Document:

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                                                                    Exhibit 4.20

                             INTERCREDITOR AGREEMENT

                  INTERCREDITOR AGREEMENT dated as of March 27, 2003 by and
among (i) the lenders identified on the signature pages hereof as revolving
credit lenders (such revolving credit lenders, together with successor revolving
credit lenders under the Revolving Credit (as defined below), are referred to
hereinafter each individually as a "Revolver Lender" and collectively as the
"Revolver Lenders"), and BANK ONE, NA, a national banking association having its
principal office in Chicago, Illinois ("Bank One"), as administrative agent and
collateral agent for the Revolver Lenders (Bank One, NA, in such capacity, and
any successor agent in such capacity, the "Revolver Agent"), (ii) the lenders
identified on the signature pages hereof as bank term lenders (such bank term
lenders, together with successor lenders of the Bank Term Loans (as defined
below), are referred to hereinafter each individually as a "Bank Term Lender"
and collectively as the "Bank Term Lenders"), and BANK ONE, NA, a national
banking association having its principal office in Chicago, Illinois, as
administrative agent and collateral agent for the Bank Term Lenders (Bank One,
NA, in such capacity, and any successor agent in such capacity, the "Bank Term
Agent"), (iii) the institutional investors identified on the signature pages
hereof as institutional investors (such institutional investors, together with
successor holders of the Institutional Investor Notes (as defined below), are
referred to hereinafter each individually as an "Institutional Investor" and
collectively as the "Institutional Investors"), and U.S. Bank National
Association, as collateral agent for the Institutional Investors (US Bank, in
such capacity, and any successor agent in such capacity, the "Collateral
Agent"). The Revolving Lenders, the Bank Term Lenders and the Institutional
Investors are referred to collectively as the "Secured Parties" and individually
as a "Secured Party". The Revolver Agent, the Bank Term Agent and the Collateral
Agent are referred to collectively as the "Agents" and each individually as an
"Agent".

         In consideration of the mutual agreements herein contained and other
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

         SECTION 1.  RECITALS

         Section 1.1. Bank Loan Agreement; Revolving Credit. Pursuant to that
certain Loan and Security Agreement of even date among the Obligors, the
Revolver Lenders, the Bank Term Lenders and Bank One, in its capacity as the
Revolver Agent and the Bank Term Agent (such agreement as hereafter amended,
supplemented, restated or modified from time to time in compliance with Section
6.2 hereof, the "Bank Loan Agreement"), the Revolver Lenders have agreed,
severally and not jointly, subject to the terms and conditions set forth
therein, to establish in favor of the Borrowers a revolving line of credit to
fund ongoing working capital needs of the Obligors (the "Revolving Credit"), and
to make loans to the Borrowers under the Revolving Credit and to issue letters
of credit (collectively, the "Revolver Loans"), all as set forth in the Bank
Loan Agreement, such Revolving Loans to be evidenced by the promissory notes of
the Borrowers (such notes, as hereafter amended, supplemented, restated or
modified from time to time in compliance with Section 6.2 hereof, the "Revolver
Notes" and each individually a "Revolver Note").

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         Section 1.2. Bank Loan Agreement; Bank Term Loans. Pursuant to the Bank
Loan Agreement, the Bank Term Lenders have agreed, severally and not jointly,
subject to the terms and conditions set forth therein, to make on the date
hereof $61,084,905.66 aggregate principal amount of floating rate Term Loans A
and $26,415,094.33 aggregate principal amount of fixed rate Term Loans B to the
Borrowers (collectively, the "Bank Term Loans"), such Bank Term Loans to be
evidenced by the promissory notes of the Borrowers (such notes, as hereafter
amended, supplemented, restated or modified from time to time in compliance with
Section 6.2 hereof, the "Bank Term Notes" and each individually a "Bank Term
Note").

         Section 1.3. Note Agreement; Institutional Investor Notes. Pursuant to
a Note, Guaranty and Security Agreement of even date among the Obligors, the
Institutional Investors and the Collateral Agent (such agreement, as hereafter
amended, supplemented, restated or modified from time to time in compliance with
Section 6.2 hereof, the "Note Agreement"), the Borrowers have agreed to issue
and sell to the respective Institutional Investors $31,415,094 aggregate
principal amount of fixed rate Term Notes A and $13,584,906 aggregate amount of
fixed rate Term Notes B (such notes, as hereafter amended, supplemented,
restated or modified from time to time in compliance with Section 6.2 hereof,
collectively, the "Institutional Investor Notes" and each individually an
"Institutional Investor Note").

         Section 1.4. Security Documents. Pursuant to the Bank Loan Agreement
and the other Loan Documents (as defined in the Bank Loan Agreement), as
security for the Revolver Obligations, the Obligors are granting the Revolver
Agent on behalf of the Revolver Lenders senior security interests, mortgages,
pledges and liens on and in the Shared Collateral (the Bank Loan Agreement and
the other Loan Documents, to the extent they relate to the grant of security for
the Revolver Obligations, as amended, supplemented, restated or modified from
time to time in compliance with Section 6.2 hereof, the "Revolver Security
Documents"). Pursuant to the Bank Loan Agreement and the other Loan Documents
(as defined in the Bank Loan Agreement), as security for the Bank Term
Obligations, the Obligors are granting the Bank Term Agent on behalf of the Bank
Term Lenders junior security interests, mortgages, pledges and liens on and in
the Shared Collateral (the Bank Loan Agreement and the other Loan Documents, to
the extent they relate to the grant of security for the Bank Term Obligations,
as amended, supplemented, restated or modified from time to time in compliance
with Section 6.2 hereof, the "Bank Term Security Documents"). Pursuant to the
Note Agreement and the other Note Documents (as defined in the Note Agreement),
as security for the Institutional Investor Obligations, the Obligors are
granting the Collateral Agent on behalf of the Institutional Investors junior
security interests, mortgages, pledges and liens on and in the Shared Collateral
(the Note Agreement and the other Note Documents, to the extent they relate to
the grant of security for the Institutional Investor Obligations, as amended,
supplemented, restated or modified from time to time in compliance with Section
6.2 hereof, the "Institutional Investor Security Documents") The Bank Term
Security Documents, the Institutional Investor Security Documents and the
Revolver Security Documents are referred to collectively as the "Security
Documents").

         Section 1.5. No Other Security Documents. Each of the parties hereto
represents and warrants to one another that it has not entered into any
agreement or arrangement other than as set forth in Section 1.4 pursuant to
which any of the Obligors or any other Person has granted to such party any
additional security or guaranties of any kind with respect to any of the Secured
Obligations.

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SECTION 2.  DEFINITIONS

         For purposes of this Agreement, the following terms have the following
respective meanings:

                  "Affiliate" of any Person shall mean any other Person which,
directly or indirectly, controls or is controlled by or is under common control
with such first-mentioned Person, or any individual, in the case of a Person who
is an individual, who has a relationship by blood, marriage or adoption to such
first-mentioned Person not more remote than first cousin, and, without limiting
the generality of the foregoing, shall include (i) any Person beneficially
owning or holding 10% or more of any class of voting equity interests of such
first-mentioned Person or (ii) any Person of which such first-mentioned Person
owns or holds 10% or more of any class of voting equity interests. For the
purposes of this definition, "control" (including, with correlative meanings,
the terms "controlled by" and "under common control with"), as used with respect
to any Person, shall mean the possession, directly or indirectly, of the power
to direct or cause the direction of the management and policies of such Person.

                  "Bankruptcy Code" means, as applicable, (i) the United States
Bankruptcy Code, (ii) the Bankruptcy and Insolvency Act (Canada) or (iii) the
Companies' Creditors Arrangement Act (Canada), or any similar legislation in a
relevant jurisdiction, in each case as in effect from time to time.

                  "Bank Term Documents" shall mean the Bank Loan Agreement, the
Bank Term Notes, the Bank Term Security Documents and any other Loan Document
(as defined in the Bank Loan Agreement), in each case only to the extent the
Bank Loan Agreement and such other Loan Document relates to the Bank Term Loans.

                  "Bank Term Obligations" shall mean (without duplication) the
principal of and interest (including Post Petition Interest) on the Bank Term
Loans, and all fees and other amounts (other than principal and interest) due to
the Bank Term Lenders or the Bank Term Agent (but only in their respective
capacities as Bank Term Lenders or Bank Term Agent, and not in their respective
capacities as Revolver Lenders or the Revolver Agent) under the Bank Loan
Agreement, the Bank Term Notes and the Bank Term Security Documents.

                  "Borrower" shall mean each of the entities identified as a
Borrower on the signature pages of the form of acknowledgement attached hereto
as Schedule II.

                  "Borrowing Base Collateral" shall mean Accounts, Inventory and
Cash Collateral, as such terms are defined in the Bank Loan Agreement, and the
products and proceeds thereof, all books and records (written or electronic)
related exclusively thereto, and all cash and Cash Equivalents subject to the
Senior Liens; provided that "Borrowing Base Collateral" shall not include any
Account or portion thereof that is generated or arising solely from the sale or
disposition of any Real Property Collateral, Equipment or General Intangibles,
as such terms are defined in the Bank Loan Agreement.

                  "Collection Expenses" shall mean, with respect to any
Recovery, the reasonable costs, fees and expenses directly related to effecting
such Recovery, including all reasonable costs, fees and expenses of agents,
appraisers, attorneys, and the Agents.

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                  Event of Default" shall mean any Event of Default under the
Bank Loan Agreement or the Note Agreement.

                  "Guarantees" shall mean any guarantees issued by any Person in
respect of all or any portion of the Secured Obligations, all as such guaranties
may be amended, supplemented, restated or modified from time to time in
compliance with Section 6.2 hereof.

                  "Guarantor" shall mean each of the entities identified as a
guarantor on the signature pages of the form of acknowledgement attached hereto
as Schedule II.

                  "Insolvency Proceeding" means any proceeding commenced by or
against any Person under any provision of the Bankruptcy Code or under any other
state or federal bankruptcy or insolvency law, assignments for the benefit of
creditors, or proceedings seeking reorganization, arrangement, or other similar
relief.

                  "Institutional Investor Documents" shall mean the Note
Agreement, the Institutional Investor Notes, the Institutional Investor Security
Documents and any other Note Document (as defined in the Note Agreement).

                  "Institutional Investor Obligations" shall mean (without
duplication) the principal of and interest (including Post Petition Interest) on
the Institutional Investor Notes, and all fees and other amounts (other than
principal and interest) due to the Institutional Investors or the Collateral
Agent under the Note Agreement, the Institutional Investor Notes and the
Institutional Investor Security Documents.

                  "Inventory Location" means any Real Property Collateral (other
than (a) locations leased by an Obligor, (b) unused locations and (c) facilities
leased by the Obligors to franchisees) at which Inventory comprising a part of
the Shared Collateral is located.

                  "Lien" shall mean any mortgage, pledge, hypothecation,
assignment, deposit arrangement, lien (statutory or otherwise), preference,
priority, security interest, chattel mortgage or other charge or encumbrance of
any kind, or any other type of preferential arrangement, including, without
limitation, the lien or retained security title of a conditional vendor and any
easement, right of way or other encumbrance on title to real property and any
lease having substantially the same effect as any of the foregoing.

                  "Lien Enforcement Action" means (i) any action to foreclose on
any Lien in any Shared Collateral, (ii) any action to take possession of, sell
or otherwise realize (judicially or non-judicially) upon any Shared Collateral
(including, without limitation, by setoff or notification of account debtors),
and/or (iii) the commencement of any legal proceedings to facilitate any of the
actions described in (i) and (ii) above.

                  "Material Obligor" means any Obligor or subsidiary thereof
having assets, individually or on a consolidated basis with such Obligor and
subsidiaries, with a book or market value in excess of $1,000,000 in the
aggregate.

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                  "Notice Institutional Investor" means Connecticut General Life
Insurance Company or such other Person designated by the Required Institutional
Investors from time to time.

                  "Obligor" means any of the Borrowers or Guarantors.

                  "Post Petition Interest" shall mean, with respect to an
obligation of a Person, interest that accrues on such obligation after the
commencement of an Insolvency Proceeding with respect to such Person (or that
would accrue but for the commencement of such proceeding), whether or not
allowed as a claim in such Insolvency Proceeding.

                  "Priority Event" means any of the following: (i) an
acceleration or demand for payment of all of the Revolver Obligations by the
Revolver Agent during the continuance of an Event of Default, (ii) an
acceleration or demand for payment of all of the Bank Term Obligations by the
Bank Term Agent during the continuance of an Event of Default, (iii) an
acceleration or demand for payment of all of the Institutional Investor
Obligations by the Required Institutional Investors during the continuance of an
Event of Default, (iv) the occurrence of an Event of Default under Section 8.5
or 8.6 of the Bank Loan Agreement in respect of a Material Obligor, (v) the
delivery of any Remedies Notice in accordance with this Agreement and, if
delivered pursuant to Section 3.3(b)(ii) or (iii), the expiration of the related
Standstill Period, or (vi) the initiation of any Lien Enforcement Action by any
Agent or Secured Party.

                  "Priority Revolver Obligations" shall mean the Revolver
Obligations other than Unpermitted Advances.

                  "Prohibited Bank Term Loan Amendments" shall mean any
amendment, modification or waiver the effect of which would be to (i) increase
the outstanding principal balance of the Bank Term Obligations (other than
through the conversion of pay in kind interest to additional principal on the
terms provided in the Bank Loan Agreement and the Bank Term Notes as in effect
on the date hereof), (ii) increase the margin or rate of interest or change the
basis of calculation of interest on the Bank Term Obligations other than (x)
increases in rates pursuant to section 2.6(c) of the Bank Loan Agreement (as in
effect on the date hereof) during the continuance of an Event of Default, and
(y) increases or changes automatically occurring under the "most favored nation"
provisions of the Bank Loan Agreement (Section 2.17), (iii) increase any
existing fee or premium under the Bank Term Obligations or change the basis of
calculation of any such existing fee or premium or add any new fee or premium
under the Bank Term Obligations, in each case other than increases, changes or
additions automatically occurring under the "most favored nation" provisions of
the Bank Loan Agreement (Section 2.17), (iv) change the scheduled or required or
optional dates of payment of principal, interest, premium or fees under the Bank
Term Documents, (v) change the order of priority of payment and application of
payments to the Bank Term Obligations under the Bank Term Documents, (vi) amend
any existing representation, warranty, covenant or Event of Default under the
Bank Term Documents so as to make it more burdensome or add any new
representation, warranty, covenant or Event of Default under the Bank Term
Documents, (vii) change the required percentage or number of Bank Term Lenders
required under the Bank Term Documents to approve amendments or waivers under
the Bank Term Documents or add requirements for the consent of other Persons to
approve amendments or waivers under the Bank

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Term Documents or (viii) to the extent related to any of the above, amend or add
any defined term under the Bank Term Documents.

                  "Prohibited Institutional Investor Amendments" shall mean any
amendment, modification or waiver the effect of which would be to (i) increase
the outstanding principal balance of the Institutional Investor Obligations
(other than through the conversion of pay in kind interest to additional
principal on the terms provided in the Note Agreement and the Institutional
Investor Notes as in effect on the date hereof), (ii) increase the rate of
interest or change the basis of calculation of interest on the Institutional
Investor Obligations other than (x) increases in rates pursuant to section 2.6
of the Note Agreement (as in effect on the date hereof) during the continuance
of an Event of Default, and (y) increases or changes automatically occurring
under the "most favored nation" provisions of the Note Agreement (Section 2.2),
(iii) increase any existing fee or premium under the Institutional Investor
Obligations or change the basis of calculation of any such existing fee or
premium or add any new fee or premium under the Institutional Investor
Obligations, in each case other than increases, changes or additions
automatically occurring under the "most favored nation" provisions of the Note
Agreement (Section 2.2), (iv) change the scheduled or required or optional dates
of payment of principal, interest, premium or fees under the Institutional
Investor Documents, (v) change the order of priority of payment and application
of payments to the Institutional Investor Obligations under the Institutional
Investor Documents, (vi) amend any existing representation, warranty, covenant
or Event of Default under the Institutional Investor Documents so as to make it
more burdensome or add any new representation, warranty, covenant or Event of
Default under the Institutional Investor Documents, (vii) change the required
percentage or number of Institutional Investors required under the Institutional
Investor Documents to approve amendments or waivers under the Institutional
Investor Documents or add requirements for the consent of other Persons to
approve amendments or waivers under the Institutional Investor Documents, or
(viii) to the extent related to any of the above, amend or add any defined term
under the Institutional Investor Documents.

                  "Prohibited Revolver Amendments" shall mean any amendment,
modification or waiver the effect of which would be to (i) add any class of
assets to the Borrowing Base calculation set forth in Section 2.1(a) (or any
successor section) of the Loan Agreement or increase any of the advance rates
set forth in clauses (x)(i), (x)(ii)(A) or (B) or (x)(iii) of Section 2.1(a) (or
any successor section) of the Bank Loan Agreement to more than 90%, 55%, 90% or
100%, respectively, (ii) increase the Maximum Revolver Amount to more than
$40,000,000 or the Minimum Liquidity to more than the then applicable amount
specified in the definition of "Required Liquidity" in the Bank Loan Agreement,
(iii) alter the terms of Section 2.2(c) or 2.4 (or any successor sections) of
the Bank Loan Agreement, (iv) alter Section 2.3(c) (or any successor section) of
the Bank Loan Agreement to increase the maximum amount of Agent Advances or
Section 2.3(g) (or any successor section) of the Bank Loan Agreement to increase
the maximum amount of Optional Overadvances, (v) change the scheduled or
required or optional dates of payment of principal, interest, premium or fees
under the Revolver Documents, (vi) change the order of priority of payment and
application of payments to the Revolver Obligations under the Revolver
Documents, (vii) amend any existing representation, warranty, covenant or Event
of Default under the Revolver Documents so as to make it more burdensome or add
any new representation, warranty, covenant or Event of Default under the
Revolver Documents, (viii) change the required percentage or number of Revolver
Lenders required under

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the Revolver Documents to approve amendments or waivers under the Revolver
Documents or add requirements for the consent of other Persons to approve
amendments or waivers under the Revolver Documents, or (ix) to the extent
related to any of the above, amend or add any defined term under the Revolver
Documents.

                  "Real Property Collateral" shall have the meaning specified in
the Bank Loan Agreement.

                  "Recent Appraised Value" means, with respect to any parcel of
Real Estate Collateral, the fair market value of such parcel that would be
obtainable upon a sale of such parcel in an arm's length transaction to a third
party under usual and normal circumstances, with neither the buyer nor the
seller under any compulsion to act, as determined and set forth in (a) the
appraisals prepared by Cushman & Wakefield for the initial closing under the
Bank Loan Agreement, or (b) a written appraisal performed by Cushman & Wakefield
or another qualified independent appraiser reasonably acceptable to the Secured
Parties within two (2) years prior to the relevant date of determination.

                  "Recovery" shall mean any amount received (other than
distributions made (x) pursuant to Section 4.2 or (y) from the Noteholder Group
Expense Fund (as defined in the Note Agreement)) by any Secured Party or any
Agent at any time after the occurrence of a Priority Event (after payment of or
deducting amounts to pay Collection Expenses) by way of (i) proceeds realized in
connection with any sale or other disposition of any of the Shared Collateral
(including any amount realized through the exercise of right of offset and any
proceeds of insurance or title insurance or eminent domain, taking or similar
proceedings), or (ii) any payment by any Obligor in respect of the Revolver
Obligations, the Bank Term Obligations or the Senior Note Obligations.

                  "Remedies Notice" means a written notice that the parties
described therein intend to commence the pursuit of remedies against some or all
of the Shared Collateral.

                  "Required Bank Term Lenders" shall mean, at any time, Bank
Term Lenders holding in the aggregate 51% or more of the outstanding principal
amount of the Bank Term Notes.

                  "Required Institutional Investors" shall mean Institutional
Investors holding in the aggregate 51% or more of the outstanding principal
amount of the Institutional Investor Notes.

                  "Required Revolver Lenders" shall mean, at any time, Revolver
Lenders holding in the aggregate 66 2/3% or more of the Revolving Commitment (as
defined in the Bank Loan Agreement) or, if the Revolver Commitment has been
terminated, 66-2/3% of the aggregate unpaid principal amount of all Revolver
Usage (as defined in the Bank Loan Agreement); provided, that if there are only
two (2) Revolving Lenders, then the reference to 66 2/3% shall be deemed to be a
reference to 100%.

                  "Required Secured Parties" shall mean collectively the
Required Revolver Lenders, the Required Bank Term Lenders and the Required
Institutional Investors.

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                  "Revolver Documents" shall mean the Bank Loan Agreement, the
Revolver Notes, the Revolver Security Documents and any other Loan Document (as
defined in the Bank Loan Agreement), in each case only to the extent the Bank
Loan Agreement and such other Loan Document relates to the Revolving Credit.

                  "Revolver Obligations" shall mean (without duplication) the
principal of and interest (including Post Petition Interest) on the Advances (as
defined in the Bank Loan Agreement) outstanding under the Revolving Credit, the
undrawn amount of any outstanding Letters of Credit issued under the Revolving
Credit (expressly excluding any portion thereof which is secured by cash
collateral at 105%), Bank Product Obligations (as defined in the Bank Loan
Agreement) and all fees and other amounts (other than principal and interest)
due to the Revolver Lenders or the Revolver Agent (but only in their respective
capacities as Revolving Lenders or Revolver Agent, and not in their respective
capacities as Bank Term Lenders or the Bank Term Agent) under the Bank Loan
Agreement, the Revolver Notes and the Revolver Security Documents.

                  "Revolver Termination Date" means the date on which all of the
obligations specified in the last sentence of Section 3.5 of the Bank Loan
Agreement have been satisfied in respect of the Priority Revolver Obligations.

                  "Secured Obligations" shall mean the Revolver Obligations, the
Bank Term Obligations and the Institutional Investor Obligations.

                  "Shared Collateral" shall mean all of the tangible and
intangible property and assets of the Obligors which are covered by the
mortgages, security interests, pledges and other Liens granted to or for the
benefit of any of the Secured Parties pursuant to the Security Documents or
otherwise as security for any or all of the Secured Obligations, including any
additional properties or assets which may from time to time secure any or all of
the Secured Obligations and including any bank deposits or similar obligations
which are subject to set-off by any of the Secured Parties, but expressly
excluding the Noteholder Group Expense Fund.

                  "Standstill Period" shall mean with respect to a Remedies
Notice delivered by or on behalf of the Required Bank Term Lenders or the
Required Institutional Investors, the period commencing on the date of delivery
of such Remedies Notice and expiring on (x) if such Remedies Notice is based on
an Event of Default resulting from the failure to make a required scheduled (but
not accelerated) payment of principal in respect of the Bank Term Obligations or
the Institutional Investor Obligations, the fifteenth day after delivery of such
Remedies Notice, (y) if such Remedies Notice is based on an Event of Default
resulting from the failure to make any other required scheduled (but not
accelerated) payment in respect of the Bank Term Obligations or the
Institutional Investor Obligations, the thirtieth day after delivery of such
Remedies Notice and (z) if such Remedies Notice is based on any other Event of
Default, the forty-fifth day after delivery of such Remedies Notice, provided
that all Standstill Periods will expire on the commencement of an Insolvency
Proceeding. For the avoidance of doubt, there shall be no Standstill Period with
respect to a Remedies Notice delivered by the Revolver Agent.

                  "Unpermitted Overadvances" shall mean the amount of any
Advances or other loans or extensions of credit (and interest with respect
thereto) made under the Revolving Credit

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and the aggregate undrawn amount of any outstanding Letters of Credit issued,
extended or renewed under the Revolving Credit that when made or issued extended
or renewed, as applicable, based on the most recent borrowing base certificate
delivered to the Agent, exceeded the lesser of: (i) $40,000,000 or (ii) the sum
of the Borrowing Base and the Agent Advances and the Optional Overadvances
permitted under Section 2.3 of the Bank Loan Agreement as in effect on the date
hereof.

                  "Unreimbursed Expenses" shall mean at any date the aggregate
amount of the out of pocket costs, fees and expenses (including, without
limitation, reasonable fees and expenses of counsel, consultants, financial
advisors, appraisers and the like) incurred through such date by the Bank Term
Agent, the Bank Term Lenders, the Collateral Agent or the Institutional
Investors, but only to the extent not theretofore paid or reimbursed by the
Obligors or out of a Recovery.

         Capitalized terms not otherwise defined herein shall have the meanings
ascribed thereto in the Bank Loan Agreement.

SECTION 3.  COLLATERAL; PRIORITY OF LIENS; EXERCISE OF REMEDIES

         Section 3.1. Priority of Liens; Shared Collateral. Notwithstanding
anything to the contrary contained in the Revolver Documents, the Bank Term
Documents or the Institutional Investor Documents, or the ordinary rules for
determining priority as among the Secured Parties and the Agents under the Code
or any other law governing priority of secured parties, pledgees or mortgagees,
and regardless of the relative times or order of attachment or perfection or the
time or order of filing or recording of financing statements, mortgages or other
documents, or the giving or failure to give any notice of the acquisition or
expected acquisition of purchase money security interests:

         (a) From and after the date hereof, all Shared Collateral shall be held
to secure the Revolver Obligations on a first and senior basis (the "Senior
Liens"). No Secured Party or Agent will in any proceeding, whether in connection
with a Reorganization or otherwise, contest the superiority, priority, validity
or enforceability of any Senior Lien.

         (b) From and after the date hereof, all Shared Collateral shall be held
to secure the Bank Term Obligations (the "Junior Bank Liens") and the
Institutional Investor Obligations (the "Junior Institutional Investor Liens")
on a basis junior and subordinate to the Senior Liens (collectively, the "Junior
Liens") but pari passu among such Junior Liens. Subject to section 3.1(a), no
Secured Party or Agent will in any proceeding, whether in connection with a
Reorganization or otherwise, contest the superiority, priority, validity or
enforceability of any Junior Lien.

         Each Secured Party and each Agent acknowledges for all purposes of the
Code (as defined in the Bank Loan Agreement) that any Shared Collateral
(including, without limitation, any shares of capital stock or other equity
interests pledged to any of the Agents or Secured Parties as security for any or
all of the Secured Obligations) in which such Secured Party or Agent may from
time to time hold a possessory security interest (collectively, the "Pledged
Collateral") shall also be held on behalf of and as bailee for the other Agents
and Secured Parties, and each Secured Party and Agent agrees, and the Obligors
consent, that at such time as

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any of such Pledged Collateral is released from the Lien of such Secured Party
or Agent thereon (other than in connection with the exercise of remedies during
the continuance of an Event of Default), it shall be delivered to the other
Secured Parties or Agents, or such Person as shall be designated by such other
Secured Parties, to be held as security for the Secured Obligations. The Secured
Parties agree that the original certificates or other documents or instruments
evidencing the Pledged Collateral shall be delivered to the Revolver Agent and
held by the Revolver Agent, on its own behalf and as bailee for the other Agents
and the Secured Parties pursuant to this Agreement, provided that on the
Revolver Termination Date, the Revolver Agent shall deliver the original
certificates or other documents or instruments evidencing the Pledged Collateral
to the Bank Term Agent to hold the same on its own behalf and as bailee for the
Collateral Agent pursuant to this Agreement.

         Notwithstanding the foregoing Lien priorities, (i) each Recovery shall
be distributed in accordance with Section 4.2 hereof and (ii) each of the
parties hereto expressly reserves the right to assert that a Recovery has not
been applied in accordance with Section 4.2 notwithstanding the prior provisions
of this Section 3.1.

         Section 3.2. No Additional Collateral or Indebtedness. No Obligor shall
grant, and no Secured Party or Agent shall demand, accept or receive from any
Obligor or any other Person, any security, direct or indirect, for any Secured
Obligations except pursuant to the Security Documents. If notwithstanding the
foregoing, any Secured Party shall receive any such security, direct or
indirect, such security shall be deemed Shared Collateral.

         Section 3.3. Exercise of Remedies. Notwithstanding any provision to the
contrary in the Revolver Documents, the Bank Term Documents or the Institutional
Investor Documents, the Secured Parties and the Agents agree with one another
(but not with the Obligors) as follows:

         (a) Exercise of Remedies by Required Secured Parties. The Required
Secured Parties shall have the right, at any time and from time to time during
the continuance of an Event of Default, to proceed in concert to collect,
realize upon or foreclose on, or pursue any other remedies available at law or
under the Security Documents with respect to, the Shared Collateral or to direct
their respective Agents to proceed to collect, realize upon or foreclose on, or
pursue any other remedies available at law or under the Security Documents with
respect to, the Shared Collateral. The Required Secured Parties shall have the
right, subject to requirements of applicable law, to direct in concert the time,
method and place of conducting any proceeding for the foreclosure, sale or other
disposition of any of the Shared Collateral or for the appointment of a receiver
for the owner of such Shared Collateral or all or any of its assets, and to
determine the price and other terms and conditions of any such foreclosure, sale
or other disposition of the Shared Collateral and to direct their respective
Agents with respect to such matters. The rights set forth above shall not limit,
in any way, the rights and obligations set forth in the remainder of this
section 3.3 if the parties elect not to act in concert pursuant to this Section
3.3(a).

         (b) Delivery of Remedies Notice.

         (i) The Revolver Agent, acting alone or at the direction of the
Required Revolver Lenders, shall have the right to deliver a Remedies Notice at
any time that an Event of Default has occurred under the Bank Loan Agreement and
continues under the Bank Loan Agreement.

                                       10

<PAGE>

A Remedies Notice delivered by the Required Revolver Lenders or the Revolver
Agent shall be delivered by the Required Revolver Lenders or the Revolver Agent,
as the case may be, to the Bank Term Agent, the Collateral Agent, the Notice
Institutional Investor and the Administrative Borrower.

         (ii) The Required Bank Term Lenders shall have the right to deliver, or
to direct the Bank Term Agent to deliver, a Remedies Notice at any time that
that an Event of Default has occurred under the Bank Loan Agreement and
continues under the Bank Loan Agreement. A Remedies Notice delivered by the
Required Bank Term Lenders or the Bank Term Agent shall be delivered by the
Required Bank Term Lenders or the Bank Term Agent, as the case may be, to the
Revolver Agent, the Collateral Agent, the Notice Institutional Investor and the
Administrative Borrower.

         (iii) The Required Institutional Investors shall have the right to
deliver, or to direct the Collateral Agent to deliver, a Remedies Notice at any
time that an Event of Default has occurred under the Note Agreement and
continues under the Note Agreement. A Remedies Notice delivered by the Required
Institutional Investors or the Collateral Agent shall be delivered by the
Required Institutional Investors or the Collateral Agent, as the case may be, to
the Revolver Agent, the Bank Term Agent and the Administrative Borrower.

         (iv) Any failure to provide any notice to the Administrative Borrower
pursuant to this Section 3.3(b) shall not affect the validity or effectiveness
of any Remedies Notice.

         (c) Exercise of Remedies after Delivery of Remedies Notice. From and
after the date of delivery of a Remedies Notice in accordance with Section
3.3(b) and, with respect to clauses (c)(ii) and (c)(iii) below, the expiration
of any Standstill Period with respect thereto:

         (i) the Required Revolver Lenders and/or the Revolver Agent shall have
the right, subject to applicable law, (w) to proceed to collect, realize upon or
foreclose any of the Revolver Liens on any of the Shared Collateral, (x) to
pursue any other remedies with respect to the Revolver Liens or the Shared
Collateral available at law or under the Revolver Security Documents, (y) to
direct the time, method and place of conducting any proceeding by or at the
direction of the Required Revolver Lenders and/or the Revolver Agent for the
enforcement or foreclosure of, sale or other disposition of any of the Shared
Collateral or for the appointment of a receiver for the owner of such Shared
Collateral or all or any of its assets, and (z) to determine the price and other
terms and conditions of any such foreclosure, sale or other disposition of the
Shared Collateral by or at the direction of the Required Revolver Lenders and/or
the Revolver Agent;

         (ii) subject to clause (d) below, the Required Bank Term Lenders and/or
the Bank Term Agent (acting at the direction of the Required Bank Term Lenders)
shall have the right, subject to applicable law, (w) to proceed to collect,
realize upon or foreclose any of the Junior Bank Liens on any of the Shared
Collateral, (x) to pursue any other remedies with respect to the Junior Bank
Liens or the Shared Collateral available at law or under the Bank Term Security
Documents, (y) to direct the time, method and place of conducting any proceeding
by or at the direction of the Required Bank Term Lenders and/or the Bank Term
Agent (acting at the direction of the Required Bank Term Lenders) for the
enforcement or foreclosure of, sale or

                                       11

<PAGE>

other disposition of any of the Shared Collateral or for the appointment of a
receiver for the owner of such Shared Collateral or all or any of its assets,
and (z) to determine the price and other terms and conditions of any such
foreclosure, sale or other disposition of the Shared Collateral by or at the
direction of the Required Bank Term Lenders and/or the Bank Term Agent (acting
at the direction of the Required Bank Term Lenders); and

         (iii) subject to clause (d) below, the Required Institutional Investors
and/or the Collateral Agent (acting at the direction of the Required
Institutional Investors) shall have the right, subject to applicable law, (w) to
proceed to collect, realize upon or foreclose any of the Junior Institutional
Investor Liens on any of the Shared Collateral, (x) to pursue any other remedies
with respect to the Junior Institutional Investor Liens or the Shared Collateral
available at law or under the Institutional Investor Security Documents, (y) to
direct the time, method and place of conducting any proceeding by or at the
direction of the Required Institutional Investors and/or the Collateral Agent
(acting at the direction of the Required Institutional Investors) for the
enforcement or foreclosure of, sale or other disposition of any of the Shared
Collateral or for the appointment of a receiver for the owner of such Shared
Collateral or all or any of its assets, and (z) to determine the price and other
terms and conditions of any such foreclosure, sale or other disposition of the
Shared Collateral by or at the direction of the Required Institutional Investors
and/or the Collateral Agent (acting at the direction of the Required
Institutional Investors).

         (d) Exclusive Rights of Revolver Lenders to Dispose of Borrowing Base
Collateral. During any period that an Event of Default has occurred and is
continuing but only until the Revolver Termination Date (the "Revolver Control
Period"), the Revolver Agent shall, subject to applicable law, have the
exclusive right (w) to proceed to collect, realize upon or foreclose on any of
the Borrowing Base Collateral, (x) to pursue any other remedies with respect to
the Borrowing Base Collateral available at law or under the Revolver Security
Documents, (y) to direct the time, method and place of conducting any proceeding
for the enforcement or foreclosure of, sale or other disposition of any of the
Borrowing Base Collateral, and (z) to determine the price and other terms and
conditions of any such foreclosure, sale or other disposition of the Borrowing
Base Collateral by or at the direction of the Revolver Agent. The Revolver Agent
agrees that promptly following the delivery of a Remedies Notice, the Revolver
Agent shall, to the extent permitted by applicable law, apply all cash and Cash
Equivalents included in the Borrowing Base Collateral to cash collateralize at
105% any Letter of Credit Usage and Bank Products Obligations not already so
cash collateralized and shall, to the extent permitted by applicable law, apply
the balance of such cash and Cash Equivalents to pay the outstanding Priority
Revolver Obligations (other than Letter of Credit Usage and Bank Products
Obligations which have been cash collateralized). The Revolver Agent agrees that
from and after the delivery of a Remedies Notice, the Revolver Agent shall
commence and diligently and in good faith pursue Lien Enforcement Actions
against the Borrowing Base Collateral (other than Cash Collateral) in a
commercially reasonable manner designed to maximize the value to be obtained by
realization upon the Borrowing Base Collateral.

         (e) Release of Liens in Borrowing Base Collateral. If during the
Revolver Control Period the Revolver Agent releases or forecloses upon any Lien
in any part of the Borrowing Base Collateral in connection with the sale,
transfer or other disposition thereof or for application of the proceeds thereof
to the Priority Revolver Obligations, the Junior Liens in such part of the
Borrowing Base Collateral shall be simultaneously released, and the Bank Term
Agent and the

                                       12

<PAGE>

Collateral Agent shall execute and deliver to the Revolver Agent such
termination statements, releases and other documents as the Revolver Agent or
the Obligors may request to confirm such release; provided that the Junior Liens
shall, subject to all the provisions of this Agreement, continue in the proceeds
of any such sale, transfer or other disposition of the Borrowing Base Collateral
to the extent that such proceeds are not applied to the Priority Revolver
Obligations in accordance with this Agreement.

         (f) Release of Liens in Real Property Collateral. If, during any period
that an Event of Default has occurred and is continuing, but only until an
Insolvency Proceeding involving an Obligor has commenced, any of the Revolver
Agent, the Bank Term Agent or the Collateral Agent shall release or foreclose
upon its Junior Liens or Senior Liens in any part of the Real Property
Collateral in connection with the sale, transfer or other disposition thereof or
for application of the proceeds thereof to the Secured Obligations in accordance
with this Agreement, the Liens of the other Agents and Secured Parties, whether
Junior Liens or Senior Liens, in such part of the Real Property Collateral shall
be simultaneously released, and the other Agents shall execute and deliver to
the releasing Agent such termination statements, releases and other documents as
the releasing Agent or the Borrowers may request to confirm such release;
provided, however, that the other Agents and Secured Parties shall only be
required to release their Liens in such part of the Real Property Collateral if
such sale, transfer or other disposition will result in cash proceeds of at
least 80% of the Recent Appraised Value of such part of the Real Property
Collateral; provided further that during the Revolving Control Period, no such
release shall be permitted in any Inventory Location without the consent of the
Revolver Agent, which consent shall not be unreasonably withheld if the Revolver
Agent's full access to the inventory stored thereon is preserved pursuant to
terms and conditions reasonably acceptable to it, which terms shall include,
without limitation, the right to conduct a commercially reasonable public or
private sale at the premises; and provided further that all such Liens shall,
subject to all the provisions of this Agreement, continue in the proceeds of any
such sale, transfer or other disposition of such part of the Real Property
Collateral, which proceeds shall be applied in accordance with the priorities
established under this Agreement.

         (g) No Other Required Releases. Other than as expressly provided in the
preceding clauses (e) and (f) or as required under the Revolver Documents, the
Bank Term Documents or the Institutional Investor Documents, as the case may be,
no Secured Party and no Agent shall be required to release any Senior Lien or
any Junior Lien.

         (h) Trademark and Tradename. Notwithstanding any other term or
provision to the contrary herein, no sale of any Obligor's trademark or
tradename shall be permitted by this Agreement unless the Revolver Agent has
been provided a license agreement that permits it to sell all inventory branded
with such trademark or tradename and comprising part of the Shared Collateral on
terms and subject to conditions reasonably satisfactory to it.

         Section 3.4. Right to Accelerate and Demand Payment. Nothing contained
in this Agreement shall be deemed to affect or impair (i) the right of any of
the Revolver Lenders under the Bank Loan Agreement to accelerate the Revolver
Obligations or demand payment of any of the Revolver Obligations when due, in
each case without any requirement for consent under this Agreement, (ii) the
right of any of the Bank Term Lenders under the Bank Loan Agreement to
accelerate the Bank Term Obligations or demand payment of any of the Bank Term
Obligations

                                       13

<PAGE>

when due, in each case without any requirement for consent under this Agreement,
or (iii) the right of any of the Institutional Investors under the Note
Agreement to accelerate the Institutional Investor Obligations or demand payment
of any of the Institutional Investor Obligations when due, in each case without
any requirement for consent under this Agreement, provided that notice thereof
shall be given to the Revolver Agent, the Bank Term Agent, the Collateral Agent,
the Notice Institutional Investor and the Administrative Borrower, and no
Secured Party or Agent will sell or otherwise liquidate or dispose of any Shared
Collateral pursuant to any of the Security Documents or exercise any of the
other rights of the Secured Parties or Agents as secured parties thereunder,
including without limitation any statutory or other right of set-off against
bank deposits or other Shared Collateral, except in accordance with Section 3.3
and the Security Documents.

         Section 3.5. Bankruptcy Waivers. Each Secured Party and Agent agrees
that this Agreement shall be enforceable in any Insolvency Proceeding with
respect to an Obligor or other proceeding with respect to an Obligor, and that
in connection therewith it will not: (A) challenge the validity or priority of
any Lien securing any of the Secured Obligations, provided such Lien is held in
accordance with this Agreement and the payment and lien priorities set forth
herein, (B) seek to avoid any Secured Obligation, any payment on any Secured
Obligation, any Lien in the Shared Collateral securing any of the Secured
Obligations, or any other transfer on account of any Secured Obligation, as a
preference, fraudulent transfer or conveyance, or other similar action, (C) seek
or obtain adequate protection pursuant to Sections 362, 363 or 364 of the
Bankruptcy Code or otherwise (whether by way of replacement liens,
administrative priority claims, or otherwise) in respect of any Shared
Collateral that is in conflict with the payment or lien priorities set forth in
this Agreement, such adequate protection to be deemed proceeds of the Shared
Collateral and to be held and applied in accordance with the payment and lien
priorities set forth herein, (D) without the consent of the Required Revolver
Lenders, provide any debtor-in-possession or other post-petition financing
pursuant to Section 364 of the Bankruptcy Code or otherwise, that purports to
prime or be pari passu with the Priority Revolver Obligations or the Senior
Liens securing the Priority Revolver Obligations, (E) object to any sale of any
of the Borrowing Base Collateral to the extent such sale is otherwise expressly
permitted by the terms of this Agreement, (F) seek equitable subordination of
any of the Secured Obligations or the Liens securing any of the Secured
Obligations, or (G) challenge the validity or enforceability of any term or
provision of this Agreement.

         Section 3.6. Collateral Access Agreements. If the Revolver Agent shall
exercise its rights under any Collateral Access Agreement during the Revolver
Control Period, the Revolver Agent, at the request of the Bank Term Agent or the
Collateral Agent, shall remove items of Collateral in addition to the Borrowing
Base Collateral and any expense in so doing shall constitute a Collection
Expense of the Revolver Agent. Following the end of the Revolving Control
Period, the Bank Term Agent shall assume such obligations at the request of the
Collateral Agent and any expenses thereof shall constitute a Collection Expense
of the Bank Term Agent.

SECTION 4.  APPLICATION OF PROCEEDS

         Section 4.1.  Application of Payments  before Priority  Event.
Notwithstanding  any provision to the contrary in the Revolver
Documents, the Bank Term Documents or the

                                       14

<PAGE>

Institutional Investor Documents, but without limitation upon the application of
the payment provisions relating to the Revolver Obligations under the Bank Loan
Agreement, the Secured Parties and the Agents hereby agree that all payments
made before the occurrence of a Priority Event by the Obligors or out of the
assets of the Obligors in respect of principal or interest in respect of the
Bank Term Loans or the Institutional Investor Notes shall be applied pro rata
between the Bank Term Loans and the Institutional Investor Notes, in proportion
(i) first to the accrued and unpaid interest then due in respect of the Bank
Term Loans or the Institutional Investor Notes, until all such accrued and
unpaid interest has been paid in full, and (ii) second to the respective
outstanding principal balances of the Bank Term Loans and the Institutional
Investor Notes, until the respective outstanding principal balances of the Bank
Term Loans and the Institutional Investor Notes have been paid in full. In the
event the Bank Term Agent, the Collateral Agent, any Bank Term Lender or any
Institutional Investor shall receive, prior to the occurrence of a Priority
Event, any payment in respect of the Bank Term Obligations or the Institutional
Investor Obligations in excess of the amount to which such Person is entitled
pursuant to this section 4.1, it shall, promptly after it acquires actual
knowledge of such excess payment, pay over such excess to its Agent and its
Agent shall promptly pay over such excess to the respective parties entitled
thereto under this section.

         Section 4.2. Application of Recovery after Priority Event.
Notwithstanding any provision to the contrary in the Revolver Documents, the
Bank Term Documents or the Institutional Investor Documents, the Secured Parties
and the Agents hereby agree as follows with respect to each Recovery received
after the occurrence of a Priority Event:

         (a) Until the Revolver Termination Date, 100% of any Recovery (or such
lesser amount as shall equal the amount of Priority Revolver Obligations then
outstanding) shall be paid over by such Person as may receive or direct the
application of such Recovery (including, without limitation, any Agent) to the
Revolver Agent and applied by the Revolver Agent to the Priority Revolver
Obligations then outstanding in the order of priority specified in the Bank Loan
Agreement, including to cash collateralize all outstanding Letter of Credit
Usage and Bank Products Obligations constituting Priority Revolver Obligations.

         (b) If there are no Priority Revolver Obligations then outstanding, or
if the portion of the Recovery required to be paid over to the Revolver Agent
pursuant to clause (a) has been paid over to the Revolver Agent, then 100% of
any Recovery (less the portion, if any, required to have been paid over to the
Revolver Agent) shall be paid over by such Person as may receive or direct the
application of such Recovery (including, without limitation, any Agent) as
follows:

                  (i) first to the payment of the Unreimbursed Expenses, pro
rata between (x) the Unreimbursed Expenses of the Bank Term Agent and the Bank
Term Lenders, on the one hand, and (y) the Unreimbursed Expenses of the
Collateral Agent and the Institutional Investors, on the other hand, until the
Unreimbursed Expenses have been paid in full in cash;

                  (ii) second, to the payment of the aggregate accrued and
unpaid interest on the Bank Term Loans and the Institutional Investor Notes,
such payment to be made pro rata between (i) the Bank Term Lenders, on the one
hand, and (y) the Institutional Investors, on the other hand, in proportion to
the amount of accrued and unpaid interest on the Bank Term Loans

                                       15

<PAGE>

and the Institutional Investor Notes, until all accrued and unpaid interest on
the Bank Term Loans and the Institutional Investor Notes has been paid in full
in cash;

                  (iii) third, to the payment of the then outstanding aggregate
principal balance of the Bank Term Loans and the Institutional Investor Notes
(including any pay-in-kind portion of such principal balance), such payment to
be made pro rata between (i) the Bank Term Lenders, on the one hand, and (y) the
Institutional Investors, on the other hand, in proportion to the then
outstanding principal balances of the Bank Term Loans and the Institutional
Investor Notes, until the then outstanding principal balances of the Bank Term
Loans and the Institutional Investor Notes have been paid in full in cash; and

                  (iv) fourth, to the payment of any other Bank Term Obligations
and other Institutional Investor Obligations, such payment to be made pro rata
between (i) the Bank Term Lenders, on the one hand, and (y) the Institutional
Investors, on the other hand, in proportion to the respective amounts of other
Bank Term Obligations and other Institutional Investor Obligations, until all
Bank Term Obligations and Institutional Investor Obligations have been paid in
full in cash.

                  (v) fifth, to the payment of all Advances, and cash
collateralization of all Letters of Credit in the amount of 105% thereof,
comprising the Unpermitted Overadvances.

         (c) In the event any Agent or Secured Party shall receive, after the
occurrence of a Priority Event, any payment in respect of the Secured
Obligations in excess of the amount to which such Secured Party is entitled
pursuant to this section 4.2 or in the case of an Agent, to which such Agent and
the Secured Parties represented by such Agent are entitled pursuant to this
section 4.2, it shall, promptly after it acquires actual knowledge of such
excess payment, pay over such excess to its Agent and such Agent shall promptly
pay over such excess to the respective parties entitled thereto under this
section.

         (d) After the Revolver Obligations, Bank Term Obligations,
Institutional Investor Obligations and Unpermitted Overadvances have been paid
in full in cash, the balance, if any, of any Recovery shall be paid over to the
Obligors or as a court of competent jurisdiction shall otherwise direct.

         (e) Except as otherwise provided in this Agreement, all payments
received by a Secured Party in respect of the Secured Obligations shall belong
to such Secured Party as its own property, and except as provided in this
Agreement, no Secured Party shall have any obligations to hold or remit any part
of any such payment for the account or benefit of any other Secured Party.

         (f) Nothing contained herein shall prevent any Secured Party from
reflecting the application of the proceeds of any Shared Collateral on its books
and records in such manner as it shall determine in its sole discretion.

         (g) Notwithstanding anything to the contrary herein, the foregoing
provisions of Section 4.2 shall not apply to payments from the Noteholder Group
Expense Fund, which shall be used solely for payment of Noteholder Group
Expenses (as defined in the Note Agreement).

                                       16

<PAGE>

SECTION 5.  AGREEMENT BINDING

         Section 5.1. Agreement Binding. The Obligors and each of the Secured
Parties and Agents represents and warrants to each of the other parties hereto
that this Agreement has been duly authorized, executed and delivered by such
representing and warranting party and is the legal, valid, binding and
enforceable obligation of such party, subject to bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting the
rights and remedies of creditors and subject to general equitable principles,
including without limitation the principle that equitable remedies, such as the
remedy of specific performance, are subject to the discretion of the court.

         Section 5.2. Guaranty. No Secured Party or Agent as a result of the
provisions of this Agreement shall be deemed to have, directly or indirectly,
guarantied any debts, obligations or liabilities of any Obligor or any of their
respective Affiliates.

         Section 5.3. No Partnership Created. Neither the execution of this
Agreement, nor any action taken by any of the Secured Parties or Agents pursuant
hereto is intended to be, nor shall it be construed to be, the formation of a
partnership or joint venture among the Secured Parties and the Agents.

         Section 5.4 Limited Purpose of Agreement. The provisions of this
Agreement shall have no effect upon the rights of any Secured Party or Agent
against any Obligor. None of the Obligors or any of their respective Affiliates
shall be entitled for any purpose or under any circumstances to rely upon the
failure of the Secured Parties or the Agents, or any of them, to comply with the
terms hereof. Nothing herein contained shall be deemed to authorize any Obligor
or any of their respective Affiliates to take any action not permitted under any
other documents to which any of them is a party.

SECTION 6.  AMENDMENTS

         Section 6.1. Amendments and Waivers of this Agreement . This Agreement
may be amended, supplemented, restated or modified only with the written consent
of the Required Secured Parties and each of the Agents, provided that no
amendment of any provision of Section 4 (or of any of the defined terms used
therein) shall be effective without the written consent of each of the Secured
Parties and each of the Agents. No waiver of any provision of this Agreement
shall be effective unless consented to in writing by the party against which
such waiver is to be effective.

         Section 6.2. Amendment and Waivers of Other Agreements. The Secured
Parties, the Agents and the Lenders agree that:

         (a) the respective parties to the Revolver Documents (other than this
Agreement) shall not effect, enter into or agree to any Prohibited Revolver
Amendment, except with the prior written consent of the Required Institutional
Investors and the Required Bank Term Lenders (as well as such other approvals
and consents as may be required under the Bank Loan Agreement);

         (b) the respective parties to the Bank Term Documents (other than this
Agreement, the Warrant Agreement and Warrants (each as defined in the Bank Loan
Agreement)) shall not

                                       17

<PAGE>

effect, enter into or agree to any Prohibited Bank Term Loan Amendment, except
with the prior written consent of the Required Institutional Investors and the
Required Revolver Lenders (as well as such other approvals and consents as may
be required under the Bank Loan Agreement); and

         (c) the respective parties to the Institutional Investor Documents
(other than this Agreement, the Warrant Agreement and Warrants) shall not
effect, enter into or agree to any Prohibited Institutional Investor Amendment,
except with the prior written consent of the Required Revolver Lenders and the
Required Bank Term Lenders (as well as such other approvals and consents as may
be required under the Note Agreement).

         Any purported amendment, modification or waiver of any of the Revolver
Documents, the Bank Term Documents or the Institutional Investor Documents that
would be in conflict with this Section 6.2 shall be invalid, of no force and
effect, and shall be deemed a breach of this Agreement by the parties purporting
to effect such amendment, modification or waiver.

         Nothing contained herein shall be deemed to preclude any Secured Party
or Agent from exercising its right to grant waivers of Defaults or Events of
Default under the Revolver Documents, the Bank Term Documents or the
Institutional Investor Documents, as applicable, so long as the conditions or
other terms of such waiver do not constitute a Prohibited Revolver Amendment,
Prohibited Bank Term Loan Amendment or Prohibited Institutional Investor
Amendment.

SECTION 7.  MISCELLANEOUS

         Section 7.1. Conflicts. In the event of any conflict between the
provisions of this Agreement and the provisions of any of the Revolver
Documents, the Bank Term Documents or the Institutional Investor Documents, the
provisions of this Agreement shall prevail.

         Section 7.2. Notices and Information. All notices and other
communications hereunder shall be in writing and shall be personally delivered,
delivered by overnight courier or sent by telecopier, to the respective parties
hereto at their respective addresses set forth in Schedule I attached hereto, or
to such other address for a party as such party shall specify in writing to the
other parties to this Agreement. Notices and other communications shall be
deemed delivered to a party when delivered by one of the above specified methods
to the indicated location(s) of such party and receipt of a counter signature
acknowledging receipt by an individual at such location.

         Section 7.3. Transfer of Obligations; Parties in Interest. In the event
of any transfer by a Secured Party or Agent of any of the Secured Obligations,
such transfer shall be made expressly subject to the terms of this Agreement
which shall be binding on the transferee to the same extent as its transferor.
All of the terms and provisions of this Agreement shall inure to the benefit of
and be binding upon and enforceable by the respective successors and assigns of
the parties hereto, whether so expressed or not and, in particular, shall inure
to the benefit of and be enforceable by any future holder or holders of any
Secured Obligations.

         Section  7.4.  Governing  Law;  Jurisdiction;  Waiver  of Jury  Trial.
THE VALIDITY OF THIS AGREEMENT, THE CONSTRUCTION, INTERPRETATION, AND
ENFORCEMENT HEREOF, AND THE RIGHTS OF THE PARTIES HERETO WITH

                                       18

<PAGE>

RESPECT TO ALL MATTERS ARISING HEREUNDER OR RELATED HERETO SHALL BE DETERMINED
UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
STATE OF ILLINOIS (WITHOUT GIVING EFFECT TO CONFLICT OR CHOICE OF LAW
PRINCIPLES).

THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH
THIS AGREEMENT SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND FEDERAL COURTS
LOCATED IN THE COUNTY OF COOK, STATE OF ILLINOIS, PROVIDED, HOWEVER, THAT ANY
ACTION OR PROCEEDING SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER
PROPERTY MAY BE BROUGHT, AT THE OPTION OF THE AGENT OR SECURED PARTY BRINGING
SUCH ACTION OR COMMENCING SUCH PROCEEDING, IN THE COURTS OF ANY JURISDICTION
WHERE SUCH PARTY ELECTS TO BRING SUCH ACTION OR COMMENCE SUCH PROCEEDING WHERE
SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. EACH PARTY WAIVES, TO THE EXTENT
PERMITTED UNDER APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO ASSERT THE DOCTRINE OF
FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS
BROUGHT IN ACCORDANCE WITH THIS SECTION 7.4.

EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS
CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. EACH PARTY REPRESENTS THAT
SUCH PARTY HAS REVIEWED THIS WAIVER AND SUCH PARTY KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE
EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT
TO A TRIAL BY THE COURT.

         Section 7.5. Miscellaneous. The headings in this Agreement are for
purposes of reference only and shall not limit or otherwise affect the meaning
hereof. This Agreement (together with the Revolver Documents, the Bank Term
Documents and the Institutional Investor Documents) embodies the entire
agreement and understanding among the Secured Parties, the Agent and the
Obligors relating to the subject matter hereof, and supersedes all prior
agreements and understandings relating to the subject matter hereof. If any
provision in this Agreement refers to any action taken or to be taken by any
Person, or which such Person is prohibited from taking, such provision shall be
applicable, whether such action is taken directly or indirectly by such Person,
whether or not expressly specified in such provision. In case any provision in
this Agreement shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby. This Agreement may be executed in any number of
counterparts and by the parties hereto or thereto, as the case may be, on
separate counterparts but all such counterparts shall together constitute but
one and the same instrument.

                                       19

<PAGE>

         Section 7.6. No Third Parties Benefited. This Agreement is solely for
the benefit of the Secured Parties and the Agents and their respective
successors and permitted assigns, and no Person, including any Obligor shall
have any right, benefit, priority or interest under, or because of the existence
of this Agreement.

         Section 7.7. Revival and Reinstatement of Obligations. If the
incurrence or payment of any of the Secured Obligations by any Obligor or the
transfer to any Agent or Secured Party of any property should for any reason
subsequently be declared to be void or voidable under any state or federal law
relating to creditors' rights, including provisions of the Bankruptcy Code
relating to fraudulent conveyances, preferences, or other voidable or
recoverable payments of money or transfers of property (collectively, a
"Voidable Transfer"), and if any of the Secured Parties or Agents is required to
repay or restore, in whole or in part, any such Voidable Transfer, or elects to
do so upon the reasonable advice of its counsel, then, as to any such Voidable
Transfer, or the amount thereof that such Secured Party or Agent is required or
elects to repay or restore, the rights and obligations of each Obligor, Secured
Party and Agent automatically shall be revived, reinstated, and restored and
shall exist as though such Voidable Transfer had never been made, and the
parties shall reallocate among them pursuant to Section 4.2(c) funds previously
received from and after the date of receipt of the Voidable Transfer.

                    [SIGNATURE PAGES BEGIN ON FOLLOWING PAGE]

                                       20

<PAGE>

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

                                     AGENTS:

                                     BANK ONE, NA, as Revolver Agent

                                     By:________________________________________

                                     Name:
                                     Title:

                                     BANK ONE, NA, as Bank Term Agent

                                     By:________________________________________

                                     Name:
                                     Title:

                                     U.S. BANK NATIONAL ASSOCIATION,
                                     as Collateral Agent

                                     By:________________________________________

                                     Name:
                                     Title:

                                     REVOLVER LENDERS:

                                     BANK ONE, NA, as Revolver Lender

                                     By:________________________________________

                                     Name:
                                     Title:

                                     BANK TERM LENDERS:

                                     CREDIT SUISSE FIRST BOSTON, as
                                     Bank Term Lender

                                     By:________________________________________

                                     Name:
                                     Title:

<PAGE>

                                     ABN AMRO BANK N.V., as Bank Term
                                     Lender

                                     By:________________________________________

                                     Name:
                                     Title:

                                     BNP PARIBAS, as Bank Term Lender

                                     By:________________________________________

                                     Name:
                                     Title:

                                     By:________________________________________

                                     Name:
                                     Title:

                                     MIZUHO CORPORATE BANK, LTD., as
                                     Bank Term Lender

                                     By:________________________________________

                                     Name:
                                     Title:

                                     THE NORTHERN TRUST COMPANY, as
                                     Bank Term Lender

                                     By:________________________________________

                                     Name:
                                     Title:

                                     U.S. BANK NATIONAL ASSOCIATION,
                                     as Bank Term Lender

                                     By:________________________________________

                                     Name:
                                     Title:

<PAGE>

                                     INSTITUTIONAL INVESTORS:

                                     CONNECTICUT GENERAL LIFE
                                       INSURANCE COMPANY
                                     By CIGNA Investments, Inc.

                                     By:________________________________________

                                     Name:
                                     Title:

                                     CONNECTICUT GENERAL LIFE
                                       INSURANCE COMPANY ON
                                       BEHALF OF ONE OR MORE
                                       SEPARATE ACCOUNTS
                                     By CIGNA Investments, Inc.

                                     By:________________________________________

                                     Name:
                                     Title:

                                     CANADA LIFE INSURANCE COMPANY
                                       OF AMERICA

                                     By:________________________________________

                                     Name:
                                     Title:

                                     CANADA LIFE INSURANCE COMPANY
                                       OF NEW YORK

                                     By:________________________________________

                                     Name:
                                     Title:

<PAGE>

                                     SOUTHERN FARM BUREAU LIFE
                                       INSURANCE COMPANY

                                     By:________________________________________

                                     Name:
                                     Title:

                                     AMERICAN GENERAL LIFE
                                       INSURANCE COMPANY
                                     THE UNITED STATES LIFE
                                       INSURANCE COMPANY IN THE
                                       CITY OF NEW YORK
                                     By AIG Global Investment Corp.,
                                       investment adviser

                                     By:________________________________________

                                     Name:
                                     Title:

                                     THE TRAVELERS INSURANCE
                                       COMPANY

                                     By:________________________________________

                                     Name:
                                     Title:

                                     FIRST TRENTON INDEMNITY
                                       COMPANY

                                     By:________________________________________

                                     Name:
                                     Title:

<PAGE>

                                                                      Schedule I

                               Address for Notices

<PAGE>

                                                                     Schedule II

                           Acknowledgement and Consent

Each of the undersigned hereby acknowledges receipt of a copy of the foregoing
Intercreditor Agreement consents to and agrees to be bound by the terms and
provisions thereof (as in effect on the date hereof and as amended, supplemented
or modified (with the consent of the Administrative Borrower prior to the
occurrence of an Event of Default)), and agrees not to take any action contrary
thereto. Each of the undersigned further acknowledges and agrees that the
Intercreditor Agreement is solely for the benefit of the Secured Parties and the
Agents, and their respective successors assigns, and none of the undersigned
shall have any right, benefit, priority or interest under, or because of the
existence of, the Intercreditor Agreement.

                                     BORROWERS:

                                     MIDAS INTERNATIONAL
                                     CORPORATION,
                                     a Delaware corporation

                                     By:________________________________________

                                     Name:
                                     Title:

                                     PARTS WAREHOUSE, INC.,
                                     a Delaware corporation

                                     By:________________________________________

                                     Name:
                                     Title:

                                     DEALERS WHOLESALE, INC.,
                                     a Delaware corporation

                                     By:________________________________________

                                     Name:
                                     Title:

                                     INTERNATIONAL PARTS
                                     CORPORATION,
                                     a Delaware corporation

                                     By:________________________________________

                                     Name:
                                     Title:

<PAGE>

                                     MUFFLER CORPORATION OF
                                     AMERICA,
                                     a Illinois corporation

                                     By:________________________________________

                                     Name:
                                     Title:

                                     HUTH, INC.,
                                     a Delaware corporation

                                     By:________________________________________

                                     Name:
                                     Title:

                                     MIDAS PROPERTIES, INC.,
                                     a New York corporation

                                     By:________________________________________

                                     Name:

                                     Title:

                                     MIDAS REALTY CORPORATION,
                                     a Delaware corporation

                                     By:________________________________________

                                     Name:
                                     Title:

                                     COSMIC HOLDINGS LLC,
                                     a Delaware limited liability company

                                     By:________________________________________

                                     Name:
                                     Title:

                                     COSMIC HOLDINGS CORPORATION,
                                     a Delaware corporation

                                     By:________________________________________

                                     Name:
                                     Title:

<PAGE>

                                     GUARANTORS:

                                     MIDAS, INC.,
                                     a Delaware corporation

                                     By:________________________________________

                                     Name:
                                     Title:

                                     PROGRESSIVE AUTOMOTIVE
                                     SYSTEMS, INC.,
                                     a Delaware corporation

                                     By:________________________________________

                                     Name:
                                     Title:

                                     MIDAS ILLINOIS INC.,
                                     a Illinois corporation

                                     By:________________________________________

                                     Name:
                                     Title:

                                     MIDAS INTERNATIONAL
                                     CORPORATION,
                                     a Wyoming corporation

                                     By:________________________________________

                                     Name:
                                     Title:

                                     MIDAS CANADA HOLDINGS LIMITED,
                                     an Ontario corporation

                                     By:________________________________________

                                     Name:
                                     Title:

<PAGE>

                                     MIDAS CANADA INC.,
                                     an Ontario corporation

                                     By:________________________________________

                                     Name:
                                     Title:

                                     MIDAS REALTY CORPORATION OF
                                     CANADA INC.,
                                     an Ontario corporation

                                     By:________________________________________

                                     Name:
                                     Title:

                                     APWI CANADA, INC.,
                                     a Canada corporation

                                     By:________________________________________

                                     Name:
                                     Title:

                                     MIDAS AUTOMOTIVE HOLDINGS, B.V.,
                                     a Netherlands corporation

                                     By:________________________________________

                                     Name:
                                     Title:

                                     MIDAS AUTOMOTIVE INTERNATIONAL,
                                       B.V.,
                                     a Netherlands corporation

                                     By:________________________________________

                                     Name:
                                     Title:<PAGE>
                                                                    Exhibit 4.21

                                                                  Execution Copy

                                WARRANT AGREEMENT

     This WARRANT AGREEMENT (this "Agreement") dated as of March 27, 2003 is
entered into among Midas, Inc., a Delaware corporation (the "Company"), and each
of the Persons listed on Schedule I hereto (such Persons, together with their
respective successors and permitted assigns, are collectively referred to herein
as the "Warrant Holders" and each as a "Warrant Holder"). Capitalized terms not
otherwise defined shall have the respective meanings ascribed to them in the
Credit Agreement (as defined below).

                                    RECITALS

     WHEREAS, pursuant to that certain Loan and Security Agreement of even date
herewith (as the same may from time to time be amended, supplemented or
extended, the "Credit Agreement") among the Company, the subsidiaries of the
Company, Bank One, N.A., individually and as collateral agent, and the Warrant
Holders named therein (together with their successors and permitted assigns, the
"Credit Agreement Warrant Holders"), the Credit Agreement Warrant Holders are
making term loans to and purchasing term notes being issued by certain
subsidiaries of the Company;

     WHEREAS, pursuant to that certain Note, Guaranty and Security Agreement of
even date herewith (as the same may from time to time be amended, supplemented
or extended, the "Note Agreement") among the Company, the subsidiaries of the
Company, the Collateral Agent (as defined therein) and the Warrant Holders named
therein (together with their successors and permitted assigns, the "Note
Agreement Warrant Holders"), the Note Agreement Warrant Holders are purchasing
term notes being issued by certain subsidiaries of the Company;

     WHEREAS, in connection with the closings under the Credit Agreement and the
Note Agreement, the Company is issuing to the Warrant Holders warrants (the
"Warrants") to purchase up to an aggregate of 1,000,000 shares of the Company's
common stock, $.001 par value (the "Common Stock," and the shares of Common
Stock issuable on exercise of the Warrant being referred to herein as the
"Warrant Shares"), at the exercise price per share provided for herein, which
warrants shall be evidenced by Warrant Certificates in the form attached hereto
as Exhibit A; and

     WHEREAS, the Warrant Holders desire to acquire from the Company, and the
Company desires to issue to the Warrant Holders, the Warrants.

                                    AGREEMENT

     NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein set forth, the parties hereto agree as follows:

     Section 1. Issuance and Acquisition of Warrants. The Company hereby agrees
to issue to each Warrant Holder at the Closing, subject to the conditions and
restrictions contained in this Agreement, and each Warrant Holder hereby agrees
to acquire from the Company at the Closing, Warrants initially exercisable for
the number of Warrant Shares specified on Schedule I hereto opposite the name of
such Warrant Holder, subject to adjustment as further provided herein.
Notwithstanding anything else contained herein to the contrary, effective as of
January 5, 2004,

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<PAGE>

                                                                  Execution Copy

in the event a Term Loan Repayment Trigger (as defined in the Credit Agreement
as in effect on the date hereof) has not occurred, the number of Warrant Shares
issuable upon exercise of each issued Warrant shall be reduced, automatically
and without any action required by the Company or otherwise, to an amount equal
to one half of such amount specified on Schedule I.

     Section 2. Warrant Certificates. The certificates evidencing the Warrants
(the "Warrant Certificates") shall be in registered form only and shall be in
the form set forth in Exhibit A attached hereto. The Company shall number and
register each Warrant Certificate in a register as it is issued.

     Section 3. Registration of Transfers and Exchanges.

     (a) In connection with any Transfer (as defined below), the transferring
Warrant Holder shall, if required by the Company, obtain from counsel to such
holder (who may be in-house counsel to such holder) an opinion that the proposed
transfer may be effected without registration under the Securities Act of 1933,
as amended (the "Act"). Each Warrant shall bear the restrictive legends set
forth on the Warrant Certificate attached hereto as Exhibit A, unless with
respect to the legend, in the opinion of such counsel such legend is not
required in order to ensure compliance with the Act. As used herein, "Transfer"
means sell, assign, transfer, pledge, hypothecate, mortgage, encumber, dispose
by gift or bequest, or otherwise transfer or dispose.

     (b) Subject to Section 3(a) hereof, the Company shall from time to time
register the Transfer of a Warrant Certificate in a Warrant register to be
maintained by the Company upon surrender of such Warrant Certificate accompanied
by the form of assignment attached to the Warrant Certificate, duly executed by
the registered holder or holders thereof or by the duly appointed legal
representative thereof or by a duly authorized attorney. Upon any such
registration of Transfer, a new Warrant Certificate shall be issued to the
transferee(s) and the surrendered Warrant Certificate shall be canceled and
disposed of by the Company. Warrant Certificate(s) may be exchanged at the
option of the holder(s) thereof, when surrendered to the Company at its office
for another Warrant Certificate or other Warrant Certificates of like tenor and
representing in the aggregate a like number of Warrant Shares. Warrant
Certificates surrendered for exchange shall be canceled and disposed of by the
Company.

     Section 4. Exercise of Warrant.

     (a) Subject to the terms of this Agreement, each Warrant Holder shall have
the right to exercise its Warrants, in whole (except with respect to the portion
of any Warrants subject to cancellation as provided in Section 1) or in part, at
any time or from time to time commencing on the date of this Agreement and
continuing until 5:00 p.m., Chicago time on the tenth anniversary of the Closing
Date (the "Exercise Period") and to receive from the Company the number of fully
paid and nonassessable Warrant Shares which the holder may at the time be
entitled to receive on exercise of its Warrant (or such lesser number as may be
specified by the holder in the Notice of Exercise) and payment to the Company of
the Exercise Price then in effect for such Warrant Shares. In the alternative, a
Warrant Holder may exercise its right, during the Exercise Period, to receive
Warrant Shares on a net cashless exercise basis, such that, without the exchange
of any funds, such holder receives that number of Warrant Shares for which such
Warrant is otherwise being exercised less that number of Warrant Shares having a

                                        2

<PAGE>

                                                                  Execution Copy

Current Market Price (as defined in Section 8(h) hereof) at the time of exercise
equal to the aggregate Exercise Price that would otherwise have been paid by
such Warrant Holder in cash upon such exercise (a "Cashless Exercise").

     (b) A Warrant may be exercised upon surrender to the Company of the
certificate or certificates evidencing the Warrant to be exercised with the
Notice of Exercise (in the form attached to the Warrant Certificate) duly filled
in and signed, and upon payment to the Company of the exercise price per share
of Common Stock (the "Exercise Price") which is set forth in the form of Warrant
Certificate attached hereto as Exhibit A, subject to adjustment pursuant to
Section 8 hereof, for the number of Warrant Shares in respect of which such
Warrant is then being exercised. Payment of the aggregate Exercise Price shall
be made (i) in cash or by certified or official bank check payable to the order
of the Company or wire transfer in immediately available funds to such account
as shall be designated by the Company or (ii) through a Cashless Exercise as
provided in Section 4(a) hereof.

     (c) Upon such surrender of a Warrant and payment of the Exercise Price by
the holder thereof, the Company shall, within three (3) business days, request
its Transfer Agent (as defined supra) to issue and deliver, and the Company
shall cause its Transfer Agent to issue and deliver, with all reasonable
dispatch to or upon the written order of the holder and in such name or names as
the holder may designate, a certificate or certificates for the number of
Warrant Shares issuable upon the exercise of such Warrant, and such certificate
or certificates shall be deemed to have been issued and any Person so designated
to be named therein shall be deemed to have become a holder of record of such
Warrant Shares as of the date of the surrender of such Warrant and payment of
the Exercise Price.

     (d) A Warrant shall be exercisable, at the election of the holder thereof,
either in full or from time to time in part and, in the event that a Warrant is
exercised in respect of fewer than all of the Warrant Shares issuable on such
exercise at any time prior to the date of expiration of the Warrant, in lieu of
the Company issuing a new Warrant Certificate, appropriate notation shall be
made on the certificate evidencing the Warrant exercised and such Warrant
Certificate shall be returned to such holder. If more than one Warrant shall be
presented for exercise in full at the same time by the same holder, the number
of full Warrant Shares which shall be issuable upon the exercise thereof shall
be computed on the basis of the aggregate number of Warrant Shares purchasable
on exercise of the Warrants so presented.

     (e) If the Warrant holder exercises the Warrant immediately prior to and in
contemplation of and conditional upon the consummation of a transaction
described in any of clauses (i) - (vi) of Section 14(b) hereof and such
transaction is not consummated, such Warrant shall be deemed not to have been so
exercised.

     (f) Any Warrant Certificate surrendered upon exercise of a Warrant shall be
canceled and disposed of by the Company. The Company shall cause its Transfer
Agent to keep copies of this Agreement and any notices given or received
hereunder available for inspection by the holders during normal business hours
at the Transfer Agent's offices.

     (g) In the event that all or any portion of a Warrant is unexercised as of
the last day of the Exercise Period (the "Expiration Date"), unless the holder
of the Warrant shall

                                        3

<PAGE>

                                                                  Execution Copy

explicitly notify the Company otherwise in writing, such Warrant (or unexercised
portion, as the case may be) shall be deemed to have been exercised in full
automatically in a Cashless Exercise into shares of Common Stock pursuant to the
terms of Section 4(a) above at 4:59 p.m. Chicago time on the Expiration Date
(or, in the event that the Expiration Date is not a business day, the
immediately preceding business day) (the "Automatic Exercise Date") and the
Person entitled to receive the Warrant Shares issuable upon such Cashless
Exercise shall be treated for all purposes as the holder of record of such
Warrant Shares from and after such time on such Automatic Exercise Date. A
Warrant shall be deemed to be surrendered to the Company on the Automatic
Exercise Date by virtue of this Section 4(g) and without any action by the
holder of such Warrant or any other Person. As promptly as practicable on or
after the Automatic Exercise Date and in any event within thirty (30) days
thereafter, the Company shall cause its Transfer Agent to issue and cause to be
delivered with all reasonable dispatch at the Company's expense to the Person
entitled to receive the same a certificate or certificates for the number of
Warrant Shares issuable upon such exercise.

     Section 5. Payment of Taxes; Transfer Costs. The Company will pay any
documentary stamp taxes attributable to the issuance of Warrant Shares upon
exercise of a Warrant, and will pay all taxes which may be payable in respect of
any transfer involved in the issuance of any Warrant Certificate or any
certificates for Warrant Shares. The Company shall also pay all expenses and
related charges in connection with the preparation, issuance and delivery of any
Warrant Certificates or certificates for Warrant Shares. The Company shall not,
however, be required to pay any tax that may be payable in respect of any
subsequent transfer of the Warrants or any transfer involved in the issuance and
delivery of Warrant Shares in a name other than that in which the Warrants to
which such issuance relates were registered, and, if any such tax would
otherwise be payable by the Company, no such issuance or delivery shall be made
unless and until the Person requesting such issuance has paid to the Company the
amount of any such tax, or it is established to the reasonable satisfaction of
the Company that any such tax has been paid.

     Section 6. Lost, Mutilated or Missing Warrant Certificate. In case a
Warrant Certificate is mutilated, lost, stolen or destroyed, the Company shall
issue, in exchange and substitution for and upon cancellation of the mutilated
Warrant Certificate, or in lieu of and substitution of the Warrant Certificate
lost, stolen or destroyed, a new Warrant Certificate of like tenor and
representing an equivalent number of Warrant Shares, but only upon receipt of
evidence reasonably satisfactory to the Company of such loss, theft or
destruction of such Warrant Certificate and indemnity, if requested, also
reasonably satisfactory to it.

     Section 7. Reservation of Warrant Shares. The Company shall at all times
reserve and keep available out of its authorized but unissued shares of Common
Stock, solely for the purpose of effecting the exercise of the Warrants, a
number of shares of Common Stock as shall from time to time be sufficient to
effect the exercise of the Warrants at the then applicable Exercise Price, and
if at any time the number of authorized but unissued shares of Common Stock
shall not be sufficient to effect the exercise of the Warrants, the Company will
take such corporate action as may, in the opinion of its counsel, be necessary
to increase its authorized but unissued shares of Common Stock to such number of
shares as shall be sufficient for such purpose, including, without limitation,
engaging to obtain the requisite stockholder approval. The Company or, if
appointed, the transfer agent for the Common Stock (the "Transfer Agent") and
every subsequent transfer agent for any shares of the Company's capital stock
issuable upon the

                                       4

<PAGE>

                                                                  Execution Copy

exercise of any of the rights of purchase aforesaid, will be irrevocably
authorized and directed at all times to reserve such number of authorized shares
as shall be required for such purpose.

     Section 8. Adjustment of Exercise Price and Number of Warrant Shares
Issuable. The Exercise Price and the number of Warrant Shares issuable upon the
exercise of each Warrant are subject to adjustment from time to time upon the
occurrence of the events enumerated in this Section 8. After each such
adjustment, the calculated adjusted Exercise Price shall become the current
Exercise Price for any subsequent adjustment. For purposes of this Section 8,
"Common Stock" means shares now or hereafter authorized of any class of common
stock of the Company and any other stock of the Company, however designated,
that has the right to participate in any distribution of the assets or earnings
of the Company, including, without limitation, preferred stock.

     (a) Adjustment for Initial Errors. The Company hereby acknowledges that the
number of Warrant Shares constituting the initial number of securities
purchasable upon the exercise of the Warrants was based upon the Company's
representations as to the amount of all outstanding Common Stock (on a Fully
Diluted Basis) on the date of the initial issue of the Warrants ("Date of
Grant"), as set forth in Section 15(d) below, and upon an intention that the
full exercise of the Warrants would result in the holders obtaining shares of
Common Stock equal to approximately 5.5% of the Company's issued and outstanding
Common Stock, calculated on a Fully Diluted Basis, on the Date of Grant. If for
any reason it shall hereafter be determined that the actual amount of Common
Stock outstanding, calculated on a fully-diluted basis, as of the Date of Grant
caused the calculation of the Warrant Shares to be erroneous, then the Company
or the holders (whichever shall discover such error) shall notify the other of
such determination and the Company shall forthwith reissue each Warrant, with
appropriate proportional adjustments in said number to be effective from the
Date of Grant.

     (b) Adjustment for Change in Capital Stock. If the Company (1) pays a
dividend or makes a distribution on its Common Stock in shares of its Common
Stock, (2) subdivides its outstanding shares of Common Stock into a greater
number of shares, or (3) combines its outstanding shares of Common Stock into a
smaller number of shares, then the Exercise Price shall be adjusted in
accordance with the formula:

                                 E1 = E * (O/A)

where:

                  E1       =        the adjusted Exercise Price.

                  E        =        the current Exercise Price.

                  O        =        the number of shares of all classes of
                                    Common Stock outstanding prior to such
                                    action.

                  A        =        the number of shares of all classes of
                                    Common Stock outstanding immediately after
                                    such action.

     In the case of a dividend or distribution, the adjustment shall become
effective immediately after the record date for determination of the holders of
shares of Common Stock

                                        5

<PAGE>

                                                                  Execution Copy

who are entitled to receive such dividend or distribution, and in the case of a
subdivision, combination or reclassification, the adjustment shall become
effective immediately after the effective date of such corporate action. The
adjustment required by this Section 8(b) shall be made successively whenever any
event listed above shall occur.

     (c) Adjustment for Rights Issue. If the Company distributes (other than
pursuant to, or as specifically excluded from, Sections 8(d) or 8(f) hereof) any
rights, options or warrants to the holders of any series or class of its Common
Stock entitling such holders thereof at any time after the record date mentioned
below to purchase shares of Common Stock, for a period of time that exceeds 30
days, at a price per share less than the greater of 90% of the Current Market
Price or the Exercise Price per share on that record date, the Exercise Price
shall be reduced to the price determined in accordance with the formula:

                          E1 = E * ((O * M) + (N * P))
                                   -------------------
                                       (O +N) * M
where:

                  E1       =        the adjusted Exercise Price.

                  E        =        the current Exercise Price.

                  O        =        the number of shares of all classes of
                                    Common Stock  outstanding  on a Fully
                                    Diluted Basis prior to such action.

                  N        =        the maximum number of additional shares of
                                    all classes of Common Stock issuable upon
                                    exercise of the rights, options or warrants
                                    so offered.

                  P        =        the exercise price per share of additional
                                    shares issuable upon exercise of the rights,
                                    options or warrants so offered.

                  M        =        the greater of the Current Market Price or
                                    the Exercise Price per share of Common Stock
                                    on the record date.

     The adjustment shall be made successively whenever any such rights, options
or warrants are issued and shall become effective immediately after the record
date for the determination of stockholders entitled to receive such rights,
options or warrants. If (i) at the end of the period during which such rights,
options or warrants are exercisable, not all rights, options or warrants shall
have been exercised, or (ii) at any time the exercise price per share for which
shares of Common Stock are issuable pursuant to such rights, options or warrants
shall be increased or decreased, including, without limitation, by virtue of any
provision therein contained for an automatic increase or decrease in such
exercise price per share upon the occurrence of a specified date or event, then
the Exercise Price shall be immediately readjusted to what it would have been
if, in the case of clause (i) above, "N" in the above formula had been the
number of shares actually issued or, in the case of clause (ii) above, "P" in
the above formula had been the exercise price per share, as so increased or
decreased, as the case may be.

                                        6

<PAGE>

                                                                  Execution Copy

     (d) Adjustment for Distribution. If the Company distributes (including by
way of share repurchases to the extent in excess of the Current Market Price per
share but not including payments, in cash or otherwise, to any such holder in a
capacity other than as a holder of any equity securities of the Company) to the
holders of any series or class of its Common Stock any of its assets (including,
but not limited to, cash), debt securities, preferred stock, or any rights or
warrants to purchase debt securities, preferred stock, assets or other
securities of the Company, the Exercise Price shall be adjusted in accordance
with the formula:

                            E1 = E * (( M - F ) / M)

where:

                  E1       =        the adjusted Exercise Price.

                  E        =        the current Exercise Price.

                  M        =        the Current Market Price per share of Common
                                    Stock on the record date mentioned below.

                  F        =        the Fair Market Value per share (as
                                    defined in Section 8(h)) on the record date
                                    of the assets, securities, rights or
                                    warrants so distributed applicable to one
                                    share of Common Stock.

     The adjustment shall be made successively whenever any such distribution is
made and shall become effective immediately after the record date for the
determination of stockholders entitled to receive the distribution. This Section
8(d) does not apply to rights, options or warrants referred to in Sections 8(c)
or 8(f) hereof.

(e) Adjustment for Below Market Issuance of Common Stock. If the Company issues
shares of any series or class of its Common Stock for a consideration per share
less than the greater of 90% of the Current Market Price or the Exercise Price
per share on the date the Company fixes the offering price of such additional
shares, the Exercise Price shall be reduced to the price determined in
accordance with the formula:

                                E1 = E * ((O * M) + P )
                                         --------------
                                          (O + N) * M

where:

                  E1       =        the adjusted Exercise Price.

                  E        =        the current Exercise Price.

                  O        =        the number of shares of all classes of
                                    Common Stock outstanding on a Fully Diluted
                                    Basis immediately prior to the issuance of
                                    such additional shares.

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<PAGE>

                                                                  Execution Copy

                  P        =        the aggregate consideration received for the
                                    issuance of such additional shares.

                  M        =        the greater of the Current Market Price or
                                    the Exercise Price per share on the date of
                                    issuance of such additional shares.

                  N        =        the number of additional shares of all
                                    classes of Common Stock so issued in such
                                    issuance.

     The adjustment shall be made successively whenever any such issuance is
made, and shall become effective immediately after such issuance. This Section
8(e) does not apply to: (1) Common Stock issued upon the exercise of rights,
options or warrants issued in any of the transactions described in Section 8(b),
8(c), 8(d), or 8(g) hereof, (2) the exercise of the Warrants, or the conversion,
exchange or exercise of other securities outstanding on the date of this
Agreement that are convertible, exchangeable or exercisable for Common Stock, or
(3) Common Stock issued to officers, directors, consultants or employees of the
Company pursuant to any stock option, stock bonus, incentive plan or other
similar arrangement (not to exceed 1,000,000 shares (subject to adjustment in
the event of a change in capital stock as described in Section 8(b)) issuable
upon exercise in any calendar year).

     (f) Adjustment for Options, Warrants or Other Rights. If the Company issues
any options, warrants or other rights to subscribe for or purchase any shares of
Common Stock and the consideration per share for which shares of Common Stock at
any time thereafter may be issuable pursuant to such warrants, options or other
rights shall be less than either the Exercise Price or 90% of the Current Market
Price per share on the Computation Date (as defined below), then the Exercise
Price shall be adjusted as provided in Section 8(e) hereof. Such adjustment
shall be made on the basis that (i) the maximum number of shares of Common Stock
issuable pursuant to all such warrants, options or other rights or necessary to
effect the conversion, exercise or exchange of all warrants, options or other
rights shall be deemed to have been issued as of the Computation Date and (ii)
the aggregate consideration for such maximum number of shares of Common Stock
shall be deemed to be the minimum consideration received and receivable by the
Company for the issuance of such shares of Common Stock pursuant to such
warrants, options or other rights. The term "Computation Date" shall mean the
earliest to occur of (x) the date on which the Company shall enter into an
unconditional contract for the issuance of such warrants, options or other
rights, (y) the date on which a firm contract entered into by the Company for
the issuance of such warrant, options or other rights becomes unconditional and
(z) the date of actual issuance of such warrant, options or other rights. If (i)
at the end of the period during which such rights, options or warrants are
exercisable, not all rights, options or warrants shall have been exercised or,
during such period, they have lapsed, been terminated or been canceled, or (ii)
at any time the exercise price per share for which shares of Common Stock are
issuable pursuant to such rights, options or warrants shall be increased or
decreased, including, without limitation, by virtue of any provision therein
contained for an automatic increase or decrease in such exercise price per share
upon the occurrence of a specified date or event, then the Exercise Price shall
be immediately readjusted to what it would have been if, in the case of clause
(i) above, "N" in the formula in Section 8(e) had been calculated based on the
number of

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shares actually issued or, in the case of either clause (i) or clause (ii)
above, "P" in the formula in Section 8(e) had been the actual aggregate
consideration received for the issuance of such additional shares.

(g) Adjustment for Convertible Securities Issues. If the Company issues any
securities convertible into or exchangeable for Common Stock (other than
securities issued in transactions described in Sections 8(c), 8(d) and 8(f)
hereof) for a consideration per share of Common Stock initially deliverable upon
conversion or exchange of such securities less than the greater of 90% of the
Current Market Price or the Exercise Price per share on the date of issuance of
such securities, the Exercise Price shall be reduced to the price determined in
accordance with this formula:

                             E1 = E * ((O * M) + P)
                                      -------------
                                       (O + D) * M

where:

                  E1       =        the adjusted Exercise Price.

                  E        =        the current Exercise Price.

                  O        =        the number of shares of all classes of
                                    Common Stock outstanding on a Fully Diluted
                                    Basis immediately prior to the issuance of
                                    such securities.

                  P        =        the aggregate consideration received for the
                                    issuance of such securities.

                  M        =        the greater of the Current Market Price or
                                    the Exercise Price per share on the date of
                                    issuance of such securities.

                  D        =        the maximum number of all classes of
                                    Common Stock deliverable upon conversion or
                                    in exchange for such securities at the
                                    initial conversion or exchange rate.

     The adjustment shall be made successively whenever any such issuance is
made, and shall become effective immediately after such issuance. If (i) all of
the Common Stock deliverable upon conversion or exchange of such securities have
not been issued when such securities are no longer outstanding, or (ii) the
exercise price per share for which shares of Common Stock are issuable pursuant
to such securities shall be increased or decreased, including, without
limitation, by virtue of any provision therein contained for an automatic
increase or decrease in such exercise price per share upon the occurrence of a
specified date or event, then the Exercise Price shall promptly be readjusted to
the Exercise Price which would then be in effect had the adjustment upon the
issuance of such securities been made on the basis of, in the case of clause (i)
above, the actual number of shares of Common Stock issued upon conversion or
exchange of such securities or, in the case of clause (ii) above, the exercise
price per share, as so increased or decreased, as the case may be. This Section
8(g) does not apply to any of the transactions described in Sections 8(c), 8(d)
or 8(f) hereof.

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     (h) Certain Definitions.

          (1) Current Market Price. The "Current Market Price" per share of
     Common Stock on any date is:

               (i) if the Common Stock is not registered under the Securities
          Exchange Act of 1934, as amended (the "Exchange Act"), then the Fair
          Market Value per share of outstanding Common Stock based upon the Fair
          Market Value of one hundred percent (100%) of the Company if sold as a
          going concern and without regard to any discount for the lack of
          liquidity or on the basis that the relevant shares of the Common Stock
          do not constitute a majority or controlling interest in the Company;
          or

               (ii) if the Common Stock is registered under the Exchange Act,
          the average of the closing prices per share of the Common Stock for
          twenty (20) consecutive trading days prior to the date in question.
          The term "closing price" of the Common Stock on any day, as indicated
          in the next day's Wall Street Journal if so reported in The Wall
          Street Journal (or if not reported in The Wall Street Journal, as
          reported by National Quotation Bureau Incorporated or, if not so
          reported, by a nationally recognized quotation service), shall be (A)
          the reported closing price (last sale price) of the Common Stock on
          the principal stock exchange on which the Common Stock is listed, or
          (B) if the Common Stock is not listed on a stock exchange, the
          reported closing price of the Common Stock on the principal automated
          securities price quotation system on which sale prices of the Common
          Stock are reported, or (C) if the Common Stock is not listed on a
          stock exchange and sale prices of the Common Stock are not reported on
          an automated quotation system, the mean of the final bid and asked
          prices for the Common Stock as reported by National Quotation Bureau
          Incorporated if at least two (2) securities dealers have inserted both
          bid and asked quotations for the Common Stock on at least five (5) of
          the ten (10) preceding trading days. If none of the foregoing
          provisions are applicable, the Current Market Price shall be
          determined in accordance with Section 8(h)(1)(i) hereof. The term
          "trading day" shall mean (X) if the Common Stock is listed on at least
          one stock exchange, a day on which there is trading on the principal
          stock exchange on which the Common Stock is listed, (Y) if the Common
          Stock is not listed on a stock exchange but sale prices of the Common
          Stock are reported on an automated quotation system, a day on which
          trading is reported on the principal automated quotation system on
          which sales of the Common Stock are reported, or (Z) if the foregoing
          provisions are inapplicable, a day on which quotations are reported by
          National Quotation Bureau Incorporated.

          (2) Fair Market Value. The term "Fair Market Value" means the value
     obtainable upon a sale in an arm's length transaction to a third party
     under usual and normal circumstances, with neither the buyer nor the seller
     under any compulsion to act, as first determined by the Board of Directors
     of the Company (the "Board") in good faith, which determination shall be
     described in a duly adopted board resolution certified by the Company's
     Secretary or Assistant

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     Secretary. If the Board is unable to determine any Fair Market Value or, if
     the holders of at least thirty three percent (33%) of all of the Warrant
     Shares then issuable hereunder (collectively, the "Requesting Holders")
     disagree with the Board's determination of Fair Market Value by written
     notice delivered to the Company within twenty (20) business days after the
     determination thereof by the Board is communicated to holders of the
     Warrants affected thereby, which notice specifies a majority-in-interest of
     the Requesting Holders' determination of such Fair Market Value, then the
     Company and a majority-in-interest of the Requesting Holders shall select a
     mutually acceptable investment banking firm of national reputation which
     has not had a material relationship with the Company or any Warrant Holder
     or any officer or stockholder of the Company or any Warrant Holder within
     the preceding two (2) years, which shall determine such Fair Market Value
     (the "Appraiser"). The Appraiser's valuation of such Fair Market Value
     shall be final, binding and conclusive on the Company and the holders of
     all of the Warrants issued hereunder and then outstanding. Any and all
     costs and fees of the Appraiser shall be borne solely by the Company.

          (3) Fully Diluted Basis. The term "Fully Diluted Basis" means, as
     applied to the calculation of the total number of shares of Common Stock
     outstanding at any time, after giving effect to (a) all shares of Common
     Stock outstanding at the time of determination (other than shares owned by
     the Company or any of its subsidiaries) and (b) without duplication, the
     additional amount of shares of Common Stock that would then be issuable if
     all outstanding rights, as of the time of calculation, to purchase,
     exchange or convert equity securities were then exercised, but excluding
     (i) the Warrants and (ii) any such rights issued after the date of this
     Agreement, the issuance of which did not result in an adjustment to the
     Exercise Price under this Section 8.

     (i) Consideration Received. For purposes of any computation under this
Section 8 respecting consideration received, the following shall apply:

          (1) in the case of the issuance of shares of Common Stock for cash,
     the consideration shall be the amount of such cash;

          (2) in the case of the issuance of shares of Common Stock for a
     consideration in whole or in part other than cash, the consideration other
     than cash shall be deemed to be the Fair Market Value thereof; and

          (3) in the case of the issuance of securities convertible into or
     exchangeable for shares, the aggregate consideration received therefor
     shall be deemed to be the consideration received by the Company for the
     issuance of such securities plus the additional minimum consideration, if
     any, to be received by the Company upon the conversion or exchange thereof
     (the consideration in each case to be determined in the same manner as
     provided in clauses (1) and (2) of this Section 8(i)).

     (j) When Adjustment Not Required.

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          (1) Except for adjustments required for changes in capital stock
     pursuant to Section 8(b), no adjustment shall be made hereunder for any
     event taking place on or after March 27, 2008;

          (2) Unless the adjustment would require an increase or decrease of at
     least one percent (1%) in the aggregate number of shares of Common Stock
     then issuable upon exercise of the Warrants, no adjustment in the number of
     shares issuable upon exercise need be made. However, any adjustments that
     are not made shall be carried forward and taken into account in any
     subsequent adjustment, provided that no such adjustment shall be deferred
     beyond the date on which a Warrant is exercised. All calculations under
     this Section 8 shall be made to the nearest $.0001; and

          (3) If the Company shall take a record of the holders of its Common
     Stock for the purpose of entitling them to receive a dividend or
     distribution or subscription or purchase rights and shall, thereafter and
     before the distribution to stockholders thereof, legally abandon its plan
     to pay or deliver such dividend, distribution, subscription or purchase
     rights, then thereafter no adjustment shall be required by reason of the
     taking of such record and any such adjustment previously made in respect
     thereof shall be rescinded and annulled.

     (k) Notice of Adjustment. Whenever the Exercise Price is adjusted, the
Company shall provide the notices required by Section 11 hereof.

     (l) Reorganization of the Company. If any capital reorganization or
reclassification of the capital stock of the Company, any consolidation or
merger of the Company with another entity, or the sale or lease of all or
substantially all of the Company's assets to another entity shall be effected in
such a way that holders of Common Stock of the Company shall be entitled to
receive stock, securities or assets with respect to or in exchange for such
Common Stock, then, as a condition precedent to such reorganization,
reclassification, consolidation, merger, sale or lease, lawful and adequate
provisions shall be made whereby the holder of a Warrant shall thereafter have
the right to purchase and receive upon the basis and the terms and conditions
specified in this Agreement and in lieu of the shares of Warrant Shares
immediately theretofore purchasable and receivable upon the exercise of the
rights represented by such Warrant, the same consideration it would have been
entitled to had such rights been exercised immediately prior thereto, and in any
such case appropriate provision shall be made with respect to the rights and
interests of the holder of the Warrant to the end that the provisions hereof
(including without limitation, other than in the case of any such consolidation
or merger that results in a Change of Control (as defined in the Credit
Agreement as in effect on the date hereof) provisions for adjustments of the
Exercise Price and of the number of Warrant Shares purchasable and receivable
upon the exercise of the Warrants) shall thereafter be applicable, as nearly as
may be, in relation to any shares of stock, securities or assets thereafter
deliverable upon the exercise hereof. The Company will not effect any such
consolidation, merger, sale or lease, unless prior to the consummation thereof
the successor Person (if other than the Company) resulting from such
consolidation or merger or the Person purchasing or leasing such assets shall
assume the obligation to deliver to such holder, such shares of stock,
securities or assets as, in accordance with the foregoing provisions, such
holder may be entitled to purchase.

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     (m) Adjustment in Number of Shares. Upon each adjustment of the Exercise
Price pursuant to this Section 8, each Warrant shall thereafter evidence the
right to receive upon payment of the adjusted Exercise Price that number of
shares of Common Stock (calculated to the nearest hundredth) obtained from the
following formula:

                               N1 = N * ( E / E1 )

where:

                  N1       =        the adjusted number of Warrant Shares
                                    issuable upon exercise of such Warrant by
                                    payment of the adjusted Exercise Price.

                  N        =        the number of Warrant Shares previously
                                    issuable upon the exercise of such Warrant
                                    by payment of the Exercise Price prior to
                                    adjustment.

                  E1       =        the adjusted Exercise Price.

                  E        =        the Exercise Price prior to the adjustment.

     (n) Form of Warrant. Irrespective of any adjustments in the Exercise Price
or the number or kind of shares purchasable upon the exercise of a Warrant, a
Warrant theretofore or thereafter issued may continue to express the same price
and number and kind of shares as are stated in the Warrant initially issuable
pursuant to this Agreement.

     (o) Other Dilutive Events. If any other transaction or event (other than
those explicitly referred to in this Section 8) shall occur as to which the
other provisions of this Section 8 are not strictly applicable but the failure
to make any adjustment to the Exercise Price or to any of the other terms of the
Warrants would not fairly protect the purchase rights and other rights
represented by the Warrants in accordance with the essential intent and
principles hereof and thereof, then, and as a condition to the consummation of
any such transaction or event, and in each such case, the Company shall appoint
a firm of independent certified public accountants of recognized national
standing (which may be the regular auditors of the Company), which shall give
its opinion as to the adjustment, if any, on a basis consistent with the
essential intent and principles established in this Section 8, necessary to
preserve, without dilution, the rights represented by the Warrants. The Company
shall pay the fees and expenses of such firm of accountants in connection with
any such opinion. Upon receipt of such opinion, the Company will promptly
deliver a copy thereof to the Warrant Holders and shall make the adjustments
described therein.

     (p) Par Value. If the effect of any such adjustment is to reduce the
Exercise Price below the then par value (if any) of the Warrant Shares, the
Company will take any corporate action which may, in the opinion of its counsel,
be necessary in order that the Company may validly and legally issue fully paid
and nonassessable Warrant Shares at the Exercise Price as so adjusted.

     (q) Shares Outstanding. The number of shares of Common Stock deemed to be
outstanding at any given time shall not include shares of Common Stock held by
the Company or any Subsidiary of the Company.

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     Section 9. Registration Rights.

     (a) Definitions. For purposes of this Section 9 the following terms shall
have the below indicated meanings:

          "Commission" means the United States Securities and Exchange
     Commission.

          A "holder" of Registrable Shares shall mean any Person that holds any
     Warrants or Warrant Shares.

          "Registrable Shares" shall mean any issued or issuable Warrant Shares,
     except that, as to any particular Registrable Shares, such securities, once
     issued, will cease to be Registrable Shares when (a) a registration
     statement covering such securities has been declared effective and remain
     effective in accordance with Section 9(c)(i) or (b) such securities have
     been sold to the public.

          "Registration Expenses" shall mean all expenses incurred in effecting
     any registration hereunder, including, without limitation, all
     registration, qualification, and filing fees, printing expenses, escrow
     fees, fees and disbursements of counsel for the Company, blue sky fees and
     expenses, and expenses of any regular or special audits incident to or
     required by any such registration, but shall not include Selling Expenses.

          "Selling Expenses" shall mean all underwriting discounts and selling
     commissions applicable to the sale of Registrable Shares and fees and
     disbursements of counsel for any selling holder of Registrable Shares.

     (b) Registration. The Company shall use commercially reasonable efforts to
file with the Commission as soon as practicable after the Closing (but in no
event more than sixty (60) days) a registration statement providing for the
registration of resales of the Registrable Shares.

     (c) Registration Procedures. In connection with the foregoing registration,
the Company will as expeditiously as possible and at its expense:

          (i) cause such registration statement to become or be declared
     effective as soon as practicable after such filing and to remain effective
     until the earlier of two years or until all Registrable Shares covered
     thereby have been sold;

          (ii) prepare and file with the Commission such amendments and
     supplements to such registration statement and the prospectus used in
     connection therewith as may be necessary to keep such registration
     statement effective, and otherwise as may be necessary to comply with the
     provisions of the Act with respect to the disposition of all Registrable
     Shares covered by such registration statement in accordance with the
     intended methods of disposition by the holders of the Registrable Shares
     set forth in such registration statement;

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          (iii) furnish to each holder of Registrable Shares and the
     underwriters, if any, of the Registrable Shares such number of copies of
     such registration statement, each amendment and supplement thereto, the
     prospectus included in such registration statement (including each
     preliminary prospectus) and such other documents as such holder or
     underwriters may reasonably request in order to facilitate the disposition
     of the Registrable Shares of such holder or the sale of such Registrable
     Shares by such underwriters;

          (iv) comply with the applicable blue sky laws of such jurisdictions as
     any holder of Registrable Shares reasonably requests and do any and all
     other acts and things which may be reasonably necessary or advisable to
     enable such holder to consummate the disposition in such jurisdictions of
     the Registrable Shares owned by such holder (provided that the Company will
     not be required to (x) qualify generally to do business in any jurisdiction
     where it would not otherwise be required to qualify but for this clause, or
     (y) consent to general service of process in any such jurisdiction);

          (v) cause all Registrable Shares to be listed on each securities
     exchange on which similar securities issued by the Company are then listed;

          (vi) provide a transfer agent and registrar for all Registrable
     Shares;

          (vii) enter into such customary agreements (including underwriting
     agreements in customary form) and take all such other reasonable and
     customary actions as the holders of at least a majority of the Registrable
     Shares being sold or the underwriters, if any, reasonably request in order
     to expedite or facilitate the disposition of such Registrable Shares;

          (viii) notify each holder of Registrable Shares, promptly after it
     shall receive notice thereof, of the time when such registration statement
     has become effective or a supplement to any prospectus forming a part of
     such registration statement has been filed;

          (ix) notify each holder of Registrable Shares of any request by the
     Commission for the amending or supplementing of such registration statement
     or prospectus or for additional information;

          (x) prepare and file with the Commission, promptly upon the request of
     any holder of Registrable Shares, any amendments or supplements to such
     registration statement or prospectus which is required under the Act or the
     rules and regulations thereunder in connection with the distribution of
     Registrable Shares by such holder;

          (xi) prepare and promptly file with the Commission and immediately
     notify each holder of Registrable Shares of the filing of such amendment or
     supplement to such registration statement or prospectus as may be necessary
     to correct any statements or omissions if, at the time when a prospectus
     relating to such securities is required to be delivered under the Act, any
     event shall have occurred as the result of which any such prospectus or any
     other prospectus as then in effect would include an untrue statement of

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     a material fact or omit to state any material fact necessary to make
     the statements therein, in the light of the circumstances in which they
     were made, not misleading;

          (xii) advise each holder of Registrable Shares, immediately after it
     shall receive notice or obtain knowledge thereof, of the issuance of any
     stop order by the Commission suspending the effectiveness of such
     registration statement or the initiation or threatening of any proceeding
     for such purpose and promptly use its commercially reasonable efforts to
     obtain its withdrawal if such stop order should be issued; and

          (xiii) prior to the filing of any registration statement or prospectus
     or any amendment or supplement to such registration statement or
     prospectus, furnish a copy thereof to a designated counsel for all such
     holders of Registrable Shares and refrain from filing any such registration
     statement, prospectus, amendment or supplement to which such counsel to the
     holders of Registrable Shares shall have reasonably objected in a timely
     manner on the grounds that such amendment or supplement does not comply in
     all material respects with the requirements of the Act or the rules and
     regulations thereunder, unless, in the case of an amendment or supplement,
     in the opinion of counsel for the Company the filing of such amendment or
     supplement is reasonably necessary to protect the Company from any
     liabilities under any applicable federal or state law and such filing will
     not violate applicable laws.

Notwithstanding the above requirements, the Company shall not be required to
amend or supplement any registration statement, any related prospectus or any
document incorporated therein by reference for a period (the "Black Out Period")
not to exceed, for so long as this Agreement is in effect, an aggregate of 90
days in any calendar year, in the event that (A) an event occurs and is
continuing as a result of which the registration statement, any related
prospectus or any document incorporated therein by reference as then amended or
supplemented would, in the Company's good faith judgment, contain an untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances under which
they were made, not misleading, and (B)(1) the Company determines in its good
faith judgment that the disclosure of such event at such time would have a
material adverse effect on the business, operations or prospects of the Company
or (2) the disclosure otherwise relates to a material business transaction which
has not yet been publicly disclosed.

The Company may require any holder of Registrable Shares to furnish to the
Company such information regarding such holder and the intended distribution of
its Registrable Shares and such other information as the Company may from time
to time reasonably request in writing in connection with the registration.

Each of the holders of Registrable Shares agrees that, upon receipt of any
notice from the Company of the happening of any event of the kind described in
Section 9(c)(xi), such holder will forthwith discontinue the disposition of
Registrable Shares pursuant to the registration statement covering such
Registrable Shares until such holder receives copies of the supplemented or
amended prospectus contemplated by such Section, and, if so directed by the
Company, each holder will deliver to the Company (at the Company's expense) all
copies, other than permanent file copies then in such holder's possession, of
the prospectus covering such

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Registrable Shares current at the time of receipt of such notice. Each holder of
Registrable Shares also agrees to notify the Company of any event relating to
such holder that occurs that would require the preparation of a supplement or
amendment to the prospectus so that such prospectus will not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading.

     (d) Registration Expenses. All Registration Expenses incurred pursuant to a
registration hereunder will be borne by the Company, and all Selling Expenses of
a holder of Registrable Shares shall be borne solely by such holder.

     (e) Indemnification by the Company. To the extent permitted by applicable
law, the Company agrees to indemnify and hold harmless each holder of
Registrable Shares, its officers, directors, partners, attorneys and agents and
each Person, if any, who controls each holder within the meaning of Section 15
of the Act or Section 20 of the Exchange Act (the "Indemnified Persons"), from
and against any and all losses, claims, damages (whether in contract, tort or
otherwise), liabilities and expenses (including reasonable costs of
investigation and reasonable attorneys' fees) whatsoever (as incurred or
suffered) arising out of or based upon (i) any violation or alleged violation by
the Company of the Act, the Exchange Act, any state securities law or any rule
or regulation promulgated under the Act, the Exchange Act or any state
securities law or (ii) any untrue statement or alleged untrue statement of a
material fact contained in any registration statement or prospectus relating to
the Registrable Shares or in any amendment or supplement thereto or in any
preliminary prospectus, or arising out of or based upon any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, except insofar as such
losses, claims, damages, liabilities or expenses arise out of, or are based
upon, any such untrue statement or omission or allegation thereof that is based
solely upon information furnished in writing to the Company by such Indemnified
Person or on behalf of such Indemnified Person expressly for use therein. The
Company also agrees to indemnify any underwriters of the Registrable Shares,
their officers, partners and directors and each Person who controls such
underwriters on substantially the same basis as that of the indemnification of
the Indemnified Persons provided in this Section or such other indemnification
customarily obtained by underwriters at the time of offering.

     (f) Conduct of Indemnification Proceedings. If any action or proceeding
(including any governmental investigation) shall be brought or asserted against
any Indemnified Person in respect of which indemnity may be sought from the
Company, the Company shall assume the defense thereof, including the employment
of counsel reasonably satisfactory to the Indemnified Persons, and shall assume
the payment of all expenses. Each of the Indemnified Persons shall have the
right to employ separate counsel in any such action and to participate in the
defense thereof, but the fees and expenses of such counsel shall be at the
expense of such Indemnified Person unless (i) the Company has agreed to pay such
fees and expenses or (ii) such Indemnified Person shall have been advised by
counsel that there may be one or more legal defenses available to such
Indemnified Person which are different from or additional to those available to
other Indemnified Persons or the Company (in which case, if such Indemnified
Person notifies the Company in writing that it elects to employ separate counsel
at the expense of the Company, the Company shall not have the right to assume
the defense of such action or proceeding on behalf of such Indemnified Person)
or (iii) the use of counsel chosen by the

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Company to represent such Indemnified Person would present such counsel with a
conflict of interest or (iv) the Company shall not have employed counsel
reasonably satisfactory to such Indemnified Person to represent such Indemnified
Person within a reasonable time after notice of the institution of such action;
it being understood, however, that, unless one of the situations described in
clauses (i) through (iii) shall exist with respect to the employment of the same
counsel for more than one Indemnified Person, the Company shall not, in
connection with any one such action or proceeding or separate but substantially
similar or related actions or proceedings in the same jurisdiction arising out
of the same general allegations or circumstances, be liable for the fees and
expenses of more than one separate firm of attorneys (together with appropriate
local counsel) at any time for the Indemnified Persons, which firm shall be
designated in writing by the holders of at least 80% of the Registrable Shares.
The Company shall not be liable for any settlement of any such action or
proceeding effected without the Company's written consent (such consent not to
be unreasonably withheld), but if settled with its written consent, or if there
be a final judgment for the plaintiff in any such action or proceeding, the
Company agrees to indemnify and hold harmless the Indemnified Persons from and
against any loss or liability by reason of such settlement or judgment. The
Company shall not, without the prior written consent of the Indemnified Person,
settle or compromise or consent to the entry of any judgment with respect to any
pending or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought by such Indemnified Person
hereunder (whether or not such Indemnified Person is an actual or potential
party to such claim or action) unless such settlement, compromise or consent
includes an unconditional release of such Indemnified Person from all liability
arising out of such claim, action, suit or proceeding and imposes no obligations
on such Indemnified Person other than monetary payments to be paid in full by
the Company at the time of such settlement.

     (g) Indemnification by Holder of Registrable Shares. Each holder of
Registrable Shares agrees to indemnify and hold harmless the Company, its
directors and officers and each Person, if any, who controls the Company within
the meaning of either Section 15 of the Act or Section 20 of the Exchange Act,
to the same extent as the foregoing indemnity from the Company to the
Indemnified Persons, but only with respect to information furnished in writing
by such holder of Registrable Shares or on behalf of such holder expressly for
use in any registration statement or prospectus relating to the Registrable
Shares, or any amendment or supplement thereto, or any preliminary prospectus.
In case any action or proceeding shall be brought against the Company or its
directors or officers, or any such controlling Person, in respect of which
indemnity may be sought against a holder of Registrable Shares, such holder
shall have the rights and duties given to the Company, and the Company or its
directors or officers or such controlling Person shall have the rights and
duties given to the Indemnified Persons pursuant to Section 9(e).
Notwithstanding the foregoing, the liability of each holder of Registrable
Shares pursuant to this Section 9(g) shall not exceed the amount of the
aggregate net offering proceeds of the Registrable Shares received by such
holder.

     (h) Contribution. If the indemnification provided for in this Section 9 is
unavailable to an indemnified party in respect of any losses, claims, damages,
liabilities or judgments referred to herein, then each indemnifying party, in
lieu of indemnifying such indemnified party, shall contribute to the amount paid
or payable by such indemnified party as a result of such losses, claims,
damages, liabilities and expenses in such proportion as is appropriate to
reflect the relative fault of the indemnifying party on the one hand and of the

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indemnified party on the other in connection with the statements or omissions
that resulted in such loss, claim, damage, liability or expense as well as any
equitable considerations. The relative fault of the indemnifying party and of
the indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the indemnifying party or by the indemnified party, and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

The Company and the holders of Registrable Shares agree that it would not be
just and equitable if contribution pursuant to this Section 9(h) were determined
by pro rata allocation (even if the holders were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in the immediately preceding paragraph. The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages, liabilities, or expenses referred to in the immediately
preceding paragraph shall be deemed to include, subject to the limitations set
forth above, any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Section 9(h), no holder of Registrable
Shares shall be required to contribute any amount in excess of the aggregate net
offering proceeds received by any such holder from the sale of its Registrable
Shares. No Person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Act) shall be entitled to contribution from any Person who
was not guilty of such fraudulent misrepresentation.

     (i) Indemnification Payments. The indemnification and contribution required
by this Section 9 shall be made by periodic payments of the amount thereof
during the course of the investigation or defense, as and when bills are
received or expense, loss, damage or liability are incurred.

     Section 10. Notices. All communications provided for herein shall be in
writing and sent (a) by telecopy if the sender on the same day sends a
confirming copy of such communication by a recognized overnight delivery service
(charges prepaid), (b) by a recognized overnight delivery service (charges
prepaid), or (c) by messenger. The respective addresses of the parties hereto
for the purposes of this Agreement are as set forth in the Credit Agreement and
the Note Agreement. Any party may change its address (or telecopy number) by
notice to each of the other parties in accordance with this Section 10.
Communications under this Agreement shall be deemed given only when actually
received.

     Section 11. Binding Agreement. This Agreement shall be binding on and shall
inure to the benefit of each of the parties hereto and their respective
successors and assigns.

     Section 12. Specific Performance. The parties hereto stipulate that the
remedies at law of any party hereto in the event of any default or threatened
default by any other party hereto in the performance of or compliance with the
terms hereof are not and will not be adequate and that, to the fullest extent
permitted by law, such terms may be specifically enforced by a decree for the
specific performance thereof, whether by an injunction against violation thereof
or otherwise.

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     Section 13. Covenants of the Company

     (a) No Impairment or Amendment. The Company shall not by any action
including, without limitation, amending its charter, any reorganization,
recapitalization, transfer of assets, consolidation, merger, dissolution, issue
or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Agreement or the Warrants,
but will at all times in good faith assist in the carrying out of all such terms
and in the taking of all such action as may be necessary or appropriate to
protect the rights of the Warrant Holders against impairment. Without limiting
the generality of the foregoing, the Company will (a) use its commercially
reasonable efforts to take such action as may be necessary or appropriate in
order that the Company may validly issue fully paid and nonassessable Warrant
Shares, and to obtain and maintain all such authorizations, exemptions or
consents from any public regulatory body having jurisdiction as may be necessary
to enable the Company to perform its obligations under this Agreement and the
Warrants, and (b) will not issue any capital stock or enter into any agreement,
the terms of which would have the effect, directly or indirectly, of preventing
the Company from honoring its obligations hereunder.

     (b) State Securities Laws. The Company hereby agrees to comply, to the
extent applicable, with all state securities or "blue sky" laws regarding the
issuance of the Warrants.

     Section 14. Notices to Warrant Holders.

     (a) Upon any adjustment of the Exercise Price pursuant to Section 8 hereof,
the Company shall promptly thereafter (i) cause to be filed with the Company an
officer's certificate, or a certificate of a firm of independent public
accountants of recognized standing selected by the Board (who may be the regular
auditors of the Company), setting forth the Exercise Price after such adjustment
and setting forth in reasonable detail the method of calculation and the facts
upon which such calculations are based and setting forth the number of Warrant
Shares (or portion thereof) issuable after such adjustment in the Exercise
Price, upon exercise of the Warrants and payment of the adjusted Exercise Price,
and (ii) cause to be given to each Warrant Holder written notice of such
adjustments. Where appropriate, such notice may be given in advance and included
as a part of the notice required to be mailed under the other provisions of this
Section 14.

     (b) In the event (i) that the Company shall authorize the issuance of
rights, options or warrants to subscribe for or purchase shares of Common Stock
or of any other subscription rights or warrants, (ii) that the Company shall
authorize the distribution to any holders of shares of Common Stock of evidences
of its indebtedness or assets (including without limitation ordinary quarterly
cash dividends), (iii) of any consolidation or merger to which the Company is a
party and for which approval of any stockholders of the Company is required or
of the conveyance or transfer of substantially all of the properties and assets
of the Company or of any reclassification or change of Common Stock issuable
upon exercise of a Warrant (other than a change in par value, or from par value
to no par value, or from no par value to par value, or as a result of a
subdivision or combination), or a tender offer or exchange offer made by the
Company for shares of Common Stock, (iv) of the voluntary or involuntary
dissolution, liquidation or winding up of the Company, (v) that the Company
proposes to take any action

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which would require an adjustment of the Exercise Price pursuant to Section 8
hereof, or (vi) that the Company proposes to issue, sell, grant or distribute
any equity security of the Company, then the Company shall cause to be given to
each registered holder of a Warrant Certificate, at least three (3) days prior
to the applicable record date hereinafter specified, or promptly in the case of
events for which there is no record date, a written notice stating (A) the date
as of which the Persons to which such rights, options, warrants or distribution
are to be made is determined, (B) the initial expiration date set forth in any
tender offer or exchange offer made by the Company for shares of Common Stock,
(C) the date on which any such reclassification, consolidation, merger,
conveyance, transfer, dissolution, liquidation or winding up is expected to
become effective or consummated, and the date as of which it is expected that
holders of record of shares of Common Stock shall be entitled to exchange such
shares for securities or other property, if any, deliverable upon such
reclassification, consolidation, merger, conveyance, transfer, dissolution,
liquidation or winding up or (D) the date on which any such issuance, sale,
grant or distribution is expected to become effective or consummated.

     (c) The Company shall distribute to the Warrant Holders copies of all
notices, materials, annual and quarterly reports, proxy statements, information
statements and any other documents distributed generally to the holders of
shares of Common Stock at such times and by such method as such documents are
distributed to such holders of shares of Common Stock. Nothing contained in this
Agreement or in a Warrant Certificate, however, shall be construed as conferring
upon the holder thereof the right to vote or to consent or to receive notice as
a stockholder in respect of the meetings of stockholders or the election of the
Board or any other matter, or any right whatsoever as a stockholder of the
Company.

     (d) The Company shall deliver to each Warrant Holder written notice of the
expiration of the Exercise Period of such Warrant. Such notice shall be
delivered by the Company not less than five (5) days prior to the existing
expiration date of the Exercise Period of such Warrant.

     (e) Each of the Note Agreement Warrant Holders hereby agrees to be bound by
the confidentiality provisions of Section 24 of the Note Agreement (as in effect
on the date hereof), with references therein to "this Agreement," "Noteholders"
and "Notes" being deemed instead references to this Agreement, the Note
Agreement Warrant Holders and the Warrants and Warrants Shares. Each of the
Credit Agreement Warrant Holders hereby agrees to be bound by the
confidentiality provisions of Section 16.20(d) of the Credit Agreement (as in
effect on the date hereof), with references therein to the "Lenders" being
deemed instead references to Credit Agreement Warrant Holders.

     Section 15. The Company's Representations and Warranties. The Company
represents and warrants that:

          (a) Organization, Standing and Qualification. The Company is a
     corporation duly organized, validly existing and in good standing under the
     laws of the jurisdiction of its incorporation.

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          (b) Authority. The Company has all requisite corporate power and
     authority to enter into and perform all of its obligations under this
     Agreement, to issue the Warrants and to carry out the transactions
     contemplated hereby.

          (c) Due Authorization. The Company has taken all corporate actions
     necessary to authorize it to enter into and perform its obligations under
     this Agreement and to consummate the transactions contemplated hereby. This
     Agreement is the legal, valid and binding obligation of the Company,
     enforceable in accordance with its terms, except for (i) the effect upon
     this Agreement of bankruptcy, insolvency, fraudulent conveyance,
     reorganization, moratorium and other similar laws relating to or affecting
     the rights of creditors generally, and (ii) limitations imposed by
     equitable principles or principles of public policy upon the specific
     enforceability of any of the remedies, covenants or other provisions of
     this Agreement and upon the availability of injunctive relief or other
     equitable remedies.

          (d) Shares to be Fully Paid; Reservation of Shares. All shares of
     Common Stock which may be issued upon the exercise of the rights
     represented by the Warrants will, upon issuance, be duly authorized,
     validly issued, fully paid, nonassessable, free of preemptive rights and
     free from all taxes, liens, charges and security interests (other than
     those created by any Warrant Holders). If and so long as the outstanding
     shares of Common Stock may be listed on any securities exchange in the
     United States, the Company shall use its reasonable efforts to cause all
     Warrant Shares reserved for issuance upon exercise of the Warrants to be
     listed on each such exchange upon official notice of issuance upon such
     exercise. The aggregate number of outstanding shares of Common Stock
     (calculated on a Fully Diluted Basis) on the Closing Date is 17,051,345.

          (e) No Adjustment of Other Shares on Issuance. Neither the issuance
     nor the exercise of the Warrants will cause the rate at which any of the
     Company's outstanding securities are ultimately convertible into Common
     Stock to change nor will such issuance or exercise invoke any
     "antidilution" feature of any of the Company's outstanding securities or
     rights to purchase securities.

          (f) Current Public Information. The Company will file all reports
     required to be filed by it under the Act and the Exchange Act and the rules
     and regulations adopted by the Commission thereunder, and will take such
     further action as any Warrant Holder may reasonably request, all to the
     extent required to enable such Warrant Holder to sell Warrant Shares
     pursuant to Rule 144 or, if applicable, Rule 144A adopted by the Commission
     under the Act.

     Section 16. Waivers. No waiver by any party of any default with respect to
any provision, condition of requirement of this Agreement shall be deemed to be
a continuing waiver in the future or a waiver of any other provision, condition
or requirement hereof nor shall any delay or omission of any party to exercise
any right hereunder in any manner impair the exercise of any such right accruing
to it thereafter. No course of dealing between any parties hereto and no delay
by any party in exercising its rights hereunder shall operate as a waiver of any
rights of any party. No waiver shall be deemed to be made by any party of its
rights hereunder unless the same shall be in writing signed on behalf of such
party, and each waiver, if any, shall be a waiver only with respect to the
specific instance involved and shall in no way impair the rights or obligations
of any other party in any other respect at any other time.

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                                                                  Execution Copy

     Section 17. Governing Law; Consent to Jurisdiction. This Agreement and each
Warrant Certificate issued hereunder shall be deemed to be an instrument made
under the laws of the State of Illinois , except to the extent the laws of the
State of Delaware apply, and for all purposes shall be governed by and construed
and enforced in accordance with the internal laws of such state without regard
to such state's principles of conflict of laws. The Company (i) hereby
irrevocably submits to the non-exclusive jurisdiction of any state or federal
court sitting in the City of Chicago over any suit, action or proceeding arising
out of or relating to this Agreement and (ii) hereby waives, and agrees not to
assert in any such suit, action or proceeding, any claim that it is not subject
to the jurisdiction of such court, that the suit, action or proceeding is
brought in an inconvenient forum or that the venue of the suit, action or
proceeding is improper. The Company consents to being served in any such suit,
action or proceeding by mailing a copy thereof to it at the address in effect
for notices to it under this Agreement and agrees that such service shall
constitute good and sufficient service of process and notice thereof. Nothing in
this paragraph shall affect or limit any right to serve process in any other
manner permitted by law.

     Section 18. Amendment. Any term, covenant, agreement or condition of this
Agreement or the Warrants may, with the consent of the Company, be amended, or
compliance therewith may be waived (either generally or in a particular instance
and either retroactively or prospectively), by one or more substantially
concurrent written instruments signed by the holders of 80% or more of the
Warrants, provided that (a) no such amendment or waiver shall change the number
of Warrant Shares issuable upon the exercise of any Warrant or the manner of
exercise or the amount of any payment due upon exercise without the prior
written consent of the holder of such Warrant and (b) no such amendment or
waiver shall extend to or affect any obligation not expressly amended or waived
or impair any right consequent thereon.

     Section 19. Math Computation Conventions. For each of the calculations in
Section 8; "=" shall mean equals; "+" shall mean plus or increased by; "-" shall
mean less, minus, take away or reduced by; "*" shall mean times or multiplied
by; and "/" shall mean divided by. All other normal math conventions shall be
applied to any calculations herein.

     Section 20. Headings. The headings herein are for convenience only, do not
constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

     Section 21. Severability. If any provision of this Agreement be held to be
illegal, invalid or unenforceable under any present or future law, and if the
rights or obligations of any party hereto will not be materially and adversely
affected thereby, such provision will be fully severable.

     Section 22. Entire Agreement. This Agreement, together with the Warrants,
the Credit Agreement, the Note Agreement, the other Note Documents (as defined
in the Note Agreement) and the other Loan Documents, contains the entire
understandings of the parties with respect to the matters covered hereby and
except as specifically set forth herein or therein, none of the parties hereto
makes any representation, warranty, covenant or undertaking with respect to such
matters.

     Section 23. Execution. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement and
shall become

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                                                                  Execution Copy

effective when counterparts have been signed by each party and delivered to the
other parties, it being understood that the parties need not sign the same
counterpart.

     Section 24. Descriptive Headings. The descriptive headings of the several
paragraphs of this Agreement are inserted for convenience only and do not
constitute a part of this Agreement.

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                                                                  Execution Copy

                                WARRANT AGREEMENT

                                 Signature Page

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed as an instrument under seal in accordance with the terms set forth
herein.

                           MIDAS, INC.

                           By:__________________________________________________

                           Name:
                           Title:

                           BANK ONE, NA

                           By:__________________________________________________

                           Name:
                           Title:

                           CREDIT SUISSE FIRST BOSTON

                           By:__________________________________________________

                           Name:
                           Title:

                           ABN AMRO BANK N.V.

                           By:__________________________________________________

                           Name:
                           Title:

                           BNP PARIBAS

                           By:__________________________________________________

                           Name:
                           Title:

                           By:__________________________________________________

                           Name:
                           Title:

Counterpart Signature Page
Warrant Agreement

<PAGE>

Execution Copy

                           MIZUHO CORPORATE BANK, LTD.

                           By:__________________________________________________

                           Name:
                           Title:

                           THE NORTHERN TRUST COMPANY

                           By:__________________________________________________

                           Name:
                           Title:

                           U.S. BANK NATIONAL ASSOCIATION

                           By:__________________________________________________

                           Name:
                           Title:

Counterpart Signature Page
Warrant Agreement

<PAGE>

Execution Copy

                           CONNECTICUT GENERAL LIFE INSURANCE
                           COMPANY
                           By CIGNA Investments, Inc.

                           By:__________________________________________________

                           Name:
                           Title:

                           CONNECTICUT GENERAL LIFE INSURANCE
                           COMPANY ON BEHALF OF ONE OR MORE
                           SEPARATE ACCOUNTS
                           By CIGNA Investments, Inc.

                           By:__________________________________________________

                           Name:
                           Title:

                           CANADA LIFE INSURANCE COMPANY OF AMERICA

                           By:__________________________________________________

                           Name:
                           Title:

                           CANADA LIFE INSURANCE COMPANY OF NEW YORK

                           By:__________________________________________________

                           Name:
                           Title:

                           SOUTHERN FARM BUREAU LIFE INSURANCE COMPANY

                           By:__________________________________________________

                           Name:
                           Title:

Counterpart Signature Page
Warrant Agreement

<PAGE>

                                                                  Execution Copy

                           AMERICAN GENERAL LIFE INSURANCE
                           COMPANY
                           THE UNITED STATES LIFE INSURANCE
                           COMPANY IN THE CITY OF NEW YORK
                           By AIG Global Investment Corp., investment
                           adviser

                           By:__________________________________________________

                           Name:
                           Title:

                           THE TRAVELERS INSURANCE COMPANY

                           By:__________________________________________________

                           Name:
                           Title:

                           FIRST TRENTON INDEMNITY COMPANY

                           By:__________________________________________________

                           Name:
                           Title:

Counterpart Signature Page
Warrant Agreement

<PAGE>

                                                                  Execution Copy

                                    EXHIBIT A

                           FORM OF WARRANT CERTIFICATE

    THESE WARRANTS AND THE SHARES PURCHASABLE HEREUNDER HAVE NOT BEEN
    REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
    APPLICABLE STATE SECURITIES LAWS AND MUST BE HELD INDEFINITELY UNLESS
    SUBSEQUENTLY REGISTERED UNDER SAID ACT AND ANY APPLICABLE STATE
    SECURITIES LAWS OR DISPOSED OF PURSUANT TO AN EXEMPTION FROM SUCH
    REGISTRATION REQUIREMENTS. THESE WARRANTS AND THE SHARES OF COMMON
    STOCK PURCHASABLE HEREUNDER ARE SUBJECT TO RESTRICTIONS ON TRANSFER AS
    SET FORTH IN THE WARRANT AGREEMENT REFERRED TO BELOW. A COPY OF THE
    ABOVE REFERENCED AGREEMENT IS ON FILE AT THE OFFICES OF THE COMPANY.

                                   MIDAS, INC.

                                    WARRANTS

                           Dated as of _______ __, ___

Warrant Certificate No. R-__                                         __ Warrants

     MIDAS, INC. a Delaware corporation (the "Company"), by this certificate (a
"Warrant Certificate") certifies that, for value received, ____________________
or any registered assigns thereof is the registered holder of warrants (said
warrants and any warrants issued in exchange therefor or transfer or replacement
thereof being hereinafter collectively referred to as the "Warrant") to purchase
from the Company __________________________ (_______) fully paid and
nonassessable shares (together with shares issued upon exchange, transfer or
replacement thereof, the "Shares") of common stock of the Company, at any time
or from time to time during the Exercise Period, at an exercise price of One
Cent ($0.01) per share, subject to adjustment as provided in the Warrant
Agreement referred to below (as such price may be adjusted, the "Exercise
Price"), upon surrender of this Warrant Certificate and payment of the Exercise
Price therefor in accordance with the Warrant Agreement referred to below.

     The Warrant is subject to the terms and conditions of that certain Warrant
Agreement dated as of March __, 2003, as amended, modified and supplemented from
time to time.

<PAGE>

                                                                  Execution Copy

     IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be
signed as an instrument under seal by its duly authorized officer as of the date
indicated below.

Dated:  March  __, 2003                     MIDAS, INC.

                                            By: ________________________________

                                            Name:
                                            Title:

<PAGE>

                                                                  Execution Copy

                           FORM OF NOTICE OF EXERCISE

               (To be executed only upon partial or full exercise
                             of the within Warrant)

     The undersigned registered holder of the within Warrant irrevocably
exercises the within Warrant for and purchases _______shares of Common Stock of
MIDAS, INC. and herewith makes payment therefor in the amount of $ ___, all at
the price, in the manner and on the terms and conditions specified in the within
Warrant and the Warrant Agreement referred to therein, and requests that a
certificate (or _____certificates in denominations of ________shares of Common
Stock) for such shares of Common Stock hereby purchased be issued in the name of
and delivered to [choose one] (a) the undersigned or (b) _________________,
whose address is _________________and, if such shares of Common Stock shall not
include all the Shares issuable as provided in the within Warrant, that a new
Warrant of like tenor for the Shares not being purchased hereunder be issued in
the name of and delivered to [choose one] (a) the undersigned or (b)
__________________, whose address is ____________________. -- -

Dated: _______, __.

                                                [                              ]

                                                By _____________________________

                                                (Signature of Registered Holder)

<PAGE>

                                                                  Execution Copy

                                                                       Exhibit 3

                               FORM OF ASSIGNMENT

                    (To be executed only upon the assignment
                             of the within Warrant)

         FOR VALUE RECEIVED, the undersigned registered holder of the within
Warrant hereby sells, assigns and transfers unto ________________________, whose
address is _________________________________________, all of the rights of the
undersigned under the within Warrant, with respect to ____shares of Common Stock
of MIDAS, INC. and, if such shares of Common Stock shall not include all the
Shares issuable as provided in the within Warrant, that a new Warrant of like
tenor for the Shares not being transferred hereunder be issued in the name of
and delivered to [choose one] (a) the undersigned or (b) _____________________,
whose address is ______________________________________, and does hereby
irrevocably constitute and appoint ______________Attorney to register such
transfer on the books of MIDAS, INC. maintained for the purpose, with full power
of substitution in the premises.

Dated: ________, __.

                                               [                               ]

                                                By _____________________________

                                                (Signature of Registered Holder)

<PAGE>

                                                                  Execution Copy

                                   Schedule 1

[Names of Warrant Holders]                                    Number of Warrants

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