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                                                                    Exhibit 10.1

                              AMENDED AND RESTATED
                          MULTICURRENCY PROMISSORY NOTE

U.S. $10,000,000                                              Chicago, Illinois:
                                                   dated as of February 23, 1998

          The Borrowers, jointly and severally, for value received, hereby
promise to pay to the order of BANK OF AMERICA NATIONAL TRUST AND SAVINGS
ASSOCIATION, a national banking association having its principal office at 231
South LaSalle Street, Chicago, Illinois 60697 ("Bank"), the unpaid principal
amount of all Multicurrency Advances made by Bank to the Borrowers under the
terms of this Note. The aggregate principal amount of all Multicurrency Advances
at any one time outstanding hereunder shall at no time exceed the equivalent (as
determined in the manner set forth in Section 2.4 hereof) TEN MILLION UNITED
STATES DOLLARS (U.S. $10,000,000). All advances hereunder shall mature and be
payable on the Termination Date. The Borrowers further promise to pay to the
order of the Bank interest on the unpaid principal amount of the Multicurrency
Advances at the rates and at the times as hereinafter provided. The initial
Multicurrency Advance, all subsequent Multicurrency Advances, all payments made
on account or principal, the interest rate applicable to each Multicurrency
Advance, and the Interest Period (as hereinafter defined) applicable to each
Multicurrency Advance shall be endorsed by the Bank on the attached schedules to
this Note or, at the Bank's option, in its records, which schedules or records
shall be rebuttable presumptive evidence of the subject matter thereof.

     1.   DEFINITIONS AND INTERPRETATION OF NOTE.

     1.1  Definitions. In addition to the terms defined elsewhere in this Note,
the following terms shall have the meanings indicated for purposes of this Note
(such meanings to be equally applicable to both the singular and plural forms of
the terms defined):

          "Applicant Borrower" -- see Section 11.2.

          "Authorized Guarantor Officer" means Dan A. DeCanniere or Kenneth L.
Hastings or such other authorized officer of the Guarantor designated in writing
from time to time by Dan A. DeCanniere or Kenneth L. Hastings.

          "Authorized Officer" means any officer or employee designated by a
Borrower from time to time in a schedule in the form set forth as Exhibit 1.
Each such schedule shall become effective when received by Bank.

          "Banking Day" means any day other than a Saturday, Sunday or legal
holiday on which banks are authorized or required to be closed in Chicago,
Illinois, and which is a day on which dealings in eurocurrencies may be carried
on by Bank in the interbank currency market.

          "Borrowers" means (i) Hewitt Associates Limited, Hewitt Associates
SARL, Hewitt Associates S.A., Hewitt Associates PTY. LTD. (Singapore), Hewitt

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Associates, S.A., Hewitt Associates GmbH, Hewitt Associates Kabushiki Gaisya,
Hewitt Associates PTY. LTD., Hewitt Associates Limited (New Zealand) and Hewitt
Associates LLC (Hong Kong Branch) and (ii) a subsidiary of the Guarantor that
from time to time becomes a party hereto pursuant to Section 11.2.

          "Designated Borrower" means any Applicant Borrower which becomes a
party hereto in accordance with Section 11.2.

          "Designated Borrower Certificate" means a Designated Borrower
Certificate substantially in the form of Exhibit IV hereto.

          "Designated Currency" means any and all of the currencies set forth on
Exhibit II hereto, as the same may be modified from time to time upon the mutual
consent of the Borrowers and Bank; provided, that any such currency may be
deleted at the Bank's request upon its determination that said currency is not
readily available in the applicable currency market.

          "Event of Default" means an event described in Section 8.1 hereof.

          "Guarantor" means Hewitt Associates LLC.

          "Guaranty" means the guaranty of the obligations of the Borrowers
hereunder by the Guarantor in form and substance satisfactory to the Bank.

          "Interbank Rate" means, with respect to each Interest Period for a
Multicurrency Advance, the rate per annum at which deposits in the Designated
Currency for such Multicurrency Advance in immediately available funds are
offered to Bank two (2) Banking Days prior to the beginning of such Interest
Period by major banks in the interbank currency market at or about 9:00 a.m.,
Chicago time, for delivery on the first day of such Interest Period, for the
number of days comprised therein and in an amount equal to the amount of the
Multicurrency Advance to be outstanding during such Interest Period.

          "Interest Period" means the period commencing on the borrowing date of
a Multicurrency Advance or the last day of the prior Interest Period for such
Multicurrency Advance, if such Multicurrency Advance is continued pursuant to
Section 2.3, as the case may be, and ending on the numerically corresponding
day one, two, three or six months thereafter, as selected by a Borrower pursuant
to Section 2.2 or Section 2.3; provided, however, that:

     a.   any Interest Period which would otherwise end on a day which is not a
     Banking Day shall end on the next succeeding Banking Day unless such next
     succeeding Banking Day falls in another calendar month, in which case such
     Interest Period shall end on the next preceding Banking Day; and

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

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     Day of the calendar month at the end of such Interest Period; and

     c.   no Interest Period shall extend beyond the Termination Date.

          "Multicurrency Advance" means an advance in a Designated Currency by
Bank to a Borrower under this Note, each of which shall bear interest at a rate
determined with reference to the Interbank Rate.

          "Payment Date" -- see Section 3.

          "Reference Rate" means, at any time, the rate of interest then most
recently announced by the Bank at San Francisco, California as its reference
rate. Each change in the interest rate on any Multicurrency Advance bearing
interest at a rate determined with reference to the Reference Rate shall take
effect on the affective date of the change in the Reference Rate.

          "Subsidiary" means any person of which or in which the Guarantor and
its other Subsidiaries own directly or indirectly 50% or more of (i) the
combined voting power of all classes of stock having general voting power under
ordinary circumstances to elect a majority of the board of directors of such
person, if it is a corporation, (ii) the capital interest or profits interest of
such person, if it is a partnership, joint venture or similar entity, or (iii)
the beneficial interest of such person, if it is a trust, association or other
unincorporated organization.

          "Termination Date" means February 28, 2000 or such later date to which
the Termination Date maybe extended  pursuant to Section 2.6.

          "Unmatured Event of Default" means an event which with the passage of
time or with notice or both would constitute an Event of Default.

     1.2  Interpretation of Note. A Section or an Exhibit is, or unless
otherwise stated, a reference to a section hereof or an exhibit hereto, as the
case may be. Section captions used in this Note are for convenience only, and
shall not affect the construction of this Note. The words "hereof," "herein,"
"hereunder" and words of similar purport when used in this Note shall refer to
this Note as a whole and not to any particular provision of this Note.

     2.   BORROWING PROCEDURES.

     2.1  Multicurrency Advances. Subject to the terms and conditions hereof
from time to time prior to the Termination Date, Borrowers may individually or
jointly borrow, repay and reborrow and the Bank agrees to lend, Multicurrency
Advances in one or more Designated Currencies but not exceeding in the aggregate
principal amount outstanding as of the respective date each Multicurrency
Advance is made hereunder the equivalent of U.S. $10,000,000. Each Multicurrency
Advance shall be in a minimum amount of the equivalent of U.S. $250,000 or an
integral multiple of $100,000 in excess thereof (as determined as of the date of
such Advance in the manner specified in Section 2.4.

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     2.2  Requests for Multicurrency Advances. Each Multicurrency Advance shall
be made upon telephonic notice from an Authorized Guarantor officer actually
received by the Bank prior to 9:00 a.m., Chicago time, at least two (2) Banking
Days prior to such requested Multicurrency Advance. Each notice shall be
promptly confirmed in a writing or by facsimile signed by an Authorized Officer
substantially in the form of Exhibit III hereto; it being understood that a
Borrower's failure to so confirm any request for a Multicurrency Advance or
otherwise comply with the provisions of this Section 2.2 shall not affect the
obligation of the Borrowers to repay each Multicurrency Advance in accordance
with the terms of this Note.

     2.3  Continuation of Multicurrency Advances. A Borrower may elect to
continue all or any portion of an outstanding Multicurrency Advance from the
current Interest Period for such Advance into a subsequent Interest Period to
begin on the last day of such current Interest Period, provided that (i) no such
continuation will be permitted if, after giving effect to such continuation, the
aggregate principal amount outstanding hereunder exceeds the equivalent of U.S.
$ 10,000,000 (as determined in the manner specified in Section 2.4) and (ii)
each such continuation shall be in a minimum amount of the equivalent of U.S.
$250,000 (as determined as of the date of such continuation in the manner
specified in Section 2.4). Each such continuation shall be made upon telephonic
notice from an Authorized Guarantor Officer actually received by Bank prior to
9:00 a.m., Chicago time, at least two (2) Banking Days prior to such requested
continuation. Each notice shall be promptly confirmed in a writing or by
facsimile signed by an Authorized Officer substantially in the form of Exhibit
III hereto; it being understood that a Borrower's failure to so confirm any
request for a Multicurrency Advance or otherwise comply with the provisions of
this Section 2.3 shall not affect the obligation of the Borrowers to repay each
continued Multicurrency Advance in accordance with the terms of this Notes.

     2.4  Exchange Rates. Whenever, pursuant to this Note, the U.S. dollar
equivalent of an amount denominated in a currency is to be determined as of a
date, such determination shall be made at the spot rate quoted by Bank in
Chicago to its customers at approximately 9:00 a.m., Chicago time, two (2)
Banking Days prior to such date, at which Bank offers to purchase on such date
from third parties such currency in U.S. dollars. Any determination made by Bank
under this Section 2.4 shall be conclusive and binding in the absence of
manifest error in the determination or calculation thereof.

     2.5  Proceeds. Bank shall credit the proceeds of each Advance to such
account of a Borrower maintained at such financial institution as such Borrower
shall specify in writing at the time of the request for a Eurodollar Advance.

     2.6  Extension of Termination Date. The initial Termination Date shall be
February 28, 2000. The Guarantor may, not earlier than 180 days and not later
than 60 days prior to each Termination Date execute and deliver to the Bank an
extension letter in substantially the form of Exhibit V hereto, with appropriate
insertions, requesting that the Termination Date be extended for one year. Such
request for an extension of the Termination Date shall became effective if the
Bank shall, in its sole and absolute discretion, execute such extension letter
and return a copy thereof to the Guarantor prior

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to each such applicable Termination Date.

     3.   PAYMENT DATES FOR MULTICURRENCY ADVANCES. Each Multicurrency Advance
shall be payable on the Termination Date or, if sooner, on the last day of the
Interest Period with respect to such Multicurrency Advance (or, if such
Multicurrency Advance has been continued, the last day of the final interest
period with respect to such Multicurrency Advance). The last day of the Interest
Period (or, if continued, the final Interest Period) with respect to such
Multicurrency Advance is herein called the "Payment Date" for such Multicurrency
Advance. No prepayment of any Advance made hereunder shall be permitted without
the Bank's prior written consent. Subject to the provisions of the foregoing
sentence, the Borrowers may terminate this Note upon payment in full of the
then-outstanding Multicurrency Advances, accrued interest thereon to the date of
such termination, and any amount required to indemnify the Bank pursuant to
Section 6.2 hereof in respect of such payment.

     4.   INTEREST.

     4.1  Interest Before the Payment Date. The unpaid principal amount of each
Multicurrency Advance shall bear interest prior to the Payment Date for such
Multicurrency Advance at a rate per annum equal to the Interbank Rate in effect
for each Interest Period applicable to such Multicurrency Advance plus .75% per
annum. Accrued interest on each Multicurrency Advance shall be payable on the
last day of each Interest Period with respect thereto and on the Payment Date
for such Multicurrency Advance and if the Interest Period is in excess of 3
months, on a date three months after the commencement of the Interest Period.

     4.2  Interest After the Payment Date. Borrowers shall pay to the Bank
interest on any amount of principal of any Multicurrency Advance which is not
paid at maturity whether on the Payment Date for such Multicurrency Advance or
upon acceleration, accruing from and including such Payment Date to, but not
including, the date of payment thereof in full, at the rate per annum which is
equal to two percent (2%) in excess of the Reference Rate in effect from time to
time. After the Payment Date for such Multicurrency Advance, accrued interest
shall be payable on demand.

     4.3  Method of Calculating Interest. Interest on the unpaid principal
amount of each Multicurrency Advance shall be calculated on the basis of a year
consisting of 360 days (except any Multicurrency Advance in Pounds Sterling
which shall be calculated on the basis of a year consisting of 365 or 366 days)
and paid for actual days elapsed, calculated as to each Interest Period from and
including the first day thereof to, but not including, the last day thereof.

     5.   PAYMENTS.

     5.1  Currency of Payments. Each payment on account of an amount due from a
Borrower hereunder shall be made in the currency in which such amount is
denominated and in such funds as are customary at the place and time of payment
for the settlement of international payments in such currency. Upon request,
Bank will give a

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Borrower a statement showing the computation used in calculating such amount,
which statement shall be conclusive in the absence of manifest error. The
obligation of a Borrower to make each payment on account of such amount in the
currency in which such amount is denominated shall not be discharged or
satisfied by any tender, or any recovery pursuant to any judgment, which is
expressed in or converted into any other currency, except to the extent such
tender or recovery shall result in the actual receipt by Bank of the full amount
in the appropriate currency payable hereunder. Borrowers agree that their
obligation to make each payment on account of such amount in the currency in
which such amount in denominated shall be enforceable as an additional or
alternative cause of action for the purpose of recovery in such currency of the
amount (if any) by which such actual receipt shall fall short of the full amount
of such currency payable hereunder, and shall not be affected by judgment being
obtained for such amount.

     5.2  Conversion of Currencies. If for the purpose of obtaining judgment in
any court it is necessary to convert an amount in any currency due from a
Borrower hereunder (hereinafter called the "Original Currency") into another
currency (hereinafter called the "Other Currency"), the rate of exchange which
shall be applied shall, to the fullest extent permitted by applicable law, be
that at which Bank could purchase, in Chicago, Illinois, in accordance with
normal banking procedures, the Original Currency with the Other Currency on the
business day of the Bank preceding that on which final judgment is given. The
obligation of a Borrower in respect of any such amount in the Original Currency
shall, notwithstanding any judgment in an Other Currency and notwithstanding the
rate of exchange actually applied in giving such judgment, be discharged only to
the extent that on the business day of the Bank following receipt by the Bank of
any sum adjudged to be so due in the Other Currency the Bank is able to
purchase, in accordance with normal banking procedures, the Original Currency
with the amount of the Other Currency actually received, and if the amount of
the Original Currency so purchased is less than the sum originally due to the
Bank in the Original Currency, the Borrowers agree, as a separate obligation and
notwithstanding any such judgment, to indemnify the Bank against such loss or
shortfall.

     5.3  Payments Free and Clear. Each payment on account of an amount due from
a Borrower hereunder shall be made by the Borrower without deduction,
withholding, set-off or counterclaim for, and free and clear of, any and all
taxes, levies, imposts, duties, charges, fees, deductions, withholdings,
restrictions or conditions of any nature (hereinafter collectively called
"Taxes") now or hereafter imposed, levied, collected or assessed by any state,
nation or other jurisdiction or any political subdivision or taxing authority
thereof or therein. In the event that any withholding or deduction from any
payment to be made by the Borrowers hereunder is required by law in respect of
any Taxes, the Borrowers shall (a) pay to the appropriate authority the amount
required to be so withheld or deducted, (b) pay to Bank additional amounts such
that the Bank receives a net amount equal to the full amount it would have
received had no such withholding or deduction been required, and (c) deliver to
the Bank within 15 days after the date of such payment by the Borrowers evidence
satisfactory to the Bank (including, where appropriate, the relevant payment
receipts) showing that such payment has been duly remitted to the appropriate
authority.

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     5.4  Place of Payment. All payments hereunder shall be made to Bank in
immediately available funds prior to 12:30 p.m., Chicago time, on the date due
at its office at 231 South LaSalle Street, Chicago, Illinois 60697, or at such
other place as may be designated by Bank to Borrowers in writing. Any payments
received after such time shall be deemed received on the next succeeding Banking
Day. Subject to the definition of the term "Interest Period," whenever any
payment to be made hereunder shall be stated to be due on a date other than a
Banking Day, such payment may be made on the next succeeding Banking Day, and
such extension of time shall be included in the calculation of interest. The
Bank may, but shall not be obligated to, charge any account of Borrowers at Bank
for the payment when due of all amounts payable by Borrowers hereunder.

     6.   INCREASED COST; FUNDING LOSSES.

     6.1  Increased Cost. If, as a result of any law, regulation, treaty or
directive, or any change therein, or in the interpretation or application
thereof or compliance by Bank with any request or directive (whether or not
having the force of law) from any court or governmental authority, agency or
instrumentality:

     a.   any tax, duty or other charge with respect to any Multicurrency
     Advance or this Note is imposed, modified or deemed applicable, or the
     basis of taxation of payments to Bank of the principal of, or interest on,
     any Multicurrency Advance (other than taxes imposed on the overall net
     income of Bank by the jurisdiction in which Bank has its principal office)
     is changed;

     b.   any reserve, special deposit, special assessment, or similar
     requirement against assets of, deposits with or for the account of, or
     credit extended by, Bank is imposed, modified or deemed applicable; or

     c.   any other condition affecting this Note or the Multicurrency Advances
     is imposed an Bank or the relevant currency market;

and the Bank reasonably determines that, by reason thereof, the cost to the Bank
of making or maintaining any Multicurrency Advance is increased, or the amount
of any sum receivable by the Bank hereunder in respect of any Multicurrency
Advance is reduced; then, Borrowers agree that they shall pay to Bank upon
demand such additional amount or amounts as will compensate the Bank for such
additional cost or reduction. Determinations by the Bank for purposes of this
Section 6.1 of the additional amounts required to compensate the Bank in respect
of the foregoing shall be conclusive in the absence of manifest error. In
determining such amounts, the Bank may use any reasonable averaging, attribution
and allocation methods. In no event shall Borrowers be required to reimburse the
Bank for (i) any income, property or similar tax, or (ii) any penalty imposed on
the Bank for violation of law.

     6.2  Funding Losses. Borrowers will indemnify Bank upon demand against any
loss or expense which the Bank may sustain or incur (including, without
limitation, any loss or expense sustained or incurred in obtaining, liquidating
or employing deposits

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or other funds acquired to effect, fund or maintain any Multicurrency Advance)
as a consequence of (i) any failure of a Borrower to make any payment when due
of any amount due hereunder, (ii) any failure of a Borrower to borrow or
continue a Multicurrency Advance on a date specified therefor in a notice
thereof, or (iii) any payment (including any payment made pursuant to Bank's
demand for payment of the unpaid principal of the Multicurrency Advances) or
prepayment of any Multicurrency Advance on a date other than the last day of the
Interest Period for such Multicurrency Advance. In the case of any Multicurrency
Advance, such loss or expense shall include an amount equal to the present value
of the excess, if any, as reasonably determined by the Bank, of (A) its cost of
obtaining the funds for the Advance being paid, prepaid or not borrowed or
continued or (based on the Interbank Rate applicable thereto) for the period
from the date of such payment or failure to borrow or continue (such date being
hereinafter referred to an the "Breakage Date") to the last day of the then
current Interest Period for such Advance (or, in the case of a failure to borrow
or continue, the Interest Period for such Advance that would have commenced on
the date of such failure) over (B) the amount of interest that Bank would have
earned had it invested the entire amount of funds so paid or prepaid or the
entire amount of funds acquired to effect, fund or maintain the Advance not
borrowed or continued, as the case may be, in U.S. Government Treasury
Securities with a maturity comparable to such period or Interest Period. The
present value of such excess shall be calculated by discounting such excess to
the Breakage Date at the interest rate expressly borne by such U.S. Government
Treasury Securities or, if none, the affective interest rate on such Securities.
Determinations by the Bank for purposes of this paragraph of the amount required
to indemnify the Bank against any such loss or expense shall be conclusive in
the absence of manifest error.

     6.3  Discretion of Bank as to Manner of Funding. Borrowers acknowledge that
Bank may fund all or any part of the Multicurrency Advances by sales of
participations to various participants, and agrees that Bank may, in invoking
its rights under this Section 6, demand and receive payment for costs and other
amounts incurred by, or allocable to, any such participant, or take other action
arising from circumstances applicable to any such participant, to the same
extent that such participant could demand and receive payments, or take other
action, under this Section 6 if such participant were the Bank under this Note.

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     7.   WARRANTIES. The borrowers warrant to the Bank that (i) the execution
and delivery of this Note and the performance by the Borrowers of their
obligations hereunder are within the Borrowers' corporate powers and have been
duly authorized by all necessary corporate action on the Borrowers' part, (ii)
this Note is the Borrowers' legal, valid and binding obligation, enforceable in
accordance with its terms, (iii) the making and performance of this Note do not
and will not contravene or conflict with the charter or by-laws of any of the
Borrowers' or violate or constitute a default under any law, any presently
existing requirement or restriction imposed by judicial, arbitral or other
governmental instrumentality, or any agreement, instrument or indenture by which
any of the Borrowers is bound, (iv) the execution and delivery of the Guaranty
are within the Guarantor's powers and have been duly authorized by all necessary
partnership action on the Guarantor's part, (v) the Guaranty is the Guarantor's
legal, valid and binding obligation enforceable in accordance with its terms,
(vii) the making and performance of the Guaranty will not contravene or conflict
with the Guarantor's partnership agreement or violate or constitute a default
under any law, any presently existing requirement or restriction imposed by
judicial, arbitral or other governmental instrumentality, or any agreement,
instrument or indenture by which the Guarantor is bound and (viii) the financial
statements of the Guarantor dated September 30, 1997, which have been provided
to the Bank, have been prepared on a basis consistent with generally accepted
accounting principles applied on a consistent basis and present fairly the
financial condition of the Guarantor on such date and the results of its
operations for the period then ended and there has been no material adverse
change in the Guarantor since September 30, 1997.

     8.   EVENTS OF DEFAULT AND REMEDIES.

     8.1  Events of Default. Each of the following shall constitute an Event of
Default under this Note:

     a.   Non-Payment. Default, and the continuance thereof for five days, in
     the payment when due of any principal of, or interest on, any Advance or
     any fee hereunder.

     b.   Non-Payment of Other Indebtedness. Default in the payment when due,
     whether by acceleration or otherwise (subject to any applicable grace
     period), of any indebtedness for borrowed money in an aggregate principal
     amount in excess of $50,000 of, or guaranteed by, one of the Borrowers or
     the Guarantor.

     c.   Acceleration of Other Indebtedness. Any event or condition shall occur
     which results in the acceleration of the maturity of any indebtedness for
     borrowed money in excess of $50,000 in the aggregate of, or guaranteed by,
     any of the Borrowers or the Guarantor or enables the holder or holders of
     such other indebtedness or any trustee or agent for such holders (any
     required notice of default having been given and any applicable grace
     period having expired) to accelerate the maturity of such other
     indebtedness; provided, however, that with respect to any Borrower such an
     event or condition will constitute an Event of Default only if it continues
     for at least five days.

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     d.   Insolvency. The Guarantor becomes insolvent, or generally fails to
     pay, or admits in writing its inability to pay, its debts as they mature,
     or applies for, consents to, or acquiesces in, the appointment of a
     trustee, receiver or other custodian for the Guarantor or for a substantial
     part of the property of the Guarantor, or makes a general assignment for
     the benefit of creditors; or, in the absence of such application, consent
     or acquiescence, a trustee, receiver or other custodian is appointed for
     the Guarantor or for a substantial part of the property of the Guarantor
     and is not discharged within 30 days; or any bankruptcy, reorganization,
     debt arrangement or other proceeding under any bankruptcy or insolvency
     law, or any dissolution or liquidation proceeding, is instituted by or
     against the Guarantor is consented to or acquiesced in by the Guarantor or
     remains for 30 days undismissed; or any warrant of attachment or similar
     legal process is issued against any substantial part of the property of the
     Guarantor which is not released within 30 days of service.

     e.   Pension Plans. The institution by any of the Borrowers or the
     Guarantor or any ERISA Affiliate (as hereinafter defined) of steps to
     terminate any plan (as hereinafter defined) if, in order to effectuate such
     termination, (i) any of the Borrowers, or the Guarantor or any ERISA
     Affiliate would be required to make a contribution to such Plan or would
     incur a liability or obligation to such Plan and (ii) immediately after
     giving effect to the payment or satisfaction of such contribution,
     liability or obligation (if made or undertaken by any of the Borrowers or
     the Guarantor) an Event of Default or Unmatured Event of Default would
     exist and be continuing; or the institution by the Pension Benefit Guaranty
     Corporation of steps to terminate any Plan. For purpose of this subsection,
     the term "ERISA Affiliate" shall mean any corporation, trade or business
     that is, along with the Guarantor, a member of a controlled group of
     corporations or a controlled group of trades or businesses, as described in
     Sections 414 (b) and 414(c), respectively, of the Internal Revenue Code of
     1986 or Section 4001 of the Employee Retirement Income Security Act of
     1974, as amended ("ERISA"), and the term "Plan" shall mean a "pension
     plan", as such term is defined in ERISA, established or maintained by any
     of the Borrowers or Guarantor or any ERISA Affiliate or as to which any of
     the Borrowers or the Guarantor or any ERISA Affiliate contributes or is a
     member or otherwise may have any liability.

     f.   Warranty. Any warranty made by the Borrowers herein is untrue or
     misleading in any material respect when made or deemed made; or any
     schedule, statement, report, notice, certificate or other writing furnished
     by the Borrowers to the Bank is untrue or misleading in any material
     respect on the date as of which the facts set forth therein arc., stated or
     certified; or any certification made or deemed made by the Borrowers to the
     Bank is untrue or misleading in any material respect on or as of the date
     made or deemed made and is not made.

     g.   Incorporation by Reference of Covenants. Any of the covenants or
     agreements of the Guarantor under that certain Credit Agreement dated as of
     May 28, 1996 among Guarantor, Harris Trust and Savings Bank, individually
     and as Agent thereunder, and other Lenders, including the Bank, as amended
     from

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     time to time with the consent of the Bank (the "Credit Agreement") shall
     have been breached. All of such covenants, together with related
     definitions and ancillary provisions, are hereby incorporated into this
     Agreement by reference, mutatis mutandis, as if such terms were set forth
     in this Agreement in full, without regard to any amendment, modification or
     termination of such Credit Agreement, without regard to any expiration of
     any commitment thereunder and without regard to the final payment in full
     of any obligations of the Guarantor or any other person or entity
     thereunder.

     h.   Litigation. There shall be entered against the Guarantor or any of the
     Borrowers one or more judgments or decrees in excess of $250,000 in the
     aggregate at any one time outstanding for the Guarantor and any of the
     Borrowers excluding those judgments or decrees (i) that shall have been
     outstanding less than 30 calendar days from the entry thereof, (ii) which
     are pending appeal and with respect to which any enforcement is stayed or
     (iii) for and to the extent which the Guarantor, or applicable Borrower is
     insured and with respect to which the insurer has assumed responsibility in
     writing or for and to the extent which the Guarantor or the applicable
     Borrower is otherwise indemnified if the terms of such indemnification are
     satisfactory to the Bank.

     i.   The Guaranty. The Guaranty shall cease to be in full force and effect
     or the Guarantor shall contest the validity thereof in any respect.

     8.2  Remedies. If any Event of Default described in Section 8.1 shall have
occurred and be continuing, the Bank may declare its commitment to make
Multicurrency Advances hereunder to be terminated and all outstanding
Multicurrency Advances and this Note to be due and payable, whereupon such
commitment shall immediately terminate and all outstanding Multicurrency
Advances and this Note shall become immediately due and payable, all without
notice of any kind (except that if an event described in Section 8.1(d) occurs,
such commitment shall immediately terminate and all outstanding Multicurrency
Advances and this Note shall become immediately due and payable without
declaration or notice of any kind).

     9.   CONDITIONS PRECEDENT TO EACH ADVANCE. The obligation of the Bank to
make each Multicurrency Advance is subject to the satisfaction of each of the
following conditions precedent:

     9.1  Notice. The Bank shall have received timely notice of the
Multicurrency Advance in accordance with Section 2.2.

     9.2  Default. Before and after giving effect to the Multicurrency Advance,
no Event of Default or Unmatured Event of Default shall have occurred and be
continuing.

     9.3  Warranties. Before and after giving effect to the Multicurrency
Advance, the warranties in Section 7 shall be true and correct as though made on
the date of the Multicurrency Advance, except for such changes as are
specifically permitted hereunder.

     9.4  Certification. The request for the Loan shall be deemed to be a

                                      -11-

<PAGE>

certification that the conditions precedent set out in Sections 9.2 and 9.3 and
have been satisfied.

     10.  CONDITIONS PRECEDENT TO INITIAL ADVANCE. The obligation of the Bank to
make the initial Multicurrency Advance is subject to the ratification of each of
the following conditions precedent;

     10.1 Note. The Borrowers shall have delivered to the Bank the duly executed
Note.

     10.2 Resolutions. The Borrowers shall have delivered to the Bank copies,
duly certified by their secretaries or assistant secretaries, of (i) the
resolutions of the Board of Directors or other governing body of each Borrower
authorizing or ratifying the execution and delivery of this Note and authorizing
the borrowing hereunder, (ii) all documents evidencing other necessary corporate
action, and (iii) all approvals or consents, if any, with respect to this Note.

     10.3 Incumbency Certificate. The Borrowers shall have delivered to the Bank
a certificate of the secretaries or assistant secretaries of each Borrower
certifying the names of each Borrower's officers authorized to sign this Note
and all other documents or certificates to be delivered hereunder, together with
the true signatures of such officers.

     10.4 Guaranty. The Guarantor shall have delivered the duly executed
Guaranty.

     10.5 Resolutions. The Guarantor shall have delivered to the Bank a copy,
duly certified by the Secretary of its Executive Committee of all necessary
partnership action authorizing the delivery of the Guaranty.

     10.6 Incumbency Certificate. The Guarantor shall have delivered to the Bank
a certificate of the Guarantor certifying the names of the Guarantor's officers
authorized to sign the Guaranty.

     10.7 Opinion. The Guarantor shall have delivered to the Bank an opinion of
C. Lawrence Connolly, III, counsel to the Guarantor, addressed to the Bank, in
the forms satisfactory to the Bank.

     11.  GENERAL.

     11.1 Joint and Several Liabilities. The Borrowers agree that each and every
of their obligations hereunder are joint and several and the primary obligations
of each of them, and each hereby waives any defenses it may claim as a guarantor
of the other parties, or as an accommodation party or surety under the common
law. The Bank may, from time to time, without notice to any of the Borrowers,
take any or all of the following actions (i) obtain or release any security
interest that any party may grant from time to time in any property to secure
any of the obligations hereunder (provided, that this provision shall not, in
itself, give the Bank any right to require the granting of a security interest
in any property) ; (ii) obtain or release the primary or secondary liability of
any

                                      -12-

<PAGE>

party or parties in addition to the Borrowers with respect to any of the
obligations hereunder; (iii) extend or renew for any period (whether or not
longer than the original period), or release or compromise any obligation of
any nature of any obligor with respect to any of the obligations hereunder; and
(iv) resort to any of the Borrowers for payment of any of the obligations
hereunder whether or not the Bank shall have resorted to any property securing
the obligations or to, the other Borrowers or to any other party primarily or
secondarily liable with respect to such obligations. Each of the Borrowers
waives (x) any right of, or claim to, contribution by the other Borrowers, and
(y) any right of, or claim to, subrogation by such Borrower to the rights of the
Bank with respect to any obligations or liabilities of the Borrowers hereunder.

     11.2 Addition of a Designated Borrower. (a) The Guarantor may at any time
designate any Subsidiary of the Guarantor that satisfies the requirements of
subsection 11.2(b) (an "Applicant Borrower") as a Designated Borrower hereunder
by delivering to the Bank a Designated Borrower Certificate executed by the
Applicant Borrower and the Guarantor, together with the documents required by
subsection 10 and such other supporting resolutions, incumbency certificates and
opinions of counsel as the Bank may reasonably request. Any such addition of a
Designated Borrower shall be effective upon the later of (i) delivery to the
Bank of all of the documents specified in the preceding sentence or (ii) ten
Banking Days after the delivery of such Designated Borrower Certificate to the
Bank. Such Applicant Borrower shall thereupon become a party hereto and a
Designated Borrower hereunder and shall be (i) entitled to all rights and
benefits of a Borrower hereunder and under each instrument executed pursuant
hereto and (ii) subject to all obligations of a Borrower hereunder and
thereunder.

          (b) Each Designated Borrower will be a direct or indirect,
wholly-owned Subsidiary of the Guarantor (excluding director qualifying shares)
(or, with the consent of the Bank, which consent shall not be unreasonably
withheld, a direct or indirect, majority-owned Subsidiary of the Guarantor) and
will be organized under the laws of Canada, Japan, a country included in the
European Union or any other country acceptable to the Bank, in its sole
discretion.

     11.3 Prior Note. This Note has been issued in substitution for (i) a note
of certain Borrowers dated as of September 30, 1992 in the principal amount of
$7,000,000 and (ii) a note of a certain Borrower dated as of September 30, 1992
in the principal amount of $3 ,000,000, executed and delivered to Continental
Bank N.A., a predecessor to the Bank, and all indebtedness thereunder shall be
evidenced hereby, including without limitation all accrued but unpaid interest
thereunder.

     11.4 Authorization and Indemnity. Borrowers hereby authorize Bank to rely
upon the instructions of any person identifying himself or herself as an
Authorized Officer, and Borrowers shall be bound thereby in the same manner as
if such person were actually an Authorized Officer. Borrowers hereby agree to
indemnify Bank and hold it harmless from any and all claims, damages,
liabilities, losses, costs and expenses (including, without limitation,
reasonable fees of attorneys and paralegals for Bank and other legal expenses)
which may arise or be created by the acceptance of instructions for making
Multicurrency Advances or disbursing the proceeds thereof, and to pay all legal

                                      -13-

<PAGE>

and other costs and expenses (including, without limitation, reasonable fees of
attorneys and paralegals for Bank and costs of collection) incurred by the Bank
in connection with (i) the preparation, negotiation and execution of this Note,
(ii) obtaining payment of the amounts payable by Borrowers hereunder.

     11.5 Information. The Bank may furnish any information concerning Borrowers
in the possession of the Bank from time to time to assignees of the right of the
Bank hereunder and to participants In any Multicurrency Advance (including
prospective assignees and participants) and may furnish information in response
to credit inquiries consistent with general banking practice.

     11.6 Severability. Wherever possible, each provision of this Note shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Note shall be prohibited by or invalid under such
law, such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Note.

     11.7 Law. This Note shall be governed by the laws of the State of Illinois.

     11.8 Consent to Jurisdiction and Service. Each Borrower hereby absolutely
and irrevocably consents and submits to the jurisdiction of the courts of the
State of Illinois or the United States of America for the Northern District of
Illinois in connection with any actions or proceedings brought against such
Borrower by the Bank arising out of or relating to this Note or the banking
relationship giving rise to this Note, and hereby irrevocably agrees that all
claims in respect of any such action or proceeding may be heard and determined
in any such court. Each Borrower hereby waives and agrees not to assert in such
action or proceeding, in each case, to the fullest extent permitted by
applicable law, any claim that (a) such Borrower is not personally subject to
the jurisdiction of any such court; (b) such Borrower is immune from any legal
process (whether through service or notice, attachment prior to judgment,
attachment in aid of execution, execution or otherwise) with respect to it or
its property; (c) any such suit, action or proceeding or brought in an
inconvenient forum; (d) the venue of any such suit, action or proceeding is
improper; or (e) this Note may not be enforced in or by any such court. In any
such action or proceeding, such Borrower hereby absolutely and irrevocably
waives personal service of any summons, complaint, declaration or other process
and hereby absolutely and irrevocably agrees that the service thereof may be
made by certified or registered airmail, postage prepaid, directed to such
Borrower at the address shown on the signature page hereof (or at such other
address as such Borrower shall last specify to the Bank in writing). Each
Borrower designates and appoints the Guarantor, as its agent to receive on its
behalf service of all process in any proceeding in any court, such service by
registered or certified mail (or any substantially similar form of mail),
postage pre-paid, being hereby acknowledged by such Borrower to be effective and
binding service in every respect. Nothing contained in this Note shall affect
any right that the Bank may otherwise have to bring any action or proceeding
relating to this Note or the banking relationship giving rise to this Note
against the Borrowers or their properties in the courts of any other
jurisdiction, or any right that Bank may have to serve process in any other
manner permitted by law.

                                      -14-

<PAGE>

     11.9  Counterparts. This Note may be executed in several counterparts, each
of which shall be an original and all of which shall constitute together but one
and the same agreement.

     11.10 WAIVER OF JURY TRIAL. EACH BORROWER HEREBY WAIVES ANY RIGHT TO A
TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS (A)
UNDER THIS NOTE OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT
DELIVERED OR WHICH MAY IN THE BANKING RELATIONSHIP EXISTING IN CONNECTION WITH
THIS NOTE, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A
COURT AND NOT BEFORE A JURY.

                           [signature pages to follow]

                                      -15-

<PAGE>

Address:                               HEWITT ASSOCIATES PTY. LTD.
Level 2                                (AUSTRALIA)
88 George Street
The Rocks
Sydney, NSW 2000                       By:   /s/ Michael J. Bennett
                                          ------------------------------------
                                       Title:
                                             ---------------------------------

                                       HEWITT ASSOCIATES SARL (FRANCE)

Address:                               By:   /s/ Vincent Cornet
20, Avenue Andre Malraux                  ------------------------------------
92309 Levallois - Perret Cedex         Title:
                                             ---------------------------------

                                       HEWITT ASSOCIATES GmbH (GERMANY)

Address:                               By:   /s/ Burkhard Furer
Hagenauer Strasse 42                      ------------------------------------
D-65203 Wiesbaden                      Title:
                                             ---------------------------------

Address:                               HEWITT ASSOCIATES LLC
2601-05, Shell Tower,                  (HONG KONG)
Times Square
I Matheson Street, Causeway Bay        By:   /s/ David N. Gueundjian
Hong Kong                                 ------------------------------------
                                       Title:  Office Manager
                                             ---------------------------------

                                       HEWITT ASSOCIATES Srl (ITALY)
Address:
Via Alessandro Volta, 16 - Scala H     By:   /s/ Guido Blasco
20093 Cologno Monzese                     ------------------------------------
                                       Title:  General Manager
                                             ---------------------------------

Address:                               HEWITT ASSOCIATES KABUSHIKI GAISYA
Akasaka Twin Tower                     (JAPAN)
Main Tower 11th Floor
2-17-22, Akasaka, Minato-ku            By:   /s/ Tomoo Shimizu
Tokyo 107                                 ------------------------------------
                                       Title:  Representative Director
                                             ---------------------------------

                                       HEWITT ASSOCIATES LIMITED
Address:                               (NEW ZEALAND)
Level 8, Castrol House
36 Customhouse Quay                    By:   /s/ Grant E. O'Connell
Wellington                                ------------------------------------
                                       Title:  Country Manager
                                             ---------------------------------

                                      -16-

<PAGE>

                                       HEWITT ASSOCIATES PTE. LTD.
                                       (SINGAPORE)
Address:
Suite 32-06 IBM Towers                 By:   /s/ James J. Dale
80 Anson Road 079907                      ------------------------------------
                                       Title:  Managing Director
                                             ---------------------------------

                                       HEWITT ASSOCIATES S.A. (SPAIN)
Address:
Albacete, 5-6                          By:   /s/ Victor Souto
28027 Madrid                              ------------------------------------
                                       Title:  Country Manager
                                             ---------------------------------

Address:                               HEWITT ASSOCIATES LIMITED (UNITED
Prospect House                         KINGDOM)
Abbey View
St. Albans                             By:   /s/ Peter L. Bennett
Hertfordshire AL1 2QU                     ------------------------------------
                                       Title:  Managing Director
                                             ---------------------------------

                                      -17-

<PAGE>

Schedule attached to Multicurrency Promissory Note dated as of February 23, 1998
of Hewitt Associates Limited, Hewitt Associates SARL, Hewitt Associates Srl,
Hewitt Associates Pte. Ltd. (Singapore), Hewitt Associates, S.A., Hewitt
Associates GmbH, Hewitt AssociatesKabushiki Gaisya, Hewitt Associates PTY. LTD.,
Hewitt Associates Limited (New Zealand) and Hewitt Associates LLC (Hong Kong
Branch) payable to the order of Bank of America National Trust and Savings
Association.

                       BORROWER: Hewitt Associates Limited

                  MULTICURRENCY ADVANCES AND PRINCIPAL PAYMENTS

<TABLE>
<CAPTION>
           Amount of
           Advance in        U.S. $ equivalent
           Designated        of Multicurrency    Interest    Interest    Date of         Amount of        Notation
Date       Currency          Advance             Period      Rate        Repayment       Repayment        Made By
----       --------          ----------------    --------    --------    ---------       ---------        -------
------------------------------------------------------------------------------------------------------------------
<S>        <C>               <C>                 <C>         <C>         <C>             <C>              <C>
------------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

------------------------------------------------------------------------------------------------------------------
</TABLE>

The aggregate unpaid principal amount shown on this schedule shall be rebuttable
presumptive evidence of the principal amount owing and unpaid on this Note. The
failure to record the date; amount, Interest Period or interest rate with
respect to any Multicurrency Advance of this schedule shall not, however, limit
or otherwise affect the obligations of Borrower under this Note to repay the
principal amount of the Multicurrency Advances together with all interest
accruing thereon.

<PAGE>

Schedule attached to Multicurrency Promissory Note dated as of February 23, 1998
of Hewitt Associates Limited, Hewitt Associates SARL, Hewitt Associates Srl,
Hewitt Associates Pte. Ltd. (Singapore), Hewitt Associates, S.A. and Hewitt
Associates GmbH, Hewitt Associates Kabushiki Gaisya, Hewitt Associates PTY.
LTD., Hewitt Associates Limited (New Zealand) and Hewitt Associates LLC (Hong
Kong Branch) payable to the order of Bank of America National Trust and Savings
Association.

                         BORROWER: Hewitt Associate SARL

                  MULTICURRENCY ADVANCES AND PRINCIPAL PAYMENTS

<TABLE>
<CAPTION>
           Amount of
           Advance in        U.S. $ equivalent
           Designated        of Multicurrency    Interest    Interest    Date of         Amount of        Notation
Date       Currency          Advance             Period      Rate        Repayment       Repayment        Made By
----       --------          ----------------    --------    --------    ---------       ---------        -------
------------------------------------------------------------------------------------------------------------------
<S>        <C>               <C>                 <C>         <C>         <C>             <C>              <C>
------------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

------------------------------------------------------------------------------------------------------------------
</TABLE>

The aggregate unpaid principal amount shown on this schedule shall be rebuttable
presumptive evidence of the principal amount owing and unpaid on this Note. The
failure to record the date, amount, Interest Period or interest rate with
respect to any Multicurrency Advance of this schedule shall not, however, limit
or otherwise affect the obligations of Borrower under this Note to repay the
principal amount of the Multicurrency Advances together with all interest
accruing thereon.

<PAGE>

Schedule attached to Multicurrency Promissory Note dated as of February 23, 1998
of Hewitt Associates Limited, Hewitt Associates SARL, Hewitt Associates Srl,
Hewitt Associates Pte. Ltd. (Singapore), Hewitt Associates, S.A. and Hewitt
Associates GmbH, Hewitt Associates Kabushiki Gaisya, Hewitt Associates PTY.
LTD., Hewitt Associates Limited (New Zealand) and Hewitt Associates LLC (Hong
Kong Branch) payable to the order of Bank of America National Trust and Savings
Association.

                         BORROWER: Hewitt Associates Srl

                  MULTICURRENCY ADVANCES AND PRINCIPAL PAYMENTS

<TABLE>
<CAPTION>
           Amount of
           Advance in        U.S. $ equivalent
           Designated        of Multicurrency    Interest    Interest    Date of         Amount of        Notation
Date       Currency          Advance             Period      Rate        Repayment       Repayment        Made By
----       --------          ----------------    --------    --------    ---------       ---------        -------
------------------------------------------------------------------------------------------------------------------
<S>        <C>               <C>                 <C>         <C>         <C>             <C>              <C>
------------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

------------------------------------------------------------------------------------------------------------------
</TABLE>

The aggregate unpaid principal amount shown on this schedule shall be rebuttable
presumptive evidence of the principal amount owing and unpaid on this Note. The
failure to record the date, amount, Interest Period or interest rate with
respect to any Multicurrency Advance of this schedule shall not, however, limit
or otherwise affect the obligations of Borrower under this Note to repay the
principal amount of the Multi currency Advances together with all interest
accruing thereon.

<PAGE>

Schedule attached to Multicurrency Promissory Note dated as of February 23, 1998
of Hewitt Associates Limited, Hewitt Associates SARL, Hewitt Associates Srl,
Hewitt Associates Pte. Ltd. (Singapore), Hewitt Associates, S.A. and Hewitt
Associates GmbH, Hewitt Associates Kabushiki Gaisya, Hewitt Associates PTY.
LTD., Hewitt Associates Limited (New Zealand) and Hewitt Associates LLC (Hong
Kong Branch) payable to the order of Bank of America National Trust and Savings
Association.

                BORROWER: Hewitt Associates Pte. Ltd. (Singapore)

                  MULTICURRENCY ADVANCES AND PRINCIPAL PAYMENTS

<TABLE>
<CAPTION>
           Amount of
           Advance in        U.S. $ equivalent
           Designated        of Multicurrency    Interest    Interest    Date of         Amount of        Notation
Date       Currency          Advance             Period      Rate        Repayment       Repayment        Made By
----       --------          ----------------    --------    --------    ---------       ---------        -------
------------------------------------------------------------------------------------------------------------------
<S>        <C>               <C>                 <C>         <C>         <C>             <C>              <C>
------------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

------------------------------------------------------------------------------------------------------------------
</TABLE>

The aggregate unpaid principal amount shown on this schedule shall be rebuttable
presumptive evidence of the principal amount owing and unpaid on this Note. The
failure to record the date, amount, Interest Period or interest rate with
respect to any Multicurrency Advance of this schedule shall not, however, limit
or otherwise affect the obligations of Borrower under this Note to repay the
principal amount of the Multicurrency Advances together with all interest
accruing thereon.

<PAGE>

Schedule attached to Multicurrency Promissory Note dated as of February 23, 1998
of Hewitt Associates Limited, Hewitt Associates SARL, Hewitt Associates Srl,
Hewitt Associates Pte. Ltd. (Singapore), Hewitt Associates, S.A. and Hewitt
Associates GmbH, Hewitt Associates Kabushiki Gaisya, Hewitt Associates PTY.
LTD., Hewitt Associates Limited (New Zealand) and Hewitt Associates LLC (Hong
Kong Branch) payable to the order of Bank of America National Trust and Savings
Association.

                        BORROWER: Hewitt Associates GmbH

                  MULTICURRENCY ADVANCES AND PRINCIPAL PAYMENTS

<TABLE>
<CAPTION>
           Amount of
           Advance in        U.S. $ equivalent
           Designated        of Multicurrency    Interest    Interest    Date of         Amount of        Notation
Date       Currency          Advance             Period      Rate        Repayment       Repayment        Made By
----       --------          ----------------    --------    --------    ---------       ---------        -------
------------------------------------------------------------------------------------------------------------------
<S>        <C>               <C>                 <C>         <C>         <C>             <C>              <C>
------------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

------------------------------------------------------------------------------------------------------------------
</TABLE>

The aggregate unpaid principal amount shown on this schedule shall be rebuttable
presumptive evidence of the principal amount owing and unpaid on this Note. The
failure to record the date, amount, Interest Period or interest rate with
respect to any Multicurrency Advance of this schedule shall not, however, limit
or otherwise affect the obligations of Borrower under this Note to repay the
principal amount of the Multicurrency Advances together with all interest
accruing thereon.

<PAGE>

Schedule attached to Multicurrency Promissory Note dated as of February 23, 1998
of Hewitt Associates Limited, Hewitt Associates SARL, Hewitt Associates Srl,
Hewitt Associates Pte. Ltd. (Singapore), Hewitt Associates, S.A. and Hewitt
Associates GmbH, Hewitt Associates Kabushiki Gaisya, Hewitt Associates PTY.
LTD., Hewitt Associates Limited (New Zealand) and Hewitt Associates LLC (Hong
Kong Branch) payable to the order of Bank of America National Trust and Savings
Association.

                        BORROWER: Hewitt Associates, S.A.

                  MULTICURRENCY ADVANCES AND PRINCIPAL PAYMENTS

<TABLE>
<CAPTION>
           Amount of
           Advance in        U.S. $ equivalent
           Designated        of Multicurrency    Interest    Interest    Date of         Amount of        Notation
Date       Currency          Advance             Period      Rate        Repayment       Repayment        Made By
----       --------          ----------------    --------    --------    ---------       ---------        -------
------------------------------------------------------------------------------------------------------------------
<S>        <C>               <C>                 <C>         <C>         <C>             <C>              <C>
------------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

------------------------------------------------------------------------------------------------------------------
</TABLE>

The aggregate unpaid principal amount shown on this schedule shall be rebuttable
presumptive evidence of the principal amount owing and unpaid on this Note. The
failure to record the date, amount, Interest Period or interest rate with
respect to any Multicurrency Advance of this schedule shall not, however, limit
or otherwise affect the obligations of Borrower under this Note to repay the
principal amount of the Multi currency Advances together with all interest
accruing thereon.

<PAGE>

Schedule attached to Multicurrency Promissory Note dated as of February 23, 1998
of Hewitt Associates Limited, Hewitt Associates SARL, Hewitt Associates Srl,
Hewitt Associates Pte. Ltd. (Singapore), Hewitt Associates, S.A. and Hewitt
Associates GmbH, Hewitt Associates Kabushiki Gaisya, Hewitt Associates PTY.
LTD., Hewitt Associates Limited (New Zealand) and Hewitt Associates LLC (Hong
Kong Branch) payable to the order of Bank of America National Trust and Savings
Association.

                  BORROWER: Hewitt Associates Kabushiki Gaisya

                  MULTICURRENCY ADVANCES AND PRINCIPAL PAYMENTS

<TABLE>
<CAPTION>
           Amount of
           Advance in        U.S. $ equivalent
           Designated        of Multicurrency    Interest    Interest    Date of         Amount of        Notation
Date       Currency          Advance             Period      Rate        Repayment       Repayment        Made By
----       --------          ----------------    --------    --------    ---------       ---------        -------
------------------------------------------------------------------------------------------------------------------
<S>        <C>               <C>                 <C>         <C>         <C>             <C>              <C>
------------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

------------------------------------------------------------------------------------------------------------------
</TABLE>

The aggregate unpaid principal amount shown on this schedule shall be rebuttable
presumptive evidence of the principal amount owing and unpaid on this Note. The
failure to record the date, amount, Interest Period or interest rate with
respect to any Multicurrency Advance of this schedule shall not, however, limit
or otherwise affect the obligations of Borrower under this Note to repay the
principal amount of the Multicurrency Advances together with all interest
accruing thereon.

<PAGE>

Schedule attached to Multicurrency Promissory Note dated as of February 23, 1998
of Hewitt Associates Limited, Hewitt Associates SARL, Hewitt Associates Srl,
Hewitt Associates Pte. Ltd. (Singapore), Hewitt Associates, S.A. and Hewitt
Associates GmbH, Hewitt Associates Kabushiki Gaisya, Hewitt Associates PTY.
LTD., Hewitt Associates Limited (New Zealand) and Hewitt Associates LLC (Hong
Kong Branch) payable to the order of Bank of America National Trust and Savings
Association.

                      BORROWER: Hewitt Associates PTY. LTD.

                  MULTICURRENCY ADVANCES AND PRINCIPAL PAYMENTS

<TABLE>
<CAPTION>
           Amount of
           Advance in        U.S. $ equivalent
           Designated        of Multicurrency    Interest    Interest    Date of         Amount of        Notation
Date       Currency          Advance             Period      Rate        Repayment       Repayment        Made By
----       --------          ----------------    --------    --------    ---------       ---------        -------
------------------------------------------------------------------------------------------------------------------
<S>        <C>               <C>                 <C>         <C>         <C>             <C>              <C>
------------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

------------------------------------------------------------------------------------------------------------------
</TABLE>

The aggregate unpaid principal amount shown on this schedule shall be rebuttable
presumptive evidence of the principal amount owing and unpaid on this Note. The
failure to record the date, amount, Interest Period or interest rate with
respect to any Multicurrency Advance of this schedule shall not, however, limit
or otherwise affect the obligations of Borrower under this Note to repay the
principal amount of the MulticurrencyAdvances together with all interest
accruing thereon.

<PAGE>

Schedule attached to Multicurrency Promissory Note dated as of February 23, 1998
of Hewitt Associates Limited, Hewitt Associates SARL, Hewitt Associates Srl,
Hewitt Associates Pte. Ltd. (Singapore), Hewitt Associates, S.A. and Hewitt
Associates GmbH, Hewitt Associates Kabushiki Gaisya, Hewitt Associates PTY.
LTD., Hewitt Associates Limited (New Zealand) and Hewitt Associates LLC (Hong
Kong Branch) payable to the order of Bank of America National Trust and Savings
Association.

                BORROWER: Hewitt Associates Limited (New Zealand)

                  MULTICURRENCY ADVANCES AND PRINCIPAL PAYMENTS

<TABLE>
<CAPTION>
           Amount of
           Advance in        U.S. $ equivalent
           Designated        of Multicurrency    Interest    Interest    Date of         Amount of        Notation
Date       Currency          Advance             Period      Rate        Repayment       Repayment        Made By
----       --------          ----------------    --------    --------    ---------       ---------        -------
------------------------------------------------------------------------------------------------------------------
<S>        <C>               <C>                 <C>         <C>         <C>             <C>              <C>
------------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

------------------------------------------------------------------------------------------------------------------
</TABLE>

The aggregate unpaid principal amount shown on this schedule shall be rebuttable
presumptive evidence of the principal amount owing and unpaid on this Note. The
failure to record the date, amount, Interest Period or interest rate with
respect to any Multicurrency Advance of this schedule shall not, however, limit
or otherwise affect the obligations of Borrower under this Note to repay the
principal amount of the Multi currency Advances together with all interest
accruing thereon.

<PAGE>

Schedule attached to Multicurrency Promissory Note dated as of February 23, 1998
of Hewitt Associates Limited, Hewitt Associates SARL, Hewitt Associates Srl,
Hewitt Associates Pte. Ltd. (Singapore), Hewitt Associates, S.A. and Hewitt
Associates GmbH, Hewitt Associates Kabushiki Gaisya, Hewitt Associates PTY.
LTD., Hewitt Associates Limited (New Zealand) and Hewitt Associates LLC (Hong
Kong Branch) payable to the order of Bank of America National Trust and Savings
Association.

               BORROWER: Hewitt Associates LLC (Hong Kong Branch)

                  MULTICURRENCY ADVANCES AND PRINCIPAL PAYMENTS

<TABLE>
<CAPTION>
           Amount of
           Advance in        U.S. $ equivalent
           Designated        of Multicurrency    Interest    Interest    Date of         Amount of        Notation
Date       Currency          Advance             Period      Rate        Repayment       Repayment        Made By
----       --------          ----------------    --------    --------    ---------       ---------        -------
------------------------------------------------------------------------------------------------------------------
<S>        <C>               <C>                 <C>         <C>         <C>             <C>              <C>
------------------------------------------------------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

------------------------------------------------------------------------------------------------------------------
</TABLE>

The aggregate unpaid principal amount shown on this schedule shall be rebuttable
presumptive evidence of the principal amount owing and unpaid on this Note. The
failure to record the date, amount, Interest Period or interest rate with
respect to any Multicurrency Advance of this schedule shall not, however, limit
or otherwise affect the obligations of Borrower under this Note to repay the
principal amount of the Multi currency Advances together with all interest
accruing thereon.

<PAGE>

                                    EXHIBIT I

Schedule of officers and employees authorized to request and prepay
Multicurrency Advances and execute written confirmation pursuant to the Amended
and Restated Multicurrency Promissory Note dates as of February 23, 1998 of
Hewitt Associates Pty, Ltd. (Australia), Hewitt Associates SARL (France), Hewitt
Associates GmbH (Germany), Hewitt Associates LLC (Hong Kong), Hewitt Associates
Srl (Italy), Hewitt Associates Kabushiki Gaisya (Japan), Hewitt Associates
Limited (New Zealand), Hewitt Associates Pte. Ltd. (Singapore), Hewitt
Associates S.A. (Spain), and Hewitt Associates Limited (United Kingdom) payable
to the order of Bank of America National Trust and Savings Association. This
schedule supersedes all earlier schedules.

Name                     Title                                Signature
----                     -----                                ---------

Dan A. DeCanniere        Authorized Representative          ____________________

Kenneth L. Hastings      Authorized Representative          ____________________

Paul D. Howes            Authorized Representative          ____________________

John M. Ryan             Authorized Representative          ____________________

Tomoo Shimizu            Authorized Representative          ____________________

Dated:          10/26/98              Hewitt Associates Kabushiki Gaisya (Japan)
       -----------------------        ------------------------------------------

                                      By:    ___________________________________

                                      Title: ___________________________________

     I, the undersigned, [Vice] President of the Borrower, DO HEREBY CERTIFY
that ________________________ is [a] duly elected and qualified [Assistant]
Secretary of the Borrower and the signature above is his/her genuine signature.

     WITNESS my hand on this ___ day of __________, 19___.

                                      __________________________________________
                                                  [Vice] President

<PAGE>

                                   EXHIBIT II

                              DESIGNATED CURRENCIES

                                  French Francs
                                  Swiss Francs
                                  German Marks
                                 Pounds Sterling
                                  Italian Lira
                                Singapore Dollars
                                 Spanish Pesetas
                              United States Dollars
                                  Japanese Yen
                                Hong Kong Dollars

<PAGE>

                                   EXHIBIT III

                             [BORROWER'S LETTERHEAD]

______________________, 19___

Bank of America National Trust
  and Savings Association
231 South LaSalle Street
Chicago, Illinois 60697

Ladies and Gentlemen:

Reference is made to our Amended and Restated Multicurrency Promissory Note
dated as of February 23, 1998 (as the same may be amended, modified or
supplemented from time to time, the "Note") in the face principal amount of
$10,000,000 payable to your order. All terms used herein which are defined in
the Note shall have the same meaning herein as therein.

Pursuant to the terms of the Note, we hereby confirm the following:

     1.   A MulticurrencyAdvance in the amount of _________________________
(insert amount and Designated Currency) was requested on _________________,
19___. The interest rate applicable to such Multicurrency Advance is ___% per
annum. The Interest Period applicable to such Multicurrency Advance is
____________________.

     2.   A continuation of a Multicurrency Advance in the amount of
________________ (insert amount and Designated Currency) was requested on
_____________, 19___. The interest rate applicable to such continuation is ____%
per annum. The Interest Period applicable to such continuation is
____________________.

     [Complete number 1 or 2 above, whichever is applicable.]

                                        Very truly yours,

                                                  [BORROWER]
                                        ----------------------------------------

                                        By:_____________________________________

                                        Title:__________________________________

<PAGE>

                                   EXHIBIT IV

                     FORM OF DESIGNATED BORROWER CERTIFICATE

______________________, 19___

Bank of America National Trust
  and Savings Association
231 South LaSalle Street
Chicago, Illinois  60697

Gentlemen and Ladies:

     Reference is made to our Amended and Restated Multicurrency Promissory Note
dated as of February 23, 1998 (as the same may be amended, modified or
supplemented from time to time, the "Note") in the face principal amount of
$10,000,000 payable to your order. All terms used herein which are defined in
the Note shall have the same meaning herein as therein.

     Hewitt Associates LLC, the Guarantor, hereby designates [name of Subsidiary
Borrower], a [jurisdiction of incorporation] corporation, to be a Designated
Borrower for purposes of the Note, effective from the date hereof. [name of
Subsidiary Borrower] confirms its irrevocable appointment of the Guarantor as
its agent under Section 11.8 of the Note and confirms that the warranties set
forth in Section 7 of the Note are true and correct as to [name of Subsidiary
Borrower] as of the date hereof, and the [name of Subsidiary Borrower] hereby
agrees to perform all the obligations of a Borrower under, and to be bound in
all respects by the terms of, the Note, including without limitation Section 11
thereof, as if [name of Subsidiary Borrower] were a signatory party thereto.

     The Guarantor hereby re-confirms the Guaranty dated ______ __, 1998 and the
Borrower listed in the Guaranty shall include [name of Subsidiary Borrower].

     The address to which all notices to [name of Subsidiary Borrower] under the
Note should be directed is: _____________________________________________. This
instrument shall be construed in accordance with and governed by the internal
laws of the State of Illinois.

<PAGE>

                                              Very truly yours,

                                              HEWITT ASSOCIATES LLC

                                              By:_______________________________
                                              Name:_____________________________
                                              Title:____________________________

                                              [NAME OF APPLICANT BORROWER]

                                              By:_______________________________
                                              Name:_____________________________
                                              Title:____________________________

     Receipt of the above Designated Borrower Certificate is hereby acknowledged
and accepted on and as of __________________________.

                                              BANK OF AMERICA NATIONAL TRUST
                                              AND SAVINGS ASSOCIATION

                                              By:_______________________________
                                              Name:_____________________________
                                              Title:____________________________

<PAGE>

                                    EXHIBIT V

                                EXTENSION LETTER

______________________, 19___

To:  Bank of America National Trust and Savings Association

     Re:  Proposed Extension of the Termination Date

Gentlemen:

     Reference is made to our Amended and Restated Multicurrency Promissory Note
dated as of February 23, 1998 (as the same may be amended, modified or
supplemented from time to time, the "Note") in the face principal amount of
$10,000,000 payable to your order. All terms used herein which are defined in
the Note shall have the same meaning herein as therein.

     The Termination Date currently in effect under the Note is ____________,
19__.

     The Guarantor desires to extend the Termination Date by one year and
accordingly requests hereby that the Bank agree to extend the Termination Date
to _____________, 19__.

     If the foregoing proposed extension of the Termination Date meets with your
approval, please so indicate by executing and returning to the Guarantor the
accompanying copy of this letter. Upon receipt by the Guarantor of counterparts
of this letter executed by the Bank, the Termination Date under the Note shall
henceforth be __________________, 19__.

                                             Sincerely yours,

                                             HEWITT ASSOCIATES LLC

                                             By_________________________________

                                             Title______________________________

ACCEPTED AND AGREED TO:

BANK OF AMERICA NATIONAL TRUST
  AND SAVINGS ASSOCIATION

By:___________________________
Title:________________________<PAGE>

                                                                    Exhibit 10.4

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

                              HEWITT ASSOCIATES LLC

                                   $50,000,000

                       7.45% Senior Notes due May 30, 2008

                                 ______________

                             NOTE PURCHASE AGREEMENT

                                 ______________

                                Dated May 1, 1996

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

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
Section                                                                                      Page
-------                                                                                      ----
<S>                                                                                          <C>
1.     AUTHORIZATION OF NOTES.........................................................        1

2.     SALE AND PURCHASE OF NOTES.....................................................        1

3.     CLOSING........................................................................        1

4.     CONDITIONS TO CLOSING..........................................................        2
       4.1.    Representations and Warranties.........................................        2
       4.2.    Performance; No Default................................................        2
       4.3.    Compliance Certificates................................................        2
       4.4.    Opinions of Counsel....................................................        3
       4.5.    Purchase Permitted By Applicable Law, etc..............................        3
       4.6.    Sale of Other Notes....................................................        3
       4.7.    Payment of Special Counsel Fees........................................        3
       4.8.    Private Placement Number...............................................        3
       4.9.    Changes in Organizational Structure....................................        3
       4.10.   Bank Agreements........................................................        4
       4.11.   Proceedings and Documents..............................................        4

5.     REPRESENTATIONS AND WARRANTIES OF THE COMPANY..................................        4
       5.1.    Organization; Power and Authority......................................        4
       5.2.    Authorization, etc.....................................................        4
       5.3.    Disclosure.............................................................        5
       5.4.    Organization and Ownership of Shares of Subsidiaries; Affiliates.......        5
       5.5.    Financial Statements...................................................        6
       5.6.    Compliance with Laws, Other Instruments, etc...........................        6
       5.7.    Governmental Authorizations, etc.......................................        6
       5.8.    Litigation; Observance of Agreements, Statutes and Orders..............        7
       5.9.    Taxes..................................................................        7
       5.10.   Title to Property; Leases..............................................        7
       5.11.   Licenses, Permits, etc.................................................        7
       5.12.   Compliance with ERISA..................................................        8
       5.13.   Private Offering by the Company........................................        9
       5.14.   Use of Proceeds; Margin Regulations....................................        9
       5.15.   Existing Indebtedness; Future Liens....................................       10
       5.16.   Foreign Assets Control Regulations, etc................................       10
       5.17.   Status under Certain Statutes..........................................       10
       5.18.   Environmental Matters..................................................       10

6.     REPRESENTATIONS OF THE PURCHASER...............................................       11
       6.1.    Purchase for Investment................................................       11
       6.2.    Source of Funds........................................................       11
</TABLE>

                                      -i-

<PAGE>

                               TABLE OF CONTENTS
                                   (continued

<TABLE>
<CAPTION>
Section                                                                                     Page
-------                                                                                     ----
<S>                                                                                         <C>
7.    INFORMATION AS TO COMPANY.......................................................       13
      7.1.     Financial and Business Information.....................................       13
      7.2.     Officer's Certificate..................................................       16
      7.3.     Inspection.............................................................       16

8.    PREPAYMENT OF THE NOTES.........................................................       17
      8.1.     Required Prepayments...................................................       17
      8.2.     Optional Prepayments with Make-Whole Amount............................       17
      8.3.     Allocation of Partial Prepayments......................................       17
      8.4.     Maturity; Surrender, etc...............................................       18
      8.5.     Purchase of Notes......................................................       18
      8.6.     Make-Whole Amount......................................................       18

9.    AFFIRMATIVE COVENANTS...........................................................       19
      9.1.     Compliance with Law....................................................       20
      9.2.     Insurance..............................................................       20
      9.3.     Maintenance of Properties..............................................       20
      9.4.     Payment of Taxes and Claims............................................       20
      9.5.     Existence, etc.........................................................       21

10.   NEGATIVE COVENANTS..............................................................       21
      10.1.    Transactions with Affiliates...........................................       21
      10.2.    Merger, Consolidation, etc.............................................       21
      10.3.    Consolidated Net Capital...............................................       22
      10.4.    Funded Indebtedness....................................................       22
      10.5.    Current Indebtedness...................................................       23
      10.6.    Indebtedness of Restricted Subsidiaries................................       23
      10.7.    Liens..................................................................       23
      10.8.    Sale of Assets.........................................................       24
      10.9.    Restricted Subsidiary Stock............................................       25
      10.10.   Distributions..........................................................       26
      10.11.   Amendments to Articles of Organization and Operating Agreement.........       26
      10.12.   Change in Business.....................................................       26

11.   EVENTS OF DEFAULT...............................................................       26

12.   REMEDIES ON DEFAULT, ETC........................................................       28
      12.1.    Acceleration...........................................................       28
      12.2.    Other Remedies.........................................................       29
      12.3.    Rescission.............................................................       29
      12.4.    No Waivers or Election of Remedies, Expenses, etc......................       30
</TABLE>

                                      -ii-

<PAGE>

                               TABLE OF CONTENTS
                                   (continued

<TABLE>
<CAPTION>
Section                                                                                     Page
-------                                                                                     ----
<S>                                                                                         <C>
13.   REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES..................................        30
      13.1.    Registration of Notes.................................................        30
      13.2.    Transfer and Exchange of Notes........................................        30
      13.3.    Replacement of Notes..................................................        31

14.   PAYMENTS ON NOTES..............................................................        31
      14.1.    Place of Payment......................................................        31
      14.2.    Home Office Payment...................................................        31

15.   EXPENSES, ETC..................................................................        32
      15.1.    Transaction Expenses..................................................        32
      15.2.    Survival..............................................................        32

16.   SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT...................        32

17.   AMENDMENT AND WAIVER...........................................................        33
      17.1.    Requirements..........................................................        33
      17.2.    Solicitation of Holders of Notes......................................        33
      17.3.    Binding Effect, etc...................................................        34
      17.4.    Notes held by Company, etc............................................        34

18.   NOTICES........................................................................        34

19.   REPRODUCTION OF DOCUMENTS......................................................        34

20.   CONFIDENTIAL INFORMATION.......................................................        35

21.   SUBSTITUTION OF PURCHASER......................................................        36

22.   MISCELLANEOUS..................................................................        36
      22.1.    Successors and Assigns................................................        36
      22.2.    Payments Due on Non-Business Days.....................................        36
      22.3.    Severability..........................................................        37
      22.4.    Construction..........................................................        37
      22.5.    Counterparts..........................................................        37
      22.6.    Governing Law.........................................................        37
</TABLE>

SCHEDULE A          --       INFORMATION RELATING TO PURCHASERS

SCHEDULE B          --       DEFINED TERMS

SCHEDULE C          --       EXISTING INVESTMENTS

SCHEDULE 4.9        --       Changes in Corporate Structure

                                      -iii-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued

<TABLE>
<CAPTION>
Section                                                                                     Page
-------                                                                                     ----
<S>                                                                                         <C>
SCHEDULE 5.3        --     Disclosure Materials

SCHEDULE 5.4        --     Subsidiaries of the Company and Ownership of Subsidiary Stock

SCHEDULE 5.5        --     Financial Statements

SCHEDULE 5.8        --     Certain Litigation

SCHEDULE 5.11       --     Patents, etc.

SCHEDULE 5.14       --     Use of Proceeds

SCHEDULE 5.15       --     Existing Indebtedness

SCHEDULE 10.7       --     Liens

EXHIBIT 1           --     Form of 7.45% Senior Note due May 30, 2008

EXHIBIT 4.4         --     Form of Legal Opinions
</TABLE>

                                      -iv-

<PAGE>

                              HEWITT ASSOCIATES LLC
                                100 Half Day Road
                          Lincolnshire, Illinois 60069

                       7.45% Senior Note due May 30, 2008

                                                                     May 1, 1996

TO EACH OF THE PURCHASERS LISTED IN
        THE ATTACHED SCHEDULE A:

Ladies and Gentlemen:

             HEWITT ASSOCIATES LLC, a limited liability company organized under
the laws of Illinois (the "Company"), agrees with you as follows:

1.      AUTHORIZATION OF NOTES.

             The Company will authorize the issue and sale of $50,000,000
aggregate principal amount of its 7.45% Senior Notes due May 30, 2008 (the
"Notes", such term to include any such notes issued in substitution therefor
pursuant to Section 13 of this Agreement). The Notes shall be substantially in
the form set out in Exhibit 1, with such changes therefrom, if any, as may be
approved by you and the Company. Certain capitalized terms used in this
Agreement are defined in Schedule B; references to a "Schedule" or an "Exhibit"
are, unless otherwise specified, to a Schedule or an Exhibit attached to this
Agreement.

2.      SALE AND PURCHASE OF NOTES.

             Subject to the terms and conditions of this Agreement, the Company
will issue and sell to you and you will purchase from the Company, at the
Closing provided for in Section 3, Notes in the principal amount specified
opposite your name in Schedule A at the purchase price of 100% of the principal
amount thereof. You are referred to herein as a "Purchaser" and, together with
the other purchasers named in Schedule A hereto, as the "Purchasers." Your
obligation hereunder and the obligations of the other Purchasers are several and
not joint obligations and you shall have no obligation hereunder and no
liability to any Person for the performance or non-performance by any other
Purchaser thereunder.

3.      CLOSING.

             The sale and purchase of the Notes to be purchased by you and the
other Purchasers shall occur at the offices of Gardner, Carton & Douglas, 321
North Clark Street, Chicago, Illinois 60610, at 10:00 a.m., Central Standard
time, at a closing (the "Closing") on May 30, 1996 or on such other Business Day
thereafter on or prior to June 10, 1996 as may be agreed upon by the Company and
you and the other Purchasers. At the Closing, the Company will deliver to you
the Notes to be purchased by you in the

<PAGE>

form of a single Note (or such greater number of Notes in denominations of at
least $100,000 as you may request) dated the date of the Closing and registered
in your name (or in the name of your nominee), against delivery by you to the
Company or its order of immediately available funds in the amount of the
purchase price therefor by wire transfer of immediately available funds for the
account of the Company to account number 287 360 2 at Harris Trust and Savings
Bank, 111 W. Monroe Street, P.O. Box 755, Chicago, IL 60690-0755, ABA
#071000288. If at the Closing the Company shall fail to tender such Notes to you
as provided above in this Section 3, or any of the conditions specified in
Section 4 shall not have been fulfilled to your satisfaction, you shall, at your
election, be relieved of all further obligations under this Agreement, without
thereby waiving any rights you may have by reason of such failure or such
nonfulfillment.

4.      CONDITIONS TO CLOSING.

             Your obligation to purchase and pay for the Notes to be sold to you
at the Closing is subject to the fulfillment to your satisfaction, prior to or
at the Closing, of the following conditions:

4.1.    Representations and Warranties.

             The representations and warranties of the Company in this Agreement
shall be correct when made and at the time of the Closing.

4.2.    Performance; No Default.

             The Company shall have performed and complied with all agreements
and conditions contained in this Agreement required to be performed or complied
with by it prior to ,or at the Closing and after giving effect to the issue and
sale of the Notes (and the application of the proceeds thereof as contemplated
by Schedule 5.14) no Default or Event of Default shall have occurred and be
continuing. Neither the Company nor any Subsidiary shall have entered into any
transaction since the date of the Memorandum that would have been prohibited by
Sections 10.1 through 10.10 hereof had the Sections 10.1 through 10. 10 applied
since such date.

4.3.    Compliance Certificates.

        (a)  Officer's Certificate. The Company shall have delivered to you an
             ---------------------
Officer's Certificate, dated the date of the Closing, certifying that the
conditions specified in Sections 4.1, 4.2 and 4.9 have been fulfilled.

        (b)  Secretary's Certificate. The Company shall have delivered to you a
             -----------------------
certificate certifying as to the resolutions attached thereto and other
organizational proceedings relating to the authorization, execution and delivery
of the Notes and the Agreements.

                                       -2-

<PAGE>

4.4.    Opinions of Counsel.

             You shall have received opinions in form and substance satisfactory
to you, dated the date of the Closing (a) from C. Lawrence Connolly III, Esq.,
counsel for the Company, covering the matters set forth in Exhibit 4.4(a) and
covering such other matters incident to the transactions contemplated hereby as
you or your counsel may reasonably request (and the Company hereby instructs its
counsel to deliver such opinion to you) and (12) from Gardner, Carton & Douglas,
your special counsel in connection with such transactions, substantially in the
form set forth in Exhibit 4.4(b) and covering such other matters incident to
such transactions as you may reasonably request.

4.5.    Purchase Permitted By Applicable Law, etc.

             On the date of the Closing your purchase of Notes shall (i) be
permitted by the laws and regulations of each jurisdiction to which you are
subject, without recourse to provisions permitting limited investments by
insurance companies without restriction as to the character of the particular
investment, not violate any applicable law or regulation (including, without
limitation, Regulation G, T or X of the Board of Governors of the Federal
Reserve System) and (ii) not subject you to any tax, penalty or liability under
or pursuant to any applicable law or regulation, which law or regulation was not
in effect on the date hereof. If requested by you, you shall have received an
Officer's Certificate certifying as to such matters of fact as you may
reasonably specify to enable you to determine whether such purchase is so
permitted.

4.6.    Sale of Other Notes.

             Contemporaneously with the Closing the Company shall sell to the
other Purchasers and the other Purchasers shall purchase the Notes to be
purchased by them at the Closing as specified in Schedule A.

4.7.    Payment of Special Counsel Fees.

             Without limiting the provisions of Section 15.1, the Company shall
have paid on or before the Closing the fees, charges and disbursements of your
special counsel referred to in Section 4.4 to the extent reflected in a
statement of such counsel rendered to the Company at least one Business Day
prior to the Closing.

4.8.    Private Placement Number.

             A Private Placement number issued by Standard & Poor's CUSIP
Service Bureau (in cooperation with the Securities Valuation Office of the
National Association of Insurance Commissioners) shall have been obtained for
the Notes.

4.9.    Changes in Organizational Structure.

             Except as specified in Schedule 4.9, the Company shall not have
changed its jurisdiction of formation or been a party to any merger or
consolidation and shall not have succeeded to all or any substantial part of the
liabilities of any other entity, at any

                                       -3-

<PAGE>

time following the date of the most recent financial statements referred to in
Schedule 5.5.

4.10.   Bank Agreements.

             On or prior to the Closing Date, the Company shall have entered
into a $100,000,000 Revolving and Term Credit Agreement with its bank lenders in
substantially the form provided by the Company to the Purchasers.

4.11.   Proceedings and Documents.

             All authorization and other proceedings in connection with the
transactions contemplated by this Agreement and all documents and instruments
incident to -such transactions shall be satisfactory to you and your special
counsel, and you and your special counsel shall have received all such
counterpart originals or certified or other copies of such documents as you or
they may reasonably request.

5.      REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

             The Company represents and warrants to you that:

5.1.    Organization; Power and Authority.

             The Company is a limited liability company duly organized, validly
existing and in good standing under the laws of its jurisdiction of formation,
and is duly qualified as a foreign limited liability company and is in good
standing in each jurisdiction in which such qualification is required by law,
other than those jurisdictions as to which the failure to be so qualified or in
good standing could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. The Company has the requisite power
and authority to own or hold under lease the properties it purports to own or
hold under lease, to transact the business it transacts and proposes to
transact, to execute and deliver this Agreement and the Notes and to perform the
provisions hereof and thereof.

5.2.    Authorization, etc.

             This Agreement and the Notes have been duly authorized by all
necessary action on the part of the Company as required by the Operating
Agreement and the Company's articles of organization, and this Agreement
constitutes, and upon execution and delivery thereof each Note will constitute,
a legal, valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as such enforceability may be
limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting the enforcement of creditors' rights generally and
(ii) general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

                                       -4-

<PAGE>

5.3.     Disclosure.

              The Company, through its agent, BA Securities Inc., has delivered
to you and each other Purchaser a copy of a Private Placement Memorandum, dated
April, 1996 (the "Memorandum"), relating to the transactions contemplated
hereby. The Memorandum fairly describes, in all material respects, the general
nature of the business and principal properties of the Company and its
Subsidiaries. Except as disclosed in Schedule 5.3, this Agreement, the
Memorandum, the documents, certificates or other writings delivered to you by or
on behalf of the Company in connection with the transactions contemplated hereby
and the financial statements listed in Schedule 5.5, taken as a whole, do not
contain any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein not misleading in light of the
circumstances under which they were made. Except as disclosed in the Memorandum
or as expressly described in Schedule 5.3, or in one of the documents,
certificates or other writings identified therein, or in the financial
statements listed in Schedule 5.5, since September 30, 1995, there has been no
change in the financial condition, operations, business, properties or
prospects- of the Company or any Subsidiary except changes that individually or
in the aggregate could not reasonably be expected to have a Material Adverse
Effect. There is no fact known to the Company that could reasonably be expected
to have a Material Adverse Effect that has not been set forth herein or in the
Memorandum or in the other documents, certificates and other writings delivered
to you by or on behalf of the Company specifically for use in connection with
the transactions contemplated hereby.

5.4.     Organization and Ownership of Shares of Subsidiaries; Affiliates.

         (a)  Schedule 5.4 contains (except as noted therein) complete
and correct lists (i) of the Company's Subsidiaries, showing, as to each
Subsidiary, the correct name thereof, the jurisdiction of its organization, and
the percentage of shares of each class of its capital stock or similar equity
interests outstanding owned by the Company and each other Subsidiary, (ii) of
the Company's Affiliates, other than Subsidiaries, and (iii) of the Company's
Managers and senior officers.

         (b)  All of the outstanding shares of capital stock or similar equity
interests of each Subsidiary shown in Schedule 5.4 as being owned by the Company
and its Subsidiaries have been validly issued, are fully paid and nonassessable
and are owned by the Company or another Subsidiary free and clear of any Lien
(except as otherwise disclosed in Schedule 5.4).

         (c)  Each Subsidiary identified in Schedule 5.4 is a corporation,
limited liability company or other legal entity duly organized, validly existing
and in good standing under the laws of its jurisdiction of organization, and is
duly qualified as a foreign corporation or other legal entity and is in good
standing in each jurisdiction in which such qualification is required by law,
other than those jurisdictions as to which the failure to be so qualified or in
good standing could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. Each such Subsidiary has the
corporate or other power and authority to own or hold under lease the properties
it

                                       -5-

<PAGE>

purports to own or hold under lease and to transact the business it transacts
and proposes to transact.

     (d)     No Subsidiary is a party to, or otherwise subject to any legal
restriction or any agreement (other than this Agreement, the agreements listed
on Schedule 5.4 and customary limitations imposed by corporate law statutes)
restricting the ability of such Subsidiary to pay dividends out of profits or
make any other similar distributions of profits to the Company or any of its
Subsidiaries that owns outstanding shares of capital stock or similar equity
interests of such Subsidiary.

5.5. Financial Statements.

             The Company has delivered to each Purchaser copies of the
consolidated financial statements of the Company and its Subsidiaries listed on
Schedule 5.5. All of said financial statements (including in each case the
related schedules and notes) fairly present in all material respects the
consolidated financial position of the Company and its Subsidiaries as of the
respective dates specified in such Schedule and the consolidated results of
their operations and cash flows for the respective periods so specified and have
been prepared in accordance with GAAP consistently applied throughout the
periods involved except as set forth in any notes thereto (subject, in the case
of any interim financial statements, to normal year-end adjustments).

5.6. Compliance with Laws, Other Instruments, etc.

             The execution, delivery and performance by the Company of this
Agreement and the Notes will not (i) contravene, result in any breach of, or
constitute a default under, or result in the creation of any Lien in respect of
any property of the Company or any Subsidiary under, any indenture, mortgage,
deed of trust, loan, purchase or credit agreement, lease, operating agreement,
articles of organization, corporate charter or by-laws, or any other agreement
or instrument to which the Company or any Subsidiary is bound or by which the
Company or any Subsidiary or any of their respective properties may be bound or
affected, (ii) conflict with or result in a breach of any of the terms,
conditions or provisions of any order, judgment, decree, or ruling of any court,
arbitrator or Governmental Authority applicable to the Company or any Subsidiary
or (iii) violate any provision of any statute or other rule or regulation of any
Governmental Authority applicable to the Company or any Subsidiary. The Company
is not in default or in violation of any Material term or provision of its
Operating Agreement.

5.7. Governmental Authorizations, etc.

             No consent, approval or authorization of, or registration, filing
or declaration with, any Governmental Authority is required in connection with
the execution, delivery or performance by the Company of this Agreement or the
Notes.

                                       -6-

<PAGE>

5.8.   Litigation; Observance of Agreements, Statutes and Orders.

       (a)   Except as disclosed in Schedule 5.8, there are no actions, suits or
proceedings pending or, to the knowledge of the Company, threatened against or
affecting the Company or any Subsidiary or any property of the Company or any
Subsidiary in any court or before any arbitrator of any kind or before or by any
Governmental Authority that, individually or in the aggregate, could reasonably
be expected to have a Material Adverse Effect.

       (b)   Neither the Company nor any Subsidiary is in default under any term
of any agreement or instrument to which it is a party or by which it is bound,
or any order, judgment, decree or ruling of any court, arbitrator or
Governmental Authority or is in violation of any applicable law, ordinance, rule
or regulation (including without limitation Environmental Laws) of any
Governmental Authority, which default or violation, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.

5.9.   Taxes.

             The Company and its Subsidiaries have filed all Tax Returns that
are required to have been filed in any jurisdiction and sent all Tax Returns to
any party as required under applicable law or regulation, and have paid all
Taxes shown to be due and payable on such returns and all other Taxes to the
extent such Taxes have become due and payable and before they have become
delinquent, except for any Taxes (i) the amount of which is not individually or
in the aggregate Material or (ii) the amount, applicability or validity of which
is currently being contested in good faith by appropriate proceedings and with
respect to which the Company or a Subsidiary, as the case may be, has
established adequate reserves in accordance with GAAP. The Company knows of no
basis for any Tax that could reasonably be expected to have a Material Adverse
Effect. The charges, accruals and reserves on the books of the Company and its
Subsidiaries in respect of Taxes for all fiscal periods are adequate. The
Company is properly treated as a partnership for, and is not taxable as, a
corporation for Federal income tax purposes.

5.10.  Title to Property; Leases.

             The Company and its Subsidiaries have good and sufficient
title to their respective properties that individually or in the aggregate are
Material, including all such properties reflected in the most recent audited
balance sheet referred to in Section 5.5 or purported to have been acquired by
the Company or any Subsidiary after said date (except as sold or otherwise
disposed of in the ordinary course of business), in each case free and clear of
Liens prohibited by this Agreement. All leases that individually or in the
aggregate are Material are valid and subsisting and are in full force and effect
in all material respects.

5.11.  Licenses, Permits, etc.

             Except as disclosed in Schedule 5.11,

                                       -7-

<PAGE>

          (a) the Company and its Subsidiaries own or possess all licenses,
      permits, franchises, authorizations, patents, copyrights, service marks,
      trademarks and trade names, or rights thereto, that individually or in the
      aggregate are Material, without known conflict with the rights of others;

          (b) to the best knowledge of the Company, no product of the Company
      infringes in any material respect any license, permit, franchise,
      authorization, patent, copyright, service mark, trademark, trade name or
      other right owned by any other Person; and

          (c) to the best knowledge of the Company, there is no Material
      violation by any Person of any right of the Company or any of its
      Subsidiaries with respect to any patent, copyright, service mark,
      trademark, trade name or other right owned or used by the Company or any
      of its Subsidiaries.

5.12. Compliance with ERISA.

      (a) The Company and each ERISA Affiliate have operated and administered
each Plan in compliance with all applicable laws except for such instances of
noncompliance as have not resulted in and could not reasonably be expected to
result in a Material Adverse Effect. Neither the Company nor any ERISA Affiliate
has incurred any liability pursuant to Title I or IV of ERISA or the penalty or
excise tax provisions of the Code relating to employee benefit plans (as defined
in Section 3 of ERISA), and no event, transaction or condition has occurred or
exists that could reasonably be expected to result in the incurrence of any such
liability by the Company or any ERISA Affiliate, or in the imposition of any
Lien on any of the rights, properties or assets of the Company or any ERISA
Affiliate, in either case pursuant to Title I or IV of ERISA or to such penalty
or excise tax provisions or to Section 401(a)(29) or 412 of the Code, other than
such liabilities or Liens as would not be individually or in the aggregate
Material.

      (b) The present value of the aggregate benefit liabilities under each of
the Plans (other than Multiemployer Plans), determined as of the end of such
Plan's most recently ended plan year on the basis of the actuarial assumptions
specified for funding purposes in such Plan's most recent actuarial valuation
report, did not exceed the aggregate current value of the assets of such Plan
allocable to such benefit liabilities by more than $500,000 in the case of any
single Plan and by more than $500,000 in the aggregate for all Plans. The term
"benefit liabilities" has the meaning specified in section 4001 of ERISA and the
terms "current value" and "present value" have the meaning specified in section
3 of ERISA.

      (c) The Company and its ERISA Affiliates have not incurred withdrawal
liabilities (and are not subject to contingent withdrawal liabilities) under
section 4201 or 4204 of ERISA in respect of Multiemployer Plans that
individually or in the aggregate are Material.

      (d) The expected postretirement benefit obligation (determined as of the
last day of the Company's most recently ended fiscal year in accordance with
Financial

                                       -8-

<PAGE>

Accounting Standards Board Statement No. 106, without regard to liabilities
attributable to continuation coverage mandated by section 4980B of the Code) of
the Company and its Subsidiaries does not exceed $1,600,000.

      (e) The execution and delivery of this Agreement and the issuance and sale
of the Notes hereunder will not involve any transaction that is subject to the
prohibitions of section 406 of ERISA or in connection with which a tax could be
imposed pursuant to section 4975(c)(1)(A)-(D) of the Code. The representation by
the Company in the first sentence of this Section 5.12(e) is made in reliance
upon and subject to the accuracy of your representation in Section 6.2 as to the
sources of the funds used to pay the purchase price of the Notes to be purchased
by you.

      (f) All Foreign Pension Plans have been established, operated,
administered and maintained in compliance with all laws, regulations and orders
applicable thereto except for such failures to comply that, in the aggregate for
all such failures, could not reasonably be expected to have a Material Adverse
Effect. All premiums, contributions and any other amounts required by applicable
Foreign Pension Plan documents or applicable laws have been paid or accrued as
required, except for premiums, contributions and amounts that, in the aggregate
for all such obligations, could not reasonably be expected to have a Material
Adverse Effect.

5.13. Private Offering by the Company.

          Neither the Company nor anyone acting on its behalf has offered the
Notes or any similar securities for sale to, or solicited any offer to buy any
of the same from, or otherwise approached or negotiated in respect thereof with
more than 30 Institutional Investors (including the Purchasers), each of which
has been offered the Notes at a private sale for investment. Neither the Company
nor anyone acting on its behalf has taken, or will take, any action that would
subject the issuance or sale of the Notes to the registration requirements of
Section 5 of the Securities Act.

5.14. Use of Proceeds; Margin Regulations.

          The Company will apply the proceeds of the sale of the Notes as set
forth in Schedule 5.14. No part of the proceeds from the sale of the Notes
hereunder will be used, directly or indirectly, for the purpose of buying or
carrying any margin stock within the meaning of Regulation G of the Board of
Governors of the Federal Reserve System (12 CFR 207), or for the purpose of
buying or carrying or trading in any securities under such circumstances as to
involve the Company in a violation of Regulation X of said Board (12 CFR 224) or
to involve any broker or dealer in a violation of Regulation T of said Board (12
CFR 220). The Company, as of the date of Closing, owns no margin stock and the
Company does not have any present intention that margin stock will constitute
more than 5% of the value of the consolidated assets of the Company and its
Subsidiaries. As used in this Section, the terms "margin stock" and "purpose of
buying or carrying" shall have the meanings assigned to them in said Regulation
G.

                                       -9-

<PAGE>

5.15. Existing Indebtedness; Future Liens.

      (a) Except as described therein, Schedule 5.15 sets forth a complete and
correct list of all outstanding Indebtedness of the Company and its Subsidiaries
as of the date of Closing. Neither the Company nor any Subsidiary is in default
and no waiver of default is currently in effect, in the payment of any principal
or interest on any Indebtedness of the Company or such Subsidiary and no event
or condition exists with respect to any Indebtedness of the Company or any
Subsidiary that would permit (or that with notice or the lapse of time, or both,
would permit) one or more Persons to cause such Indebtedness to become due and
payable before its stated maturity or before its regularly scheduled dates of
payment.

      (b) Except as disclosed in Schedule 5.15, neither the Company nor any
Subsidiary has agreed or consented to cause or permit in the future (upon the
happening of a contingency or otherwise) any of its property, whether now owned
or hereafter acquired, to be subject to a Lien not permitted by Section 10.7.

5.16. Foreign Assets Control Regulations, etc.

          Neither the sale of the Notes by the Company hereunder nor its use of
the proceeds thereof will violate the Trading with the Enemy Act, as amended, or
any of the foreign assets control regulations of the United States Treasury
Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling
legislation or executive order relating thereto.

5.17. Status under Certain Statutes.

          Neither the Company nor any Subsidiary is subject to regulation under
the Investment Company Act of 1940 (except with respect to certain investment
advisory services performed by the Company), as amended, the Public Utility
Holding Company Act of 1935, as amended, the Interstate Commerce Act, as
amended, or the Federal Power Act, as amended.

5.18. Environmental Matters.

          Neither the Company nor any Subsidiary has knowledge of any claim or
has received any notice of any claim, and no proceeding has been instituted
raising any claim against the Company or any of its Subsidiaries or any of their
respective real properties now or formerly owned, leased or operated by any of
them or other assets, alleging any damage to the environment or violation of any
Environmental Laws, except, in each case, such as could not reasonably be
expected to result in a Material Adverse Effect. Except as otherwise disclosed
to you in writing,

          (a) neither the Company nor any Subsidiary has knowledge of any facts
      which would give rise to any claim, public or private, of violation of
      Environmental Laws or damage to the environment emanating from, occurring
      on or in any way related to real properties now or formerly owned, leased
      or operated

                                      -10-

<PAGE>

         by any of them or to other assets or their use, except, in each case,
         such as could not reasonably be expected to result in a Material
         Adverse Effect;

              (b) neither the Company nor any of its Subsidiaries has stored any
         Hazardous Materials on real properties now or formerly owned, leased or
         operated by any of them and has not disposed of any Hazardous Materials
         in a manner contrary to any Environmental Laws in each case in any
         manner that could reasonably be expected to result in a Material
         Adverse Effect; and

              (c) all buildings on all real properties now owned, leased or
         operated by the Company or any of its Subsidiaries are in compliance
         with applicable Environmental Laws, except where failure to comply
         could not reasonably be expected to result in a Material Adverse
         Effect.

6.       REPRESENTATIONS OF THE PURCHASER.

6.1.     Purchase for Investment.

              You represent that you are purchasing the Notes for your own
account or for one or more separate accounts maintained by you or for the
account of one or more pension or trust funds and not with a view to the
distribution thereof, provided that the disposition of your or their property
                      --------
shall at all times be within your or their control. You understand that the
Notes have not been registered under the Securities Act and may be resold only
if registered pursuant to the provisions of the Securities Act or if an
exemption from registration is available, except under circumstances where
neither such registration nor such an exemption is required by law, and that the
Company is not required to register the Notes.

6.2.     Source of Funds.

              You represent that at least one of the following statements is
an accurate representation as to each source of funds (a "Source") to be used by
you to pay the purchase price of the Notes to be purchased by you hereunder:

              (a) if you are an insurance company, the Source does not include
         assets allocated to any separate account maintained by you in which any
         employee benefit plan (or its related trust) has any interest, other
         than a separate account that is maintained solely in connection with
         your fixed contractual obligations under which the amounts payable, or
         credited, to such plan and to any participant or beneficiary of such
         plan (including any annuitant) are not affected in any manner by the
         investment performance of the separate account; or

              (b) the Source is either (i) an insurance company pooled separate
         account, within the meaning of Prohibited Transaction Exemption ("PTE")
         90-1 (issued January 29, 1990), or (ii) a bank collective investment
         fund, within the meaning of the PTE 91-38 (issued July 12, 1991) and,
         except as you have disclosed to the Company in writing pursuant to this
         paragraph (b), no employee benefit plan or group of plans maintained by
         the same employer or employee

                                      -11-

<PAGE>

organization beneficially owns more than 10% of all assets allocated to such
pooled separate account or collective investment fund; or

     (c)   the Source constitutes assets of an "investment fund" (within the
meaning of Part V of the QPAM Exemption) managed by a "qualified professional
asset manager" or "QPAM" (within the meaning of Part V of the QPAM Exemption),
no employee benefit plan! s assets that are included in such investment fund,
when combined with the assets of all other employee benefit plans established or
maintained by the same employer or by an affiliate (within the meaning of
Section V(c)(1) of the QPAM Exemption) of such employer or by the same employee
organization and managed by such QPAM, exceed 20% of the total client assets
managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption
are satisfied, neither the QPAM nor a person controlling or controlled by the
QPAM (applying the definition of "control" in Section V(e) of the QPAM
Exemption) owns a 5% or more interest in the Company and (j) the identity of
such QPAM and (1j) the names of all employee benefit plans whose assets are
included in such investment fund have been disclosed to the Company in writing
pursuant to this paragraph (c); or

     (d)   the Source is a governmental plan;

     (e)   or the Source is one or more employee benefit plans, or a separate
account or trust fund comprised of one or more employee benefit plans, each of
which has been identified to the Company in writing pursuant to this paragraph
(e); or

     (f)   the Source does not include assets of any employee benefit plan,
other than a plan exempt from the coverage of ERISA;

     (g)   if you are an insurance company and the Source includes assets of
your general account, the acquisition of the Notes by the Purchaser is exempt
under PTE 95-60 (issued July 12, 1995); or

     (h)   if you are an insurance company, the source of funds from which your
investment is to be made is a general account of an insurance company, and the
amount of the reserves and liabilities for the general account contract(s) held
by or on behalf of any Benefit Plan (as defined by the annual statement for life
insurance companies approved by the National Association of Insurance approved
by the National Association of Insurance Commissioners (the "NAIC annual
Statement")) together with the amount of the reserves and liabilities for the
general account contract(s) held by or on behalf of any other Benefit Plans
maintained by the same employer (or affiliate thereof as defined in Department
of Labor Prohibited Transaction Exemption ("PTE") 95-60) or by the same employee
organization (as defined by the NAIC annual Statement) in the general account do
not exceed 10% of the total reserves and liabilities of the general account
(exclusive of separate account liabilities) plus surplus as set forth in the
NAIC Annual Statement filed with the state of domicile of the insurance company

                                      -12-

<PAGE>

       (for purposes of the percentage limitation in this clause (h), the amount
       of reserves and liabilities for the general account contract(s) held by
       or on behalf of a plan shall be determined before reduction for credits
       on account of any reinsurance ceded on a coinsurance basis).

As used in this Section 6.2, the terms "employee benefit plan", "governmental
plan", "party in interest" and "separate account" shall have the respective
meanings assigned to such terms in Section 3 of ERISA.

7.     INFORMATION AS TO COMPANY.

7.1.   Financial and Business Information.

               The Company shall deliver to each holder of Notes that is an
Institutional Investor:

               (a)  Quarterly Statements -- within 60 days after the end of each
                    --------------------
       quarterly fiscal period in each fiscal year of the Company (other than
       the last quarterly fiscal period of each such fiscal year), duplicate
       copies of,

                    (i)  a consolidated balance sheet of the Company and its
               Subsidiaries as at the end of such quarter, and

                    (ii) consolidated statements of income, expenses, cash flows
               and, if prepared by the Company in connection with its quarterly
               financial statements, statements of changes in capital of the
               Company and its Subsidiaries, for such quarter and (in the case
               of the second and third quarters) for the portion of the fiscal
               year ending with such quarter,

       setting forth in each case in comparative form the figures for the
       corresponding periods in the previous fiscal year, all in reasonable
       detail, prepared in accordance with GAAP applicable to quarterly
       financial statements generally, and certified by a Senior Financial
       Officer as fairly presenting, in all material respects, the financial
       position of the companies being reported on and their results of
       operations and cash flows, subject to changes resulting from year-end
       adjustments;

               (b)  Annual Statements of the Company -- within 90 days after
                    --------------------------------
       the end of each fiscal year of the Company, duplicate copies of,

                    (i)  a consolidated balance sheet of the Company and its
               Subsidiaries, as at the end of such year, and

                    (ii) consolidated statements of income, expenses, cash flows
               and, if prepared by the Company in connection with its annual
               audited financial statements, statements of changes in capital of
               the Company and its Subsidiaries, for such year,

                                      -13-

<PAGE>

               setting forth in each case in comparative form the figures for
               the previous fiscal year, all in reasonable detail, prepared in
               accordance with GAAP, and accompanied

                         (A) by an opinion thereon of independent certified
                    public accountants of recognized national standing, which
                    opinion shall state that such financial statements present
                    fairly, in all material respects, the financial position of
                    the companies being reported upon and their results of
                    operations and cash flows and have been prepared in
                    conformity with GAAP, and that the examination of such
                    accountants in connection with such financial statements has
                    been made in accordance with generally accepted auditing
                    standards, and that such audit provides a reasonable basis
                    for such opinion in the circumstances, and

                         (B) a certificate of such accountants stating that they
                    have reviewed this Agreement and stating further whether, in
                    making their audit, they have become aware of any condition
                    or event that then constitutes a Default or an Event of
                    Default, and, if they are aware that any such condition or
                    event then exists, specifying the nature and period of the
                    existence thereof (it being understood that such accountants
                    shall not be liable, directly or indirectly, for any failure
                    to obtain knowledge of any Default or Event of Default
                    unless such accountants should have obtained knowledge
                    thereof in making an audit in accordance with generally
                    accepted auditing standards or did not make such an audit),

                    (c)  SEC and Other Reports -- if applicable, promptly upon
                         ---------------------
               their becoming available, one copy of any of the following which
               are publicly available: (j) each financial statement, report,
               notice or proxy statement sent by the Company or any Subsidiary
               to public securities holders generally, and (ji) each regular or
               periodic report (other than reports arising from the Company's
               investment advisory and transfer agency services), each
               registration statement (without exhibits except as expressly
               requested by such holder), and each prospectus and all amendments
               thereto filed by the Company or any Subsidiary with the
               Securities and Exchange Commission and of all press releases and
               other statements made available generally by the Company or any
               Subsidiary to the public concerning developments that are
               Material;

                    (d)  Notice of Default or Event of Default - 7 promptly,
                         -------------------------------------
               and in any event within five days after a Responsible Officer
               becoming aware of the existence of any Default or Event of
               Default or that any Person has given any notice or taken any
               action with respect to a claimed default hereunder or that any
               Person has given any notice or taken any action with respect to a
               claimed default of the type referred to in Section 11(f), a
               written notice specifying the nature and period of existence
               thereof and what action the Company is taking or proposes to take
               with respect thereto;

                                      -14-

<PAGE>

                    (e)  ERISA Matters -- promptly, and in any event within five
               days after a Responsible Officer becoming aware of any of the
               following, a written notice setting forth the nature thereof and
               the action, if any, that the Company or an ERISA Affiliate
               proposes to take with respect thereto:

                         (i)   with respect to any Plan, any reportable event,
                    as defined in section 4043(b) of ERISA and the regulations
                    thereunder, for which notice thereof has not been waived
                    pursuant to such regulations as in effect on the date
                    hereof; or

                         (ii)  the taking by the PBGC of steps to institute, or
                    the threatening by the PBGC of the institution of,
                    proceedings under section 4042 of ERISA for the termination
                    of, or the appointment of a trustee to administer, any Plan,
                    or the receipt by the Company or any ERISA Affiliate of a
                    notice from a Multiemployer Plan that such action has been
                    taken by the PBGC with respect to such Multiemployer Plan;
                    or

                         (iii) any event, transaction or condition that could
                    result in the incurrence of any liability by the Company or
                    any ERISA Affiliate pursuant to Title I or IV of ERISA or
                    the penalty or excise tax provisions of the Code relating to
                    Plans, or in the imposition of any Lien on any of the
                    rights, properties or assets of the Company or any ERISA
                    Affiliate pursuant to Title I or IV of ERISA or such penalty
                    or excise tax provisions, if such liability or Lien, taken
                    together with any other such liabilities or Liens then
                    existing, could reasonably be expected to have a Material
                    Adverse Effect;

                    (f)  Notices from Governmental Authority -- promptly, and in
                         -----------------------------------
               any event within 30 days of receipt thereof, copies of any notice
               to the Company or any Subsidiary from any Federal or state
               Governmental Authority relating to any order, ruling, statute or
               other law or regulation that could reasonably be expected to have
               a Material Adverse Effect;

                    (g)  Restricted Subsidiary Status -- promptly, and in any
                         ----------------------------
               event within ten days of the occurrence thereof, the designation
               of an Unrestricted Subsidiary as a Restricted Subsidiary; and

                    (h)  Requested Information-- with reasonable promptness,
                         ---------------------
               such other data and information relating to the business,
               operations, affairs, financial condition, assets or properties of
               the Company or any of its Subsidiaries or relating to the ability
               of the Company to perform its obligations hereunder and under the
               Notes as from time to time may be reasonably requested by any
               such holder of Notes.

                                      -15-

<PAGE>

7.2.   Officer's Certificate.

             Each set of financial statements delivered to a holder of Notes
pursuant to Section (a) or Section (b) hereof shall be accompanied by a
certificate of a Senior Financial Officer setting forth:

             (a) Covenant Compliance -- the information (including detailed
                 -------------------
       calculations) required in order to establish whether the Company was in
       compliance with the requirements of Section 10.2 through Section 10.10
       hereof, inclusive, during the quarterly or annual period covered by the
       statements then being furnished (including with respect to each such
       Section, where applicable, the calculations of the maximum or minimum
       amount, ratio or percentage, as the case may be, permissible under the
       terms of such Sections, and the calculation of the amount, ratio or
       percentage then in existence); and

             (b) Event of Default -- a statement that such officer has reviewed
                 ----------------
       the relevant terms hereof and has made, or caused to be made, under his
       or her supervision, a review of the transactions and conditions of the
       Company and its Subsidiaries from the beginning of the quarterly or
       annual period covered by the statements then being furnished to the date
       of the certificate and that such review shall not have disclosed the
       existence during such period of any condition or event that constitutes a
       Default or an Event of Default or, if any such condition or event existed
       or exists (including, without limitation, any such event or condition
       resulting from the failure of the Company or any Subsidiary to comply
       with any Environmental Law), specifying the nature and period of
       existence thereof and what action the Company shall have taken or
       proposes to take with respect thereto.

7.3.   Inspection.

             The Company shall permit the representatives of each holder of
Notes that is an Institutional Investor:

             (a) No Default -- if no Default or Event of Default then exists, at
                 ----------
       the expense of such holder and upon reasonable prior notice to the
       Company, to visit the principal executive office of the Company, to
       discuss the affairs, finances and accounts of the Company and its
       Subsidiaries with the Company's officers, and (with the consent of the
       Company, which consent will not be unreasonably withheld) its independent
       public accountants, and (with the consent of the Company, which consent
       will not be unreasonably withheld) to visit the other offices and
       properties of the Company and each Subsidiary, all at such reasonable
       times and as often as may be reasonably requested in writing; and

             (b) Default -- if a Default or Event of Default then exists, at the
                 -------
       expense of the Company to visit and inspect any of the offices or
       properties of the Company or any Subsidiary, to examine all their
       respective books of account, records, reports and other papers, to make
       copies and extracts therefrom, and to

                                      -16-

<PAGE>

     discuss their respective affairs, finances and accounts with their
     respective officers and independent public accountants (and by this
     provision the Company authorizes said accountants to discuss the affairs,
     finances and accounts of the Company and its Subsidiaries), all at such
     times and as often as may be requested.

8.   PREPAYMENT OF THE NOTES

8.1. Required Prepayments.

                  On May 30, 2004 and on each May 30 thereafter to and including
May 30, 2007, the Company will prepay $ 10,000,000 principal amount (or such
lesser principal amount as shall then be outstanding) of the Notes at par and
without payment of the Make-Whole Amount or any premium, provided that upon any
partial prepayment of the Notes pursuant to Section 8.2 or purchase of the Notes
permitted by Section 8.5 the principal amount of each required prepayment of the
Notes becoming due under this Section 8.1 on and after the date of such
prepayment or purchase shall be reduced in the same proportion as the aggregate
unpaid principal amount of the Notes is reduced as a result of such prepayment
or purchase.

8.2. Optional Prepayments with Make-Whole Amount.

                  The Company may, at its option, upon notice as provided below,
prepay at any time all, or from time to time any part of, the Notes, in an
amount not less than $5,000,000 or integral multiples of $100,000 in excess
thereof (or such lesser amount as shall then be outstanding) in the case of a
partial prepayment, at 100% of the principal amount so prepaid, plus interest on
such principal amount accrued to the prepayment date and the Make-Whole Amount
determined for the prepayment date with respect to such principal amount. The
Company will give each holder of Notes written notice of each optional
prepayment under this Section 8.2 not less than 30 days and not more than 60
days prior to the date fixed for such prepayment. Each such notice shall specify
such date, the aggregate principal amount of the Notes to be prepaid on such
date, the principal amount of each Note held by such holder to be prepaid
(determined in accordance with Section 8.3), and the interest to be paid on the
prepayment date with respect to such principal amount being prepaid, and shall
be accompanied by a certificate of a Senior Financial Officer as to the
estimated Make-Whole Amount due in connection with such prepayment (calculated
as if the date of such notice were the date of the prepayment), setting forth
the details of such computation. Two Business Days prior to such prepayment, the
Company shall deliver to each holder of Notes a certificate of a Senior
Financial Officer specifying the calculation of such Make-Whole Amount as of the
specified prepayment date.

8.3. Allocation of Partial Prepayments.

                  In the case of each partial prepayment of the Notes, the
principal amount of the Notes to be prepaid shall be allocated among all of the
Notes at the time outstanding in proportion, as nearly as practicable, to the
respective unpaid principal amounts thereof not theretofore called for
prepayment.

                                      -17-

<PAGE>

8.4.     Maturity; Surrender, etc.

                  In the case of each prepayment of Notes pursuant to this
Section 8, the principal amount of each Note to be prepaid shall mature and
become due and payable on the date fixed for such prepayment, together with
interest on such principal amount accrued to such date and the applicable
Make-Whole Amount, if any. From and after such date, unless the Company shall
fail to pay such principal amount when so due and payable, together with the
interest and Make Whole Amount, if any, as aforesaid, interest on such principal
amount shall cease to accrue. Any Note paid or prepaid in full shall be
surrendered to the Company and cancelled and shall not be reissued, and no Note
shall be issued in lieu of any prepaid principal amount of any Note.

8.5.     Purchase of Notes.

                  The Company will not and will not permit any Affiliate to
purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of
the outstanding Notes except upon the payment or prepayment of the Notes in
accordance with the terms of this Agreement and the Notes. The Company will
promptly cancel all Notes acquired by it or any Affiliate pursuant to any
payment, prepayment or purchase of Notes pursuant to any provision of this
Agreement and no Notes may be issued in substitution or exchange for any such
Notes.

8.6.     Make-Whole Amount.

                  The term "Make-Whole Amount" means, with respect to any Note,
an amount equal to the excess, if any, of the Discounted Value of the Remaining
Scheduled Payments with respect to the Called Principal of such Note over the
amount of such Called Principal, provided that the Make-Whole Amount may in no
event be less than zero. For the purposes of determining the Make-Whole Amount,
the following terms have the following meanings:

                  "Called Principal" means, with respect to any Note, the
         principal of such Note that is to be prepaid pursuant to Section 8.2 or
         has become or is declared to be immediately due and payable pursuant to
         Section 12. 1, as the context requires.

                  "Discounted Value" means, with respect to the Called Principal
         of any Note, the amount obtained by discounting all Remaining Scheduled
         Payments with respect to such Called Principal from their respective
         scheduled due dates to the Settlement Date with respect to such Called
         Principal, in accordance with accepted financial practice and at a
         discount factor (applied on the same periodic basis as that on which
         interest on the Notes is payable) equal to the Reinvestment Yield with
         respect to such Called Principal.

                  "Reinvestment Yield" means, with respect to the Called
         Principal of any Note, 0.50% over the yield to maturity implied by (j)
         the yields reported, as of 10:00 A.M. (New York City time) on the
         second Business Day preceding the Settlement Date with respect to such
         Called Principal, on the display designated

                                      -18-

<PAGE>

         as Page "USD" of the Bloomberg Financial Markets Service (or such other
         display as may replace Page "USD" of the Bloomberg Financial Markets
         Service) for actively traded U.S. Treasury securities having a maturity
         equal to the Remaining Average Life of such Called Principal as of such
         Settlement Date, or (ii) if such yields are not reported as of such
         time or the yields reported as of such time are not ascertainable, the
         Treasury Constant Maturity Series Yields reported, for the latest day
         for which such yields have been so reported as of the second Business
         Day preceding the Settlement Date with respect to such Called
         Principal, in Federal Reserve Statistical Release H.15 (519) (or any
         comparable successor publication) for actively traded U.S. Treasury
         securities having a constant maturity equal to the Remaining Average
         Life of such Called Principal as of such Settlement Date. Such implied
         yield will be determined, if necessary, by (.a) converting U.S.
         Treasury bill quotations to bond-equivalent yields in accordance with
         accepted financial practice and interpolating linearly between (1) the
         actively traded U.S. Treasury security with the duration closest to and
         greater than the Remaining Average Life and (2) the actively traded
         U.S. Treasury security with the duration closest to and less than the
         Remaining Average Life.

                  "Remaining Average Life" means, with respect to any Called
         Principal, the number of years (calculated to the nearest one-twelfth
         year) obtained by dividing (i) such Called Principal into (ii) the sum
         of the products obtained by multiplying (.a) the principal component of
         each Remaining Scheduled Payment with respect to such Called Principal
         by (h) the number of years (calculated to the nearest one-twelfth year)
         that will elapse between the Settlement Date with respect to such
         Called Principal and the scheduled due date of such Remaining Scheduled
         Payment.

                  "Remaining Scheduled Payments" means, with respect to the
         Called Principal of any Note, all payments of such Called Principal and
         interest thereon that would be due after the Settlement Date with
         respect to such Called Principal if no payment of such Called Principal
         were made prior to its scheduled due date, provided that if such
         Settlement Date is not a date on which interest payments are due to be
         made under the terms of the Notes, then the amount of the next
         succeeding scheduled interest payment will be reduced by the amount of
         interest accrued to such Settlement Date and required to be paid on
         such Settlement Date pursuant to Section 8.2 or 12. 1.

                  "Settlement Date" means, with respect to the Called Principal
         of any Note, the date on which such Called Principal is to be prepaid
         pursuant to Section 8.2 or has become or is declared to be immediately
         due and payable pursuant to Section 12. 1, as the context requires.

9.       AFFIRMATIVE COVENANTS.

                  The Company covenants that so long as any of the Notes are
outstanding:

                                      -19-

<PAGE>

9.1.     Compliance with Law.

                  The Company will and will cause each of its Subsidiaries to
comply with all laws, ordinances or governmental rules or regulations to which
each of them is subject, including, without limitation, Environmental Laws, and
will obtain and maintain in effect all licenses, certificates, permits,
franchises and other governmental authorizations necessary to the ownership of
their respective properties or to the conduct of their respective businesses, in
each case to the extent necessary to ensure that non-compliance with such laws,
ordinances or governmental rules or regulations or failures to obtain or
maintain in effect such licenses, certificates, permits, franchises and other
governmental authorizations could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

9.2.     Insurance.

                  The Company will and will cause each of its Subsidiaries to
maintain, with financially sound and reputable insurers, insurance with respect
to their respective properties and businesses against such casualties and
contingencies, of such types, on such terms and in such amounts (including
deductibles, co-insurance and self-insurance, if adequate reserves are
maintained with respect thereto) as is customary in the case of entities of
established reputations engaged in the same or a similar business and similarly
situated.

9.3.     Maintenance of Properties.

                  The Company will and will cause each of its Subsidiaries to
maintain and keep, or cause to be maintained and kept, their respective
properties in good repair, working order and condition (other than ordinary wear
and tear), so that the business carried on in connection therewith may be
properly conducted at all times, provide that this Section shall not prevent the
Company or any Subsidiary from discontinuing the operation and the maintenance
of any of its properties if such discontinuance is desirable in the conduct of
its business and the Company has concluded that such discontinuance could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

9.4.     Payment of Taxes and Claims.

                  The Company will and will cause each of its Subsidiaries to
file all tax returns required to be filed in any jurisdiction and to pay and
discharge all taxes shown to be due and payable on such returns and all other
taxes, assessments, governmental charges, or levies imposed on them or any of
their properties, assets, income or franchises, to the extent such taxes and
assessments have become due and payable and before they have become delinquent
and all claims for which sums have become due and payable that have or might
become a Lien on properties or assets of the Company or any Subsidiary, provided
                                                                        --------
that neither the Company nor any Subsidiary need pay any such tax or assessment
or claims if (i) the amount, applicability or validity thereof is contested by
the Company or such Subsidiary on a timely basis in good faith and in
appropriate

                                       -20-

<PAGE>

proceedings, and the Company or a Subsidiary has established adequate reserves
therefor in accordance with GAAP on the books of the Company or such Subsidiary
or (ii) the nonpayment of all such taxes and assessments in the aggregate could
not reasonably be expected to have a Material Adverse Effect.

9.5.   Existence, etc.

             The Company will at all times preserve and keep in full force and
effect its existence as a limited liability company. Subject to Section 10.2,
the Company will at all times preserve and keep in full force and effect the
corporate, limited liability company or partnership existence of each of its
Subsidiaries (unless merged into the Company or a Subsidiary) and all rights and
franchises of the Company and its Subsidiaries unless, in the good faith
judgment of the Company, the termination of or failure to preserve and keep in
full force and effect such existence, right or franchise could not, individually
or in the aggregate, have a Material Adverse Effect.

10.    NEGATIVE COVENANTS.

             The Company covenants that so long as any of the Notes are
outstanding:

10.1.  Transactions with Affiliates.

             The Company will not and will not permit any Restricted Subsidiary
to enter into directly or indirectly any transaction or Material group of
related transactions (including without limitation the purchase, lease, sale or
exchange of properties of any kind or the rendering of any service) with any
Affiliate (other than the Company or a Wholly-Owned Restricted Subsidiary),
except in the ordinary course and pursuant to the reasonable requirements of the
Company's or such Restricted Subsidiary's business and upon fair and reasonable
terms no less favorable to the Company or such Restricted Subsidiary than would
be obtainable in a comparable arm's-length transaction with a Person not an
Affiliate.

10.2.  Merger, Consolidation, etc.

             The Company shall not, and shall not permit any Restricted
Subsidiary to, consolidate with or merge with any other Person or convey,
transfer or lease substantially all of its assets in a single transaction or
series of transactions to any other Person, except that:

             (a) The Company may consolidate with or merge with or into any
       Person, or convey, transfer or lease substantially all of the assets of
       the Company as an entirety to any Person provided that immediately after
       giving effect thereto,

                 (i) the Company is the successor Person or, if the Company is
             not the successor Person, the successor Person is a Person
             organized under the laws of a state of the United States of America
             or the District of Columbia and shall expressly assume in writing
             the Company's obligations under the Notes and this Agreement
             (pursuant to such

                                      -21-

<PAGE>

             agreements and instruments reasonably satisfactory to the Required
             Holders), and the successor Person shall furnish to the holders of
             the Notes an opinion of nationally recognized independent counsel
             in form and substance satisfactory to the Required Holders to the
             effect that the instrument of assumption has been duly authorized,
             executed and delivered and constitutes the legal, valid and binding
             contract and agreement of the successor Person enforceable in
             accordance with its terms, except as enforcement of such terms may
             be limited by bankruptcy, insolvency, reorganization, moratorium or
             similar laws affecting the enforcement of creditors' rights
             generally and by general equitable principles;

                 (ii)  immediately after giving effect to such transaction,
             there shall exist no Event of Default or Default; and

                 (iii) immediately after giving effect to such transaction, the
             Company or such successor Person could incur at least $1.00 of
             additional Funded Indebtedness pursuant to Section 10.4(c).

             (b) any Restricted Subsidiary may (i) consolidate with or merge
       into the Company or any Wholly-Owned Restricted Subsidiary or (ii)
       convey, transfer or lease substantially all of its assets to the Company
       or to any Wholly-Owned Restricted Subsidiary, provided in each such
       instance there shall exist no Event of Default or Default.

10.3.  Consolidated Net Capital.

             The Company will not at any time permit its Consolidated Net
Capital to be less than the sum of (a) $85,000,000 plus (b) the cumulative sum
of 10% (without deduction for any loss) of its Consolidated Net Income for the
six-month period ending September 30, 1996 and for each fiscal year thereafter.

10.4.  Funded Indebtedness.

             The Company will not, nor shall it permit any Restricted Subsidiary
to, at any time create, assume, incur, guarantee or otherwise become liable,
directly or indirectly, for any Funded Indebtedness other than:

             (a) The Notes and all existing Funded Indebtedness described in
       Schedule 5.15;

             (b) Funded Indebtedness of a Restricted Subsidiary owed to the
       Company or to any Wholly-Owned Restricted Subsidiary;

             (c) Funded Indebtedness if, after giving effect to the incurrence
       of such Funded Indebtedness and to the application of proceeds thereof,
       Consolidated Funded Indebtedness would not exceed (i) 60% of Total
       Capitalization as of the end of the most recent fiscal quarter ending
       within the

                                      -22-

<PAGE>

       period commencing with the date of Closing and ending September 29, 1998
       and (ii) 55% of Total Capitalization as of the end of the most recent
       fiscal quarter ending after September 29, 1998.

10.5.  Current Indebtedness.

             The Company will not, and will not permit any Restricted Subsidiary
to, have, at any time, any Current Indebtedness outstanding unless, during the
twelve month period immediately preceding, there shall have been a period of 30
consecutive days during which the sum of (a) outstanding Current Indebtedness
(if Current Indebtedness were categorized as Funded Indebtedness) plus (b)
outstanding Funded Indebtedness could have been incurred as Consolidated Funded
Indebtedness pursuant to Section 10.4(c).

10.6.  Indebtedness of Restricted Subsidiaries.

             The Company shall not permit any Restricted Subsidiary at any time
to create, assume, incur, guarantee or otherwise become liable, directly or
indirectly, for any Indebtedness, except:

             (a) Indebtedness owed to the Company or to any Wholly-Owned
       Restricted Subsidiary; and

             (b) Subject to compliance with Section 10.4(c), Indebtedness which,
       when added to aggregate outstanding Indebtedness incurred pursuant to
       Section 10.7(i), shall not at any time exceed 25% of Consolidated Net
       Capital determined as of the end of the Company's most recently ended
       fiscal quarter.

10.7.  Liens.

             The Company will not, and will not pen-nit any Restricted
Subsidiary to, create, assume or incur, or suffer to be incurred or assumed or
to exist, any Lien on its or their property or assets, whether now owned or
hereafter acquired, or upon any income or profits therefrom, or transfer any
property for the purpose of subjecting the same to the payment of obligations in
priority to the payment of its or their general creditors, or acquire or agree
to acquire, or permit any Restricted Subsidiary to acquire, any property or
assets upon conditional sales agreements or other title retention devices,
except:

             (a) Liens existing on property or assets of the Company or any
       Restricted Subsidiary as of the date of this Agreement that are described
       in Schedule 10.7 to this Agreement;

             (b) Liens for taxes, assessments or governmental charges the
       payment of which is not required under Section 9.4;

             (c) Liens created by or resulting from any litigation or legal
       proceedings which are being contested in good faith by appropriate legal
       proceedings and adequate reserves are maintained with respect thereto in

                                      -23-

<PAGE>

       accordance with GAAP, unless the judgment that such Liens secure shall
       not have been stayed, bonded or discharged within 60 days;

             (d) Construction or materialmen's or mechanic's Liens securing
       obligations not overdue or, if overdue, are being contested in good faith
       and by proper proceedings and with respect to which adequate reserves are
       maintained in accordance with GAAP;

             (e) Liens in connection with worker's compensation, social security
       taxes or similar charges arising in the ordinary course of business and
       not incurred in connection with the borrowing of money;

             (f) Liens securing Indebtedness owed by any Restricted Subsidiary
       to the Company or by the Company to any Wholly-Owned Restricted
       Subsidiary or by any Restricted Subsidiary to any Wholly-Owned Restricted
       Subsidiary;

             (g) Liens consisting of encumbrances in the nature of zoning
       restrictions, easements, rights and restrictions on the use of real
       property on the date of the acquisition thereof and statutory Liens of
       landlords, which in any case do not materially detract from the value of
       such property or impair the Company's use thereof;

             (h) (A) any Lien on fixed assets to secure any rights granted with
       respect to such property in connection with the provision of all or a
       part of the purchase price created contemporaneously with, or within 90
       days after, such acquisition, provided that, (i) any Liens incurred
                                     --------
       pursuant to this clause (h) shall not (A) exceed 100% of the lesser of
       cost or fair market value (as determined by the Managers of the Company)
       of the related property at the time of the occurrence of the transactions
       described above in this clause (h) or (B) extend to any other property of
       the Company or any Restricted Subsidiary other than the fixed assets
       acquired pursuant to this clause (h) and (ii) such Indebtedness could be
       incurred pursuant to Section 10.4(c); and

             (i) Liens which secure Indebtedness and which are not permitted by
       (a) through (h) above; provided that, after giving effect to the
                              --------
       incurrence of such Indebtedness and the application of proceeds thereof,
       (A) the requirements of Section 10.4(c) shall have been met and (B)
       Indebtedness incurred under this Section 10.7(i), when added to
       outstanding Indebtedness of Restricted Subsidiaries permitted by Section
       10.6(b) will not exceed 25% of Consolidated Net Capital determined as of
       the end of the Company's most recently ended fiscal quarter.

10.8.  Sale of Assets.

             Except as permitted by Section 10.2, the Company will not, and will
not permit any Restricted Subsidiary to, sell, lease, transfer or otherwise
dispose of any assets, including the disposition of the stock of any Restricted
Subsidiary (except as permitted by Section 10.9(a) and Section 10.9(b)(i) and
(ii)) and including any Sale and

                                      -24-

<PAGE>

Lease-Back Transaction (collectively, a "Disposition"), in one or a series of
transactions, other than in the ordinary course of business, to any Person,
other than the Company or a Wholly-Owned Restricted Subsidiary if immediately
preceding such Disposition and after giving effect to such Disposition during
any fiscal year of the Company the aggregate book value of all such Dispositions
during such fiscal year, would exceed 15% of Consolidated Total Assets as of the
end of the immediately preceding fiscal year; provided, however, that the
Company may, and may permit any Restricted Subsidiary to, sell, lease, transfer
or otherwise dispose of assets in excess of the percentage specified above:

        (a) if the cash proceeds therefrom are (i) utilized within 180 days
after such Disposition to purchase productive assets of at least equivalent
value or (ii) used to prepay Consolidated Funded Indebtedness (except
Subordinated Indebtedness), including the Notes, on a pro rata basis, subject to
the prepayment requirements and at the price set forth in Section 8.2 (provided,
however, that any holder of the Notes may, at its sole discretion, decline to
have its Notes so prepaid); or

        (b) if the Disposition is a Sale and Leaseback Transaction in which the
Company or any Restricted Subsidiary sells property and leases the same property
within 180 days of such sale; provided that, (i) the cash proceeds therefrom are
utilized within 180 days after such Disposition to purchase productive assets of
equivalent value and (ii) after giving effect to such Sale and Leaseback
Transaction, no Default or Event of Default shall have occurred.

10.9. Restricted Subsidiary Stock.

        (a) The Company will not permit any Restricted Subsidiary to issue
shares of its capital stock to any Person other than (i) the Company, (ii) any
Wholly-Owned Restricted Subsidiary, (iii) management or employees of the Company
or any Wholly-Owned Restricted Subsidiary or any Foreign Restricted Subsidiary
or (iv) in connection with the issuance of director's qualifying shares with
respect to Foreign Restricted Subsidiaries; provided, however, that (A) after
                                            --------
giving effect to such stock issuance pursuant to the foregoing clause (iii), no
Default or Event of Default shall have occurred and (B) the Managers of the
Company shall have determined that such stock issuance is in the best interest
of the Company.

        (b) The Company will not sell, transfer or otherwise dispose of any
capital stock or other equity or partnership interest (the "Interests") in any
Restricted Subsidiary to any Person other than to (i) any Wholly-Owned
Restricted Subsidiary, (ii) management or employees of the Company or any
Wholly-Owned Restricted Subsidiary or any Foreign Restricted Subsidiary or (iii)
in connection with the issuance of director's qualifying shares with respect to
Foreign Restricted Subsidiaries; provided, however, that (A) after giving effect
                                 --------
to such disposition pursuant to the foregoing clause (ii), no Default or Event
of Default shall have occurred and (B) the Managers of the Company shall have
determined that such disposition is in the best interest of the Company, and
provided, further, that the Company may sell, transfer or otherwise dispose of
--------  -------
Interests other than as provided in clauses (i) and (ii) of this paragraph (b)
if (A) the Interests are valued at

                                      -25-

<PAGE>

book value determined as the date of such disposition, and such disposition is
permitted by Section 10.8; (B) all Interests held by the Company in any
Restricted Subsidiary shall be transferred in connection with such disposition;
(C) following such disposition, neither the Company nor any Restricted
Subsidiary shall own any Interests in such former Restricted Subsidiary or be
owed any Indebtedness by such former Restricted Subsidiary; and (D) immediately
after giving effect to such disposition (y) the Company could incur $ 1. 00 of
additional Funded Indebtedness pursuant to Section 10.4(c) and (z) no Default or
Event of Default shall have occurred.

10.10. Distributions.

           The Company will not, and will not permit any Restricted Subsidiary
to, during any fiscal year, declare or pay any distributions to any of its
owners if at the time of any such distribution a Default or Event of Default
shall have occurred and be continuing hereunder or would occur as a result
thereof.

10.11. Amendments to Articles of Organization and Operating Agreement.

           The Company shall not amend or modify its Articles of Organization or
Operating Agreement in any manner which might materially and adversely affect
the rights of any holders of the Notes (it being agreed that amendments for the
purpose of admitting additional members, or reflecting deaths, retirements,
resignations, withdrawals or removals of members will not be deemed to have such
an adverse effect and amendments permitting members to incorporate and such
corporations to become members of the Company shall not be deemed to have such
an adverse effect).

10.12. Change in Business.

           Neither the Company nor any Restricted Subsidiary will engage in any
business as a result of which the general nature of the business, taken as a
whole, which would then be engaged in by the Company and its Restricted
Subsidiaries would be substantially changed from the general nature of such
business on the date hereof.

11.    EVENTS OF DEFAULT.

           An "Event of Default" shall exist if any of the following conditions
or events shall occur and be continuing:

           (a)   the Company defaults in the payment of any principal or
       Make-Whole Amount, if any, on any Note when the same becomes due and
       payable, whether at maturity or at a date fixed for prepayment or by
       declaration or otherwise; or

           (b)   the Company defaults in the payment of any interest on any Note
       for more than five Business Days after the same becomes due and payable;
       or

           (c)   the Company defaults in the performance of or compliance with
       any term contained in Sections 10. 1 through 10. 12; or

                                      -26-

<PAGE>

            (d) the Company defaults in the performance of or compliance with
      any term contained herein (other than those referred to in paragraphs (a),
      (b) and (c) of this Section 11) and such default is not remedied within 30
      days after the earlier of (j) a Responsible Officer obtaining actual
      knowledge of such default and (ji) the Company receiving written notice of
      such default from any holder of a Note (any such written notice to be
      identified as a "notice of default" and to refer specifically to this
      paragraph (d) of Section 11); or

            (e) any representation or warranty made in writing by or on behalf
      of the Company or by any officer of the Company in this Agreement or in
      any writing furnished in connection with the transactions contemplated
      hereby proves to have been false or incorrect in any material respect on
      the date as of which made; or

            (f) (i) the Company or any Subsidiary is in default (as principal or
      as guarantor or other surety) in the payment of any principal of or
      premium or make-whole amount or interest on any Indebtedness that is
      outstanding in an aggregate principal amount of at least $10,000,000
      beyond any period of grace provided with respect thereto, or (ii) the
      Company or any Subsidiary is in default in the performance of or
      compliance with any term of any evidence of any Indebtedness in an
      aggregate outstanding principal amount of at least $ 10,000,000 or of any
      mortgage, indenture or other agreement relating thereto beyond any period
      of grace provided with respect to such default, or (1) as a consequence of
      the occurrence or continuation of any event or condition (other than the
      passage of time or the right of the holder of Indebtedness to convert such
      Indebtedness into equity interests), (2j) the Company or any Subsidiary
      has become obligated to purchase or repay Indebtedness before its regular
      maturity or before its regularly scheduled dates of payment in an
      aggregate outstanding principal amount of at least $10,000,000, or (y) one
      or more Persons have the right to require the Company or any Subsidiary so
      to purchase or repay such Indebtedness; or

            (g) the Company or any Subsidiary (i) is generally not paying, or
      admits in writing its inability to pay, its debts as they become due, (ii)
      files, or consents by answer or otherwise to the filing against it of, a
      petition for relief or reorganization or arrangement or any other petition
      in bankruptcy, for liquidation or to take advantage of any bankruptcy,
      insolvency, reorganization, moratorium or other similar law of any
      jurisdiction, (iii) makes an assignment for the benefit of its creditors,
      (iv) consents to the appointment of a custodian, receiver, trustee or
      other officer with similar powers with respect to it or with respect to
      any substantial part of its property, (v) is adjudicated as insolvent or
      to be liquidated, or (vi) takes corporate action for the purpose of any of
      the foregoing; or

            (h) a court or governmental authority of competent jurisdiction
      enters an order appointing, without consent by the Company or any of its
      Subsidiaries, a custodian, receiver, trustee or other officer with similar
      powers with respect to it or with respect to any substantial part of its
      property, or constituting an order for relief or approving a petition for
      relief or reorganization or any other petition in

                                      -27-

<PAGE>

      bankruptcy or for liquidation or to take advantage of any bankruptcy or
      insolvency law of any jurisdiction, or ordering the dissolution,
      winding-up or liquidation of the Company or any of its Subsidiaries, or
      any such petition shall be filed against the Company or any of its
      Subsidiaries and such petition shall not be dismissed within 60 days; or

            (i) a final judgment or judgments for the payment of money
      aggregating in excess of $5,000,000 are rendered against one or more of
      the Company and its Subsidiaries and which judgments are not, within 30
      days after entry thereof, bonded, discharged or stayed pending appeal, or
      are not discharged within 30 days after the expiration of such stay; or

            (j) if (i) any Plan shall fail to satisfy the minimum funding
      standards of ERISA or the Code for any plan year or part thereof or a
      waiver of such standards or extension of any amortization period is sought
      or granted under section 412 of the Code, (ii) a notice of intent to
      terminate any Plan shall have been or is reasonably expected to be filed
      with the PBGC or the PBGC shall have instituted proceedings under ERISA
      section 4042 to terminate or appoint a trustee to administer any Plan or
      the PBGC shall have notified the Company or any ERISA Affiliate that a
      Plan may become a subject of any such proceedings, (iii) the aggregate
      "amount of unfunded benefit liabilities" (within the meaning of section
      4001(a)(18) of ERISA) under all Plans, determined in accordance with Title
      IV of ERISA, shall exceed $500,000, (iv) the Company or any ERISA
      Affiliate shall have incurred or is reasonably expected to incur any
      liability pursuant to Title I or IV of ERISA or the penalty or excise tax
      provisions of the Code relating to employee benefit plans, (v) the Company
      or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the
      Company or any Subsidiary establishes or amends any employee welfare
      benefit plan that provides post-employment welfare benefits in a manner
      that would increase the liability of the Company or any Subsidiary
      thereunder; and any such event or events described in clauses (i) through
      (vi) above, either individually or together with any other such event or
      events, could reasonably be expected to have a Material Adverse Effect.

As used in Section 110), the terms "employee benefit plan" and "employee welfare
benefit plan" shall have the respective meanings assigned to such terms in
Section 3 of ERISA.

12.   REMEDIES ON DEFAULT, ETC.

12.1. Acceleration.

            (a) If an Event of Default with respect to the Company described in
paragraph (g) or (h) of Section 11 (other than an Event of Default described in
clause (i) of paragraph (g) or described in clause (vi) of paragraph (g) by
virtue of the fact that such clause encompasses clause (i) of paragraph (g)) has
occurred, all the Notes then outstanding shall automatically become immediately
due and payable.

                                      -28-

<PAGE>

             (b) If any other Event of Default has occurred and is continuing,
any holder or holders of more than 33% in principal amount of the Notes at the
time outstanding may at any time at its or their option, by notice or notices to
the Company, declare all the Notes then outstanding to be immediately due and
payable.

             (c) If any Event of Default described in paragraph (a) or (b) of
Section 11 has occurred and is continuing, any holder or holders of Notes at the
time outstanding affected by such Event of Default may at any time, at its or
their option, by notice or notices to the Company, declare all the Notes held by
it or them to be immediately due and payable.

             Upon any Notes becoming due and payable under this Section 12.1,
whether automatically or by declaration, such Notes will forthwith mature and
the entire unpaid principal amount of such Notes, plus (x) all accrued and
unpaid interest thereon and (y) the Make-Whole Amount determined in respect of
such principal amount (to the full extent permitted by applicable law), shall
all be immediately due and payable, in each and every case without presentment,
demand, protest or further notice, all of which are hereby waived. The Company
acknowledges, and the parties hereto agree, that each holder of a Note has the
right to maintain its investment in the Notes free from repayment by the Company
(except as herein specifically provided for) and that the provision for payment
of a Make-Whole Amount by the Company in the event that the Notes are prepaid or
are accelerated as a result of an Event of Default, is intended to provide
compensation for the deprivation of such right under such circumstances.

12.2.  Other Remedies.

             If any Default or Event of Default has occurred and is continuing,
and irrespective of whether any Notes have become or have been declared
immediately due and payable under Section 12.1, the holder of any Note at the
time outstanding may proceed to protect and enforce the rights of such holder by
an action at law, suit in equity or other appropriate proceeding, whether for
the specific performance of any agreement contained herein or in any Note, or
for an injunction against a violation of any of the terms hereof or thereof, or
in aid of the exercise of any power granted hereby or thereby or by law or
otherwise.

12.3.  Rescission.

             At any time after any Notes have been declared due and payable
pursuant to clause (b) or (c) of Section 12.1, the holders of not less than
66-2/3% in principal amount of the Notes then outstanding, by written notice to
the Company, may rescind and annul any such declaration and its consequences if
(a) the Company has paid all overdue interest on the Notes, all principal of and
Make-Whole Amount, if any, on any Notes that are due and payable and are unpaid
other than by reason of such declaration, and all interest on such overdue
principal and Make-Whole Amount, if any, and (to the extent permitted by
applicable law) any overdue interest in respect of the Notes, at the Default
Rate, (b) all Events of Default and Defaults, other than non-payment of amounts
that have become due solely by reason of such declaration, have been cured or
have been

                                      -29-

<PAGE>

waived pursuant to Section 17, and (c) no judgment or decree has been entered
                                    -
for the payment of any monies due pursuant hereto or to the Notes. No rescission
and annulment under this Section 12.3 will extend to or affect any subsequent
Event of Default or Default or impair any right consequent thereon.

12.4.  No Waivers or Election of Remedies, Expenses, etc.

             No course of dealing and no delay on the part of any holder of any
Note in exercising any right, power or remedy shall operate as a waiver thereof
or otherwise prejudice such holder's rights, powers or remedies. No right, power
or remedy conferred by this Agreement or by any Note upon any holder thereof
shall be exclusive of any other right, power or remedy referred to herein or
therein or now or hereafter available at law, in equity, by statute or
otherwise. Without limiting the obligations of the Company under Section 15, the
Company will pay to the holder of each Note on demand such further amount as
shall be sufficient to cover all costs and expenses of such holder incurred in
any enforcement or collection under this Section 12, including, without
limitation, reasonable attorneys' fees, expenses and disbursements.

13.    REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.

13.1.  Registration of Notes.

             The Company shall keep at its principal executive office a register
for the registration and registration of transfers of Notes. The name and
address of each holder of one or more Notes, each transfer thereof and the name
and address of each transferee of one or more Notes shall be registered in such
register. Prior to due presentment for registration of transfer, the Person in
whose name any Note shall be registered shall be deemed and treated as the owner
and holder thereof for all purposes hereof, and the Company shall not be
affected by any notice or knowledge to the contrary. The Company shall give to
any holder of a Note that is an Institutional Investor promptly upon request
therefor, a complete and correct copy of the names and addresses of all
registered holders of Notes.

13.2.  Transfer and Exchange of Notes.

             Upon surrender of any Note at the principal executive office of the
Company for registration of transfer or exchange (and in the case of a surrender
for registration of transfer, duly endorsed or accompanied by a written
instrument of transfer duly executed by the registered holder of such Note or
his attorney duly authorized in writing and accompanied by the address for
notices of each transferee of such Note or part thereof), the Company shall
execute and deliver, at the Company's expense (except as provided below), one or
more new Notes (as requested by the holder thereto in exchange therefor, in an
aggregate principal amount equal to the unpaid principal amount of the
surrendered Note. Each such new Note shall be payable to such Person as such
holder may request and shall be substantially in the form of Exhibit 1. Each
such new Note shall be dated and bear interest from the date to which interest
shall have been paid on the surrendered Note or dated the date of the
surrendered Note if no interest shall have

                                      -30-

<PAGE>

been paid thereon. The Company may require payment of a sum sufficient to cover
any stamp tax or governmental charge imposed in respect of any such transfer of
Notes. Notes shall not be transferred in denominations of less than $100,000,
provided that if necessary to enable the registration of transfer by a holder of
--------
its entire holding of Notes, one Note may be in a denomination of less than $
100,000. Any transferee, by its acceptance of a Note registered in its name (or
the name of its nominee), shall be deemed to have made the representation set
forth in Section 6. 1.

13.3.  Replacement of Notes.

             Upon receipt by the Company of evidence reasonably satisfactory to
it of the ownership of and the loss, theft, destruction or mutilation of any
Note (which evidence shall be, in the case of an Institutional Investor, notice
from such Institutional Investor of such ownership and such loss, theft,
destruction or mutilation), and

             (a) in the case of loss, theft or destruction, of indemnity
       reasonably satisfactory to it (provided that if the holder of such Note
                                      --------
       is, or is a nominee for, an original Purchaser or another Institutional
       Holder, such Person's own unsecured agreement of indemnity shall be
       deemed to be satisfactory), or

             (b) in the case of mutilation, upon surrender and cancellation
       thereof, the Company at its own expense shall execute and deliver, in
       lieu thereof, a new Note, dated and bearing interest from the date to
       which interest shall have been paid on such lost, stolen, destroyed or
       mutilated Note or dated the date of such lost, stolen, destroyed or
       mutilated Note if no interest shall have been paid thereon.

14.    PAYMENTS ON NOTES.

14.1.  Place of Payment.

             Subject to Section 14.2, payments of principal, Make-Whole Amount,
if any, and interest becoming due and payable on the Notes shall be made at the
addresses of the Purchasers set forth in Schedule A hereto. The Company may at
any time, by notice to each holder of a Note, change the place of payment of the
Notes so long as such place of payment shall be either the principal office of
the Company in such jurisdiction or the principal office of a bank or trust
company in such jurisdiction.

14.2.  Home Office Payment.

             So long as you or your nominee shall be the holder of any Note, and
notwithstanding anything contained in Section 14.1 or in such Note to the
contrary, the Company will pay all sums becoming due on such Note for principal,
Make-Whole Amount, if any, and interest by the method and at the address
specified for such purpose below your name in Schedule A, or by such other
method or at such other address as you shall have from time to time specified to
the Company in writing for such purpose, without the presentation or surrender
of such Note or the making of any notation thereon, except that upon written
request of the Company made concurrently with or reasonably

                                      -31-

<PAGE>

promptly after payment or prepayment in full of any Note, you shall surrender
such Note for cancellation, reasonably promptly after any such request, to the
Company at its principal executive office or at the place of payment most
recently designated by the Company pursuant to Section 14.1. Prior to any sale
or other disposition of any Note held by you or your nominee you will, at your
election, either endorse thereon the amount of principal paid thereon and the
last date to which interest has been paid thereon or surrender such Note to the
Company in exchange for a new Note or Notes pursuant to Section 13.2. The
Company will afford the benefits of this Section 14.2 to any Institutional
Investor that is the direct or indirect transferee of any Note purchased by you
under this Agreement and that has made the same agreement relating to such Note
as you have made in this Section 14.2.

15.    EXPENSES, ETC.

15.1.  Transaction Expenses.

             Whether or not the transactions contemplated hereby are
consummated, the Company will pay all costs and expenses (including reasonable
attorneys' fees of a special counsel and, if reasonably required, local or other
counsel) incurred by you and each Other Purchaser or holder of a Note in
connection with such transactions and in connection with any amendments, waivers
or consents under or in respect of this Agreement or the Notes (whether or not
such amendment, waiver or consent becomes effective), including, without
limitation: (a) the costs and expenses incurred in enforcing or defending (or
             -
determining whether or how to enforce or defend) any rights under this Agreement
or the Notes or in responding to any subpoena or other legal process or informal
investigative demand issued in connection with this Agreement or the Notes, or
by reason of being a holder of any Note, and (b) the costs and expenses,
                                              -
including financial advisors' fees, incurred in connection with the insolvency
or bankruptcy of the Company or any Subsidiary or in connection with any
work-out or restructuring of the transactions contemplated hereby and by the
Notes. The Company will pay, and will save you and each other holder of a Note
harmless from, all claims in respect of any fees, costs or expenses if any, of
brokers and finders (other than those retained by you).

15.2.  Survival.

             The obligations of the Company under this Section 15 will survive
the payment or transfer of any Note, the enforcement, amendment or waiver of any
provision of this Agreement or the Notes, and the termination of this Agreement.

16.    SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

             All representations and warranties contained herein shall survive
the execution and delivery of this Agreement and the Notes, the purchase or
transfer by you of any Note or portion thereof or interest therein and the
payment of any Note, and may be relied upon by any subsequent holder of a Note,
regardless of any investigation made at any time by or on behalf of you or any
other holder of a Note. All statements

                                      -32-

<PAGE>

contained in any certificate or other instrument delivered by or on behalf of
the Company pursuant to this Agreement shall be deemed representations and
warranties of the Company under this Agreement. Subject to the preceding
sentence, this Agreement and the Notes embody the entire agreement and
understanding between you and the Company and supersede all prior agreements and
understandings relating to the subject matter hereof.

17.    AMENDMENT AND WAIVER.

17.1.  Requirements.

            This Agreement and the Notes may be amended, and the observance of
any term hereof or of the Notes may be waived (either retroactively or
prospectively), with (and only with) the written consent of the Company and the
Required Holders, except that (a) no amendment or waiver of any of the
                               -
provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it
is used therein), will be effective as to you unless consented to by you in
writing, and (b) no such amendment or waiver may, without the written consent of
              -
the holder of each Note at the time outstanding affected thereby, (i) subject to
                                                                   -
the provisions of Section 12 relating to acceleration or rescission, change the
amount or time of any prepayment or payment of principal of, or change the rate
or change the time of payment or method of computation of interest or of the
Make-Whole Amount on, the Notes, (ii) change the percentage of the principal
                                  --
amount of the Notes the holders of which are required to consent to any such
amendment or waiver, or (iii) amend any of Sections 8, 11(a), 11(b), 12, 17 or
                         ---
20.

17.2.  Solicitation of Holders of Notes.

            (a) Solicitation. The Company will provide each holder of the Notes
                ------------
(irrespective of the amount of Notes then owned by it) with sufficient
information, sufficiently far in advance of the date a decision is required, to
enable such holder to make an informed and considered decision with respect to
any proposed amendment, waiver or consent in respect of any of the provisions
hereof or of the Notes. The Company will deliver executed or true and correct
copies of each amendment, waiver or consent effected pursuant to the provisions
of this Section 17 to each holder of outstanding Notes promptly following the
date on which it is executed and delivered by, or receives the consent or
approval of, the requisite holders of Notes.

            (b) Payment. The Company will not directly or indirectly pay or
                -------
cause to be paid any remuneration, whether by way of supplemental or additional
interest, fee or otherwise, or grant any security, to any holder of Notes as
consideration for or as an inducement to the entering into by any holder of
Notes or any waiver or amendment of any of the terms and provisions hereof
unless such remuneration is concurrently paid, or security is concurrently
granted, on the same terms, ratably to each holder of Notes then outstanding
even if such holder did not consent to such waiver or amendment.

                                      -33-

<PAGE>

17.3. Binding Effect, etc.

            Any amendment or waiver consented to as provided in this Section 17
applies equally to all holders of Notes and is binding upon them and upon each
future holder of any Note and upon the Company without regard to whether such
Note has been marked to indicate such amendment or waiver. No such amendment or
waiver will extend to or affect any obligation, covenant, agreement, Default or
Event of Default not expressly amended or waived or impair any right consequent
thereon. No course of dealing between the Company and the holder of any Note nor
any delay in exercising any rights hereunder or under any Note shall operate as
a waiver of any rights of any holder of such Note. As used herein, the term
"this Agreement" and references thereto shall mean this Agreement as it may from
time to time be amended or supplemented.

17.4. Notes held by Company, etc.

            Solely for the purpose of determining whether the holders of the
requisite percentage of the aggregate principal amount of Notes then outstanding
approved or consented to any amendment, waiver or consent to be given under this
Agreement or the Notes, or have directed the taking of any action provided
herein or in the Notes to be taken upon the direction of the holders of a
specified percentage of the aggregate principal amount of Notes then
outstanding, Notes directly or indirectly owned by the Company or any of its
Affiliates shall be deemed not to be outstanding.

18.   NOTICES.

            All notices and communications provided for hereunder shall be in
writing and sent (a) by telecopy if the sender on the same day sends a
                  -
confirming copy of such notice by a recognized overnight delivery service
(charges prepaid), or (b) by registered or certified mail with return receipt
                       -
requested (postage prepaid), or (c) by a recognized overnight delivery service
                                 -
(with charges prepaid). Any such notice must be sent:

            (i)   if to you or your nominee, to you or it at the address
      specified for such communications in Schedule A, or at such other address
      as you or it shall have specified to the Company in writing,

            (ii)  if to any other holder of any Note, to such holder at such
      address as such other holder shall have specified to the Company in
      writing, or

            (iii) if to the Company, to the Company at its address set forth at
      the beginning hereof to the attention of the General Counsel, or at such
      other address as the Company shall have specified to the holder of each
      Note in writing.

Notices under this Section 18 will be deemed given only when actually received.

19.   REPRODUCTION OF DOCUMENTS.

            This Agreement and all documents relating thereto, including,
without limitation, (a) consents, waivers and modifications that may hereafter
                     -
be executed,

                                      -34-

<PAGE>

(b) documents received by you at the Closing (except the Notes themselves), and
 -
(c) financial statements, certificates and other information previously or
 -
hereafter furnished to you, may be reproduced by you by any photographic,
photostatic, microfilm, microcard, miniature photographic or other similar
process and you may destroy any original document so reproduced. The Company
agrees and stipulates that, to the extent permitted by applicable law, any such
reproduction shall be admissible in evidence as the original itself in any
judicial or administrative proceeding (whether or not the original is in
existence and whether or not such reproduction was made by you in the regular
course of business) and any enlargement, facsimile or further reproduction of
such reproduction shall likewise be admissible in evidence. This Section 19
shall not prohibit the Company or any other holder of Notes from contesting any
such reproduction to the same extent that it could contest the original, or from
introducing evidence to demonstrate the inaccuracy of any such reproduction.

20.   CONFIDENTIAL INFORMATION.

            For the purposes of this Section 20, "Confidential Information"
means information delivered to you by or on behalf of the Company or any
Subsidiary in connection with the transactions contemplated by or otherwise
pursuant to this Agreement that is proprietary in nature and that was clearly
marked or labeled or otherwise adequately identified when received by you as
being confidential information of the Company or such Subsidiary, provided that
                                                                  --------
such term does not include information that (a) was publicly known or otherwise
                                             -
known to you prior to the time of such disclosure, (b) subsequently becomes
                                                    -
publicly known through no act or omission by you or any person acting on your
behalf, (c) otherwise becomes known to you other than through disclosure by the
         -
Company or any Subsidiary or (d) constitutes financial statements delivered to
                              -
you under Section 7.1 that are otherwise publicly available. For purposes of
this Section 20, "Confidential Information" shall include the Placement
Memorandum and all financial statements delivered by the Company pursuant to
Section 7.1(a) and (b) of this Agreement. You will maintain the confidentiality
of such Confidential Information in accordance with procedures adopted by you in
good faith to protect confidential information of third parties delivered to
you, provided that you may deliver or disclose Confidential Information to (i)
     --------                                                               -
your directors, officers, employees, agents, attorneys and affiliates (to the
extent such disclosure reasonably relates to the administration of the
investment represented by your Notes), (ii) your financial advisors and other
professional advisors who agree to hold confidential the Confidential
Information substantially in accordance with the terms of this Section 20, (iii)
                                                                            ---
any other holder of any Note, (iv) any Institutional Investor to which you sell
                               --
or offer to sell such Note or any part thereof or any participation therein (if
such Person has agreed in writing prior to its receipt of such Confidential
Information to be bound by the provisions of this Section 20), (v) any Person
                                                                -
from which you offer to purchase any security of the Company (if such Person has
agreed in writing prior to its receipt of such Confidential Information to be
bound by the provisions of this Section 20), (vi) any federal or state
                                              --
regulatory authority having jurisdiction over you, (vii) the National
                                                    ---
Association of Insurance Commissioners or any similar organization, or any
nationally recognized rating agency that requires access to information about
your investment portfolio or (viii) any other Person to which such delivery or
                              ----
disclosure may be necessary or appropriate (w) to
                                            -

                                      -35-

<PAGE>

effect compliance with any law, rule, regulation or order applicable to you, (x)
                                                                              -
in response to any subpoena or other legal process, (y) in connection with any
                                                     -
litigation to which you are a party or (z) if an Event of Default has occurred
                                        -
and is continuing, to the extent you may reasonably determine such delivery and
disclosure to be necessary or appropriate in the enforcement or for the
protection of the rights and remedies under your Notes and this Agreement. Each
holder of a Note, by its acceptance of a Note, will be deemed to have agreed to
be bound by and to be entitled to the benefits of this Section 20 as though it
were a party to this Agreement. On reasonable request by the Company in
connection with the delivery to any holder of a Note of information required to
be delivered to such holder under this Agreement or requested by such holder
(other than a holder that is a party to this Agreement or its nominee), such
holder will enter into an agreement with the Company embodying the provisions of
this Section 20.

21.   SUBSTITUTION OF PURCHASER.

            You shall have the right to substitute any one of your Affiliates as
the purchaser of the Notes that you have agreed to purchase hereunder, by
written notice to the Company, which notice shall be signed by both you and such
Affiliate, shall contain such Affiliate's agreement to be bound by this
Agreement and shall contain a confirmation by such Affiliate of the accuracy
with respect to it of the representations set forth in Section 6. Upon receipt
of such notice, wherever the word "you" is used in this Agreement (other than in
this Section 21), such word shall be deemed to refer to such Affiliate in lieu
of you. In the event that such Affiliate is so substituted as a purchaser
hereunder and such Affiliate thereafter transfers to you all of the Notes then
held by such Affiliate, upon receipt by the Company of notice of such transfer,
wherever the word "you" is used in this Agreement (other than in this Section
21), such word shall no longer be deemed to refer to such Affiliate, but shall
refer to you, and you shall have all the rights of an original holder of the
Notes under this Agreement.

22.   MISCELLANEOUS.

22.1. Successors and Assigns.

            All covenants and other agreements contained in this Agreement by or
on behalf of any of the parties hereto bind and inure to the benefit of their
respective successors and assigns (including, without limitation, any subsequent
holder of a Note) whether so expressed or not.

22.2. Payments Due on Non-Business Days.

            Anything in this Agreement or the Notes to the contrary
notwithstanding, any payment of principal of or Make-Whole Amount or interest on
any Note that is due on a date other than a Business Day shall be made on the
next succeeding Business Day without including the additional days elapsed in
the computation of the interest payable on such next succeeding Business Day.

                                      -36-

<PAGE>

22.3.  Severability.

             Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall (to the full extent permitted by law) not invalidate or
render unenforceable such provision in any other jurisdiction.

22.4.  Construction.

             Each covenant contained herein shall be construed (absent express
provision to the contrary) as being independent of each other covenant contained
herein, so that compliance with any one covenant shall not (absent such an
express contrary provision) be deemed to excuse compliance with any other
covenant. Where any provision herein refers to action to be taken by any Person,
or which such Person is prohibited from taking, such provision shall be
applicable whether such action is taken directly or indirectly by such Person.

22.5.  Counterparts.

             This Agreement may be executed in any number of counterparts, each
of which shall be an original but all of which together shall constitute one
instrument. Each counterpart may consist of a number of copies hereof, each
signed by less than all, but together signed by all, of the parties hereto.

22.6.  Governing Law.

             This Agreement shall be construed and enforced in accordance with,
and the rights of the parties shall be governed by, the law of the State of
Illinois excluding choice-of-law principles of the law of such State that would
require the application of the laws of a jurisdiction other than such State.

                                    * * * * *

                                      -37-

<PAGE>

             If you are in agreement with the foregoing, please sign the form of
agreement on the accompanying counterpart of this Agreement and return it to the
Company, whereupon the foregoing shall become a binding agreement between you
and the Company.

                                            Very truly yours,

                                            HEWITT ASSOCIATES LLC

                                            By /s/ John M. Ryan
                                               ---------------------------------
                                            Title: Chief Administrative Officer

The foregoing is hereby agreed to
as of the date thereof.

ALLSTATE LIFE INSURANCE COMPANY

By:_______________________________

By: /s/ Steven M. Laude
    ------------------------------
        Authorized Signatories

                                      -38-

<PAGE>

THE LINCOLN NATIONAL LIFE INSURANCE COMPANY
By:     Lincoln Investment Management, Inc.,
        Its Attorney-In-Fact

By: /s/ David C. Patrick
    -----------------------------------------------

AMERICAN STATES LIFE INSURANCE COMPANY
By:     Lincoln Investment Management, Inc.,
        Its Attorney-In-Fact

By: /s/ David C. Patrick
    -----------------------------------------------

FIRST PENN-PACIFIC LIFE INSURANCE COMPANY
By:     Lincoln Investment Management, Inc.,
        Its Attorney-In-Fact

By: /s/ David C. Patrick
    -----------------------------------------------

ALLIED LIFE INSURANCE COMPANY
By:     Lincoln Investment Management, Inc.,
        Its Attorney-In-Fact

By: /s/ David C. Patrick
    -----------------------------------------------

SONS OF NORWAY
By:     Lincoln Investment Management, Inc.,
        Its Attorney-In-Fact

By: /s/ David C. Patrick
    -----------------------------------------------

                                      -39-

<PAGE>

LINCOLN-SECURITY LIFE INSURANCE COMPANY
By:     Lincoln Investment Management, Inc.,
        Its Attorney-In-Fact

By: /s/ David C. Patrick
    -----------------------------------------------

SECURITY-CONNECTICUT LIFE INSURANCE COMPANY
By:     Lincoln Investment Management, Inc.,
        Its Attorney-In-Fact

By: /s/ David C. Patrick
    -----------------------------------------------

LONDON LIFE INTERNATIONAL REINSURANCE CORPORATION
By:     Lincoln Investment Management, Inc.,
        Its Attorney-In-Fact

By: /s/ David C. Patrick
    -----------------------------------------------

TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY
By:     Lincoln Investment Management, Inc.,

        Its Attorney-In-Fact

By: /s/ David C. Patrick
    -----------------------------------------------

                                      -40-

<PAGE>

THE MINNESOTA MUTUAL LIFE INSURANCE COMPANY
By:     MIMLIC Asset Management Company

By: /s/ Loren Haugland, Vice President
    ---------------------------------------------

MUTUAL TRUST LIFE INSURANCE COMPANY
By:     MIMLIC Asset Management Company

By: /s/ Loren Haugland, Vice President
    ---------------------------------------------

PROTECTED HOME MUTUAL LIFE INSURANCE COMPANY
By:     MIMLIC Asset Management Company

By: /s/ Loren Haugland, Vice President
    ---------------------------------------------

GUARANTEE RESERVE LIFE INSURANCE COMPANY
By:     MIMLIC Asset Management Company

By: /s/ Loren Haugland, Vice President
    ---------------------------------------------

                                      -41-

<PAGE>

                                                                    SCHEDULE A-1

                       INFORMATION RELATING TO PURCHASERS

                                                           Principal Amount of
Name and Address of Purchaser                             Notes to be Purchased

Allstate Insurance Company                                    (1) $8,000,000
3075 Sanders Road, STE G4A                                    (2) $4,000,000
Northbrook, Illinois 60062-7127                               (3) $4,000,000
Attn: Investment Operations                                   (4) $4,000,000
        Private Placements
Telephone: (847) 402-8709
Telecopy: (847) 402-7331

(1)  All notices of scheduled payments and written confirmations of such wire
     transfer should be sent to the address above. All payments by Fedwire
     transfer of immediately available funds, identifying the name of the Issuer
     (and the Credit, if any), the Private Placement Number preceded by "DPP"
     and the payment as principal, interest or premium, in the format as
     follows:

          BBK = Harris Trust and Savings Bank
                ABA #071000288
          BNF = Allstate Life Insurance Company
                Collection Account #168-117-0
          ORG = Hewitt Associates LLC
                OBI= DPP (PPN: 42823# AA 1)
                L________ (Enter Lease Number, if any)
                Payment Due Date (MM/DD/YY)
                P________ (Enter "P" and amount of
                principal being remitted, for example, P5000000.00)
                I_________ (Enter "I" and amount of
                interest being remitted, for example, 1225000.00)

(2)  Securities to be delivered to:

     Harris Trust and Savings Bank
     111 West Monroe Street
     Institutional Custody, 5E
     Chicago, Illinois 60690
     Attention: Lisa Cox
     For Allstate Life Insurance Company/
     Safekeeping Account No. 23-91317

(3)  All financial reports, compliance certificates and all other written
     communications, including notice of prepayments, to be sent to:

     Allstate Life Insurance Company
     Private Placements Department
     3075 Sanders Road, STE G3A

                                   Schedule A

<PAGE>

     Northbrook, IL 60062-7127
     Telephone: (847) 402-4394
     Telecopy: (847) 402-3092

Tax ID #36-2554642

                                        2
                                   Schedule A

<PAGE>

                                                                    SCHEDULE A-2

                       INFORMATION RELATING TO PURCHASERS

                                                       Principal Amount of
Name and Address of Purchaser                         Notes to be Purchased

The Lincoln National Life Insurance Company                $2,500,000

(1)  All payments on account of the Notes shall be made by bank wire transfer of
     immediately available funds to:

        Bankers Trust Company
        New York, New York
        ABA #021001033
        Attention: Private Placement Processing
        A/C #: 99-911-145
        For further credit to: The Lincoln National Life Insurance Company (IAL)
        Custody Account No.: 98194

        (wire transfer shall identify such payment as "Hewitt Associates LLC
        7.45% Senior Notes due May 30, 2008; PPN: 42823# AA 1, and shall
        identify the payment as principal, premium and/or interest)

(2)  Address for all communications and notice of all such payments to:

     Lincoln Investment Management, Inc.
     200 East Berry Street
     Renaissance Square
     Fort Wayne, Indiana 46802
     Attention: Investments/Private Placements

(3)  Address for notice of payment:

     Bankers Trust Company
     Attention: Private Placement Unit
     P. O. Box 998
     Bowling Green Station
     New York, New York 10274

(4)  Forward securities to:

     Bankers Trust Company
     14 Wall Street, 4th Floor, Window #44
     New York, New York 10005
     Attention: Marlene Maynard, Mail Stop 4049
     (Reference Account Name and Custody Account #)

Tax ID #35-0472300

                                        3
                                   Schedule A

<PAGE>

                                                                    SCHEDULE A-3

                       INFORMATION RELATING TO PURCHASERS

                                                         Principal Amount of
Name and Address of Purchaser                           Notes to be Purchased

The Lincoln National Life Insurance Company                    $2,000,000

(1)  All payments on account of the Notes shall be made by bank wire transfer of
     immediately available funds to:

        Bankers Trust Company
        New York, New York
        ABA #021001033
        Attention: Private Placement Processing
        A/C #: 99-911-145
        For further credit to: The Lincoln National Life Insurance Company (GAN)
        Custody Account No.: 98152

        (wire transfer shall identify such payment as "Hewitt Associates LLC
        7.45% Senior Notes due May 30, 2008; PPN: 42823# AA 1, and shall
        identify the payment as principal, premium and/or interest)

(2)  Address for all communications and notice of all such payments to:

     Lincoln Investment Management, Inc.
     200 East Berry Street
     Renaissance Square
     Fort Wayne, Indiana 46802
     Attention: Investments/Private Placements

(3)  Address for notice of payment:

     Bankers Trust Company
     Attention: Private Placement Unit
     P. O. Box 998
     Bowling Green Station
     New York, New York 10274

(4)  Forward securities to.

     Bankers Trust Company
     14 Wall Street, 4th Floor, Window #44
     New York, New York 10005
     Attention: Marlene Maynard, Mail Stop 4049
     (Reference Account Name and Custody Account #)

Tax ID #35-0472300

                                        4
                                   Schedule A

<PAGE>

                                                                    SCHEDULE A-4

                       INFORMATION RELATING TO PURCHASERS

                                                       Principal Amount of
Name and Address of Purchaser                         Notes to be Purchased

The Lincoln National Life Insurance Company                 $2,000,000

(1)  All payments on account of the Notes shall be made by bank wire transfer of
     immediately available funds to:

        Bankers Trust Company
        New York, New York
        ABA #021001033
        Attention: Private Placement Processing
        A/C #: 99-911-145
        For further credit to: The Lincoln National Life Insurance Company (LFP)
        Custody Account No.: 98185

        (wire transfer shall identify such payment as "Hewitt Associates LLC
        7.45% Senior Notes due May 30, 2008; PPN: 42823# AA 1, and shall
        identify the payment as principal, premium and/or interest)

(2)  Address for all communications and notice of all such payments to:

     Lincoln Investment Management, Inc.
     200 East Berry Street
     Renaissance Square
     Fort Wayne, Indiana 46802
     Attention: Investments/Private Placements

(3)  Address for notice of payment:

     Bankers Trust Company
     Attention: Private Placement Unit
     P. O. Box 998
     Bowling Green Station
     New York, New York 10274

(4)  Forward securities to:

     Bankers Trust Company
     14 Wall Street, 4th Floor, Window #44
     New York, New York 10005
     Attention: Marlene Maynard, Mail Stop 4049
     (Reference Account Name and Custody Account #)

Tax ID #35-0472300

                                        5
                                   Schedule A

<PAGE>

                                                                    SCHEDULE A-5

                       INFORMATION RELATING TO PURCHASERS

                                                         Principal Amount of
Name and Address of Purchaser                           Notes to be Purchased

The Lincoln National Life Insurance Company                  $1,000,000

(1)  All payments on account of the Notes shall be made by bank wire transfer of
     immediately available funds to:

        Bankers Trust Company
        New York, New York
        ABA #021001033
        Attention: Private Placement Processing
        A/C #: 99-911-145
        For further credit to: The Lincoln National Life Insurance Company (FPR)
        Custody Account No.: 98329

        (wire transfer shall identify such payment as "Hewitt Associates LLC
        7.45% Senior Notes due May 30, 2008; PPN: 42823# AA 1, and shall
        identify the payment as principal, premium and/or interest)

(2)  Address for all communications and notice of all such payments to:

     Lincoln Investment Management, Inc.
     200 East Berry Street
     Renaissance Square
     Fort Wayne, Indiana 46802
     Attention: Investments/Private Placements

(3)  Address for notice of payment:

     Bankers Trust Company
     Attention: Private Placement Unit
     P. O. Box 998
     Bowling Green Station
     New York, New York 10274

(4)  Forward securities to:

     Bankers Trust Company
     14 Wall Street, 4th Floor, Window #44
     New York, New York 10005
     Attention: Marlene Maynard, Mail Stop 4049
     (Reference Account Name and Custody Account #)

Tax ID #35-0472300

                                        6
                                   Schedule A

<PAGE>

                                                                    SCHEDULE A-6

                       INFORMATION RELATING TO PURCHASERS

                                                             Principal Amount of
Name and Address of Purchaser                              Notes to be Purchased

The Lincoln National Life Insurance Company                      $1,000,000

(1)    All payments on account of the Notes shall be made by bank wire transfer
       of immediately available funds to:

             Bankers Trust Company
             New York, New York
             ABA #021001033
             Attention: Private Placement Processing
             A/C #: 99-911-145
             For further credit to: The Lincoln National Life Insurance Company
             (FPR)
             Custody Account No.: 98187

             (wire transfer shall identify such payment as "Hewitt
             Associates LLC 7.45% Senior Notes due May 30, 2008; PPN:
             42823# AA 1, and shall identify the payment as principal,
             premium and/or interest)

(2)    Address for all communications and notice of all such payments to:

       Lincoln Investment Management, Inc.
       200 East Berry Street
       Renaissance Square
       Fort Wayne, Indiana 46802
       Attention: Investments/Private Placements

(3)    Address for notice of payment:

       Bankers Trust Company
       Attention: Private Placement Unit
       P. O. Box 998
       Bowling Green Station
       New York, New York 10274

(4)    Forward securities to:

       Bankers Trust Company
       14 Wall Street, 4th Floor, Window #44
       New York, New York 10005
       Attention: Marlene Maynard, Mail Stop 4049
       (Reference Account Name and Custody Account #)

Tax ID #35-0472300

                                        7
                                   Schedule A

<PAGE>

                                                                    SCHEDULE A-7

                       INFORMATION RELATING TO PURCHASERS

                                                             Principal Amount of
Name and Address of Purchaser                              Notes to be Purchased

American States Life Insurance Company                            $500,000

Register Notes in the name of: SALKELD & CO

(1)    All payments on account of the Notes shall be made by bank wire transfer
       of immediately available funds to:

             Bankers Trust Company
             New York, New York
             ABA #021001033
             Attention: Private Placement Processing
             A/C #: 99-911-145
             For further credit to: The Lincoln National Life Insurance Company
             (FPR)
             Custody Account No.: 97136

             (wire transfer shall identify such payment as "Hewitt
             Associates LLC 7.45% Senior Notes due May 30, 2008; PPN:
             42823# AA 1, and shall identify the payment as principal,
             premium and/or interest)

(2)    Address for all such payments to:

       American States Life Insurance Company
       500 North Meridian Street
       Indianapolis, Indiana 46204
       Attention: Corporate Accounting

(3)    Address for all other communication:

       Lincoln Investment Management, Inc.
       200 East Berry Street
       Renaissance Square
       Fort Wayne, Indiana 46802
       Attention: Investments/Private Placements

(4)    Forward securities to:

       Bankers Trust Company
       14 Wall Street, 4th Floor, Window #44
       New York, New York 10005
       For Account:  American States Life Insurance Company
       Custodial Account:  91736
       Attention:  George Flores

Tax ID #35-1007048

                                        8
                                   Schedule A

<PAGE>

                                                                    SCHEDULE A-8

                       INFORMATION RELATING TO PURCHASERS

                                                             Principal Amount of
Name and Address of Purchaser                              Notes to be Purchased

First Penn-Pacific Life Insurance Company                        $5,000,000

Register Notes in the name of: CUDD & CO

(1)    All payments on account of the Notes shall be made by bank wire transfer
       of immediately available funds to:

             The Chase Manhattan Bank N.A.
             New York, New York
             ABA #021000021
             A/C #: 900-9-000200
             For further credit to: G-05996 First Penn-Pacific

             (wire transfer shall identify such payment as "Hewitt
             Associates LLC 7.45% Senior Notes due May 30, 2008; PPN:
             42823# AA 1, and shall identify the payment as principal,
             premium and/or interest)

(2)    Address for all such payments to:

       Lincoln Investment Management, Inc.
       200 East Berry Street
       Renaissance Square
       Fort Wayne, Indiana 46802
       Attention: Investments/Private Placements

(3)    Forward securities to:

       Chase Manhattan Bank
       One Chase Manhattan Plaza
       Level 4B, Window #9
       New York, New York 10081
       For Account: G-05996 First Penn-Pacific Life Ins. Co.
       Attention: Frank Taylor - Receive Free Cage

Tax ID #23-2044248

                                        9
                                    Schedule A

<PAGE>

                                                                    SCHEDULE A-9

                       INFORMATION RELATING TO PURCHASERS

                                                             Principal Amount of
Name and Address of Purchaser                              Notes to be Purchased

Allied Life Insurance Company                                     $1,000,000

Register Notes in the name of: HARNY & CO

(1)    All payments on account of the Notes shall be made by bank wire transfer
       of immediately available funds to:

             Harris Trust & Savings
             ABA #071 000 288
             Attention:  Trust Collections
             DDA Account #: 109-211-3
             For further credit to:  Allied Life Insurance Company "B"
             Account No.:  23-97589

             (wire transfer shall identify such payment as "Hewitt
             Associates LLC 7.45% Senior Notes due May 30, 2008; PPN:
             42823# AA 1, and shall identify the payment as principal,
             premium and/or interest)

(2)    Address for all such payments to:

       Harris Trust & Savings
       111 W. Monroe Street
       Chicago, Illinois  60690
       Attention: Private Placements
       For Account:  Allied Life Insurance Company "B"

(3)    Address for all communications:

       Lincoln Investment Management, Inc.
       200 East Berry Street
       Renaissance Square
       Fort Wayne, Indiana 46802
       Attention: Investments/Private Placements
       For A/C: Allied Life Insurance Company "B"

(4)    Forward securities to:

       Bank of Montreal
       77 Water Street
       Securities Services - 5th Floor
       Attention: Rich Halleck
       New York, New York 10005

                                       10
                                   Schedule A

<PAGE>

       For A/C: Harris Trust & Savings
       Further Credit: Allied Life Insurance Company
                       Custody Account 23-97589

Tax ID #42-0921353

                                       11
                                    Schedule A

<PAGE>

                                                                   SCHEDULE A-10

                       INFORMATION RELATING TO PURCHASERS

                                                             Principal Amount of
Name and Address of Purchaser                              Notes to be Purchased

Sons of Norway                                                   $500,000

Register Notes in the name of: VAR & CO

(1)    All payments on account of the Notes shall be made by bank wire transfer
       of immediately available funds to:

             First Bank N.A.
             Minneapolis, Minnesota
             ABA #091 0000 22
             CR: First Trust National Association
             A/C #: 180121167365 - TSU 020
             F/C: 12601910, Sons of Norway

             (wire transfer shall identify such payment as "Hewitt
             Associates LLC 7.45% Senior Notes due May 30, 2008; PPN:
             42823# AA 1, and shall identify the payment as principal,
             premium and/or interest)

(2)    Address for all such payments to:

       Ms. Kathy Budewitz
       Mail Code: SPEN0402
       First Trust Center
       180 E. 5th Street
       P.O. Box 64190
       St. Paul, Minnesota 55164-0190

(3)    Address for all communication:

       Lincoln Investment Management, Inc.
       200 East Berry Street
       Renaissance Square
       Fort Wayne, Indiana 46802
       Attention: Investments/Private Placements

(4)    Forward securities to:

       First Trust National Association
       Physical Unit, Trade Settlement Services
       9th Floor, 180 E. 5th Street
       St. Paul, Minnesota 55101
       For Account: 12601910, Sons of Norway
       Attention: Tara Steenblock

Tax ID #41-0547795

                                       12
                                   Schedule A

<PAGE>

                                                                   SCHEDULE A-11

                       INFORMATION RELATING TO PURCHASERS

                                                            Principal Amount of
Name and Address of Purchaser                              Notes to be Purchased

Lincoln-Security Life Insurance Company                           $500,000

(1)  All payments on account of the Notes shall be made by bank wire transfer of
     immediately available funds to:

          Chase Manhattan Bank N.A.
          New York, New York
          ABA #021000021
          A/C #: 900-9-000200
          For further credit to: Lincoln-Security Life (New York)
          Account No.:  G04847

          (wire transfer shall identify such payment as "Hewitt Associates LLC
          7.45% Senior Notes due May 30, 2008; PPN: 42823# AA 1, and shall
          identify the payment as principal, premium and/or interest)

(2)  Address for notice of all such payments to:

     Lincoln-Security Life Insurance Company (New York)
     in c/o Security-Connecticut Life Insurance Company
     20 Security Drive
     Avon, Connecticut 06001
     Attention: Jodi Dean

(3)  Address for all other communication:

     Lincoln Investment Management, Inc.
     200 East Berry Street
     Renaissance Square
     Fort Wayne, Indiana 46802
     Attention: Investments/Private Placements

(4)  Forward securities to:

     Lincoln-Security Life Insurance Company (New York)
     in c/o Security-Connecticut Life Insurance Company
     20 Security Drive
     Avon, Connecticut 06001
     Attention: Jodi Dean

Tax ID #22-2491079

                                       13
                                   Schedule A

<PAGE>

                                                                   SCHEDULE A-12

                       INFORMATION RELATING TO PURCHASERS

                                                            Principal Amount of
Name and Address of Purchaser                              Notes to be Purchased

Security-Connecticut Life Insurance Company                      $1,000,000

(1)  All payments on account of the Notes shall be made by bank wire transfer of
     immediately available funds to:

          Shawmut Bank Connecticut, N.A.
          777 Main Street
          Hartford, Connecticut 06115
          ABA Routing #011900445
          For Account of: Security-Connecticut Life Insurance Company
          Account No.: 0156196

          (wire transfer shall identify such payment as "Hewitt Associates LLC
          7.45% Senior Notes due May 30, 2008; PPN: 42823# AA 1, and shall
          identify the payment as principal, premium and/or interest)

(2)  Address for notice of all such payments to:

     Security-Connecticut Life Insurance Company
     20 Security Drive
     Avon, Connecticut 06001
     Attention: Jodi Dean

(3)  Address for all other communication:

     Lincoln Investment Management, Inc.
     200 East Berry Street
     Renaissance Square
     Fort Wayne, Indiana 46802
     Attention: Investments/Private Placements

(4)  Forward securities to:

     Security-Connecticut Life Insurance Company
     20 Security Drive
     Avon, Connecticut 06001
     Attention: Jodi Dean

Tax ID #35-1468921

                                       14
                                   Schedule A

<PAGE>

                                                                   SCHEDULE A-13

                       INFORMATION RELATING TO PURCHASERS

                                                            Principal Amount of
Name and Address of Purchaser                              Notes to be Purchased

London Life International Reinsurance Corporation                $1,000,000

Register Notes in the name of:  SALKELD & CO.

(1)  All payments on account of the Notes shall be made by bank wire transfer of
     immediately available funds to:

        Bankers Trust Company
        New York, New York
        ABA #021001033
        Attention: Private Placement Processing
        A/C #: 99-911-145
        For further credit to: London Life International Reinsurance Corporation
        Custody Account No.: 98313

        (wire transfer shall identify such payment as "Hewitt Associates LLC
        7.45% Senior Notes due May 30, 2008; PPN: 42823# AA 1, and shall
        identify the payment as principal, premium and/or interest)

(2)  Address for all communications and notice of all such payments to:

     Lincoln Investment Management, Inc.
     200 East Berry Street
     Renaissance Square
     Fort Wayne, Indiana 46802
     Attention: Investments/Private Placements

(3)  Address for notice of payment:

     Bankers Trust Company
     Attention: Private Placement Unit
     P. O. Box 998
     Bowling Green Station
     New York, New York 10274

(4)  Forward securities to:

     Bankers Trust Company
     14 Wall Street, 4th Floor, Window #44
     New York, New York 10005
     Attention: Marlene Maynard, Mail Stop 4049
     (Reference Account Name and Custody Account #)

Tax ID #98-0107498

                                       15
                                   Schedule A

<PAGE>

                                                                   SCHEDULE A-14

                       INFORMATION RELATING TO PURCHASERS

                                                            Principal Amount of
Name and Address of Purchaser                              Notes to be Purchased

Transamerica Occidental Life Insurance Company                   $1,000,000

Register Notes in the name of:  MAC & CO

(1)  All payments on account of the Notes shall be made by bank wire transfer of
     immediately available funds to:

          Mellon Securities Trust Co.
          Boston, Massachusetts
          ABA #011-001-234
          BOS SAFE DEP DDA# 162299
          Further credit:   Transamerica (TA-1)
                            Account No.: TRAF-1505432

          (wire transfer shall identify such payment as "Hewitt Associates LLC
          7.45% Senior Notes due May 30, 2008; PPN: 42823# AA 1, and shall
          identify the payment as principal, premium and/or interest)

(2)  Address for all communications and notice of all such payments to:

     (a)  Lincoln Investment Management, Inc.
          200 East Berry Street
          Renaissance Square
          Fort Wayne, Indiana 46802
          Attention: Investments/Private Placements

and

     (b)  Mellon Bank Securities Trust Company
          120 Broadway, 13th Floor
          New York, New York 10271
          Attention:   Securities Custodian
                       Debbie Maloney

(3)  Forward securities to:

     Mellon Securities Trust Company
     120 Broadway, 13th Floor
     New York, New York 10271
     REF: Transamerica Occidental Life Insurance Company
     Account: TRAF-1505432

Tax ID #95-1060502

                                       16
                                   Schedule A

<PAGE>

                                                                   SCHEDULE A-15

                       INFORMATION RELATING TO PURCHASERS

                                                           Principal Amount of
Name and Address of Purchaser                             Notes to be Purchased

Transamerica Occidental Life Insurance Company                  $1,000,000

Register Notes in the name of:  MAC & CO

(1)  All payments on account of the Notes shall be made by bank wire transfer of
     immediately available funds to:

          Mellon Securities Trust Co.
          Boston, Massachusetts
          ABA #011-001-234
          BOS SAFE DEP DDA# 162299
          Further credit:   Transamerica (TA-2)
                            Account No.: TRAF-1505442

          (wire transfer shall identify such payment as "Hewitt Associates LLC
          7.45% Senior Notes due May 30, 2008; PPN: 42823# AA 1, and shall
          identify the payment as principal, premium and/or interest)

(2)  Address for all communications and notice of all such payments to:

     (a)  Lincoln Investment Management, Inc.
          200 East Berry Street
          Renaissance Square
          Fort Wayne, Indiana 46802
          Attention: Investments/Private Placements

and

     (b)  Mellon Bank Securities Trust Company
          120 Broadway, 13th Floor
          New York, New York 10271
          Attention:   Securities Custodian
                       Debbie Maloney

(3)  Forward securities to:

     Mellon Securities Trust Company
     120 Broadway, 13th Floor
     New York, New York 10271
     REF: Transamerica Occidental Life Insurance Company
     Account: TRAF-1505442

Tax ID #95-1060502

                                       17
                                   Schedule A

<PAGE>

                                                                   SCHEDULE A-16

                       INFORMATION RELATING TO PURCHASERS

                                                            Principal Amount of
Name and Address of Purchaser                              Notes to be Purchased

The Minnesota Mutual Life Insurance Company                      $8,000,000
400 Robert Street North
St. Paul, Minnesota 55101
Attn: MIMLIC Asset Management (OMM)
Telecopy: (612) 223-5959

(1)  All notices of scheduled payments and written confirmations of such wire
     transfer, financial reports, compliance certificates, notices and all
     written communications should be sent to the address above.

(2)  All payments by wire transfer of
     immediately available funds to:

     First Bank National Association
     Minneapolis, Minnesota
     ABA #091000022
     BNF The Minnesota Mutual Life Insurance Company
     Account #1801-10-00600-4

     with sufficient information
     to identify the source and
     application of such funds.

(3) Securities to be delivered to:

     The Minnesota Mutual Life Insurance Company
     400 Robert Street North
     St. Paul, Minnesota 55101
     Attention:   MMLIC Asset Management (OMM)
                  Robin Lenarz, Esq.

                                       18
                                   Schedule A

<PAGE>

                                                                   SCHEDULE A-17

                       INFORMATION RELATING TO PURCHASERS

                                                            Principal Amount of
Name and Address of Purchaser                              Notes to be Purchased

ELL & Co.                                                        $1,000,000
Mutual Trust Life Insurance Company
c/o MIMLIC Asset Management Company
400 Robert Street North
St. Paul, MN 55101
Attn: Client Administrator

(1)   All notices of scheduled payments and written confirmations of such wire
      transfer, financial reports, compliance certificates, notices and all
      written communications should be sent to the address above.

(2)   All payments on account of the Notes shall be made by wire transfer of
      immediately available funds to The Northern Trust Company, Chicago, IL,
      ABA #071000152, for Credit Wire Account #45186041000, for further credit
      to Mutual Trust Life Insurance Company, Account #26-00621. Attn: MBS
      Department.

      with sufficient information
      to identify the source and
      application of such funds.

(3)   Securities to be delivered to:

      The Northern Trust Company of New York
      80 Broad Street, 19th Floor
      New York, New York 10004
      Attn:  Settlements for Account #26-00621
             Mutual Trust Life Insurance Company

                                       19
                                   Schedule A

<PAGE>

                                                                   SCHEDULE A-18

                       INFORMATION RELATING TO PURCHASERS

                                                            Principal Amount of
Name and Address of Purchaser                              Notes to be Purchased

PNC Bank Custodian under Agreement with Protected Home            $500,000
Mutual Life Insurance Company
c/o MIMLIC Asset Management Company
400 Robert Street North
St. Paul, MN 55101
Attn: Client Administrator

(1)   All notices of scheduled payments and written confirmations of such wire
      transfer, financial reports, compliance certificates, notices and all
      written communications should be sent to the address above.

(2)   All payments by wire transfer of
      immediately available funds to:

      ABA No. 043-000-096
      PNC Bank - Trust Acct. #6054918631
      Attn: Penny Hopkins

      with sufficient information
      to identify the source and
      application of such funds.

(3)   Securities to be delivered to:

      Bankers Trust Company
      16 Wall Street
      4th Floor, Window 44
      Ref. A/C PNC Bank A/C #011001

                                       20
                                   Schedule A

<PAGE>

                                                                   SCHEDULE A-19

                       INFORMATION RELATING TO PURCHASERS

                                                            Principal Amount of
Name and Address of Purchaser                              Notes to be Purchased

Gant & Co.                                                        $500,000
Guarantee Reserve Life Insurance Company
c/o MIMLIC Asset Management Company
400 Robert Street North
St. Paul, MN 55101
Attn: Client Administrator

(1)   All notices of scheduled payments and written confirmations of such wire
      transfer, financial reports, compliance certificates, notices and all
      written communications should be sent to the address above.

(2)   All payments by wire transfer of
      immediately available funds to:

      Mercantile National Bank of Indiana
      Hammond, IN
      ABA #071-912-813

      For credit to:  Guarantee Reserve Life Insurance Company
                      Attn: Trust Department, Geneva DeVine
                      Account Number: 287000

      with sufficient information
      to identify the source and
      application of such funds.

(3)   Securities to be delivered to:

      Mercantile National Bank of Indiana
      Ref: Guarantee Reserve Life Insurance Company
      5243 Hohman Avenue
      Hammond, IN 46320

                                       21
                                   Schedule A

<PAGE>

                                                                      SCHEDULE B

                                  DEFINED TERMS

              As used herein, the following terms have the respective meanings
set forth below or set forth in the Section hereof following such term:

              "Affiliate" means, at any time, and with respect to any Person,
(a) any other Person that at such time directly or indirectly through one or
more intermediaries Controls, or is Controlled by, or is under common Control
with, such first Person, (b) any Person beneficially owning or holding, directly
or indirectly, 7% or more of any class of voting or equity interests of the
Company or any Subsidiary or any corporation of which the Company and its
Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly,
7% or more of any class of voting or equity interests; and (c) any Manager or
officer of the Company. As used in this definition, "Control" means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise. Unless the context
otherwise clearly requires, any reference to an "Affiliate" is a reference to an
Affiliate of the Company.

              "Business Day" means (a) for the purposes of Section 8.6 only, any
day other than a Saturday, a Sunday or a day on which commercial banks in New
York City are required or authorized to be closed, and (h) for the purposes of
any other provision of this Agreement, any day other than a Saturday, a Sunday
or a day on which commercial banks in Chicago, Illinois or Minneapolis,
Minnesota are required or authorized to be closed.

              "Capital Lease" means, at any time, a lease with respect to which
the lessee is required concurrently to recognize the acquisition of an asset and
the incurrence of a liability in accordance with GAAP.

              "Closing" is defined in Section 3.

              "Code" means the Internal Revenue Code of 1986, as amended from
time to time, and the rules and regulations promulgated thereunder from time to
time.

              "Company" means Hewitt Associates LLC, a limited liability company
organized under the laws of Illinois.

              "Confidential Information" is defined in Section 20.

              "Consolidated Funded Indebtedness" means Funded Indebtedness of
the Company and its Restricted Subsidiaries determined on a consolidated basis
in accordance with GAAP.

              "Consolidated Net Capital" shall mean the consolidated members'
capital of the Company, as determined in accordance with GAAP, less Restricted
Investments in excess of 20% of consolidated members' capital of the Company.

              "Consolidated Net Income" shall mean consolidated net income and
net losses of the Company and its Restricted Subsidiaries, as determined in
accordance with GAAP, after excluding the sum of (i) any net loss or any
undistributed net income of any Person in which the

                                   Schedule B

<PAGE>

Company has an ownership interest other than a Restricted Subsidiary; (ii) any
net loss or any undistributed net income of any Restricted Subsidiary prior to
the date it became a Restricted Subsidiary; (iii) any gain or net loss (net of
any tax effect) resulting from the sale of any capital assets other than in the
ordinary course of business; (iv) extraordinary, unusual, or nonrecurring gains
or losses; (v) gains resulting from the write-up of assets; (vi) any earnings of
any Restricted Subsidiary unavailable for payment to the Company or another
Restricted Subsidiary; (vii) proceeds of any insurance policy; and (viii)
reversal of any contingency reserves not created during the period.

              "Consolidated Total Assets" means the total assets of the Company
and its Restricted Subsidiaries, determined on a consolidated basis in
accordance with GAAP.

              "Current Indebtedness" shall mean, Indebtedness other than Funded
Indebtedness.

              "Default" means an event or condition the occurrence or
existence of which would, with the lapse of time or the giving of notice or
both, become an Event of Default.

              "Default Rate" means that rate of interest that is the greater of
(i) 2% per annum above the rate of interest stated in clause (a) of the first
paragraph of the Notes or (u) 2% over the rate of interest publicly announced by
Harris Trust and Savings Bank in Chicago, Illinois as its "base" or "prime"
rate.

              "Disposition" is defined in Section 10.8.

              "Environmental Laws" means any and all Federal, state, local, and
foreign statutes, laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, concessions, grants, franchises, licenses, agreements or
governmental restrictions relating to pollution and the protection of the
environment or the release of any materials into the environment, including but
not limited to those related to hazardous substances or wastes, air emissions
and discharges to waste or public systems.

              "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended from time to time, and the rules and regulations promulgated
thereunder from time to time in effect.

              "ERISA Affiliate" means any trade or business (whether or not
incorporated) that is treated as a single employer together with the Company
under section 414 of the Code.

              "Event of Default" is defined in Section 11.

              "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

              "Foreign Pension Plan" means any plan, fund or other similar
program

              (a)  established or maintained outside of the United States of
America by the Company or any Subsidiary primarily for the benefit of the
employees (substantially all of whom are not citizens of, and not residing in,
the United States of America) of the Company or any Subsidiary, which plan, fund
or other similar program provides for retirement income for such

                                        2
                                   Schedule B

<PAGE>

employees or results in a deferral of income for such employees in contemplation
of retirement, and

              (b)  not otherwise subject to ERISA.

              "Foreign Restricted Subsidiary" means any Restricted Subsidiary of
the Company organized under the laws of a country other than the United States.

              "Funded Indebtedness" means all Indebtedness which would, in
accordance with GAAP, constitute long-term Indebtedness, including, but not
limited to, (a) any Indebtedness for borrowed money with a maturity more than
one year after the applicable date of determination, (b) any portion thereof
which is renewable at the option of the obligor for a period of more than one
year, (c) any Indebtedness outstanding under a revolving credit or similar
agreement providing for borrowings (and renewals and extensions thereof) over a
period of more than one year (including, without limitation, an option of such
obligor obligating the lender or lenders to extend credit over a period of one
year or more), (d) any Capitalized Lease obligation maturing more than one year
after the date as of which the computation was made and (e) any Guarantee with
respect to Funded Indebtedness of another Person.

              "GAAP" means generally accepted accounting principles as in effect
from time to time in the United States of America.

              "Governmental Authority" means

              (a)  the government of

                   (i)  the United States of America or any State or other
              political subdivision thereof, or

                   (ii) any jurisdiction in which the Company or any Subsidiary
              conducts all or any part of its business, or which asserts
              jurisdiction over any properties of the Company or any Subsidiary,
              or

              (b)  any entity exercising executive, legislative, judicial,
regulatory or administrative functions of, or pertaining to, any such
government.

              "Guaranty" means, with respect to any Person, any obligation
(except the endorsement in the ordinary course of business of negotiable
instruments for deposit or collection) of such Person guaranteeing or in effect
guaranteeing any indebtedness, dividend or other obligation of any other Person
in any manner, whether directly or indirectly, including (without limitation)
obligations incurred through an agreement, contingent or otherwise, by such
Person:

              (a)  to purchase such indebtedness or obligation or any property
constituting security therefor;

              (b)  to advance or supply funds (i) for the purchase or payment of
such indebtedness or obligation, or (u) to maintain any working capital or other
balance sheet condition or any income statement condition of any other Person or
otherwise to advance or make available funds for the purchase or payment of such
indebtedness or obligation;

                                       3
                                   Schedule B

<PAGE>

              (c)  to lease properties or to purchase properties or services
primarily for the purpose of assuring the owner of such indebtedness or
obligation of the ability of any other Person to make payment of the
indebtedness or obligation; or

              (d)  otherwise to assure the owner of such indebtedness or
obligation against loss in respect thereof.

In any computation of the indebtedness or other liabilities of the obligor under
any Guaranty, the indebtedness or other obligations that are the subject of such
Guaranty shall be assumed to be direct obligations of such obligor.

              "Hazardous Material" means any and all pollutants, toxic or
hazardous wastes or any other substances that might pose a hazard to health or
safety, the removal of which may be required or the generation, manufacture,
refining, production, processing, treatment, storage, handling, transportation,
transfer, use, disposal, release, discharge, spillage, seepage, or filtration of
which is or shall be restricted, prohibited or penalized by any applicable law
(including, without limitation, asbestos, urea formaldehyde foam insulation and
polycholorinated biphenyls).

              "Hewitt Holdings" means Hewitt Holdings LLC, a limited liability
company organized under the laws of Illinois.

              "holder" means, with respect to any Note, the Person in whose name
such Note is registered in the register maintained by the Company pursuant to
Section 13.1.

              "Indebtedness" with respect to any Person means, at any time,
without duplication,

              (a)  its liabilities for borrowed money and its redemption
obligations in respect of mandatorily redeemable Preferred Stock;

              (b)  its liabilities for the deferred purchase price of property
acquired by such Person (excluding accounts payable arising in the ordinary
course of business but including all liabilities created or arising under any
conditional sale or other title retention agreement with respect to any such
property);

              (c)  all liabilities appearing on its balance sheet in accordance
with GAAP in respect of Capital Leases;

              (d)  all liabilities for borrowed money secured by any Lien with
respect to any property owned by such Person (whether or not it has assumed or
otherwise become liable for such liabilities);

              (e)  all its liabilities in respect of letters of credit or
instruments serving a similar function issued or accepted for its account by
banks and other financial institutions (whether or not representing obligations
for borrowed money);

              (f)  Swaps of such Person; and

              (g)  any Guaranty of such Person with respect to liabilities of a
type described in any of clauses (a) through (f) hereof.

                                       4
                                   Schedule B

<PAGE>

Indebtedness of any Person shall include all obligations of such Person of the
character described in clauses (a) through (g) to the extent such Person remains
legally liable in respect thereof notwithstanding that any such obligation is
deemed to be extinguished under GAAP.

              "Institutional Investor" means (a) any original purchaser of a
Note, (h) any holder of a Note holding more than 5% of the aggregate principal
amount of the Notes then outstanding, and (g) any bank, trust company, savings
and loan association or other financial institution, any pension plan, any
investment company, any insurance company, any broker or dealer, or any other
similar financial institution or entity, regardless of legal form.

              "Interests" is defined in Section 10.9.

              "Lien" means, with respect to any Person, any mortgage, lien,
pledge, charge, security interest or other encumbrance, or any interest or title
of any vendor, lessor, lender or other secured party to or of such Person under
any conditional sale or other title retention agreement or Capital Lease, upon
or with respect to any property or asset of such Person (including in the case
of stock, stockholder agreements, voting trust agreements and all similar
arrangements).

              "Make-Whole Amount" is defined in Section 8.6.

              "Manager" shall mean "Manager" as such term is defined in the
Operating Agreement.

              "Material" means material in relation to the business, operations,
affairs, financial condition, assets, properties, or prospects of the Company
and its Subsidiaries taken as a whole.

              "Material Adverse Effect" means a material adverse effect on (g)
the business, operations, affairs, financial condition, assets or properties of
the Company and its Subsidiaries taken as a whole, or (]Z) the ability of the
Company to perform its obligations under this Agreement and the Notes, or (.Q)
the validity or enforceability of this Agreement or the Notes.

              "Memorandum" is defined in Section 5.3.

              "Multiemployer Plan" means any Plan that is a "multiemployer plan"
(as such term is defined in section 4001(a)(3) of ERISA).

              "Notes" is defined in Section 1.

              "Officer's Certificate" means a certificate of a Senior Financial
Officer or of any other officer of the Company whose responsibilities extend to
the subject matter of such certificate.

              "Operating Agreement" means the Operating Agreement of the Company
as amended from time to time.

              "PBGC" means the Pension Benefit Guaranty Corporation referred to
and defined in ERISA or any successor thereto.

                                       5
                                   Schedule B

<PAGE>

              "Person" means an individual, partnership, corporation, limited
liability company, association, trust, unincorporated organization, or a
government or agency or political subdivision thereof.

              "Plan" means an "employee benefit plan" (as defined in section
3(3) of ERISA) that is or, within the preceding five years, has been established
or maintained, or to which contributions are or, within the preceding five
years, have been made or required to be made, by the Company or any ERISA
Affiliate or with respect to which the Company or any ERISA Affiliate may have
any liability.

              "Preferred Stock" means any class of capital stock of a
corporation that is preferred over any other class of capital stock of such
corporation as to the payment of dividends or the payment of any amount upon
liquidation or dissolution of such corporation.

              "property" or "properties" means, unless otherwise specifically
limited, real or personal property of any kind, tangible or intangible, choate
or inchoate.

              "QPAM Exemption" means Prohibited Transaction Class Exemption
84-14 issued by the United States Department of Labor.

              "Required Holders" means, at any time, the holders of at least 51%
in principal amount of the Notes at the time outstanding (exclusive of Notes
then owned by the Company or any of its Affiliates).

              "Responsible Officer" means any Manager, Senior Financial Officer
or any other officer of the Company with responsibility for the administration
of the relevant portion of this agreement.

              "Restricted Investments" means any investment in securities or
extensions of credits by the Company and its Restricted Subsidiaries other than:

                  (i)   existing investments owned by the Company or any
              Restricted Subsidiary and listed on Schedule C hereto;

                  (ii)  direct obligations of the U.S. Government or any agency
              or instrumentality thereof or obligations guaranteed by the full
              faith and credit of the United States of America maturing no later
              than three years from the date of acquisition;

                  (iii) certificates of deposit and banker's acceptances issued
              by commercial banks or trust companies organized under the laws of
              the United States or any State thereof, each having capital,
              surplus and undivided profits aggregating $100,000,000 and ratings
              of its long-term unsecured debt obligations by Standard & Poor's
              Corp. or Moody's Investors Service of at least "AA" or "Aa2,"
              respectively;

                  (iv)  commercial paper of a U.S. domestic issuer rated no
              lower than "A-2" by Standard & Poor's Corp. or "P-2" by Moody's
              Investors Service and maturing not more than 270 days after the
              date of acquisition;

                                       6
                                   Schedule B

<PAGE>

                   (v)    investment obligations in direct obligations of any
              state or municipality within the United States maturing no later
              than three years from the date of acquisition and rated at least
              "AA" by Standard & Poor's Corp. or "Aa2" by Moody's Investors
              Service;

                   (vi)   investments in or loans to Restricted Subsidiaries or
              companies that will immediately, as a result of such investment,
              become Restricted Subsidiaries;

                   (vii)  investments in money market investment programs rated
              at least "AA" by Standard & Poor's Corp. and "AA" by Moody's
              Investors Service, the investment of which is classified as a
              current asset in accordance with GAAP; and

                   (viii) property to be used in the ordinary course of
              business.

As of the date of any determination, each Restricted Investment shall be valued
at the greater of (a) cost or (b) the value of such Restricted Investments as
shown on the books of the Company and as determined in accordance with GAAP (or
zero if such Restricted Investment is not shown on such books).

              "Restricted Subsidiary" means any Subsidiary (i) of which at least
80% of the voting securities are owned by the Company and/or one or more
Wholly-Owned Restricted Subsidiaries, (ii) which is organized under the laws of
the United States or any state thereof, Canada, Europe, Mexico, Asia, Japan or
Australia, (iii) which maintains substantially all of its assets and conducts
substantially all of its business within the United States, Canada, Europe,
Mexico, Asia, Japan or Australia and (iv) which the Company has designated a
Restricted Subsidiary by notice in writing given to the holders of the Notes.

              "Sale and Lease-Back Transaction" means any arrangement, directly
or indirectly, with any Person whereby a seller or a transferor shall sell or
otherwise transfer any real or personal property and then or thereafter lease
(whether or not a Capital Lease), or repurchase under an extended purchase
contract, the same or similar property from the purchaser or the transferee of
such property.

              "Securities Act" means the Securities Act of 1933, as amended from
time to time.

              "Senior Financial Officer" means the chief financial officer,
chief administrative officer, principal accounting officer, treasurer or
comptroller of the Company.

              "Subordinated Indebtedness" means any Indebtedness which, in any
manner, is subordinated in right of payment to the Indebtedness evidenced by the
Notes.

              "Subsidiary" means, as to any Person, any corporation, association
or other business entity in which such Person or one or more of its Subsidiaries
or such Person and one or more of its Subsidiaries owns sufficient equity or
voting interests to enable it or them (as a group) ordinarily, in the absence of
contingencies, to elect a majority of the directors (or Persons performing
similar functions) of such entity, and any partnership or joint venture if more
than a 50% interest in the profits or capital thereof is owned by such Person or
one or more of its

                                       7
                                   Schedule B

<PAGE>

Subsidiaries or such Person and one or more of its Subsidiaries (unless such
partnership can and does ordinarily take major business actions without the
prior approval of such Person or one or more of its Subsidiaries). Unless the
context otherwise clearly requires, any reference to a "Subsidiary" is a
reference to a Subsidiary of the Company.

              "Swaps" means, with respect to any Person, payment obligations
with respect to interest rate swaps, currency swaps and similar obligations
obligating such Person to make payments, whether periodically or upon the
happening of a contingency. For the purposes of this Agreement, the amount of
the obligation under any Swap shall be the amount determined in respect thereof
as of the end of the then most recently ended fiscal quarter of such Person,
based on the assumption that such Swap had terminated at the end of such fiscal
quarter, and in making such determination, if any agreement relating to such
Swap provides for the netting of amounts payable by and to such Person
thereunder or if any such agreement provides for the simultaneous payment of
amounts by and to such Person, then in each such case, the amount of such
obligation shall be the net amount so determined.

              "Taxes" shall mean all Federal, state, local or other taxing
authority, income, franchise, sales use ad valorem. property, payroll, social
security, unemployment assets, value added, withholding, excise, severance,
transfer, employment alternative or add-on minimum taxes and other taxes,
charges, fees, levies, imposts, duties, licenses and other assessments together
with any interest and any penalties, additions to tax or additional amounts
imposed by any taxing authority.

              "Tax Return" shall mean any return, declaration, report, claim for
refund or information return (including but not limited to partnership returns)
relating to Taxes, including but not limited to any schedule or attachment
thereto.

              "Total Capitalization" shall mean the sum of (i) Consolidated
Funded Indebtedness and (ii) Consolidated Net Capital and (iii) solely for the
purpose of calculating the limitation on Current Indebtedness, Current
Indebtedness of the Company and its Restricted Subsidiaries (determined on a
consolidated basis in accordance with GAAP).

              "Unrestricted Subsidiary" shall mean any Subsidiary not designated
a Restricted Subsidiary.

              "Wholly-Owned Restricted Subsidiary" means, at any time, any
Restricted Subsidiary one hundred percent (100%) of all of the equity interests
(except (i) directors' qualifying shares, (ii) shares not in excess of 5% of the
outstanding shares of any Foreign Restricted Subsidiary issued to a Person
employed by such Foreign Restricted Subsidiary and (iii) shares not in excess of
1% (3.5% in the case of the Company's German Foreign Restricted Subsidiary) of
the outstanding shares of a Foreign Restricted Subsidiary issued to Hewitt
Holdings) and voting interests of which are owned by any one or more of the
Company and the Company's other Wholly-Owned Restricted Subsidiaries at such
time.

                                       8
                                   Schedule B

<PAGE>

                             NOTE PURCHASE AGREEMENT

                              HEWITT ASSOCIATES LLC
                          $50,000,000 Principal Amount
                               7.45% Senior Notes
                                Due May 30, 2008

                                   SCHEDULE C
                              Existing Investments

                NONE, other than investments in Subsidiaries and
                      Affiliates set forth in Schedule 5.4

<PAGE>

                             NOTE PURCHASE AGREEMENT

                              HEWITT ASSOCIATES LLC
                          $50,000,000 Principal Amount
                               7.45% Senior Notes
                                Due May 30, 2008

                                  SCHEDULE 4.9

            Any Changes to Jurisdiction of Formation/Been a Party to
               a Merger or Consolidation Since September 30, 1995

                                    - NONE -

<PAGE>

                             NOTE PURCHASE AGREEMENT

                              HEWITT ASSOCIATES LLC
                          $50,000,000 Principal Amount
                               7.45% Senior Notes
                                Due May 30, 2008

                                  SCHEDULE 5.3

               Any Changes to Company or Subsidiaries Not
               Previously Disclosed Expected to Have a
               Material Adverse Effect

                                    - NONE -

<PAGE>

                             NOTE PURCHASE AGREEMENT

                              HEWITT ASSOCIATES LLC
                          $50,000,000 Principal Amount
                               7.45% Senior Notes
                                Due May 30, 2008

                                  SCHEDULE 5.4

(i)      List of Subsidiaries

         a)    Foreign subsidiaries

<TABLE>
<CAPTION>
Country                 City            Name                               Structure
<S>                     <C>             <C>                                <C>
Australia               Sydney          Hewitt Associates Pty. Ltd.        51% held by Hewitt Associates LLC and 49%
                                                                           held by Jacques Martin International Pty. Ltd.

France**                Paris           Hewitt Associates SARL             Wholly-owned subsidiary of Hewitt Associates
                                                                           LLC* (except for qualifying shares)

Germany**               Wiesbaden       Hewitt Associates GmbH             965% held by Hewitt Associates LLC and 35%
                                                                           held by Hewitt Holdings LLC

Italy**                 Milan           Hewitt Associates Srl              Wholly-owned subsidiary of Hewitt Associates
                                                                           LLC*

Japan**                 Tokyo           Hewitt Associates                  95% held by Hewitt Associates LLC and 5% held
                                                                           by local employees

New Zealand             Wellington      Hewitt Associates Limited          52% held by Hewitt Associates LLC and 48%
                                                                           held by Grant O'Connell

Singapore**             Singapore       Hewitt Associates Pte. Ltd.        Wholly-owned subsidiary of Hewitt Associates
                                                                           LLC*

Spain**                 Madrid          Hewitt Associates, S.A.            Wholly-owned subsidiary of Hewitt Associates
                                                                           LLC*

United Kingdom**        St. Albans      Hewitt Associates Limited          Wholly-owned subsidiary of Hewitt Associates
                                                                           LLC*
</TABLE>

         b)    Other

               Annod Corp.**, a Delaware corporation (wholly-owned subsidiary of
               Hewitt Associates LLC)

(ii)           List of Affiliates

         a)    Foreign affiliates

<TABLE>
<S>                     <C>             <C>                                <C>
Argentina               Buenos Aires    Hewitt Associates, S.A.            40% held by Hewitt Associates LLC and 60% by
                                                                           Alberto Fastman

Belgium                 Brussels        CBC Hewitt S.A.                    40% held by Hewitt Associates LLC and 60% by
                                                                           CBC partners

Brazil                  Sao Paulo       Hewitt Associates S.C. Limitada    40% held by Hewitt Associates LLC and 60% by
                                                                           Andrea Huggard-Caine
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
Country                 City            Name                               Structure
<S>                     <C>             <C>                                <C>
Chile                   Santiago        Hewitt Associates (Chile)          40% held by Hewitt Associates LLC and 60%
                                                                           held by Patricia Walbaum

India                   New Delhi       Noble & Hewitt (India)             333% held by Hewitt Associates LLC and 66.6%
                                        Pvt. Ltd.                          held by Noble House principals
                        Bangalore

                        Bombay

Mexico                  Mexico City     Intergamma De Mexico S.            25% held by Hewitt Associates LLC and 75%
                                          de R.L. de C.V.                  held by the other 12 partners of Intergamma

Netherlands             Amsterdam       Hewitt & Koelman                   50/50 joint venture between Hewitt Associates
                        Eindhoven         International, BV. (HM)          LLC and Heijnis & Koelman BV. The Dutch
                        Rotterdam                                          partner holds one preference share.
                        Utrecht

Puerto Rico             San Juan        Hewitt Associates Caribe,          40% held by Hewitt Associates LLC and 60%
                                          Inc.                             held by Hewitt Associates Caribe, Inc.
                                                                           principals

Switzerland             Neuchatel       PRASA Hewitt International         Registered name PRASA HEWITT A.G.
                        Geneva            A.G. (PHI)                       55.5% held by PRASA (Pierre Rieben Actuary,
                        Zurich                                             S.A.)and 44.5% by Hewitt Associates LLC

Thailand                Bangkok         Hewitt Associates                  51% held by CSN & Associates Co., Ltd. and
                                          (Thailand) Limited               49% held by Hewitt Associates LLC
</TABLE>

         b)     Other affiliates

                The Bayview Trust, an Illinois trust (100% of the beneficial
                   interest held by Hewitt Holdings LLC);

                Overlook Associates, an Illinois partnership (51% held by Hewitt
                   Holdings LLC and 49% held by Tower Parkway Associates);

                Hewitt Services LLC, an Illinois limited liability company (99%
                   held by Hewitt Holdings LLC and 1% held by Hewitt Associates
                   LLC);

                Hewitt Holdings LLC, an Illinois limited liability company
                   (holder of 99% of interest in Hewitt Associates LLC).

(iii)           List of Managers/Senior Officers

                   Gerald I. Wilson        Chairman of Executive Committee of
                                              Hewitt Holdings /National Practice
                                              Leader of the Actuarial Group
                   Dale L. Gifford         Chief Executive/Manager
                   John M. Ryan            Chief Administrative Officer
                   Donald R. Hessler       Chief Financial Officer
                   Thomas L. Schmitz       Practice Leader for Total Benefit
                                           Administration Services

*Ownership interest in these wholly-owned subsidiaries are held 99% by Hewitt
Associates LLC and 1% by Hewitt Holdings LLC.

**Designates a Restricted Subsidiary.

<PAGE>

                             NOTE PURCHASE AGREEMENT

                              HEWITT ASSOCIATES LLC
                          $50,000,000 Principal Amount
                               7.45% Senior Notes
                                Due May 30, 2008

                                  SCHEDULE 5.5

                   Financial Statements Provided to Purchasers

-   Audited consolidated balance sheets of Hewitt Associates, an Illinois
    partnership and subsidiaries as of September 30, 1992 and 1991, and the
    related consolidated statements of income and cash flows for the years
    then ended.

-   Audited consolidated balance sheets of Hewitt Associates LLC, an Illinois
    partnership and subsidiaries as of September 30, 1994 and 1993, and the
    related consolidated statements of income and cash flows for the years
    then ended.

-   Audited consolidated balance sheets of Hewitt Associates LLC, an Illinois
    partnership and subsidiaries as of September 30, 1995, and the related
    consolidated statements of income and cash flows for the years then
    ended.

-   Hewitt Associates LLC Statement of Operations for periods ending December
    31, 1994, December 31, 1995, and March 31, 1996.

-   Hewitt Associates LLC Statement of Financial Condition for the periods
    ending December 31, 1994, December 31, 1995, and March 31, 1996
    (unaudited).

<PAGE>

                             NOTE PURCHASE AGREEMENT

                              HEWITT ASSOCIATES LLC
                          $50,000,000 Principal Amount
                               7.45% Senior Notes
                                Due May 30, 2008

                                  SCHEDULE 5.8

                   Pending or Threatened Litigation Expected To have
                   a Material Adverse Effect

                                    - NONE -

<PAGE>

                             NOTE PURCHASE AGREEMENT

                              HEWITT ASSOCIATES LLC
                          $50,000,000 Principal Amount
                               7.45% Senior Notes
                                Due May 30, 2008

                                  SCHEDULE 5.11

                     Impaired Licenses, Patents, Trademarks or
                     Copyrights

                                    - NONE -

<PAGE>

                             NOTE PURCHASE AGREEMENT

                              HEWITT ASSOCIATES LLC
                          $50,000,000 Principal Amount
                               7.45% Senior Notes
                                Due May 30, 2008

                                  SCHEDULE 5.14

                            Intended Use of Proceeds

                      Repayment of Existing Indebtedness and/or General
                      Business Purposes

<PAGE>

                             NOTE PURCHASE AGREEMENT

                              HEWITT ASSOCIATES LLC
                          $50,000,000 Principal Amount
                               7.45% Senior Notes
                                Due May 30, 2008

                                  SCHEDULE 5.15

                Outstanding Loans of the Company and Subsidiaries
                            (See attached Exhibit 1)

<PAGE>

                    Exhibit 1 to Schedule 5.15 (Page 1 of 3)

                             HEWITT ASSOCIATES LLC
                               SCHEDULE OF LOANS

<TABLE>
<CAPTION>
                                                   LOAN                                  ORIGINAL                BALANCE
                                                   ----------                            BALANCE OR              AS OF
LENDOR                                             DATE             TYPE                 AVAILABLE               MAY 28,1996
--------------------------------------------------------------------------------------------------------------- ------------
<S>                                                <C>              <C>                  <C>             <C>
HARRIS BANK/BANK OF AMERICA/FIRST CHICAGO             05/28/96      REVOLVING                70,000,000         47,000,000

FOREIGN (SEE ATTACHED SCHEDULE)                        VARIOUS      UNSECURED                   770,000            211,164 (1)

NBD MULTICURRENCY FACILITY (SEE ATTACHED)             07/15/91      MULTI-CUR                10,000,000          1,300,542 (1)

BANK OF AMERICA (CONTINENTAL - SEE ATTACHED)          09/30/92      MULTI-CUR                10,000,000          2,413,690 (1)
                                                                                                         -----------------
TOTAL REVOLVING CREDIT LOANS                                                                                      50.92596
                                                                                                         =================
HARRIS BANK/BANK OF AMERICA/FIRST CHICAGO             05/28/96      TERM                     30,000,000         30,000,000

NBD BANK                                              01/09/91      TERM                      5,000,000          1,190,476
                                                                                                         -----------------
TOT UNSECURED BANK TERM LOANS                                                                                   31,190,476
                                                                                                         =================

Hewlett Packard                                       02/22/93      CAP LEASE                 1,177,244            398,386
HITACHI CR AMERICA I                                  11/23/93      CAP LEASE                 7,205,625          1,284,875
HITACHI CR AMERICA 2                                  08/19/94      CAP LEASE                 1,770,486            787,834
HITACHI CR AMERICA 3                                  10/19/94      CAP LEASE                 3,191,825          1,602,491
HITACHI CR AMERICA 4                                  02/21/95      CAP LEASE                 1,989,850          1,112,357
IBM Credit Corp #1                                    04/04/95      CAP LEASE                   545,359            400,537
GE Capital 1                                          05/05/95      CAP LEASE                 2,656,250          1,794,744
GE Capital 2 (Norlease)                               06/30/95      CAP LEASE                 1,448,598            927,520
IBM Credit Corp #2                                    09/18/95      CAP LEASE                 2,262,033          1,775,120
BM Credit Corp #3                                     09/13/95      CAP LEASE                   277,550            217,411
FOREIGN CAP LEASES                                                  CAP LEASE                                       12,180
GE Capital #3                                         11/02/95      CAP LEASE                 1,254,313          1,037,465
IBM Credit Corporation #4                             10/23/95      CAP LEASE                   108,885             88,017
GE Capital #4 (Norlease)                              02/16/96      CAP LEASE                   546,221            504,514
BM Credit Corp #5                                     04/11/96      CAP LEASE                   362,950            362,950

                                                                                                         -----------------
TOTAL CAPITAL LEASES                                                                                            12,306,401
                                                                                                         =================

                                                                                                         ------------------
TOTAL LOANS                                                                                                     94,422.273
                                                                                                         ==================
Note (1): Foreign amount are as of April 30 ,1996
</TABLE>

<PAGE>

                    Exhibit 1 to Schedule 5.15 (page 2 of 3)

               FIRST CHICAGO / NBD MULTI-CURRENCY CREDIT FACILITY
                     AS OF VALUE DATE:          APR 30 '96

<TABLE>
<CAPTION>
                            LOCAL     AMOUNT OF       DUE       INTEREST    EXCHANGE     US DOLLAR EQUIVALENT
BORROWER / OFFICE         CURRENCY    BORROWING       DATE        RATE        RATE         AS OF VALUE DATE
-----------------         --------    ---------       ----        ----        ----         ----------------
<S>                       <C>         <C>           <C>         <C>         <C>          <C>
  UNITED KINGDOM            GBP          200,000     6/11/96    7.1825%        1.5083             $   301,660

      FRANCE                FFR        1,000,000     8/28/96    6.7500%        0.1933                 193,300

     GERMANY                DEM          350,000    10/18/96    5.1000%        0.6532                 228,620

    SINGAPORE             SD *           810,909     9/14/96    3.7500%        0.7115                 576,962
                                                                                         --------------------
                                                                                                  $ 1,300,542

      SPAIN               PES **      26,869,089      OPEN      0.7500%      0.007859             $   211,164

      ITALY               ITL ***              0      OPEN      0.7500%     0.0006403             $         0
                                                                                         --------------------

                                                                                                  $211,164.17

                                                                                         --------------------
                                                          TOTAL EXPOSURE                          $ 1.511 706
                                                                                         ====================
</TABLE>

*     LOAN FUNDED BY REPUBLIC BANK OF SINGAPORE. NBD HAS ISSUED A STANDBY LETTER
      OF CREDIT FOR THE REPUBLIC BANK BORROWINGS. TO GUARANTEE THE LOG, $700,000
      OF THE MULTI-CURRENCY FACILITY WAS "SET ASIDE".

**    SPAIN HAS NOT ACTUALLY BORROWED ANY MONEY UNDER THE FACILITY. A PORTION OF
      THE FACILITY WAS SET ASIDE TO GUARANTEE A LOAN THAT SPAIN HAS WITH A LOCAL
      INSTITUTION. THE TOTAL "SET ASIDE" IS $750,000 OR 70,000,000 PESETAS.
      HEWITT ASSOCIATES IS CHARGED 3/4% ON THE BANK'S MAXIMUM EXPOSURE UNDER THE
      GUARANTEE. THE AMOUNT ACTUALLY DRAWN UNDER THE LOCAL FACILITY IS
      ESP26,869,089 OR $211,164.

***   ITALY HAS NOT ACTUALLY BORROWED ANY MONEY UNDER THE FACILITY. A PORTION OF
      THE FACILITY WAS SET ASIDE TO CURRANT A LOAN THAT ITALY HAS WITH A LOCAL
      INSTITUTION. THE TOTAL SET ASIDE IS $20,000 OR 30,000,000 LIRE. HEWITT
      ASSOCIATES IS CHARGED 3/4% ON THE HANKS MAXIMUM EXPOSURE UNDER THE
      GUARANTEE. CURRENTLY THERE IS NOTHING OUTSTANDING UNDER THE LOCAL
      FACILITY.

<PAGE>

                    Exhibit 1 to Schedule 5.15 (page 3 of 3)

                 BANK OF AMERICA MULTI-CURRENCY CREDIT FACILITY
                      AS OF VALUE DATE:        APR 30 '96
<TABLE>
<CAPTION>
                            LOCAL     AMOUNT OF        DUE      INTEREST    EXCHANGE     US DOLLAR EQUIVALENT
BORROWER / OFFICE         CURRENCY    BORROWING        DATE       RATE        RATE         AS OF VALUE DATE
-----------------         --------    ---------        ----       ----        ----         ----------------
<S>                       <C>         <C>           <C>         <C>         <C>          <C>
  UNITED KINGDOM            GBP        1,600,272    10/25/96     7.0000%       1.5083             $ 2,413,690
                                                                                         ====================
</TABLE>

<PAGE>

                             NOTE PURCHASE AGREEMENT

                              HEWITT ASSOCIATES LLC
                          $50,000,000 Principal Amount
                               7.45% Senior Notes
                                Due May 30, 2008

                                  SCHEDULE 10.7

                  Outstanding Liens not Otherwise Allowed under
                  Section 10.7 of the Note Purchase Agreement

                                    - NONE -

<PAGE>

                                                                       EXHIBIT 1

                                 [FORM OF NOTE]

                              HEWITT ASSOCIATES LLC

                       7.45% SENIOR NOTE DUE MAY 30, 2008

No. [____]                                                                [Date]
$[______]                                                      PPN[____________]

     FOR VALUE RECEIVED, the undersigned, HEWITT ASSOCIATES LLC (herein called
the "Company"), a limited liability company organized and existing under the
laws of the State of Illinois, hereby promises to pay to ___________________, or
registered assigns, the principal sum of DOLLARS ($ ) on May 30, 2008, with
interest (computed on the basis of a 360-day year of twelve 30-day months) (a)
on the unpaid balance thereof at the rate of 7.45% per annum from the date
hereof, payable semiannually, on the 30th day of May and November in each year,
commencing November 30, 1996, until the principal hereof shall have become due
and payable, and (12) to the extent permitted by law on any overdue payment
(including any overdue prepayment) of principal, any overdue payment of interest
and any overdue payment of any Make-Whole Amount (as defined in the Note
Purchase Agreements referred to below), payable semiannually as aforesaid (or,
at the option of the registered holder hereof, on demand), at a rate per annum
from time to time equal to the greater of (i) 9.45% or (u) 2% over the rate of
interest publicly announced by Harris Trust and Savings Bank from time to time
in Chicago, Illinois as its "base" or "prime" rate.

     Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America in the manner and at such places as provided in the Note Purchase
Agreement referred to below.

     This Note is one of a series of Senior Notes (herein called the "Notes")
issued pursuant to the Note Purchase Agreement, dated as of May 1, 1996 (as from
time to time amended, the "Note Purchase Agreement"), between the Company and
the respective Purchasers named therein and is entitled to the benefits thereof.
Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
agreed to the confidentiality provisions set forth in Section 20 of the Note
Purchase Agreement and (1i) to have made the representation set forth in Section
6.1 of the Note Purchase Agreement.

     This Note is a registered Note and, as provided in the Note Purchase
Agreement, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder's attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

                                       1
                                   Exhibit 1

<PAGE>

     The Company will make required prepayments of principal on the dates and in
the amounts specified in the Note Purchase Agreement. This Note is also subject
to optional prepayment, in whole or from time to time in part, at the times and
on the terms specified in the Note Purchase Agreement, but not otherwise.

     If an Event of Default, as defined in the Note Purchase Agreement, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due end payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.

     This Note shall be construed and enforced in accordance with and the rights
of the parties shall be governed by the laws of the State of Illinois excluding
choice-of-law principles of the law of such State that would require the
application of the laws of a jurisdiction other than such State.

                                  HEWITT ASSOCIATES LLC

                                  By ______________________________
                                  Title:

                                       2
                                   Exhibit 1

<PAGE>

                                                                     Exhibit 4.4

                                 LEGAL OPINIONS

     A. The opinion of Gardner, Carton & Douglas, special counsel for the
Purchasers, shall be to the effect that:

     1. The Company is a limited liability company organized and validly
existing in good standing under the laws of the State of Illinois, with all
requisite limited liability company power and authority referred to in the
Agreement, to enter into and perform the Agreement and to issue and sell the
Notes.

     2. The Agreement has been duly authorized by proper action on the part of
the Company, has been duly executed and delivered by an authorized officer of
the Company and constitutes the legal, valid and binding agreement of the
Company, enforceable in accordance with its terms, except to the extent that
enforcement of the Agreement may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws of general application
relating to or affecting the enforcement of the rights of creditors or by
equitable principles, regardless of whether enforcement is sought in a
proceeding in equity or at law.

     3. The Notes have been duly authorized by proper corporate action on the
part of the Company, have been duly executed and delivered by an authorized
officer of the Company and constitute the legal, valid and binding obligations
of the Company, enforceable in accordance with their terms, except to the extent
that enforcement of the Notes may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws of general application
relating to or affecting the enforcement of the rights of creditors or by
equitable principles, regardless of whether enforcement is sought in a
proceeding in equity or at law.

     4. Based upon the representations set forth in the Agreement, the offering,
sale and delivery of the Notes do not require the registration of the Notes
under the Securities Act of 1933, as amended, nor the qualification of an
indenture under the Trust Indenture Act of 1939, as amended.

     5. The issuance and sale of the Notes and compliance with the terms and
provisions of the Notes and the Agreement will not conflict with or result in
any breach of any of the provisions of the Certificate of Incorporation or
By-Laws of the Company.

The opinion of Gardner, Carton & Douglas also shall state that the opinion of C.
Lawrence Connolly III, Esq., counsel for the Company, delivered to you pursuant
to the Agreement, is satisfactory in form and scope to Gardner, Carton &
Douglas, and, in their opinion, the Purchasers and it are justified in relying
thereon and shall cover such other matters relating to the sale of the Notes as
the Purchasers may reasonably request.

     B. The opinion of C. Lawrence Connolly III, Esq., counsel for the Company,
shall cover all matters specified in clauses 1 through 6 set forth above and
also shall be to the effect that:

     1. The Company has full power and authority to conduct the activities in
which it is now engaged and own its property.

                                   Exhibit 1

<PAGE>

     2. Each Subsidiary of the Company is a corporation duly organized and
validly existing in good standing under the laws of its jurisdiction of
incorporation, and each has all requisite corporate power and authority to carry
on its business as now conducted and own its property.

     3. Each of the Company and its Subsidiaries is duly qualified or licensed
and in good standing as a foreign limited liability company or corporation
authorized to do business in each jurisdiction where the nature of the business
transacted by it or the character of its properties owned or leased makes such
qualification or licensing necessary except where failure to so qualify would
not, individually or in the aggregate, have a material adverse affect on its
business, properties, or condition, financial or otherwise.

     4. No authorization, approval or consent of any governmental or regulatory
body is necessary or required in connection with the lawful execution and
delivery by the Company of the Agreement or the lawful offering, issuance and
sale of the Notes, and no designation, filing, declaration, registration and/or
qualification with any governmental authority is required by the Company in
connection with such offer, issuance and sale.

     5. The issuance and sale of the Notes and the execution, delivery and
performance by the Company of the Agreement will not conflict with, or result in
any breach or violation of any of the provisions of, or constitute a default
under, or result in the creation of any Lien on the property of the Company or
any Subsidiary pursuant to, (i) the provisions of the Operating Agreement,
Articles of Organization or other organic or charter document of the Company or
any Subsidiary or By-laws of any Subsidiary or any loan agreement under which
the Company or any Subsidiary is bound, or other agreement or instrument to
which the Company or any Subsidiary is a party or by which any of them or their
property is bound or (ii) any law (including usury laws) or regulation, order,
writ, injunction or decree of any court or governmental authority applicable to
the Company.

     6. There are no actions, suits or proceedings pending or, to the best of
such counsel's knowledge after due inquiry, threatened against, or affecting the
Company or its Subsidiaries, at law or in equity or before or by any Federal,
state, municipal or other governmental department, commission, board, bureau,
agency or instrumentality, domestic or foreign, which are likely to result,
either individually or in the aggregate, in any material adverse change in the
business, properties, operations or condition, financial or otherwise, of the
Company and its Subsidiaries taken as a whole.

     7. All of the issued and outstanding shares of capital stock of each
Subsidiary have been duly and validly issued, are fully paid and nonassessable
and, to the knowledge of such counsel, are owned by the Company free and clear
of any Lien.

     8. The issuance of the Notes and the use of the proceeds of the sale of the
Notes do not violate or conflict with Regulation G, T, U or X of the Board of
Governors of the Federal Reserve System (12 C.F.R., Chapter II).

     9. Neither the Company nor any Subsidiary is: (i) a "public utility
company" or a "holding company," or an "affiliate" or a "subsidiary company" of
a "holding company," or an "affiliate" of such a "subsidiary company," as such
terms are defined in the Public Utility Holding Company Act of 1935, as amended,
or (ii) a "public utility" as defined in the Federal

<PAGE>

Power Act, as amended, or (iii) an "investment company" or an "affiliated
person" thereof or an "affiliated person" of any such "affiliated person," as
such terms are defined in the Investment Company Act of 1940, as amended.

The opinion of C. Lawrence Connolly III, Esq. shall cover such other matters
relating to the sale of the Notes as the Purchasers may reasonably request. With
respect to matters of fact on which such opinion is based, such counsel shall be
entitled to rely on appropriate certificates of public officials and officers of
the Company and with respect to matters governed by the laws of any jurisdiction
other than the United States of America and the State of Illinois, such counsel
may rely upon the opinions of counsel deemed (and stated in their opinion to be
deemed) by them to be competent and reliable. The opinion of C. Lawrence
Connolly III, Esq. shall provide that such opinion may be relied upon by the
Purchasers and its counsel and (i) in connection with enforcement of obligations
of the Company under the Notes and the Note Agreement, (ii) in response to a
subpoena or other legal process, (iii) as otherwise required by applicable law
or regulation or (iv) in connection with the sale or transfer of any of the
Notes to a subsequent purchaser or transferee.

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