Certificate. Within the period for
         delivery of the annual financial statements provided in Section 7.1(a),
         a certificate of the accountants conducting the annual audit stating
         that they have reviewed this Credit Agreement and stating further
         whether, in the course of their audit, they have become aware of any
         Default or Event of Default and, if any such Default or Event of
         Default exists, specifying the nature and extent thereof.

                  (f)      Auditor's Reports. Promptly upon receipt thereof, a
         copy of any other report or "management letter" submitted by
         independent accountants to any Consolidated Party in connection with
         any annual, interim or special audit of the books of such Person.

                  (g)      Reports. Promptly upon transmission or receipt
         thereof, (i) copies of any filings and registrations with, and reports
         to or from, the Securities and Exchange Commission, or any successor
         agency, and copies of all financial statements, proxy statements,
         notices and reports as any Consolidated Party shall send to its
         shareholders or to a holder of any Indebtedness owed by any
         Consolidated Party in its capacity as such a holder and (ii) upon the
         request of the Administrative Agent, all reports and written
         information to and from the United States Environmental Protection
         Agency, or any state or local agency responsible for environmental
         matters, the United States Occupational Health and Safety
         Administration, or any state or local agency responsible for health and
         safety matters, or any successor agencies or authorities concerning
         environmental, health or safety matters.

                  (h)      Notices. Upon obtaining knowledge thereof, the Credit
         Parties will give written notice to the Administrative Agent
         immediately of (i) the occurrence of an event or condition consisting
         of a Default or Event of Default, specifying the nature and existence
         thereof and what action the Credit Parties propose to take with respect
         thereto, and (ii) the occurrence of any of the following with respect
         to any Consolidated Party (A) the pendency or commencement of any
         litigation, arbitral or governmental proceeding against such Person
         which if adversely determined is likely to have a Material Adverse
         Effect, (B) the institution of any proceedings against such Person with
         respect to, or the receipt of notice by such Person of potential
         liability or responsibility for violation, or alleged violation of any
         federal, state or local law, rule or regulation, including but not
         limited to, Environmental Laws, the violation of which could reasonably
         be expected to have a Material Adverse Effect, or (C) any notice or
         determination concerning the imposition of any withdrawal liability by
         a Multiemployer Plan against such Person or any ERISA Affiliate, the
         determination that a Multiemployer Plan is, or is expected to be, in
         reorganization within the meaning of Title IV of ERISA or the
         termination of any Plan.

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<PAGE>   66

                  (i)      ERISA. Upon obtaining knowledge thereof, the Credit
         Parties will give written notice to the Administrative Agent promptly
         (and in any event within five business days) of: (i) of any event or
         condition, including, but not limited to, any Reportable Event, that
         constitutes, or might reasonably lead to, an ERISA Event; (ii) with
         respect to any Multiemployer Plan, the receipt of notice as prescribed
         in ERISA or otherwise of any withdrawal liability assessed against the
         Credit Parties or any ERISA Affiliates, or of a determination that any
         Multiemployer Plan is in reorganization or insolvent (both within the
         meaning of Title IV of ERISA); (iii) the failure to make full payment
         on or before the due date (including extensions) thereof of all amounts
         which any Consolidated Party or any ERISA Affiliate is required to
         contribute to each Plan pursuant to its terms and as required to meet
         the minimum funding standard set forth in ERISA and the Code with
         respect thereto; or (iv) any change in the funding status of any Plan
         that could have a Material Adverse Effect, together with a description
         of any such event or condition or a copy of any such notice and a
         statement by the chief financial officer of the Borrower briefly
         setting forth the details regarding such event, condition, or notice,
         and the action, if any, which has been or is being taken or is proposed
         to be taken by the Credit Parties with respect thereto. Promptly upon
         request, the Credit Parties shall furnish the Administrative Agent and
         the Lenders with such additional information concerning any Plan as may
         be reasonably requested, including, but not limited to, copies of each
         annual report/return (Form 5500 series), as well as all schedules and
         attachments thereto required to be filed with the Department of Labor
         and/or the Internal Revenue Service pursuant to ERISA and the Code,
         respectively, for each "plan year" (within the meaning of Section 3(39)
         of ERISA).

                  (j)      Other Information. With reasonable promptness upon
         any such request, such other information regarding the business,
         properties or financial condition of any Consolidated Party as the
         Administrative Agent or the Required Lenders may reasonably request.

         7.2      PRESERVATION OF EXISTENCE AND FRANCHISES.

         Each Credit Party will, and will cause each of its Subsidiaries to, do
all things necessary to preserve and keep in full force and effect its
existence, rights, franchises and authority.

         7.3      BOOKS AND RECORDS.

         Each Credit Party will, and will cause each of its Subsidiaries to,
keep complete and accurate books and records of its transactions in accordance
with good accounting practices on the basis of GAAP (including the establishment
and maintenance of appropriate reserves).

         7.4      COMPLIANCE WITH LAW.

         Each Credit Party will, and will cause each of its Subsidiaries to,
comply with all laws, rules, regulations and orders, and all applicable
restrictions imposed by all Governmental Authorities, applicable to it and its
Property if noncompliance with any such law, rule, regulation, order or
restriction could have a Material Adverse Effect.

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         7.5      PAYMENT OF TAXES AND OTHER INDEBTEDNESS.

         Each Credit Party will, and will cause each of its Subsidiaries to, pay
and discharge (a) all taxes, assessments and governmental charges or levies
imposed upon it, or upon its income or profits, or upon any of its properties,
before they shall become delinquent, (b) all lawful claims (including claims for
labor, materials and supplies) which, if unpaid, might give rise to a Lien upon
any of its properties, and (c) except as prohibited hereunder, all of its other
Indebtedness as it shall become due; provided, however, that no Consolidated
Party shall be required to pay any such tax, assessment, charge, levy, claim or
Indebtedness which is being contested in good faith by appropriate proceedings
and as to which adequate reserves therefor have been established in accordance
with GAAP, unless the failure to make any such payment (i) could give rise to an
immediate right to foreclose on a Lien securing such amounts or (ii) could have
a Material Adverse Effect.

         7.6      INSURANCE.

         Each Credit Party will, and will cause each of its Subsidiaries to, at
all times maintain in full force and effect insurance (including worker's
compensation insurance, liability insurance, casualty insurance and business
interruption insurance) in such amounts, covering such risks and liabilities and
with such deductibles or self-insurance retentions as are in accordance with
normal industry practice. The present insurance coverage of the Consolidated
Parties is outlined as to carrier, policy number, expiration date, type and
amount on Schedule 7.6.

         7.7      MAINTENANCE OF PROPERTY.

         Each Credit Party will, and will cause each of its Subsidiaries to,
maintain and preserve its properties and equipment material to the conduct of
its business in good repair, working order and condition, normal wear and tear
and casualty and condemnation excepted, and will make, or cause to be made, in
such properties and equipment from time to time all repairs, renewals,
replacements, extensions, additions, betterments and improvements thereto as may
be needed or proper, to the extent and in the manner customary for companies in
similar businesses.

         7.8      PERFORMANCE OF OBLIGATIONS.

         Each Credit Party will, and will cause each of its Subsidiaries to,
perform in all material respects all of its obligations under the terms of all
material agreements, indentures, mortgages, security agreements or other debt
instruments to which it is a party or by which it is bound.

         7.9      USE OF PROCEEDS.

         The Borrower will use the proceeds of the Loans and will use the
Letters of Credit solely for the purposes set forth in Section 6.14.

         7.10     AUDITS/INSPECTIONS.

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         Upon reasonable notice and during normal business hours, each Credit
Party will, and will cause each of its Subsidiaries to, permit representatives
appointed by the Administrative Agent, including, without limitation,
independent accountants, agents, attorneys, and appraisers to visit and inspect
its property, including its books and records, its accounts receivable and
inventory, its facilities and its other business assets, and to make photocopies
or photographs thereof and to write down and record any information such
representative obtains and shall permit the Administrative Agent or its
representatives to investigate and verify the accuracy of information provided
to the Lenders and to discuss all such matters with the officers, employees and
representatives of such Person.

         7.11     FINANCIAL COVENANTS.

                  (a)      Current Ratio. At all times the Current Ratio shall
         be greater than or equal to 1.1 to 1.0.

                  (b)      Fixed Charge Coverage Ratio. The Fixed Charge
         Coverage Ratio, as of the last day of each fiscal quarter of the
         Borrower, shall be greater than or equal to 1.35 to 1.0;

                  (c)      Leverage Ratio. The Leverage Ratio, as of the last
         day of each fiscal quarter of the Borrower, shall be less than or equal
         to 4.25 to 1.0; except that the Leverage Ratio, as of the last day of
         the fiscal quarters of the Borrower ending September 30, 2000, March
         31, 2001, September 30, 2001 and March 31, 2002 shall be less than or
         equal to 4.50 to 1.0;

                  (d)      Net Worth. Net Worth shall at all times be greater
         than or equal to $133,200,000, increased on a cumulative basis as of
         the end of each fiscal quarter of the Borrower, commencing with the
         fiscal quarter ending September 30, 2000 by an amount equal to 50% of
         Consolidated Net Income for the fiscal quarter then ended (without
         deductions for any losses) plus 100% of the Net Cash Proceeds from any
         Equity Issuance subsequent to the Closing Date.

         7.12     ADDITIONAL CREDIT PARTIES.

         As soon as practicable and in any event within 30 days after any Person
becomes a Subsidiary of any Credit Party, the Borrower shall provide the
Administrative Agent with written notice thereof setting forth information in
reasonable detail describing all of the assets of such Person and shall if such
Person is a Domestic Subsidiary of a Credit Party, cause such Person to execute
a Joinder Agreement in substantially the same form as Exhibit 7.12 and cause
such Person to deliver such other documentation as the Administrative Agent may
reasonably request in connection with the foregoing, including, without
limitation, certified resolutions and other organizational and authorizing
documents of such Person, and favorable opinions of counsel to such Person all
in form, content and scope reasonably satisfactory to the Administrative Agent.

         7.13     ENVIRONMENTAL LAWS.

                  (a)      The Consolidated Parties shall comply in all material
         respects with, and take reasonable actions to ensure compliance in all
         material respects by all tenants and

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<PAGE>   69

         subtenants, if any, with, all applicable Environmental Laws and obtain
         and comply in all material respects with and maintain, and take
         reasonable actions to ensure that all tenants and subtenants obtain and
         comply in all material respects with and maintain, any and all
         licenses, approvals, notifications, registrations or permits required
         by applicable Environmental Laws except to the extent that failure to
         do so would not reasonably be expected to have a Material Adverse
         Effect;

                  (b)      The Consolidated Parties shall conduct and complete
         all investigations, studies, sampling and testing, and all remedial,
         removal and other actions required under Environmental Laws and
         promptly comply in all material respects with all lawful orders and
         directives of all Governmental Authorities regarding Environmental Laws
         except to the extent that the same are being contested in good faith by
         appropriate proceedings and the failure to do or the pendency of such
         proceedings would not reasonably be expected to have a Material Adverse
         Effect; and

                  (c)      The Consolidated Parties shall defend, indemnify and
         hold harmless the Administrative Agent and the Lenders, and their
         respective employees, agents, officers and directors, from and against
         any and all claims, demands, penalties, fines, liabilities,
         settlements, damages, costs and expenses of whatever kind or nature
         known or unknown, contingent or otherwise, arising out of, or in any
         way relating to the violation of, noncompliance with or liability
         under, any Environmental Law applicable to the operations of the
         Borrower or any of its Subsidiaries or the Properties, or any orders,
         requirements or demands of Governmental Authorities related thereto,
         including, without limitation, reasonable attorney's and consultant's
         fees, investigation and laboratory fees, response costs, court costs
         and litigation expenses, except to the extent that any of the foregoing
         arise out of the gross negligence or willful misconduct of the party
         seeking indemnification therefor. The agreements in this paragraph
         shall survive repayment of the Loans and all other amounts payable
         hereunder, and termination of the Commitments.

                                    SECTION 8

                               NEGATIVE COVENANTS

         Each Credit Party hereby covenants and agrees that, so long as this
Credit Agreement is in effect or any amounts payable hereunder or under any
other Credit Document shall remain outstanding, and until all of the Commitments
hereunder shall have terminated:

         8.1      INDEBTEDNESS.

         The Credit Parties will not permit any Consolidated Party to contract,
create, incur, assume or permit to exist any Indebtedness, except:

                  (a)      Indebtedness arising under this Credit Agreement and
         the other Credit Documents;

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                  (b)      purchase money Indebtedness (including obligations in
         respect of Capital Leases) hereafter incurred by the Borrower to
         finance the purchase of fixed assets provided that (i) the total of all
         such Indebtedness shall not exceed an aggregate principal amount of
         $5,000,000 at any one time outstanding; (ii) such Indebtedness when
         incurred shall not exceed the purchase price of the asset(s) financed;
         and (iii) no such Indebtedness shall be refinanced for a principal
         amount in excess of the principal balance outstanding thereon at the
         time of such refinancing;

                  (c)      Indebtedness of the Borrower set forth in Schedule
         8.1 (but not including any renewals, refinancings or extensions
         thereof);

                  (d)      obligations of the Borrower in respect of Hedging
         Agreements entered into in order to manage existing or anticipated
         interest rate or exchange rate risks and not for speculative purposes;

                  (e)      intercompany Indebtedness arising out of loans,
         advances and Guaranty Obligations permitted under Section 8.6;

                  (f)      Indebtedness of the Borrower and its Subsidiaries in
         respect of Synthetic Leases, provided that such Indebtedness shall not
         exceed an aggregate principal amount of $30,000,000 at any one time
         outstanding; and

                  (g)      other unsecured Indebtedness of the Borrower and its
         Subsidiaries in an amount not to exceed $5,000,000 in the aggregate at
         any one time.

         8.2      LIENS.

         The Credit Parties will not permit any Consolidated Party to contract,
create, incur, assume or permit to exist any Lien with respect to any of its
Property, whether now owned or after acquired, except for Permitted Liens.

         8.3      NATURE OF BUSINESS.

         The Credit Parties will not permit any Consolidated Party to
substantively alter the character or conduct of the business conducted by such
Person as of the Closing Date.

         8.4      CONSOLIDATION, MERGER, DISSOLUTION, ETC.

         The Credit Parties will not permit any Consolidated Party to enter into
any transaction of merger or consolidation or liquidate, wind up or dissolve
itself (or suffer any liquidation or dissolution); provided that,
notwithstanding the foregoing provisions of this Section 8.4, (a) the Borrower
may merge or consolidate with any of its Subsidiaries provided that (i) the
Borrower shall be the continuing or surviving corporation and (ii) after giving
effect to such transaction, no Default or Event of Default exists, (b) any
Credit Party other than the Borrower may merge or consolidate with any other
Credit Party other than the Borrower provided that after giving effect to such
transaction, no Default or Event of Default exists, (c) any Consolidated Party
which is not a Credit

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Party may be merged or consolidated with or into any Credit Party provided that
(i) such Credit Party shall be the continuing or surviving corporation and (ii)
after giving effect to such transaction, no Default or Event of Default exists,
and (d) any Consolidated Party which is not a Credit Party may be merged or
consolidated with or into any other Consolidated Party which is not a Credit
Party provided that, after giving effect to such transaction, no Default or
Event of Default exists.

         8.5      ASSET DISPOSITIONS.

         The Credit Parties will not permit any Consolidated Party to sell,
lease, transfer or otherwise dispose of any Property other than (a) the sale of
inventory in the ordinary course of business for fair consideration, (b) the
sale or disposition of machinery and equipment no longer used or useful in the
conduct of such Person's business, (c) the sale, lease, transfer or other
disposition of Property to any Credit Party in the ordinary course of business
and (d) other sales of assets of the Consolidated Parties, including
transactions of the type described in Section 8.13, having a net book value not
to exceed $10,000,000 in the aggregate during the term of this Credit Agreement.

         8.6      INVESTMENTS.

         The Credit Parties will not permit any Consolidated Party to make
Investments in or to any Person, except for Permitted Investments.

         8.7      RESTRICTED PAYMENTS.

         The Credit Parties will not permit any Consolidated Party to, directly
or indirectly, declare, order, make or set apart any sum for or pay any
Restricted Payment, except (a) to make dividends payable solely in the same
class of Capital Stock of such Person and (b) to make dividends or other
distributions payable to the Borrower (directly or indirectly through
Subsidiaries).

         8.8      PREPAYMENTS OF INDEBTEDNESS, ETC.

         The Credit Parties will not permit any Consolidated Party to (a) after
the issuance thereof, amend or modify (or permit the amendment or modification
of) any of the terms of any Indebtedness if such amendment or modification would
add or change any terms in a manner adverse to the issuer of such Indebtedness,
or shorten the final maturity or average life to maturity or require any payment
to be made sooner than originally scheduled or increase the interest rate
applicable thereto or change any subordination provision thereof, or (b) make
(or give any notice with respect thereto) any voluntary or optional payment or
prepayment or redemption or acquisition for value of (including without
limitation, by way of depositing money or securities with the trustee with
respect thereto before due for the purpose of paying when due), refund,
refinance or exchange of any other Indebtedness.

         8.9      TRANSACTIONS WITH AFFILIATES.

         Except as set forth on Schedule 8.9, the Credit Parties will not permit
any Consolidated Party to enter into or permit to exist any transaction or
series of transactions with any officer, director, shareholder, Subsidiary or
Affiliate of such Person other than (a) normal compensation and

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reimbursement of expenses of officers and directors and (b) except as otherwise
specifically limited in this Credit Agreement, other transactions which are
entered into in the ordinary course of such Person's business on terms and
conditions substantially as favorable to such Person as would be obtainable by
it in a comparable arms-length transaction with a Person other than an officer,
director, shareholder, Subsidiary or Affiliate.

         8.10     FISCAL YEAR; ORGANIZATIONAL DOCUMENTS.

         The Credit Parties will not permit any Consolidated Party to (a) change
its fiscal year or (b) amend, modify or change its articles of incorporation (or
corporate charter or other similar organizational document) or bylaws (or other
similar document) in a manner that would adversely affect the rights of the
Lenders.

         8.11     LIMITATION ON RESTRICTED ACTIONS.

         The Credit Parties will not permit any Consolidated Party to, directly
or indirectly, create or otherwise cause or suffer to exist or become effective
any encumbrance or restriction on the ability of any such Person to (a) pay
dividends or make any other distributions to any Credit Party on its Capital
Stock or with respect to any other interest or participation in, or measured by,
its profits, (b) pay any Indebtedness or other obligation owed to any Credit
Party, (c) make loans or advances to any Credit Party, (d) sell, lease or
transfer any of its properties or assets to any Credit Party, or (e) act as a
Guarantor and pledge its assets pursuant to the Credit Documents or any
renewals, refinancings, exchanges, refundings or extension thereof, except (in
respect of any of the matters referred to in clauses (a)-(d) above) for such
encumbrances or restrictions existing under or by reason of (i) this Credit
Agreement and the other Credit Documents, (ii) applicable law, (iii) any
document or instrument governing Indebtedness incurred pursuant to Section
8.1(b) or the Capital Leases described on Schedule 8.1, provided that any such
restriction contained therein relates only to the asset or assets constructed or
acquired in connection therewith, (iv) any document or instrument governing
Indebtedness incurred pursuant to Section 8.1(f), provided that any such
restriction contained therein relates only to the asset or assets securing such
Indebtedness or (v) the SunTrust Loan Agreement.

         8.12     OWNERSHIP OF SUBSIDIARIES.

         Notwithstanding any other provisions of this Credit Agreement to the
contrary, the Credit Parties will not permit any Consolidated Party to (i)
permit any Person (other than the Borrower or any Wholly-Owned Subsidiary of the
Borrower) to own any Capital Stock of any Subsidiary of the Borrower, (ii)
permit any Subsidiary of the Borrower to issue Capital Stock (except to the
Borrower or to a Wholly-Owned Subsidiary of the Borrower), (iii) permit, create,
incur, assume or suffer to exist any Lien thereon, in each case except (A) to
qualify directors where required by applicable law or to satisfy other
requirements of applicable law with respect to the ownership of Capital Stock of
Foreign Subsidiaries or (B) for Permitted Liens and (iv) notwithstanding
anything to the contrary contained in clause (ii) above, permit any Subsidiary
of the Borrower to issue any shares of preferred Capital Stock.

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         8.13     SALE LEASEBACKS.

         Except as permitted by clause (c) of Section 8.5, the Credit Parties
will not permit any Consolidated Party to, directly or indirectly, become or
remain liable as lessee or as guarantor or other surety with respect to any
lease, whether an Operating Lease or a Capital Lease, of any Property (whether
real, personal or mixed), whether now owned or hereafter acquired, (a) which
such Consolidated Party has sold or transferred or is to sell or transfer to a
Person which is not a Consolidated Party or (b) which such Consolidated Party
intends to use for substantially the same purpose as any other Property which
has been sold or is to be sold or transferred by such Consolidated Party to
another Person which is not a Consolidated Party in connection with such lease.

         8.14     CAPITAL EXPENDITURES.

         The Credit Parties will not permit Consolidated Capital Expenditures to
exceed (a) $30,000,000 for fiscal year 2000 and (b) $25,000,000 for any fiscal
year thereafter.

         8.15     NO FURTHER NEGATIVE PLEDGES.

         The Credit Parties will not permit any Consolidated Party to enter
into, assume or become subject to any agreement prohibiting or otherwise
restricting the creation or assumption of any Lien upon its properties or
assets, whether now owned or hereafter acquired, or requiring the grant of any
security for such obligation if security is given for some other obligation,
except (a) pursuant to this Credit Agreement and the other Credit Documents, (b)
pursuant to any document or instrument governing Indebtedness incurred pursuant
to Section 8.1(b) or the Capital Leases described on Schedule 8.1, provided that
any such restriction contained therein relates only to the asset or assets
constructed or acquired in connection therewith, (c) any document or instrument
governing Indebtedness incurred pursuant to Section 8.1(f), provided that any
such restriction contained therein relates only to the asset or assets securing
such Indebtedness and (d) the SunTrust Loan Agreement.

                                    SECTION 9

                                EVENTS OF DEFAULT

         9.1      EVENTS OF DEFAULT.

         An Event of Default shall exist upon the occurrence of any of the
following specified events (each an "Event of Default"):

                  (a)      Payment.  Any Credit Party shall

                           (i)      default in the payment when due of any
                  principal of any of the Loans or of any reimbursement
                  obligations arising from drawings under Letters of Credit, or

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<PAGE>   74

                           (ii)     default, and such default shall continue for
                  three (3) or more Business Days, in the payment when due of
                  any interest on the Loans or on any reimbursement obligations
                  arising from drawings under Letters of Credit, or of any Fees
                  or other amounts owing hereunder, under any of the other
                  Credit Documents or in connection herewith or therewith; or

                  (b)      Representations. Any representation, warranty or
statement made or deemed to be made by any Credit Party herein, in any of the
other Credit Documents, or in any statement or certificate delivered or required
to be delivered pursuant hereto or thereto shall prove untrue in any material
respect on the date as of which it was deemed to have been made; or

                  (c)      Covenants.  Any Credit Party shall

                           (i)      default in the due  or observance
                                    of any term, covenant or agreement contained
                  in Sections 7.2, 7.4, 7.9, 7.11, 7.12 or 8.1 through 8.15,
                  inclusive;

                           (ii)     default in the due performance or observance
                  of any term, covenant or agreement contained in Sections
                  7.1(a), (b), (c) or (d) and such default shall continue
                  unremedied for a period of at least 5 days after the earlier
                  of a responsible officer of a Credit Party becoming aware of
                  such default or notice thereof by the Administrative Agent; or

                           (iii)    default in the due performance or observance
                  by it of any term, covenant or agreement (other than those
                  referred to in subsections (a), (b), (c)(i) or (c)(ii) of this
                  Section 9.1) contained in this Credit Agreement and such
                  default shall continue unremedied for a period of at least 30
                  days after the earlier of a responsible officer of a Credit
                  Party becoming aware of such default or notice thereof by the
                  Administrative Agent; or

                  (d)      Other Credit Documents. (i) Any Credit Party shall
default in the due performance or observance of any term, covenant or agreement
in any of the other Credit Documents (subject to applicable grace or cure
periods, if any), or (ii) except as a result of or in connection with a merger
of a Subsidiary permitted under Section 8.4, any Credit Document shall fail to
be in full force and effect or to give the Administrative Agent and/or the
Lenders the rights, powers and privileges purported to be created thereby, or
any Credit Party shall so state in writing; or

                  (e)      Guaranties. Except as the result of or in connection
with a merger of a Subsidiary permitted under Section 8.4, the guaranty given by
any Guarantor hereunder (including any Additional Credit Party) or any provision
thereof shall cease to be in full force and effect, or any Guarantor (including
any Additional Credit Party) hereunder or any Person acting by or on behalf of
such Guarantor shall deny or disaffirm such Guarantor's obligations under such
guaranty, or any Guarantor shall default in the due performance or

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<PAGE>   75

observance of any term, covenant or agreement on its part to be performed or
observed pursuant to any guaranty; or

                  (f)      Bankruptcy, etc. Any Bankruptcy Event shall occur
with respect to any Consolidated Party; or

                  (g)      Defaults under Other Agreements.

                           (i)      Any Consolidated Party shall default in the
                  performance or observance (beyond the applicable grace period
                  with respect thereto, if any) of any material obligation or
                  condition of any contract or lease material to the
                  Consolidated Parties, taken as a whole; or

                           (ii)     With respect to any Indebtedness (other than
                  Indebtedness outstanding under this Credit Agreement) in
                  excess of $500,000 in the aggregate for the Consolidated
                  Parties taken as a whole, (A) any Consolidated Party shall (1)
                  default in any payment (beyond the applicable grace period
                  with respect thereto, if any) with respect to any such
                  Indebtedness, or (2) the occurrence and continuance of a
                  default in the observance or performance relating to such
                  Indebtedness or contained in any instrument or agreement
                  evidencing, securing or relating thereto, or any other event
                  or condition shall occur or condition exist, the effect of
                  which default or other event or condition is to cause, or
                  permit, the holder or holders of such Indebtedness (or trustee
                  or agent on behalf of such holders) to cause (determined
                  without regard to whether any notice or lapse of time is
                  required), any such Indebtedness to become due prior to its
                  stated maturity; or (B) any such Indebtedness shall be
                  declared due and payable, or required to be prepaid other than
                  by a regularly scheduled required prepayment, prior to the
                  stated maturity thereof; or

                  (h)      Judgments. One or more judgments or decrees shall be
entered against one or more of the Consolidated Parties involving a liability of
$500,000 or more in the aggregate (to the extent not paid or fully covered by
insurance provided by a carrier who has acknowledged coverage and has the
ability to perform) and any such judgments or decrees shall not have been
vacated, discharged or stayed or bonded pending appeal within 30 days from the
entry thereof; or

                  (i)      ERISA. Any of the following events or conditions, if
such event or condition could have a Material Adverse Effect: (i) any
"accumulated funding deficiency," as such term is defined in Section 302 of
ERISA and Section 412 of the Code, whether or not waived, shall exist with
respect to any Plan, or any lien shall arise on the assets of any Consolidated
Party or any ERISA Affiliate in favor of the PBGC or a Plan; (ii) an ERISA Event
shall occur with respect to a Single Employer Plan, which is, in the reasonable
opinion of the Administrative Agent, likely to result in the termination of such
Plan for purposes of Title IV of ERISA; (iii) an ERISA Event shall occur with
respect to a Multiemployer Plan or Multiple Employer Plan, which is, in the
reasonable opinion of the Administrative Agent, likely to result in (A) the
termination of such Plan for purposes of Title IV of ERISA, or (B) any
Consolidated Party or any ERISA Affiliate incurring any

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liability in connection with a withdrawal from, reorganization of (within the
meaning of Section 4241 of ERISA), or insolvency or (within the meaning of
Section 4245 of ERISA) such Plan; or (iv) any prohibited transaction (within the
meaning of Section 406 of ERISA or Section 4975 of the Code) or breach of
fiduciary responsibility shall occur which may subject any Consolidated Party or
any ERISA Affiliate to any liability under Sections 406, 409, 502(i), or 502(l)
of ERISA or Section 4975 of the Code, or under any agreement or other instrument
pursuant to which any Consolidated Party or any ERISA Affiliate has agreed or is
required to indemnify any person against any such liability; or

                  (j)      Ownership. There shall occur a Change of Control.

         9.2      ACCELERATION; REMEDIES.

         Upon the occurrence of an Event of Default, and at any time thereafter
unless and until such Event of Default has been waived by the requisite Lenders
(pursuant to the voting requirements of Section 11.6) or cured to the
satisfaction of the requisite Lenders (pursuant to the voting procedures in
Section 11.6), the Administrative Agent shall, upon the request and direction of
the Required Lenders, by written notice to the Credit Parties, take any of the
following actions:

                  (a)      Termination of Commitments. Declare the Commitments
         terminated whereupon the Commitments shall be immediately terminated.

                  (b)      Acceleration. Declare the unpaid principal of and any
         accrued interest in respect of all Loans, any reimbursement obligations
         arising from drawings under Letters of Credit and any and all other
         indebtedness or obligations of any and every kind owing by the Credit
         Parties to the Administrative Agent and/or any of the Lenders hereunder
         to be due whereupon the same shall be immediately due and payable
         without presentment, demand, protest or other notice of any kind, all
         of which are hereby waived by the Credit Parties.

                  (c)      Cash Collateral. Direct the Credit Parties to pay
         (and the Credit Parties agree that upon receipt of such notice, or upon
         the occurrence of an Event of Default under Section 9.1(f), they will
         immediately pay) to the Administrative Agent additional cash, to be
         held by the Administrative Agent, for the benefit of the Lenders, in a
         cash collateral account as additional security for the LOC Obligations
         in respect of subsequent drawings under all then outstanding Letters of
         Credit in an amount equal to the maximum aggregate amount which may be
         drawn under all Letters of Credits then outstanding.

                  (d)      Enforcement of Rights. Enforce any and all rights and
         interests created and existing under the Credit Documents including,
         without limitation, all rights and remedies against a Guarantor and all
         rights of set-off.

         Notwithstanding the foregoing, if an Event of Default specified in
Section 9.1(f) shall occur with respect to the Borrower, then the Commitments
shall automatically terminate and all Loans, all reimbursement obligations
arising from drawings under Letters of Credit, all accrued interest in respect
thereof, all accrued and unpaid Fees and other indebtedness or obligations owing
to the Administrative Agent and/or any of the Lenders hereunder automatically
shall immediately become

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due and payable without the giving of any notice or other action by the
Administrative Agent or the Lenders.

                                   SECTION 10

                                AGENCY PROVISIONS

         10.1     APPOINTMENT, POWERS AND IMMUNITIES.

         Each Lender hereby irrevocably appoints and authorizes the
Administrative Agent to act as its agent under this Credit Agreement and the
other Credit Documents with such powers and discretion as are specifically
delegated to the Administrative Agent by the terms of this Credit Agreement and
the other Credit Documents, together with such other powers as are reasonably
incidental thereto. The Administrative Agent (which term as used in this
sentence and in Section 10.5 and the first sentence of Section 10.6 hereof shall
include its Affiliates and its own and its Affiliates' officers, directors,
employees, and agents): (a) shall not have any duties or responsibilities except
those expressly set forth in this Credit Agreement and shall not be a trustee or
fiduciary for any Lender; (b) shall not be responsible to the Lenders for any
recital, statement, representation, or warranty (whether written or oral) made
in or in connection with any Credit Document or any certificate or other
document referred to or provided for in, or received by any of them under, any
Credit Document, or for the value, validity, effectiveness, genuineness,
enforceability, or sufficiency of any Credit Document, or any other document
referred to or provided for therein or for any failure by any Credit Party or
any other Person to perform any of its obligations thereunder; (c) shall not be
responsible for or have any duty to ascertain, inquire into, or verify the
performance or observance of any covenants or agreements by any Credit Party or
the satisfaction of any condition or to inspect the property (including the
books and records) of any Credit Party or any of its Subsidiaries or Affiliates;
(d) shall not be required to initiate or conduct any litigation or collection
proceedings under any Credit Document; and (e) shall not be responsible for any
action taken or omitted to be taken by it under or in connection with any Credit
Document, except for its own gross negligence or willful misconduct. The
Administrative Agent may employ agents and attorneys-in-fact and shall not be
responsible for the negligence or misconduct of any such agents or
attorneys-in-fact selected by it with reasonable care.

         10.2     RELIANCE BY ADMINISTRATIVE AGENT.

         The Administrative Agent shall be entitled to rely upon any
certification, notice, instrument, writing, or other communication (including,
without limitation, any thereof by telephone or telecopy) believed by it to be
genuine and correct and to have been signed, sent or made by or on behalf of the
proper Person or Persons, and upon advice and statements of legal counsel
(including counsel for any Credit Party), independent accountants, and other
experts selected by the Administrative Agent. The Administrative Agent may deem
and treat the payee of any Note as the holder thereof for all purposes hereof
unless and until the Administrative Agent receives and accepts an Assignment and
Acceptance executed in accordance with Section 11.3(b) hereof. As to any matters
not expressly provided for by this Credit Agreement,

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the Administrative Agent shall not be required to exercise any discretion or
take any action, but shall be required to act or to refrain from acting (and
shall be fully protected in so acting or refraining from acting) upon the
instructions of the Required Lenders, and such instructions shall be binding on
all of the Lenders; provided, however, that the Administrative Agent shall not
be required to take any action that exposes the Administrative Agent to personal
liability or that is contrary to any Credit Document or applicable law or unless
it shall first be indemnified to its satisfaction by the Lenders against any and
all liability and expense which may be incurred by it by reason of taking any
such action.

         10.3     DEFAULTS.

         The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of a Default or Event of Default unless the
Administrative Agent has received written notice from a Lender or the a Credit
Party specifying such Default or Event of Default and stating that such notice
is a "Notice of Default". In the event that the Administrative Agent receives
notice of the occurrence of a Default or Event of Default, the Administrative
Agent shall give prompt notice thereof to the Lenders. The Administrative Agent
shall (subject to Section 10.2 hereof) take such action with respect to such
Default or Event of Default as shall reasonably be directed by the Required
Lenders, provided that, unless and until the Administrative Agent shall have
received such directions, the Administrative Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with respect
to such Default or Event of Default as it shall deem advisable in the best
interest of the Lenders.

         10.4     RIGHTS AS A LENDER.

         With respect to its Commitment and the Loans made by it, Bank of
America (and any successor acting as Administrative Agent) in its capacity as a
Lender hereunder shall have the same rights and powers hereunder as any other
Lender and may exercise the same as though it were not acting as the
Administrative Agent, and the term "Lender" or "Lenders" shall, unless the
context otherwise indicates, include the Administrative Agent in its individual
capacity. Bank of America (and any successor acting as Administrative Agent) and
its Affiliates may (without having to account therefor to any Lender) accept
deposits from, lend money to, make investments in, provide services to, and
generally engage in any kind of lending, trust, or other business with any
Credit Party or any of its Subsidiaries or Affiliates as if it were not acting
as Administrative Agent, and Bank of America (and any successor acting as
Administrative Agent) and its Affiliates may accept fees and other consideration
from any Credit Party or any of its Subsidiaries or Affiliates for services in
connection with this Credit Agreement or otherwise without having to account for
the same to the Lenders.

         10.5     INDEMNIFICATION.

         The Lenders agree to indemnify the Administrative Agent (to the extent
not reimbursed under Section 11.5 hereof, but without limiting the obligations
of the Credit Parties under such Section) ratably in accordance with their
respective Commitments, for any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses (including
attorneys' fees), or disbursements of any kind and nature whatsoever that may be
imposed on,

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incurred by or asserted against the Administrative Agent (including by any
Lender) in any way relating to or arising out of any Credit Document or the
transactions contemplated thereby or any action taken or omitted by the
Administrative Agent under any Credit Document (including any of the foregoing
arising from the negligence of the Administrative Agent); provided that no
Lender shall be liable for any of the foregoing to the extent they arise from
the gross negligence or willful misconduct of the Person to be indemnified.
Without limitation of the foregoing, each Lender agrees to reimburse the
Administrative Agent promptly upon demand for its ratable share of any costs or
expenses payable by the Credit Parties under Section 11.5, to the extent that
the Administrative Agent is not promptly reimbursed for such costs and expenses
by the Credit Parties. The agreements in this Section 10.5 shall survive the
repayment of the Loans, LOC Obligations and other obligations under the Credit
Documents and the termination of the Commitments hereunder.

         10.6     NON-RELIANCE ON ADMINISTRATIVE AGENT AND OTHER LENDERS.

         Each Lender agrees that it has, independently and without reliance on
the Administrative Agent or any other Lender, and based on such documents and
information as it has deemed appropriate, made its own credit analysis of the
Credit Parties and their Subsidiaries and decision to enter into this Credit
Agreement and that it will, independently and without reliance upon the
Administrative Agent or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
analysis and decisions in taking or not taking action under the Credit
Documents. Except for notices, reports, and  and information
expressly required to be furnished to the Lenders by the Administrative Agent
hereunder, the Administrative Agent shall not have any duty or responsibility to
provide any Lender with any credit or other information concerning the affairs,
financial condition, or business of any Credit Party or any of its Subsidiaries
or Affiliates that may come into the possession of the Administrative Agent or
any of its Affiliates.

         10.7     SUCCESSOR ADMINISTRATIVE AGENT.

         The Administrative Agent may, at any time, resign upon 20 days written
notice to the Lenders. Upon any such resignation, the Required Lenders shall
have the right to appoint a successor Administrative Agent; provided, however,
that in the absence of any continuing Event of Default, such appointment of a
successor Administrative Agent shall be consented to by the Borrower, which
consent shall not be unreasonably withheld. Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor, such successor
Administrative Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Administrative Agent, and
the retiring Agent shall be discharged from its duties and obligations as
Administrative Agent, as appropriate, under this Credit Agreement and the other
Credit Documents and the provisions of this Section 10.7 shall inure to its
benefit as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Credit Agreement. If no successor Administrative
Agent has accepted appointment as Administrative Agent within sixty (60) days
after the retiring Administrative Agent's giving notice of resignation, the
retiring Administrative Agent's resignation shall nevertheless become effective
and the Lenders shall perform all duties of the Administrative Agent hereunder
until such time, if any, as the Required Lenders appoint a successor
Administrative Agent as provided for above.

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Subject to the foregoing terms of this Section 10.7, there shall at all times be
a Person or Persons serving as Administrative Agent hereunder.

                                   SECTION 11

                                  MISCELLANEOUS

         11.1     NOTICES.

         Except as otherwise expressly provided herein, all notices and other
communications shall have been duly given and shall be effective (a) when
delivered, (b) when transmitted via telecopy (or other facsimile device) to the
number set out below, (c) the Business Day following the day on which the same
has been delivered prepaid to a reputable national overnight air courier
service, or (d) the third Business Day following the day on which the same is
sent by certified or registered mail, postage prepaid, in each case to the
respective parties at the address, in the case of the Credit Parties and the
Administrative Agent, set forth below, and, in the case of the Lenders, set
forth on Schedule 2.1(a), or at such other address as such party may specify by
written notice to the other parties hereto:

                  if to any Credit Party:

                  Tractor Supply Company
                  320 Plus Park Blvd.
                  Nashville, Tennessee 37217
                  Attn:  Chief Financial Officer
                  Telephone:  (615) 366-4600
                  Telecopy:

                  if to the Administrative Agent:

                  Bank of America, N.A.
                  101 North Tryon Street
                  15th Floor
                  Charlotte, North Carolina  28255
                  Attn:  Tina Sprouse
                  Telephone:  (704) 387-2471
                  Telecopy:  (704) 409-0019

                  with a copy to:

                  Bank of America, N. A.
                  414 Union Street
                  TN1-100-02-13
                  Nashville, Tennessee  37219
                  Attn:  Fred Wyatt

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<PAGE>   81

                  Telephone:  (615) 749-3109
                  Telecopy:  (615) 749-4762

         11.2     RIGHT OF SET-OFF; ADJUSTMENTS.

         Upon the occurrence and during the continuance of any Event of Default,
each Lender (and each of its Affiliates) is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final)
at any time held and other indebtedness at any time owing by such Lender (or any
of its Affiliates) to or for the credit or the account of any Credit Party
against any and all of the obligations of such Person now or hereafter existing
under this Credit Agreement, under the Notes, under any other Credit Document or
otherwise, irrespective of whether such Lender shall have made any demand under
hereunder or thereunder and although such obligations may be unmatured. Each
Lender agrees promptly to notify any affected Credit Party after any such
set-off and application made by such Lender; provided, however, that the failure
to give such notice shall not affect the validity of such set-off and
application. The rights of each Lender under this Section 11.2 are in addition
to other rights and remedies (including, without limitation, other rights of
set-off) that such Lender may have.

         11.3     BENEFIT OF AGREEMENT.

                  (a)      This Credit Agreement shall be binding upon and inure
         to the benefit of and be enforceable by the respective successors and
         assigns of the parties hereto; provided that none of the Credit Parties
         may assign or transfer any of its interests and obligations without
         prior written consent of the Lenders; provided further that the rights
         of each Lender to transfer, assign or grant participations in its
         rights and/or obligations hereunder shall be limited as set forth in
         this Section 11.3.

                  (b)      Each Lender may assign to one or more Eligible
         Assignees all or a portion of its rights and obligations under this
         Credit Agreement (including, without limitation, all or a portion of
         its Loans, its Notes, and its Commitment); provided, however, that

                           (i)      each such assignment shall be to an Eligible
                  Assignee;

                           (ii)     except in the case of an assignment to
                  another Lender or an assignment of all of a Lender's rights
                  and obligations under this Credit Agreement, any such partial
                  assignment shall be in an amount at least equal to $5,000,000
                  (or, if less, the remaining amount of the Commitment being
                  assigned by such Lender) or an integral multiple of $1,000,000
                  in excess thereof;

                           (iii)    each such assignment by a Lender shall be of
                  a constant, and not varying, percentage of all of its rights
                  and obligations under this Credit Agreement and the Notes; and

                                       76
<PAGE>   82

                           (iv)     the parties to such assignment shall execute
                  and deliver to the Administrative Agent for its acceptance an
                  Assignment and Acceptance in the form of Exhibit 11.3(b)
                  hereto, together with any Note subject to such assignment and
                  a processing fee of $3,500.

         Upon execution, delivery, and acceptance of such Assignment and
         Acceptance, the assignee thereunder shall be a party hereto and, to the
         extent of such assignment, have the obligations, rights, and benefits
         of a Lender hereunder and the assigning Lender shall, to the extent of
         such assignment, relinquish its rights and be released from its
         obligations under this Credit Agreement. Upon the consummation of any
         assignment pursuant to this Section 11.3(b), the assignor, the
         Administrative Agent and the Credit Parties shall make appropriate
         arrangements so that, if required, new Notes are issued to the assignor
         and the assignee. If the assignee is not a United States person under
         Section 7701(a)(30) of the Code, it shall deliver to the Credit Parties
         and the Administrative Agent certification as to exemption from
         deduction or withholding of Taxes in accordance with Section 3.11.

                  (c)      The Administrative Agent shall maintain at its
         address referred to in Section 11.1 a copy of each Assignment and
         Acceptance delivered to and accepted by it and a register for the
         recordation of the names and addresses of the Lenders and the
         Commitment of, and principal amount of the Loans owing to, each Lender
         from time to time (the "Register"). The entries in the Register shall
         be conclusive and binding for all purposes, absent manifest error, and
         the Credit Parties, the Administrative Agent and the Lenders may treat
         each Person whose name is recorded in the Register as a Lender
         hereunder for all purposes of this Credit Agreement. The Register shall
         be available for inspection by the Credit Parties or any Lender at any
         reasonable time and from time to time upon reasonable prior notice.

                  (d)      Upon its receipt of an Assignment and Acceptance
         executed by the parties thereto, together with any Note subject to such
         assignment and payment of the processing fee, the Administrative Agent
         shall, if such Assignment and Acceptance has been completed and is in
         substantially the form of Exhibit 11.3(b) hereto, (i) accept such
         Assignment and Acceptance, (ii) record the information contained
         therein in the Register and (iii) give prompt notice thereof to the
         parties thereto.

                  (e)      Each Lender may sell participations to one or more
         Persons in all or a portion of its rights, obligations or rights and
         obligations under this Credit Agreement (including all or a portion of
         its Commitment or its Loans); provided, however, that (i) such Lender's
         obligations under this Credit Agreement shall remain unchanged, (ii)
         such Lender shall remain solely responsible to the other parties hereto
         for the performance of such obligations, (iii) the participant shall be
         entitled to the benefit of the yield protection provisions contained in
         Sections 3.7 through 3.12, inclusive, and the right of set-off
         contained in Section 11.2, and (iv) the Credit Parties shall continue
         to deal solely and directly with such Lender in connection with such
         Lender's rights and obligations under this Credit Agreement, and such
         Lender shall retain the sole right to enforce the obligations of the
         Credit Parties relating to the Credit Party Obligations owing to such
         Lender and to approve any amendment, modification, or waiver of any

                                       77
<PAGE>   83

         provision of this Credit Agreement (other than amendments,
         modifications, or waivers decreasing the amount of principal of or the
         rate at which interest is payable on such Loans or Notes, extending any
         scheduled principal payment date or date fixed for the payment of
         interest on such Loans or Notes, or extending its Commitment).

                  (f)      Notwithstanding any other provision set forth in this
         Credit Agreement, any Lender may at any time assign and pledge all or
         any portion of its Loans and its Notes to any Federal Reserve Bank as
         collateral security pursuant to Regulation A and any Operating Circular
         issued by such Federal Reserve Bank. No such assignment shall release
         the assigning Lender from its obligations hereunder.

                  (g)      Any Lender may furnish any information concerning the
         Consolidated Parties in the possession of such Lender from time to time
         to assignees and participants (including prospective assignees and
         participants), subject, however, to the provisions of Section 11.14
         hereof.

         11.4     NO WAIVER; REMEDIES CUMULATIVE.

         No failure or delay on the part of the Administrative Agent or any
Lender in exercising any right, power or privilege hereunder or under any other
Credit Document and no course of dealing between the Administrative Agent or any
Lender and any of the Credit Parties shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, power or privilege hereunder
or under any other Credit Document preclude any other or further exercise
thereof or the exercise of any other right, power or privilege hereunder or
thereunder. The rights and remedies provided herein are cumulative and not
exclusive of any rights or remedies which the Administrative Agent or any Lender
would otherwise have. No notice to or demand on any Credit Party in any case
shall entitle the Credit Parties to any other or further notice or demand in
similar or other circumstances or constitute a waiver of the rights of the
Administrative Agent or the Lenders to any other or further action in any
circumstances without notice or demand.

         11.5     EXPENSES; INDEMNIFICATION.

         (a)      The Credit Parties jointly and severally agree to pay on
demand all costs and expenses of the Administrative Agent in connection with the
syndication, preparation, execution, delivery, administration, modification, and
amendment of this Credit Agreement, the other Credit Documents, and the other
documents to be delivered hereunder, including, without limitation, the
reasonable fees and expenses of counsel for the Administrative Agent (including
the cost of internal counsel) with respect thereto and with respect to advising
the Administrative Agent as to its rights and responsibilities under the Credit
Documents. The Credit Parties further jointly and severally agree to pay on
demand all costs and expenses of the Administrative Agent and the Lenders, if
any (including, without limitation, reasonable attorneys' fees and expenses and
the cost of internal counsel), in connection with the enforcement (whether
through negotiations, legal proceedings, or otherwise) of the Credit Documents
and the other documents to be delivered hereunder.

                                       78
<PAGE>   84

         (b)      The Credit Parties jointly and severally agree to indemnify
and hold harmless the Administrative Agent and each Lender and each of their
Affiliates and their respective officers, directors, employees, agents, and
advisors (each, an "Indemnified Party") from and against any and all claims,
damages, losses, liabilities, costs, and expenses (including, without
limitation, reasonable attorneys' fees) that may be incurred by or asserted or
awarded against any Indemnified Party, in each case arising out of or in
connection with or by reason of (including, without limitation, in connection
with any investigation, litigation, or proceeding or preparation of defense in
connection therewith) the Credit Documents, any of the transactions contemplated
herein or the actual or proposed use of the proceeds of the Loans (including any
of the foregoing arising from the negligence of the Indemnified Party), except
to the extent such claim, damage, loss, liability, cost, or expense is found in
a final, non-appealable judgment by a court of competent jurisdiction to have
resulted from such Indemnified Party's gross negligence or willful misconduct.
In the case of an investigation, litigation or other proceeding to which the
indemnity in this Section 11.5 applies, such indemnity shall be effective
whether or not such investigation, litigation or proceeding is brought by any of
the Credit Parties, their respective directors, shareholders or creditors or an
Indemnified Party or any other Person or any Indemnified Party is otherwise a
party thereto and whether or not the transactions contemplated hereby are
consummated. The Credit Parties agree not to assert any claim against the
Administrative Agent, any Lender, any of their Affiliates, or any of their
respective directors, officers, employees, attorneys, agents, and advisers, on
any theory of liability, for special, indirect, consequential, or punitive
damages arising out of or otherwise relating to the Credit Documents, any of the
transactions contemplated herein or the actual or proposed use of the proceeds
of the Loans.

         (c)      Without prejudice to the survival of any other agreement of
the Credit Parties hereunder, the agreements and obligations of the Credit
Parties contained in this Section 11.5 shall survive the repayment of the Loans,
LOC Obligations and other obligations under the Credit Documents and the
termination of the Commitments hereunder.

         11.6     AMENDMENTS, WAIVERS AND CONSENTS.

         Neither this Credit Agreement nor any other Credit Document nor any of
the terms hereof or thereof may be amended, changed, waived, discharged or
terminated unless such amendment, change, waiver, discharge or termination is in
writing entered into by, or approved in writing by, the Required Lenders and the
Borrower, provided, however, that:

                  (a)      without the consent of each Lender affected thereby,
         neither this Credit Agreement nor any other Credit Document may be
         amended to

                           (i)      extend the final maturity of any Loan or of
                                    any reimbursement obligation, or any portion
                  thereof, arising from drawings under Letters of Credit,

                           (ii)     reduce the rate or extend the time of
                                    payment of interest (other than as a result
                  of waiving the applicability of any post-default increase in
                  interest rates) thereon or Fees hereunder,

                                       79
<PAGE>   85

                           (iii)    reduce or waive the principal amount of any
                                    Loan or of any reimbursement obligation, or
                  any portion thereof, arising from drawings under Letters of
                  Credit,

                           (iv)     increase the Commitment of a Lender over the
                  amount thereof in effect (it being understood and agreed that
                  a waiver of any Default or Event of Default or mandatory
                  reduction in the Commitments shall not constitute a change in
                  the terms of any Commitment of any Lender),

                           (v)      release the Borrower or substantially all of
                  the other Credit Parties from its or their obligations under
                  the Credit Documents,

                           (vi)     amend, modify or waive any provision of this
                  Section 11.6 or Section 3.6, 3.7, 3.8, 3.9, 3.10, 3.11, 3.12,
                  3.13, 3.14, 3.15, 9.1(a), 11.2, 11.3, 11.5 or 11.9,

                           (vii)    reduce any percentage specified in, or
                  otherwise modify, the definition of Required Lenders, or

                           (viii)   consent to the assignment or transfer by the
                  Borrower or all or substantially all of the other Credit
                  Parties of any of its or their rights and obligations under
                  (or in respect of) the Credit Documents except as permitted
                  thereby;

                  (b)      without the consent of the Administrative Agent, no
         provision of Section 10 may be amended; and

                  (c)      without the consent of the Issuing Lender, no
         provision of Section 2.2 may be amended, and without the consent of the
         Swingline Lender, no provision of Section 2.3 may be amended.

         Notwithstanding the fact that the consent of all the Lenders is
         required in certain circumstances as set forth above, (x) each Lender
         is entitled to vote as such Lender sees fit on any bankruptcy
         reorganization plan that affects the Loans, and each Lender
         acknowledges that the provisions of Section 1126(c) of the Bankruptcy
         Code supersedes the unanimous consent provisions set forth herein and
         (y) the Required Lenders may consent to allow a Credit Party to use
         cash collateral in the context of a bankruptcy or insolvency
         proceeding.

         11.7     COUNTERPARTS.

         This Credit Agreement may be executed in any number of counterparts,
each of which when so executed and delivered shall be an original, but all of
which shall constitute one and the same instrument. It shall not be necessary in
making proof of this Credit Agreement to produce or account for more than one
such counterpart for each of the parties hereto. Delivery by facsimile by any of
the parties hereto of an executed counterpart of this Credit Agreement shall be
as effective as

                                       80
<PAGE>   86

an original executed counterpart hereof and shall be deemed a representation
that an original executed counterpart hereof will be delivered.

         11.8     HEADINGS.

         The headings of the sections and subsections hereof are provided for
convenience only and shall not in any way affect the meaning or construction of
any provision of this Credit Agreement.

         11.9     SURVIVAL.

         All indemnities set forth herein, including, without limitation, in
Section 2.2(i), 3.11, 3.12, 10.5 or 11.5 shall survive the execution and
delivery of this Credit Agreement, the making of the Loans, the issuance of the
Letters of Credit, the repayment of the Loans, LOC Obligations and other
obligations under the Credit Documents and the termination of the Commitments
hereunder, and all representations and warranties made by the Credit Parties
herein shall survive delivery of the Notes and the making of the Loans
hereunder.

         11.10    GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE.

                  (a)      THIS CREDIT AGREEMENT AND, UNLESS OTHERWISE EXPRESSLY
         PROVIDED THEREIN, THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND
         OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED
         BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE
         STATE OF NEW YORK. Any legal action or proceeding with respect to this
         Credit Agreement or any other Credit Document may be brought in the
         courts of the State of North Carolina, or of the United States located
         in the State of North Carolina, and, by execution and delivery of this
         Credit Agreement, each of the Credit Parties hereby irrevocably accepts
         for itself and in respect of its property, generally and
         unconditionally, the nonexclusive jurisdiction of such courts. Each of
         the Credit Parties further irrevocably consents to the service of
         process out of any of the aforementioned courts in any such action or
         proceeding by the mailing of copies thereof by registered or certified
         mail, postage prepaid, to it at the address set out for notices
         pursuant to Section 11.1, such service to become effective three (3)
         days after such mailing. Nothing herein shall affect the right of the
         Administrative Agent or any Lender to serve process in any other manner
         permitted by law or to commence legal proceedings or to otherwise
         proceed against any Credit Party in any other jurisdiction.

                  (b)      Each of the Credit Parties hereby irrevocably waives
         any objection which it may now or hereafter have to the laying of venue
         of any of the aforesaid actions or proceedings arising out of or in
         connection with this Credit Agreement or any other Credit Document
         brought in the courts referred to in subsection (a) above and hereby
         further irrevocably waives and agrees not to plead or claim in any such
         court that any such action or proceeding brought in any such court has
         been brought in an inconvenient forum.

                  (c)      TO THE EXTENT PERMITTED BY LAW, EACH OF THE
         ADMINISTRATIVE AGENT, THE LENDERS, EACH OF THE CREDIT PARTIES

                                       81
<PAGE>   87

         HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION,
         PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS CREDIT
         AGREEMENT, ANY OF THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS
         CONTEMPLATED HEREBY.

         11.11    SEVERABILITY.

         If any provision of any of the Credit Documents is determined to be
illegal, invalid or unenforceable, such provision shall be fully severable and
the remaining provisions shall remain in full force and effect and shall be
construed without giving effect to the illegal, invalid or unenforceable
provisions.

         11.12    ENTIRETY.

         This Credit Agreement together with the other Credit Documents
represent the entire agreement of the parties hereto and thereto, and supersede
all prior agreements and understandings, oral or written, if any, including any
commitment letters or correspondence relating to the Credit Documents or the
transactions contemplated herein and therein.

         11.13    BINDING EFFECT; TERMINATION.

                  (a)      This Credit Agreement shall become effective at such
         time when all of the conditions set forth in Section 5.1 have been
         satisfied or waived by the Lenders and it shall have been executed by
         each Credit Party and the Administrative Agent, and the Administrative
         Agent shall have received copies hereof (telefaxed or otherwise) which,
         when taken together, bear the signatures of each Lender, and thereafter
         this Credit Agreement shall be binding upon and inure to the benefit of
         each Credit Party, the Administrative Agent and each Lender and their
         respective successors and assigns.

                  (b)      The term of this Credit Agreement shall be until no
         Loans, LOC Obligations or any other amounts payable hereunder or under
         any of the other Credit Documents shall remain outstanding, no Letters
         of Credit shall be outstanding, all of the Credit Party Obligations
         have been irrevocably satisfied in full and all of the Commitments
         hereunder shall have expired or been terminated.

         11.14    CONFIDENTIALITY.

         The Administrative Agent and each Lender (each, a "Lending Party")
agrees to keep confidential any information furnished or made available to it by
the Credit Parties pursuant to this Credit Agreement; provided that nothing
herein shall prevent any Lending Party from disclosing such information (a) to
any other Lending Party or any Affiliate of any Lending Party, or any officer,
director, employee, agent, or advisor of any Lending Party or Affiliate of any
Lending Party, (b) to any other Person if reasonably incidental to the
administration of the credit facility provided herein, (c) as required by any
law, rule, or regulation, (d) upon the order of any court or administrative
agency, (e) upon the request or demand of any regulatory agency or authority,
(f) that is or becomes available to the public or that is or becomes available
to any

                                       82
<PAGE>   88

Lending Party other than as a result of a disclosure by any Lending Party
prohibited by this Credit Agreement, (g) in connection with any litigation to
which such Lending Party or any of its Affiliates may be a party, (h) to the
extent necessary in connection with the exercise of any remedy under this Credit
Agreement or any other Credit Document, and (i) subject to provisions
substantially similar to those contained in this Section 11.14, to any actual or
proposed participant or assignee.

         11.15    USE OF SOURCES.

         Each of the Lenders hereby represents and warrants to the Borrower that
at least one of the following statements is an accurate representation as to the
course of funds to be used by such lender in connection with the financing
hereunder:

                  (a)      no part of such funds constitutes assets allocated to
         any separate account maintained by such lender in which any employee
         benefit plan (or its related trust) has any interest;

                  (b)      to the extent that any part of such funds constitutes
         assets allocated to any separate account maintained by such lender,
         such Lender has disclosed to the Borrower the name of each employee
         benefit plan whose assets in such account exceed 10% of the total
         assets of such account as of the date of such purchase (and, for
         purposes of this subsection (b), all employee benefit plans maintained
         by the same employer or employee organization are deemed to be a single
         plan;

                  (c)      to the extent that any part of such funds constitutes
         assets of an insurance company's general account, such insurance
         company has complied with all of the requirements of the regulations
         issued under Section 401(e)(a)(A) of ERISA; or

                  (d)      such funds constitute assets of one or more specific
         benefit plans which such Lender has identified in writing to the
         Borrower.

         As used in this Section 11.15, the terms "employee benefit plan" and
"separate account" shall have the respective meanings assigned to such terms in
Section 3 of ERISA.

         11.16    CONFLICT.

         To the extent that there is a conflict or inconsistency between any
provision hereof, on the one hand, and any provision of any Credit Document, on
the other hand, this Credit Agreement shall control.

                           [Signature Page to Follow]

                                       83
<PAGE>   89

         IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart
of this Credit Agreement to be duly executed and delivered as of the date first
above written.

BORROWER:                   TRACTOR SUPPLY COMPANY,
                            a Delaware corporation

                            By:  /s/ Calvin B. Massmann
                                ------------------------------------------------
                            Name:  Calvin B. Massmann
                                  ----------------------------------------------
                            Title:   Sr. Vice President - CFO and Treasurer
                                   ---------------------------------------------

                             [Signatures continue.]

<PAGE>   90

ADMINISTRATIVE AGENT:               BANK OF AMERICA, N.A.

                                    By:      /s/ Fred K. Wyatt, Jr.
                                       -----------------------------------------
                                    Name:    Fred K. Wyatt, Jr.
                                         ---------------------------------------
                                    Title:   Senior Vice President
                                          --------------------------------------

LENDERS:                            BANK OF AMERICA, N.A.

                                    By:      /s/ Fred K. Wyatt, Jr.
                                       -----------------------------------------
                                    Name:    Fred K. Wyatt, Jr.
                                         ---------------------------------------
                                    Title:   Senior Vice President
                                          --------------------------------------

                             [Signatures continue.]

<PAGE>   91

                                    FIRSTAR BANK, NATIONAL ASSOCIATION

                                    By:      /s/ Derck S. Roudebush
                                       -----------------------------------------
                                    Name:    Derck S. Roudebush
                                         ---------------------------------------
                                    Title:   Vice President
                                          --------------------------------------

                             [Signatures continue.]

<PAGE>   92

                                    SOUTHTRUST BANK

                                    By:      /s/ Allen K. Oakley
                                       --------------------------------
                                    Name:    Allen K. Oakley
                                         ------------------------------
                                    Title:   Managing Director
                                          -----------------------------

                             [Signatures continue.]

<PAGE>   93

                                        AMSOUTH BANK

                                        By:      /s/ Russell S. Rogers
                                           -------------------------------------
                                        Name:    Russell S. Rogers
                                             -----------------------------------
                                        Title:   Vice President
                                              ----------------------------------

                             [Signatures continue.]

<PAGE>   94

                                      SUNTRUST BANK

                                      By:      /s/ Michael Johnson
                                         ---------------------------------------
                                      Name:    Michael Johnson
                                           -------------------------------------
                                      Title:   Commercial Officer
                                            ------------------------------------

                             [Signatures continue.]

<PAGE>   95

                                       COMPASS BANK

                                       By:      /s/ K. Kelly Waggoner
                                          --------------------------------------
                                       Name:    K. Kelly Waggoner
                                            ------------------------------------
                                       Title:   Vice President
                                             -----------------------------------

                               [Signatures End.]

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