Document:

<PAGE>

Exhibit 10.18 to 2002 10-K

                                                                  Execution Copy

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

                                  $325,000,000

                                   THREE-YEAR
           COMPETITIVE ADVANCE AND REVOLVING CREDIT FACILITY AGREEMENT

                                   dated as of

                                 August 1, 2002

                                      among

                              CONVERGYS CORPORATION

                            The Lenders Party Hereto,

                              JPMORGAN CHASE BANK,
                            as Administrative Agent,

                               CITICORP USA, INC.,

                         PNC BANK, NATIONAL ASSOCIATION,

                                       and

                                  BANK ONE, NA

                            as Co-Syndication Agents

                                       and

                                  US BANK N.A.,

                                       and

                         THE ROYAL BANK OF SCOTLAND PLC

                           as Co-Documentation Agents

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

<PAGE>

                                                        Table of Contents Page 2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                 Page
                                                                                 ----

                                    ARTICLE I

                                   Definitions
<S>                                                                                <C>
SECTION 1.01.   Defined Terms ................................................      1
SECTION 1.02.   Classification of Loans and Borrowings .......................     13
SECTION 1.03.   Terms Generally ..............................................     13
SECTION 1.04.   Accounting Terms; GAAP .......................................     14

                                   ARTICLE II

                                   The Credits

SECTION 2.01.   Commitments...................................................     14
SECTION 2.02.   Loans and Borrowings..........................................     14
SECTION 2.03.   Requests for Revolving Borrowings ............................     15
SECTION 2.04.   Competitive Bid Procedure ....................................     15
SECTION 2.05.   Increase in Commitments ......................................     17
SECTION 2.06.   Funding of Borrowings ........................................     18
SECTION 2.07.   Interest Elections ...........................................     19
SECTION 2.08.   Termination and Reduction of Commitment ......................     20
SECTION 2.09.   Repayment of Loans; Evidence of Debt .........................     20
SECTION 2.10.   Prepayment of Loans ..........................................     21
SECTION 2.11.   Fees .........................................................     21
SECTION 2.12.   Interest .....................................................     22
SECTION 2.13.   Alternate Rate of Interest ...................................     22
SECTION 2.14.   Increased Costs ..............................................     23
SECTION 2.15.   Break Funding Payments .......................................     24
SECTION 2.16.   Taxes ........................................................     24
SECTION 2.17.   Payments Generally; Pro Rata Treatment; Sharing of Set-offs ..     25
SECTION 2.18.   Mitigation Obligations; Replacement of Lenders ...............     26
</TABLE>

<PAGE>

                                                        Table of Contents Page 3

<TABLE>
                                   ARTICLE III

                         Representations and Warranties
<S>                                                                                <C>
SECTION 3.01.   Organization; Powers .........................................     27
SECTION 3.02.   Authorization; Enforceability ................................     27
SECTION 3.03.   Governmental Approvals; No Conflicts .........................     27
SECTION 3.04.   Financial Condition; No Material Adverse Change ..............     28
SECTION 3.05.   Properties ...................................................     28
SECTION 3.06.   Litigation and Environmental Matters .........................     28
SECTION 3.07.   Compliance with Laws and Agreements ..........................     28
SECTION 3.08.   Investment and Holding Company Status ........................     28
SECTION 3.09.   Taxes ........................................................     29
SECTION 3.10.   ERISA ........................................................     29
SECTION 3.11.   Disclosure ...................................................     29
SECTION 3.12.   Use of Proceeds ..............................................     29
SECTION 3.13.   Subsidiaries .................................................     29

                                   ARTICLE IV

                                   Conditions

SECTION 4.01.   Effective Date ...............................................     29
SECTION 4.02.   Each Credit Event ............................................     31

                                    ARTICLE V

                              Affirmative Covenants

SECTION 5.01.   Financial Statements and Other Information ...................     31
SECTION 5.02.   Notices of Material Events ...................................     32
SECTION 5.03.   Existence; Conduct of Business ...............................     32
SECTION 5.04    Payment of Obligations .......................................     32
SECTION 5.05.   Maintenance of Properties; Insurance .........................     33
SECTION 5.06.   Books and Records; Inspection Rights .........................     33
SECTION 5.07.   Compliance with Laws .........................................     33
SECTION 5.08.   Use of Proceeds ..............................................     33
SECTION 5.09.   Future Guarantors ............................................     33
</TABLE>

<PAGE>

                                                        Table of Contents Page 4

<TABLE>

                                   ARTICLE VI

                               Negative Covenants
<S>                                                                                <C>
SECTION 6.01.   Liens ........................................................     34
SECTION 6.02.   Sale and Lease-Back Transactions .............................     34
SECTION 6.03.   Fundamental Changes ..........................................     35
SECTION 6.04.   Transactions with Affiliates .................................     35
SECTION 6.05.   Restrictive Agreements .......................................     35
SECTION 6.06.   Interest Coverage Ratio ......................................     35
SECTION 6.07.   Consolidated Total Debt to Consolidated Total Capitalization
                   Ratio .....................................................     35
SECTION 6.08.   Hedging Agreements ...........................................     36

                                   ARTICLE VII

                Events of Default ............................................     36

                                  ARTICLE VIII

                The Administrative Agent .....................................     38

                                   ARTICLE IX

                                  Miscellaneous

SECTION 9.01.   Notices ......................................................     40
SECTION 9.02.   Waivers; Amendments ..........................................     40
SECTION 9.03.   Expenses; Indemnity;
                Damage Waiver ................................................     41
SECTION 9.04.   Successors and Assigns .......................................     42
SECTION 9.05.   Survival .....................................................     45
SECTION 9.06.   Counterparts; Integration;
                Effectiveness ................................................     45
SECTION 9.07.   Severability .................................................     45
SECTION 9.08.   Right of Setoff ..............................................     45
SECTION 9.09.   Governing Law; Jurisdiction;
                Consent to Service of Process ................................     45
SECTION 9.10.   WAIVER OF JURY TRIAL .........................................     46
SECTION 9.11.   Headings .....................................................     46
SECTION 9.12.   Confidentiality ..............................................     46
SECTION 9.13.   Interest Rate Limitation .....................................     47
</TABLE>

<PAGE>

                                                        Table of Contents Page 5

SCHEDULES:

Schedule 2.01 -- Commitments
Schedule 3.06 -- Disclosed Matters
Schedule 3.13 -- Subsidiaries
Schedule 6.05 -- Existing Restrictions

EXHIBITS:

Exhibit A -- Form of Assignment and Assumption
Exhibit B -- Form of Opinion of Borrower's Counsel
Exhibit C -- Form of Guarantee Agreement
Exhibit D -- Form of Indemnity, Subrogation and Contribution Agreement

<PAGE>

                    THREE-YEAR COMPETITIVE ADVANCE AND REVOLVING CREDIT FACILITY
               AGREEMENT dated as of August 1, 2002 (this "Agreement"), among
               CONVERGYS CORPORATION, an Ohio corporation; the LENDERS party
               hereto; JPMORGAN CHASE BANK, as Administrative Agent; CITICORP
               USA, INC., PNC BANK, NATIONAL ASSOCIATION, and BANK ONE, NA, as
               Co-Syndication Agents; and US BANK N.A. and THE ROYAL BANK OF
               SCOTLAND PLC, as Co-Documentation Agents.

          The Borrower (such term and each other capitalized term not otherwise
defined in this preamble having the meaning assigned in Article I below),
certain of the Lenders and the Administrative Agent are parties to the
Three-Year Credit Agreement dated as of November 19, 1999, as amended and
restated as of November 3, 2000, and as further amended as of November 16, 2001
(the "Existing Three-Year Credit Agreement"), and the 364-Day Credit Agreement
as amended and restated as of November 16, 2001 (the "Existing 364-Day Credit
Agreement" and, together with the Existing Three-Year Credit Agreement, the
"Existing Credit Agreements"). The Borrower has requested that the Existing
Credit Agreements be replaced with this Three-Year Competitive Advance and
Revolving Credit Facility Agreement. The Borrower has requested the Lenders to
extend credit to enable it to borrow on a revolving credit basis on and after
the date hereof and at any time and from time to time prior to the Maturity Date
a principal amount not in excess of $325,000,000 at any time outstanding. The
Borrower has also requested the Lenders to establish procedures pursuant to
which the Borrower may invite the Lenders to bid on an uncommitted basis on
short-term borrowings by the Borrower maturing on or prior to the Maturity Date.
The proceeds of borrowings hereunder are to be used for general corporate
purposes, including the financing of working capital requirements and the
payment of maturing commercial paper.

          The Lenders are willing to extend such credit to the Borrower on the
terms and subject to the conditions herein set forth.

          Accordingly, the parties hereto agree as follows:

                                    ARTICLE I

                                   Definitions

          SECTION 1.01. Defined Terms. As used in this Agreement, the following
terms have the meanings specified below:

          "ABR", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are bearing interest
at a rate determined by reference to the Alternate Base Rate.

          "Adjusted LIBO Rate" means, with respect to any Eurodollar Borrowing
for any Interest Period, an interest rate per annum (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest
Period multiplied by (b) the Statutory Reserve Rate.

          "Administrative Agent" means JPMorgan Chase Bank, in its capacity as
administrative agent for the Lenders hereunder.

          "Administrative Questionnaire" means an Administrative Questionnaire
in a form supplied by the Administrative Agent.

<PAGE>
                                                                            2

          "Affiliate" means, with respect to a specified Person, another Person
that directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified.

          "Agents" means the Administrative Agent, the Co-Syndication Agents and
the Co-Documentation Agents.

          "Agreement" means this Three-Year Competitive Advance and Revolving
Credit Facility Agreement, as the same may hereafter be modified, supplemented
or amended from time to time.

          "Alternate Base Rate" means, for any day, a rate per annum equal to
the greatest of (a) the Prime Rate in effect on such day, (b) the Base CD Rate
in effect on such day plus 1% and (c) the Federal Funds Effective Rate in effect
on such day plus 1/2 of 1%. Any change in the Alternate Base Rate due to a
change in the Prime Rate, the Base CD Rate or the Federal Funds Effective Rate
shall be effective from and including the effective date of such change in the
Prime Rate, the Base CD Rate or the Federal Funds Effective Rate, respectively.

          "Applicable Percentage" means, with respect to any Lender, the
percentage of the total Commitments represented by such Lender's Commitment. If
the Commitments have terminated or expired, the Applicable Percentages shall be
determined based upon the Commitments most recently in effect, giving effect to
any assignments.

          "Applicable Rate" means, for any day, with respect to any Eurodollar
Revolving Loan, or with respect to the facility fees payable hereunder, as the
case may be, the applicable rate per annum set forth below under the caption
"Eurodollar Spread" or "Facility Fee Rate", as the case may be, based upon the
ratings by S&P and Moody's, respectively, applicable on such date to the Index
Debt:

---------------------------------------------------------
                                Eurodollar   Facility Fee
     Index Debt Ratings:          Spread         Rate
---------------------------------------------------------
         Category 1               .300%         .100%
  A- or higher/A3 or higher
---------------------------------------------------------
         Category 2               .375%         .125%
          BBB+/Baal
---------------------------------------------------------
         Category 3               .600%         .150%
          BBB/Baa2
---------------------------------------------------------
         Category 4               .700%         .175%
          BBB-/Baa3
---------------------------------------------------------
         Category 5               .775%         .225%
           BB+/Bal
---------------------------------------------------------
         Category 6               .950%         .300%
lower than BB+/lower than Bal
---------------------------------------------------------

          For purposes of the foregoing, (i) if either S&P or Moodys shall not
have in effect a rating for the Index Debt (other than by reason of the
circumstances referred to in the last

<PAGE>

                                                                               3

sentence of this definition), then such rating agency shall be deemed to have
established a rating in Category 6; (ii) if the ratings established or deemed to
have been established by S&P and Moody's for the Index Debt shall fall within
different Categories, then (A) if both such ratings are at or above Category 4,
the Applicable Rate shall be based on the higher of the two ratings unless one
of the two ratings is two or more Categories lower than the other, in which case
the Applicable Rate shall be determined by reference to the Category next above
that of the lower of the two ratings and (B) if one or both of such ratings is
below Category 4, the Applicable Rate shall be determined by reference to the
lower of the two ratings; and (iii) if the ratings established or deemed to have
been established by S&P and Moody's for the Index Debt shall be changed (other
than as a result of a change in the rating system of S&P or Moody's), such
change shall be effective as of the date on which it is first announced by the
applicable rating agency. Each change in the Applicable Rate shall apply during
the period commencing on the effective date of such change and ending on the
date immediately preceding the effective date of the next such change. If the
rating system of S&P or Moody's shall change, or if either such rating agency
shall cease to be in the business of rating corporate debt obligations, the
Borrower and the Lenders shall negotiate in good faith to amend this definition
to reflect such changed rating system or the unavailability of ratings from such
rating agency and, pending the effectiveness of any such amendment, the
Applicable Rate shall be determined by reference to the rating most recently in
effect prior to such change or cessation.

          "Assessment Rate" means, for any day, the annual assessment rate in
effect on such day that is payable by a member of the Bank Insurance Fund
classified as "well-capitalized" and within supervisory subgroup "B" (or a
comparable successor risk classification) within the meaning of 12 C.F.R. Part
327 (or any successor provision) to the Federal Deposit Insurance Corporation
for insurance by such Corporation of time deposits made in dollars at the
offices of such member in the United States; provided that if, as a result of
any change in any law, rule or regulation, it is no longer possible to determine
the Assessment Rate as aforesaid, then the Assessment Rate shall be such annual
rate as shall be determined by the Administrative Agent to be representative of
the cost of such insurance to the Lenders.

          "Assignment and Assumption" means an assignment and assumption entered
into by a Lender and an assignee (with the consent of any party whose consent is
required by Section 9.04), and accepted by the Administrative Agent, in the form
of Exhibit A or any other form approved by the Administrative Agent.

          "Availability Period" means the period from and including the
Effective Date to but excluding the Maturity Date.

          "Base CD Rate" means the sum of (a) the Three-Month Secondary CD Rate
multiplied by the Statutory Reserve Rate plus (b) the Assessment Rate.

          "Board" means the Board of Governors of the Federal Reserve System of
the United States of America.

          "Borrower" means Convergys Corporation, an Ohio corporation.

          "Borrowing" means (a) Revolving Loans of the same Type, made,
converted or continued on the same date and, in the case of Eurodollar Loans, as
to which a single Interest Period is in effect or (b) a Competitive Loan or
group of Competitive Loans of the same Type made on the same date and as to
which a single Interest Period is in effect.

          "Borrowing Request" means a request by the Borrower for a Revolving
Borrowing in accordance with Section 2.03.

          "Business Day" means any day that is not a Saturday, Sunday or other
day on which commercial banks in New York City are authorized or required by law
to remain closed;

<PAGE>

                                                                               4

provided that, when used in connection with a Eurodollar Loan, the term
"Business Day" shall also exclude any day on which banks are not open for
dealings in dollar deposits in the London interbank market.

          "Capital Lease Obligations" of any Person means the obligations of
such Person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.

          "Change in Control" means (a) the acquisition of ownership, directly
or indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the Securities
and Exchange Commission thereunder as in effect on the date hereof), of shares
representing more than 25% of the aggregate ordinary voting power represented by
the issued and outstanding capital stock of the Borrower; (b) occupation of a
majority of the seats (other than vacant seats) on the board of directors of the
Borrower by Persons who were neither (i) nominated by the board of directors of
the Borrower nor (ii) appointed by directors so nominated; or (c) the
acquisition of direct or indirect Control of the Borrower by any Person or
group.

          "Change in Law" means (a) the adoption of any law, rule or regulation
after the date of this Agreement, (b) any change in any law, rule or regulation
or in the interpretation or application thereof by any Governmental Authority
after the date of this Agreement or (c) compliance by any Lender (or, for
purposes of Section 2.14(b), by any lending office of such Lender or by such
Lender's holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or
issued after the date of this Agreement.

          "Class", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans
or Competitive Loans.

          "Co-Documentation Agents" means US Bank N.A. and The Royal Bank of
Scotland PLC, in their capacities as co-documentation agents hereunder.

          "Co-Syndication Agents" means Citicorp USA, Inc., PNC Bank, National
Association, and Bank One, NA, in their capacities as co-syndication agents
hereunder.

          "Code" means the Internal Revenue Code of 1986, as amended from time
to time.

          "Commitment" means, with respect to each Lender, the commitment of
such Lender to make Revolving Loans hereunder expressed as an amount
representing the maximum aggregate amount of such Lender's Revolving Credit
Exposure hereunder, as such commitment may be (a) reduced from time to time
pursuant to Section 2.08 and (b) reduced or increased from time to time pursuant
to assignments by or to such Lender pursuant to Section 9.04 and (c) increased
pursuant to Section 2.05. The initial amount of each Lender's Commitment is set
forth on Schedule 2.01, or in the Assignment and Acceptance pursuant to which
such Lender shall have assumed its Commitment, as applicable. The initial
aggregate amount of the Lenders' Commitments is $325,000,000.

          "Competitive Bid" means an offer by a Lender to make a Competitive
Loan in accordance with Section 2.04.

          "Competitive Bid Rate" means, with respect to any Competitive Bid,
the Margin or the Fixed Rate, as applicable, offered by the Lender making such
Competitive Bid.

<PAGE>

                                                                               5

          "Competitive Bid Request" means a request by the Borrower for
Competitive Bids in accordance with Section 2.04.

          "Competitive Loan" means a Loan made pursuant to Section 2.04.

          "Consolidated EBITDA" means, for any fiscal period, with respect to
the Borrower and the Consolidated Subsidiaries, Consolidated Net Income for such
period plus, to the extent deducted in computing such Consolidated Net Income,
without duplication, the sum of (a) income tax expense, (b) interest expense
(including the aggregate yield (expressed in dollars) obtained by the purchasers
under any Receivables Purchase Facilities on their investments in accounts
receivable of the Borrower and the Subsidiaries during such period, determined
in accordance with generally accepted financial practice and the terms of such
Receivables Purchase Facilities), (c) depreciation and amortization expense, (d)
any non-cash extraordinary or non-cash non-recurring losses and (e) other
noncash items (other than accruals) reducing Consolidated Net Income, minus, to
the extent added in computing such Consolidated Net Income, without duplication,
the sum of (i) interest income, (ii) any extraordinary or non-recurring gains
and (iii) other noncash items increasing Consolidated Net Income, all as
determined on a consolidated basis in accordance with GAAP.

          "Consolidated Interest Expense" means, for any fiscal period, the
aggregate of all interest expense of the Borrower and the Consolidated
Subsidiaries for such period that, in accordance with GAAP, is or should be
included in "interest expense" reflected in the income statement for the
Borrower and the Consolidated Subsidiaries, less the amount of capital lease
interest accrued to the Borrower or any Consolidated Subsidiary for such period
that is not reflected in Consolidated EBITDA for such period, all as determined
on a consolidated basis in accordance with GAAP, plus, for any fiscal period,
the aggregate yield (expressed in dollars) obtained by the purchasers under any
Receivables Purchase Facilities on their investments in accounts receivable of
the Borrower and the Subsidiaries during such period, determined in accordance
with generally accepted financial practice and the terms of such Receivables
Purchase Facilities.

          "Consolidated Net Income" means, for any fiscal period, net income of
the Borrower and the Consolidated Subsidiaries for such period, determined on a
consolidated basis in accordance with GAAP.

          "Consolidated Subsidiary" means any Subsidiary that should be
consolidated with the Borrower for financial reporting purposes in accordance
with GAAP.

          "Consolidated Total Capitalization" means, on any date, the sum of (a)
Consolidated Total Debt and (b) stockholders' equity of the Borrower and the
Consolidated Subsidiaries, at such date, determined on a consolidated basis in
accordance with GAAP.

          "Consolidated Total Debt" means, at any date, all Indebtedness of the
Borrower and the Consolidated Subsidiaries at such date, determined on a
consolidated basis in accordance with GAAP, plus the aggregate amount paid by
the purchasers under any Receivables Purchase Facilities for interests in
accounts receivable of the Borrower and the Subsidiaries that has not yet been
recovered from collections on accounts receivable or otherwise paid by the
Borrower.

          "Contribution Agreement" means the indemnity, subrogation and
contribution agreement, substantially in the form of Exhibit D, to be entered
into by the Administrative Agent, the Borrower and the Guarantors.

          "Control" means the possession, directly or indirectly, of the power
to direct or cause the direction of the management or policies of a Person,
whether through the ability to exercise voting power, by contract or otherwise.
"Controlling" and "Controlled" have meanings correlative thereto.

<PAGE>

                                                                               6

          "Default" means any event or condition which constitutes an Event of
Default or which upon notice, lapse of time or both would, unless cured or
waived, become an Event of Default.

          "dollars" or "$" refers to lawful money of the United States of
America.

          "Effective Date" means the date on which the conditions specified in
Section 4.01 are satisfied (or waived in accordance with Section 9.02).

          "Environmental Laws" means all laws, rules, regulations, codes,
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating in any way to the environment., preservation or reclamation of natural
resources, the management, release or threatened release of any Hazardous
Material or to health and safety matters.

          "Environmental Liability" means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of the Borrower or any Subsidiary directly or
indirectly resulting from or based upon (a) violation of any Environmental Law,
(b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

          "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time.

          "ERISA Affiliate" means any trade or business (whether or not
incorporated) that, together with the Borrower, is treated as a single employer
under Section 414(b) or (c) of the Code or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

          "ERISA Event" means (a) any "reportable event", as defined in Section
4043 of ERISA or the regulations issued thereunder with respect to a Plan (other
than an event for which the 30-day notice period is waived); (b) the existence
with respect to any Plan of an "accumulated funding deficiency" (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the
filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any Plan;
(e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Plan or
Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the
receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by
any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

          "Eurodollar", when used in reference to any Loan or Borrowing, refers
to whether such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Adjusted LIBO Rate (or, in the
case of a Competitive Loan, the LIBO Rate).

          "Event of Default" has the meaning assigned to such term in Article
VII.

<PAGE>

                                                                               7

          "Excluded Taxes" means, with respect to the Administrative Agent, any
Lender or any other recipient of any payment to be made by or on account of any
obligation of the Borrower hereunder, (a) income or franchise taxes imposed on
(or measured by) its net income by the United States of America, or by the
jurisdiction under the laws of which such recipient is organized or in which its
principal office is located or, in the case of any Lender, in which its
applicable lending office is located, (b) any branch profits taxes imposed by
the United States of America or any similar tax imposed by any other
jurisdiction in which any such recipient is located and (c) in the case of a
Foreign Lender (other than an assignee pursuant to a request by the Borrower
under Section 2.18(b)), any withholding tax that is imposed by the United States
of America on amounts payable to such Foreign Lender at the time such Foreign
Lender becomes a party to this Agreement (or designates a new lending office) or
is attributable to such Foreign Lender's failure to comply with Section 2.16(e),
except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, at the time of designation of a new lending office (or assignment), to
receive additional amounts from the Borrower with respect to such withholding
tax pursuant to Section 2.16(a).

          "Existing Credit Agreements" has the meaning assigned to such term in
the preamble hereto.

          "Federal Funds Effective Rate" means, for any day, the weighted
average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.

          "Financial Officer" means the chief financial officer, principal
accounting officer, treasurer or controller of the Borrower.

          "Fixed Rate" means, with respect to any Competitive Loan (other than a
Eurodollar Competitive Loan), the fixed rate of interest per annum specified by
the Lender making such Competitive Loan in its related Competitive Bid.

          "Fixed Rate Loan" means a Competitive Loan bearing interest at a Fixed
Rate.

          "Foreign Lender" means any Lender that is organized under the laws of
a jurisdiction other than that in which the Borrower is located. For purposes of
this definition, the United States of America, each State thereof and the
District of Columbia shall be deemed to constitute a single jurisdiction.

          "GAAP" means generally accepted accounting principles in the United
States of America.

          "Governmental Authority" means the government of the United States of
America, any other nation or any political subdivision thereof, whether state or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.

          "Guarantee" of or by any Person (the "guarantor") means any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the "primary obligor") in any manner, whether directly or
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the

<PAGE>

                                                                               8

purchase of) any security for the payment thereof, (b) to purchase or lease
property, securities or services for the purpose of assuring the owner of such
Indebtedness or other obligation of the payment thereof, (c) to maintain working
capital, equity capital or any other financial statement condition or liquidity
of the primary obligor so as to enable the primary obligor to pay such
Indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness or
obligation; provided, that the term Guarantee shall not include endorsements for
collection or deposit in the ordinary course of business.

          "Guarantee Agreement" means the guarantee agreement, substantially
in the form of Exhibit C, to be entered into by the Administrative Agent and the
Guarantors.

          "Guarantor" means (a) Convergys Information Management Group Inc., a
wholly owned Subsidiary, (b) Convergys Customer Management Group Inc., a wholly
owned Subsidiary, (c) any indirect Subsidiary that on the date hereof has
outstanding any Indebtedness (other than (i) Intercompany Indebtedness, (ii)
Indebtedness of the type described in clauses (d), (e) and (h) of the definition
of "Indebtedness" and (iii) Indebtedness of Non-US Subsidiaries in a principal
amount at any time not greater than $10,000,000 for any Non-US Subsidiary and
not greater than $30,000,000 in aggregate, or the equivalent of either such
amount in one or more foreign currencies), and (d) each Subsidiary that shall
become a party to the Guarantee Agreement pursuant to Section 5.09.

          "Hazardous Materials" means all explosive or radioactive substances or
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.

          "Hedging Agreement" means any interest rate protection agreement,
foreign currency exchange agreement, commodity price protection agreement or
other interest or currency exchange rate or commodity price hedging arrangement.

          "Indebtedness" of any Person means, without duplication, (a) all
obligations of such Person for borrowed money, (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments, (c) all
obligations of such Person upon which interest charges are customarily paid, (d)
all obligations of such Person under conditional sale or other title retention
agreements relating to property acquired by such Person, (e) all obligations of
such Person in respect of the deferred purchase price of property or services
(excluding current accounts payable incurred in the ordinary course of
business), (f) all Indebtedness of others secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be secured
by) any Lien on property owned or acquired by such Person, whether or not the
Indebtedness secured thereby has been assumed, (g) all Guarantees by such Person
of Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i)
all obligations, contingent or otherwise, of such Person as an account party in
respect of letters of credit and letters of guaranty and (j) all obligations,
contingent or otherwise, of such Person in respect of bankers' acceptances. The
Indebtedness of any Person shall include the Indebtedness of any other entity
(including any partnership in which such Person is a general partner) to the
extent such Person is liable therefor as a result of such Person's ownership
interest in or other relationship with such entity, except to the extent the
terms of such Indebtedness provide that such Person is not liable therefor.

          "Indemnified Taxes" means Taxes other than Excluded Taxes.

          "Index Debt" means senior, unsecured, long-term indebtedness for
borrowed money of the Borrower that is not guaranteed by any other Person or
subject to any other credit enhancement.

<PAGE>

                                                                               9

          "Information Memorandum" means the Confidential Information Memorandum
dated June 2002 relating to the Borrower and the Transactions.

          "Intercompany Indebtedness" means any Indebtedness of any Subsidiary
which is owing to the Borrower or any other Subsidiary.

          "Interest Election Request" means a request by the Borrower to convert
or continue a Revolving Borrowing in accordance with Section 2.07.

          "Interest Payment Date" means (a) with respect to any ABR Loan, the
last day of each March, June, September and December, (b) with respect to any
Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing
of which such Loan is a part and, in the case of a Eurodollar Borrowing with an
Interest Period of more than three months' duration, each day prior to the last
day of such Interest Period that occurs at intervals of three months' duration
after the first day of such Interest Period and (c) with respect to any Fixed
Rate Loan, the last day of the Interest Period applicable to the Borrowing of
which such Loan is a part and, in the case of a Fixed Rate Borrowing with an
Interest Period of more than 90 days' duration (unless otherwise specified in
the applicable Competitive Bid Request), each day prior to the last day of such
Interest Period that occurs at intervals of 90 days' duration after the first
day of such Interest Period, and any other dates that are specified in the
applicable Competitive Bid Request as Interest Payment Dates with respect to
such Borrowing.

          "Interest Period" means (a) with respect to any Eurodollar Borrowing,
the period commencing on the date of such Borrowing and ending on the
numerically corresponding day in the calendar month that is one, two, three or
six months (or, with the consent of each Lender, nine or twelve months)
thereafter, as the Borrower may elect and (b) with respect to any Fixed Rate
Borrowing, the period (which shall not be less than 7 days or more than 360
days) commencing on the date of such Borrowing and ending on the date specified
in the applicable Competitive Bid Request; provided, that (i) if any Interest
Period would end on a day other than a Business Day, such Interest Period shall
be extended to the next succeeding Business Day unless, in the case of a
Eurodollar Borrowing only, such next succeeding Business Day would fall in the
next calendar month, in which case such Interest Period shall end on the next
preceding Business Day and (ii) any Interest Period pertaining to a Eurodollar
Borrowing that commences on the last Business Day of a calendar month (or on a
day for which there is no numerically corresponding day in the last calendar
month of such Interest Period) shall end on the last Business Day of the last
calendar month of such Interest Period. For purposes hereof, the date of a
Borrowing initially shall be the date on which such Borrowing is made and, in
the case of a Revolving Borrowing, thereafter shall be the effective date of the
most recent conversion or continuation of such Borrowing.

          "Lenders" means (a) the Persons listed on Schedule 2.01, (b) any other
Person that shall have become a party hereto pursuant to an Assignment and
Acceptance, other than any such Person that ceases to be a party hereto
pursuant to an Assignment and Acceptance and (c) any Person that shall have
become a party hereto pursuant to Section 2.05.

          "LIBO Rate" means, with respect to any Eurodollar Borrowing for any
Interest Period, the rate appearing on Page 3750 of the Telerate Service (or on
any successor or substitute page of such Service, or any successor to or
substitute for such Service, providing rate quotations comparable to those
currently provided on such page of such Service, as determined by the
Administrative Agent from time to time for purposes of providing quotations of
interest rates applicable to dollar deposits in the London interbank market) at
approximately 11:00 a.m, London time, two Business Days prior to the
commencement of such Interest Period., as the rate for dollar deposits with a
maturity comparable to such Interest Period. In the event that such rate is not
available at such time for any reason, then the "LIBO Rate" with respect to such
Eurodollar Borrowing for such Interest Period shall be the rate at which dollar
deposits of $5,000,000 and for a maturity comparable to such Interest Period are
offered by the principal London office of the Administrative Agent in
immediately available funds in the London interbank market at

<PAGE>

                                                                              10

approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

          "Lien" means, with respect to any asset, (a) any mortgage, deed of
trust, lien, pledge, hypothecation, encumbrance, charge or security interest in,
on or of such asset, (b) the interest of a vendor or a lessor under any
conditional sale agreement, capital lease or title retention agreement (or any
financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any
purchase option, call or similar right of a third party with respect to such
securities.

          "Loan Documents" means this Agreement and any promissory note issued
hereunder, the Guarantee Agreement and the Contribution Agreement.

          "Loans" means the loans made by the Lenders to the Borrower pursuant
to this Agreement.

          "Margin" means, with respect to any Competitive Loan bearing interest
at a rate based on the LIBO Rate, the marginal rate of interest, if any, to be
added to or subtracted from the LIBO Rate to determine the rate of interest
applicable to such Loan, as specified by the Lender making such Loan in its
related Competitive Bid.

          "Material Adverse Effect" means a material adverse effect on (a) the
business, assets, operations, prospects or condition, financial or otherwise, of
the Borrower and the Subsidiaries taken as a whole, (b) the ability of the
Borrower to perform any of its obligations under this Agreement or (c) the
rights of or benefits available to the Lenders under this Agreement.

          "Material Indebtedness" means Indebtedness (other than the Loans), or
obligations in respect of one or more Hedging Agreements, of any one or more of
the Borrower and its Subsidiaries in an aggregate principal amount exceeding
$15,000,000. For purposes of determining Material Indebtedness, the "principal
amount" of the obligations of the Borrower or any Subsidiary in respect of any
Hedging Agreement at any time shall be the maximum aggregate amount (giving
effect to any netting agreements provided for in such Hedging Agreements) that
the Borrower or such Subsidiary would be required to pay if such Hedging
Agreement were terminated at such time.

          "Maturity Date" means August 1, 2005.

          "Moody's" means Moody's Investors Service, Inc.

          "Multiemployer Plan" means a multiemployer plan as defined in Section
4001(a)(3) of ERISA.

          "Other Taxes" means any and all present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies arising
from any payment made hereunder or from the execution, delivery or enforcement
of, or otherwise with respect to, this Agreement.

          "PBGC" means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA and any successor entity performing similar functions.

<PAGE>

                                                                              11

          "Permitted Encumbrances" means:

               (a) Liens  imposed  by law for taxes  that are not yet due or are
          being contested in compliance with Section 5.04;

               (b)   carriers',   warehousemen's,   mechanics',   materialmen's,
          repairmen's  and other  like  Liens  imposed  by law,  arising  in the
          ordinary  course of business  and  securing  obligations  that are not
          overdue by more than 30 days or are being contested in compliance with
          Section 5.04;

               (c) pledges and deposits made in the ordinary  course of business
          in compliance with workers'  compensation,  unemployment insurance and
          other social security laws or regulations;

               (d) deposits to secure the performance of bids,  trade contracts,
          leases,  statutory obligations,  surety and appeal bonds,  performance
          bonds  and other  obligations  of a like  nature,  in each case in the
          ordinary course of business;

               (e) judgment liens in respect of judgments that do not constitute
          an Event of Default under clause (k) of Article VII; and

               (f) easements,  zoning  restrictions,  rights-of-way  and similar
          encumbrances  on  real  property  imposed  by  law or  arising  in the
          ordinary   course  of  business   that  do  not  secure  any  monetary
          obligations  and do not  materially  detract  from the  value of the
          affected  property or interfere with the ordinary  conduct of business
          of the Borrower or any Subsidiary;

provided that the term "Permitted Encumbrances" shall not include any Lien
securing Indebtedness.

          "Person" means any natural person, corporation, limited liability
company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

          "Plan" means any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Borrower or
any ERISA Affiliate is (or, if such plan were terminated, would under Section
4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of
ERISA.

          "Prime Rate" means the rate of interest per annum publicly announced
from time to time by JPMorgan Chase Bank as its prime rate in effect at its
principal office in New York City; each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as being
effective.

          "Receivables Facility" means a Receivables Lending Facility or a
Receivables Purchase Facility.

          "Receivables Lending Facility" means one or more credit, loan or
similar facilities established by the Borrower, the obligations under which are
secured by accounts receivable of the Borrower and its Subsidiaries.

          "Receivables Purchase Facility" means one or more facilities
established by the Borrower under which the Borrower and its Subsidiaries may
sell accounts receivable, on a non-recourse basis, to one or more financial
institutions or special purpose entities.

          "Register" has the meaning set forth in Section 9.04.

<PAGE>

                                                                              12

          "Related Parties" means, with respect to any specified Person, such
Person's Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person's Affiliates.

          "Required Lenders" means, at any time, Lenders having Revolving Credit
Exposures and unused Commitments representing more than 50% of the total
Revolving Credit Exposures and unused Commitments at such time; provided that,
for purposes of declaring the Loans to be due and payable pursuant to Article
VII, and for all purposes after the Loans become due and payable pursuant to
Article VII or the Commitments expire or terminate, the outstanding Competitive
Loans of the Lenders shall be included in their respective Revolving Credit
Exposures in determining the Required Lenders.

          "Revolving Credit Exposure" means, with respect to any Lender at any
time, the outstanding principal amount of such Lender's Revolving Loans.

          "Revolving Loan" means a Loan made pursuant to Section 2.03.

          "S&P" means Standard & Poor's.

          "Statutory Reserve Rate" means a fraction (expressed as a decimal),
the numerator of which is the number one and the denominator of which is the
number one minus the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board to which the Administrative Agent is subject (a) with
respect to the Base CD Rate, for new negotiable nonpersonal time deposits in
dollars of over $100,000 with maturities approximately equal to three months and
(b) with respect to the Adjusted LIBO Rate, for eurocurrency funding (currently
referred to as "Eurocurrency Liabilities" in Regulation D of the Board). Such
reserve percentages shall include those imposed pursuant to such Regulation D.
Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be
subject to such reserve requirements without benefit of or credit for proration,
exemptions or offsets that may be available from time to time to any Lender
under such Regulation D or any comparable regulation. The Statutory Reserve Rate
shall be adjusted automatically on and as of the effective date of any change in
any reserve percentage.

          "subsidiary" means, with respect to any Person (the "parent") at any
date, any corporation, limited liability company, partnership, association or
other entity the accounts of which would be consolidated with those of the
parent in the parent's consolidated financial statements if such financial
statements were prepared in accordance with GAAP as of such date, as well as any
other corporation, limited liability company, partnership, association or other
entity (a) of which securities or other ownership interests representing more
than 50% of the equity or more than 50% of the ordinary voting power or, in the
case of a partnership, more than 50% of the general partnership interests are,
as of such date, owned, controlled or held, or (b) that is, as of such date,
otherwise Controlled, by the parent or one or more subsidiaries of the parent or
by the parent and one or more subsidiaries of the parent.

          "Subsidiary" means any subsidiary of the Borrower.

          "Taxes" means any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental
Authority.

          "Three-Month Secondary CD Rate" means, for any day, the secondary
market rate for three-month certificates of deposit reported as being in effect
on such day (or, if such day is not a Business Day, the next preceding Business
Day) by the Board through the public information telephone line of the Federal
Reserve Bank of New York (which rate will, under the current practices of the
Board, be published in Federal Reserve Statistical Release H.15(519) during the
week following such day) or, if such rate is not so reported on such day or such
next preceding Business Day, the average of the secondary market quotations for
three-month

<PAGE>

                                                                              13

certificates of deposit of major money center banks in New York City received at
approximately 10:00 a.m., New York City time, on such day (or, if such day is
not a Business Day, on the next preceding Business Day) by the Administrative
Agent from three negotiable certificate of deposit dealers of recognized
standing selected by it.

          "Transactions" means (a) the execution, delivery and performance by
the Borrower of this Agreement, the borrowing of Loans and the use of the
proceeds thereof and (b) the execution, delivery and performance by the
Guarantors of the Guarantee Agreement.

          "Type", when used in reference to any Loan or Borrowing, refers to
whether the rate of interest on such Loan, or on the Loans comprising such
Borrowing, is determined by reference to the Adjusted LIBO Rate, the Alternate
Base Rate or, in the case of a Competitive Loan or Borrowing, the LIBO Rate or a
Fixed Rate.

          "Withdrawal Liability" means liability to a Multiemployer Plan as a
result of a complete or partial withdrawal from such Multiemployer Plan, as such
terms are defined in Part I of Subtitle E of Title IV of ERISA.

          SECTION 1.02. Classification of Loans and Borrowings. For purposes of
this Agreement, Loans may be classified and referred to by Class (e.g., a
"Revolving Loan") or by Type (e.g., a "Eurodollar Loan") or by Class and Type
(e.g., a "Eurodollar Revolving Loan"). Borrowings also may be classified and
referred to by Class (e.g., a "Revolving Borrowing") or by Type (e.g., a
"Eurodollar Borrowing") or by Class and Type (e.g., a "Eurodollar Revolving
Borrowing").

          SECTION 1.03. Terms Generally. The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever
the context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words "include", "includes" and "including" shall
be deemed to be followed by the phrase "without limitation". The word "will"
shall be construed to have the same meaning and effect as the word "shall".
Unless the context requires otherwise (a) any definition of or reference to any
agreement, instrument or other document herein shall be construed as referring
to such agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person's successors and
assigns, (c) the words "herein", "hereof" and "hereunder", and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement and (e) the words
"asset" and "property" shall be construed to have the same meaning and effect
and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.

          SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly
provided herein, all terms of an accounting or financial nature shall be
construed in accordance with GAAP, as in effect from time to time; provided
that, if the Borrower notifies the Administrative Agent that the Borrower
requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on
the operation of such provision (or if the Administrative Agent notifies the
Borrower that the Required Lenders request an amendment to any provision hereof
for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such provision
shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have been
withdrawn or such provision amended in accordance herewith.

<PAGE>

                                                                              14

                                   ARTICLE 11

                                   The Credits

          SECTION 2.01. Commitments. Subject to the terms and conditions set
forth herein, each Lender agrees to make Revolving Loans to the Borrower from
time to time during the Availability Period in an aggregate principal amount
that will not result in (a) such Lender's Revolving Credit Exposure exceeding
such Lender's Commitment or (b) the sum of the total Revolving Credit Exposures
plus the aggregate principal amount of outstanding Competitive Loans exceeding
the total Commitments. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrower may borrow, prepay and reborrow
Revolving Loans.

          SECTION 2.02. Loans and Borrowings. (a) Each Revolving Loan shall be
made as part of a Borrowing consisting of Revolving Loans made by the Lenders
ratably in accordance with their respective Commitments. Each Competitive Loan
shall be made in accordance with the procedures set forth in Section 2.04. The
failure of any Lender to make any Loan required to be made by it shall not
relieve any other Lender of its obligations hereunder; provided that the
Commitments and Competitive Bids of the Lenders are several and no Lender shall
be responsible for any other Lender's failure to make Loans as required.

          (b) Subject to Section 2.13, (i) each Revolving Borrowing shall be
comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request
in accordance herewith, and (ii) each Competitive Borrowing shall be comprised
entirely of Eurodollar Loans or Fixed Rate Loans as the Borrower may request in
accordance herewith. Each Lender at its option may make any Eurodollar Loan by
causing any domestic or foreign branch or Affiliate of such Lender to make such
Loan; provided that any exercise of such option shall not affect the obligation
of the Borrower to repay such Loan in accordance with the terms of this
Agreement; provided further, that in exercising such option, each Lender shall
comply with its obligation under Section 2.18(a).

          (c) At the commencement of each Interest Period for any Eurodollar
Revolving Borrowing, such Borrowing shall be in an aggregate amount that is an
integral multiple of $1,000,000 and not less than $5,000,000. At the time that
each ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate
amount that is an integral multiple of $1,000,000 and not less than $5,000,000.
Each Competitive Borrowing shall be in an aggregate amount that is an integral
multiple of $1,000,000 and not less than $5,000,000. Borrowings of more than one
Type and Class may be outstanding at the same time; provided that there shall
not at any time be more than a total of ten Eurodollar Revolving Borrowings
outstanding.

          (d) Notwithstanding any other provision of this Agreement, the
Borrower shall not be entitled to request, or to elect to convert or continue,
any Borrowing if the Interest Period requested with respect thereto would end
after the Maturity Date.

          SECTION 2.03. Requests for Revolving Borrowings. To request a
Revolving Borrowing, the Borrower shall notify the Administrative Agent of such
request by telephone (a) in the case of a Eurodollar Borrowing, not later than
11:00 a.m., New York City time, three Business Days before the date of the
proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 10:00
a.m., New York City time, on the date of the proposed Borrowing. Each such
telephonic Borrowing Request shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent of a written
Borrowing Request in a form approved by the Administrative Agent and signed by
the Borrower. Each such telephonic and written Borrowing Request shall specify
the following information in compliance with Section 2.02:

          (i) the aggregate amount of the requested Borrowing;

<PAGE>

                                                                              15

          (ii) the date of such Borrowing, which shall be a Business Day;

          (iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar
     Borrowing;

          (iv) in the case of a Eurodollar Borrowing, the initial Interest
     Period to be applicable thereto, which shall be a period contemplated by
     the definition of the term "Interest Period"; and

          (v) the location and number of the Borrower's account to which funds
     are to be disbursed, which shall comply with the requirements of Section
     2.06.

If no election as to the Type of Revolving Borrowing is specified, then the
requested Revolving Borrowing shall be an ABR Borrowing. If no Interest Period
is specified with respect to any requested Eurodollar Revolving Borrowing, then
the Borrower shall be deemed to have selected an Interest Period of one month's
duration. Promptly following receipt of a Borrowing Request in accordance with
this Section, the Administrative Agent shall advise each Lender of the details
thereof and of the amount of such Lender's Loan to be made as part of the
requested Borrowing.

          SECTION 2.04. Competitive Bid Procedure. (a) Subject to the terms and
conditions set forth herein, from time to time during the Availability Period
the Borrower may request Competitive Bids and may (but shall not have any
obligation to) accept Competitive Bids and borrow Competitive Loans; provided
that the sum of the total Revolving Credit Exposures plus the aggregate
principal amount of outstanding Competitive Loans shall not exceed the total
Commitments. To request Competitive Bids, the Borrower shall notify the
Administrative Agent of such request by telephone, in the case of a Eurodollar
Borrowing, not later than 11:00 a.m., New York City time, four Business Days
before the date of the proposed Borrowing and, in the case of a Fixed Rate
Borrowing, not later than 10:00 a.m., New York City time, one Business Day
before the date of the proposed Borrowing; provided that the Borrower may submit
no more than one Competitive Bid Request on the same day and a Competitive Bid
Request shall not be made within five Business Days after the date of any
previous Competitive Bid Request, unless any and all such previous Competitive
Bid Requests shall have been withdrawn or all Competitive Bids received in
response thereto rejected. Each such telephonic Competitive Bid Request shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a
written Competitive Bid Request in a form approved by the Administrative Agent
and signed by the Borrower. Each such telephonic and written Competitive Bid
Request shall specify the following information in compliance with Section 2.02:

          (i) the aggregate amount of the requested Borrowing;

          (ii) the date of such Borrowing, which shall be a Business Day;

          (iii) whether such Borrowing is to be a Eurodollar Borrowing or a
     Fixed Rate Borrowing;

          (iv) the Interest Period to be applicable to such Borrowing, which
     shall be a period contemplated by the definition of the term "Interest
     Period"; and

          (v) the location and number of the Borrower's account to which funds
     are to be disbursed, which shall comply with the requirements of Section
     2.06.

Promptly following receipt of a Competitive Bid Request in accordance with this
Section, the Administrative Agent shall notify the Lenders of the details
thereof by telecopy, inviting the Lenders to submit Competitive Bids.

<PAGE>

                                                                              16

          (b) Each Lender may (but shall not have any obligation to) make on
or more Competitive Bids to the Borrower in response to a Competitive Bid
Request. Each Competitive Bid by a Lender must be in a form approved by the
Administrative Agent and must be received by the Administrative Agent by
telecopy, in the case of a Eurodollar Competitive Borrowing, not later than 9:30
a.m., New York City time, three Business Days before the proposed date of such
Competitive Borrowing, and in the case of a Fixed Rate Borrowing, not later than
9:30 a.m., New York City time, on the proposed date of such Competitive
Borrowing. Competitive Bids that do not conform substantially to the form
approved by the Administrative Agent may be rejected by the Administrative
Agent, and the Administrative Agent shall notify the applicable Lender as
promptly as practicable. Each Competitive Bid shall specify (i) the principal
amount (which shall be a minimum of $5,000,000 and an integral multiple of
$1,000,000 and which may equal the entire principal amount of the Competitive
Borrowing requested by the Borrower) of the Competitive Loan or Loans that the
Lender is willing to make, (ii) the Competitive Bid Rate or Rates at which the
Lender is prepared to make such Loan or Loans (expressed as a percentage rate
per annum in the form of a decimal to no more than four decimal places) and
(iii) the Interest Period applicable to each such Loan and the last day thereof.

          (c) The Administrative Agent shall promptly notify the Borrower by
telecopy of the Competitive Bid Rate and the principal amount specified in each
Competitive Bid and the identity of the Lender that shall have made such
Competitive Bid.

          (d) Subject only to the provisions of this paragraph, the Borrower may
accept or reject any Competitive Bid. The Borrower shall notify the
Administrative Agent by telephone, confirmed by telecopy in a form approved by
the Administrative Agent, whether and to what extent it has decided to accept or
reject each Competitive Bid, in the case of a Eurodollar Competitive Borrowing,
not later than 10:30 a.m., New York City time, three Business Days before the
date of the proposed( Competitive Borrowing, and in the case of a Fixed Rate
Borrowing, not later than 10:30 a.m., New York City time, on the proposed date
of the Competitive Borrowing; provided that (i) the failure of the Borrower to
give such notice shall be deemed to be a rejection of each Competitive Bid, (ii)
the Borrower shall not accept a Competitive Bid made at a particular Competitive
Bid Rate if the Borrower rejects a Competitive Bid made at a lower Competitive
Bid Rate, (iii) the aggregate amount of the Competitive Bids accepted by the
Borrower shall not exceed the aggregate amount of the requested Competitive
Borrowing specified in the related Competitive Bid Request, (iv) to the extent
necessary to comply with clause (iii) above, the Borrower may accept Competitive
Bids at the same Competitive Bid Rate in part, which acceptance, in the case of
multiple Competitive Bids at such Competitive Bid Rate, shall be made pro rata
in accordance with the amount of each such Competitive Bid, and (v) except
pursuant to clause (iv) above, no Competitive Bid shall be accepted for a
Competitive Loan unless such Competitive Loan is in a minimum principal amount
of $5,000,000 and an integral multiple of $1,000,000; provided further that if a
Competitive Loan must be in an amount less than $5,000,000 because of the
provisions of clause (iv) above, such Competitive Loan may be for a minimum of
$1,000,000 or any integral multiple thereof, and in calculating the pro rata
allocation of acceptances of portions of multiple Competitive Bids at a
particular Competitive Bid Rate pursuant to clause (iv) the amounts shall be
rounded to integral multiples of $1,000,000 in a manner determined by the
Borrower. A notice given by the Borrower pursuant to this paragraph shall be
irrevocable.

          (e) The Administrative Agent shall promptly notify each bidding Lender
by telecopy whether or not its Competitive Bid has been accepted (and, if so,
the amount and Competitive Bid Rate so accepted), and each successful bidder
will thereupon become bound, subject to the terms and conditions hereof, to make
the Competitive Loan in respect of which its Competitive Bid has been accepted.

          (f) If the Administrative Agent shall elect to submit a Competitive
Bid in its capacity as a Lender, it shall submit such Competitive Bid directly
to the Borrower at least one

<PAGE>

                                                                              17

quarter of an hour earlier than the time by which the other Lenders are required
to submit their Competitive Bids to the Administrative Agent pursuant to
paragraph (b) of this Section.

          SECTION 2.05. Increase in Commitments. (a) The Borrower may on one
occasion at any time not later than three months prior to the Maturity Date, by
written notice to the Administrative Agent (which shall promptly deliver a copy
to each of the Lenders), request that the total Commitments be increased by an
amount that will not result in the total commitments under this Agreement
exceeding $400,000,000 minus the amount of any reduction of the Commitments
pursuant to Section 2.08. Such notice shall set forth the amount of the
requested increase in the total Commitments and the date on which such increase
is requested to become effective (which shall be not less than 30 days or more
than 60 days after the date of such notice), and shall offer each Lender the
opportunity to increase its Commitment by its Applicable Percentage of the
proposed increased amount. Each Lender shall, by notice to the Borrower and the
Administrative Agent given not more than 30 days after the date of the
Borrower's notice, either agree to increase its Commitment by all or a portion
of the offered amount (each Lender so agreeing being an "Increasing Lender") or
decline to increase its Commitment (and any Lender that does not deliver such a
notice within such period of 30 days shall be deemed to have declined to
increase its Commitment) (each Lender so declining or deemed to have declined
being a "NonIncreasing Lender"). In the event that, on the 30th day after the
Borrower shall have delivered a notice pursuant to the first sentence of this
paragraph, the Lenders shall have agreed pursuant to the preceding sentence to
increase their Commitments by an aggregate amount less than the increase in the
total Commitments requested by the Borrower, the Administrative Agent may
arrange for one or more banks or other financial institutions (any such bank or
other financial institution referred to in this clause (a) being called an
"Augmenting Lender"), which may include any Lender, to extend Commitments or
increase their existing Commitments in an aggregate amount equal to the
unsubscribed amount, provided that each Augmenting Lender, if not already a
Lender hereunder, shall be subject to the approval of the Borrower and the
Administrative Agent (which approvals shall not be unreasonably withheld) and
each Augmenting Lender shall execute all such documentation as the
Administrative Agent shall specify to evidence its Commitment and its status as
a Lender hereunder. Increases and new Commitments created pursuant to this
clause (a) shall become effective on the date specified in the notice delivered
by the Borrower pursuant to the first sentence of this paragraph.
Notwithstanding the foregoing, no increase in the total Commitments (or in the
Commitment of any Lender) shall become effective under this paragraph unless,
(i) on the date of such increase, the conditions set forth in paragraphs (a) and
(b) of Section 4.02 shall be satisfied (with all references in such paragraphs
to a Borrowing being deemed to be references to such increase) and the
Administrative Agent shall have received a certificate to that effect dated such
date and executed by a Financial Officer of the Borrower, (ii) the
Administrative Agent shall have received (with sufficient copies for each of the
Lenders) documents consistent with those delivered on the Effective Date under
clauses (b) and (c) of Section 4.01 as to the corporate power and authority of
the Borrower to borrow hereunder after giving effect to such increase and (iii)
following any such increase pursuant to this Section, no Lender shall have a
Commitment representing more than 30% of the total Commitments.

          (b) On the effective date (the "Increase Effective Date") of any
increase in the total Commitments pursuant to Section 2.05(a) (the "Commitment
Increase"), (i) the aggregate principal amount of the Loans outstanding (the
"Initial Loans") immediately prior to giving effect to the Commitment Increase
on the Increase Effective Date shall be deemed to be paid, (ii) each Increasing
Lender and each Augmenting Lender that shall have been a Lender prior to the
Commitment Increase shall pay to the Administrative Agent in same day funds an
amount equal to the difference between (A) the product of (1) such Lender's
Applicable Percentage (calculated after giving effect to the Commitment
Increase) multiplied by (2) the amount of the Subsequent Borrowings (as
hereinafter defined) and (B) the product of (1) such Lender's Applicable
Percentage (calculated without giving effect to the Commitment Increase)
multiplied by (2) the amount of the Initial Loans, (iii) each Augmenting Lender
that shall not have been a Lender prior

<PAGE>

                                                                              18

to the Commitment Increase shall pay to Administrative Agent in same day funds
an amount equal to the product of (1) such Augmenting Lender's Applicable
Percentage (calculated after giving effect to the Commitment Increase)
multiplied by (2) the amount of the Subsequent Borrowings, and (iv) after the
Administrative Agent receives the funds specified in clauses (ii) and (iii)
above, the Administrative Agent shall pay to each Non-Increasing Lender the
portion of such funds that is equal to the difference between (A) the product of
(1) such Non-Increasing Lender's Applicable Percentage (calculated without
giving effect to the Commitment Increase) multiplied by (2) the amount of the
Initial Loans, and (B) the product of (1) such Non-Increasing Lender's
Applicable Percentage (calculated after giving effect to the Commitment
Increase) multiplied by (2) the amount of the Subsequent Borrowings, (v) after
the effectiveness of the Commitment Increase, the Borrower shall be deemed to
have made new Borrowings (the "Subsequent Borrowings") in an aggregate principal
amount equal to the aggregate principal amount of the Initial Loans and of the
types and for the Interest Periods specified in a Borrowing Request delivered to
the Administrative Agent in accordance with Section 2.03, (vi) each
Non-Increasing Lender, each Increasing Lender and each Augmenting Lender shall
be deemed to hold its Applicable Percentage of each Subsequent Borrowing
(calculated after giving effect to the Commitment Increase) and (vii) the
Borrower shall pay each Increasing Lender and each Non-Increasing Lender any and
all accrued but unpaid interest on the Initial Loans. The deemed payments made
pursuant to clause (i) above in respect of each Eurodollar Loan shall be subject
to indemnification by the Borrower pursuant to the provisions of Section 2.15 if
the Increase Effective Date occurs other than on the last day of the Interest
Period relating thereto.

          SECTION 2.06. Funding of Borrowings. (a) Each Lender shall make each
Loan to be made by it hereunder on the proposed date thereof by wire transfer of
immediately available funds by 12:00 noon, New York City time, to the account
of the Administrative Agent most recently designated by it for such purpose by
notice to the Lenders. The Administrative Agent will make such Loans available
to the Borrower by promptly crediting the amounts so received, in like funds, to
an account designated by the Borrower in the applicable Borrowing Request or
Competitive Bid Request.

          (b) Unless the Administrative Agent shall have received notice from a
Lender prior to the proposed date of any Borrowing that such Lender will not
make available to the Administrative Agent such Lender's share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with paragraph (a) of this Section
and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. In such event, if a Lender has not in fact made its share
of the applicable Borrowing available to the Administrative Agent, then the
applicable Lender and the Borrower severally agree to pay to the Administrative
Agent forthwith on demand such corresponding amount with interest thereon, for
each day from and including the date such amount is made available to the
Borrower to but excluding the date of payment to the Administrative Agent, at
(i) in the case of such Lender, the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation or (ii) in the case of the Borrower,
the interest rate applicable to ABR Loans. If such Lender pays such amount to
the Administrative Agent, then such amount shall constitute such Lender's Loan
included in such Borrowing.

          SECTION 2.07. Interest Elections. (a) Each Revolving Borrowing
initially shall be of the Type specified in the applicable Borrowing Request
and, in the case of a Eurodollar Revolving Borrowing, shall have an initial
Interest Period as specified in such Borrowing Request. Thereafter, the Borrower
may elect to convert such Borrowing to a different Type or to continue such
Borrowing and, in the case of a Eurodollar Revolving Borrowing, may elect
Interest Periods therefor, all as provided in this Section. The Borrower may
elect different options with respect to different portions of the affected
Borrowing, in which case each such portion shall be allocated ratably among the
Lenders holding the Loans comprising such Borrowing, and the Loans comprising
each such portion shall be considered a separate

<PAGE>

                                                                              19

Borrowing. This Section shall not apply to Competitive Borrowings, which may not
be converted or continued.

          (b) To make an election pursuant to this Section, the Borrower shall
notify the Administrative Agent of such election by telephone by the time that a
Borrowing Request would be required under Section 2.03 if the Borrower were
requesting a Revolving Borrowing of the Type resulting from such election to be
made on the effective date of such election. Each such telephonic Interest
Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Interest Election
Request in a form approved by the Administrative Agent and signed by the
Borrower.

          (c) Each telephonic and written Interest Election Request shall
specify the following information in compliance with Section 2.02:

          (i) the Borrowing to which such Interest Election Request applies and,
     if different options are being elected with respect to different portions
     thereof, the portions thereof to be allocated to each resulting Borrowing
     (in which case the information to be specified pursuant to clauses (iii)
     and (iv) below shall be specified for each resulting Borrowing);

          (ii) the effective date of the election made pursuant to such Interest
     Election Request, which shall be a Business Day;

          (iii) whether the resulting Borrowing is to be an ABR Borrowing or a
     Eurodollar Borrowing; and

          (iv) if the resulting Borrowing is a Eurodollar Borrowing, the
     Interest Period to be applicable thereto after giving effect to such
     election, which shall be a period contemplated by the definition of the
     term "Interest Period".

If any such Interest Election Request requests a Eurodollar Borrowing but does
not specify an Interest Period, then the Borrower shall be deemed to have
selected an Interest Period of one month's duration.

          (d) Promptly following receipt of an Interest Election Request, the
Administrative Agent shall advise each Lender of the details thereof and of such
Lender's portion of each resulting Borrowing.

          (e) If the Borrower fails to deliver a timely Interest Election
Request with respect to a Eurodollar Revolving Borrowing prior to the end of the
Interest Period applicable thereto, then, unless such Borrowing is repaid as
provided herein, at the end of such Interest Period such Borrowing shall be
converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if
an Event of Default has occurred and is continuing and the Administrative Agent,
at the request of the Required Lenders, so notifies the Borrower, then, so long
as an Event of Default is continuing (i) no outstanding Revolving Borrowing may
be converted to or continued as a Eurodollar Borrowing and (ii) unless repaid,
each Eurodollar Revolving Borrowing shall be converted to an ABR Borrowing at
the end of the Interest Period applicable thereto.

          SECTION 2.08. Termination and Reduction of Commitments. (a) Unless
previously terminated, the Commitments shall terminate on the Maturity Date.

          (b) The Borrower may at any time terminate, or from time to time
reduce, the Commitments; provided that (i) each reduction of the Commitments
shall be in an amount that is an integral multiple of $1,000,000 and not less
than $10,000,000 and (ii) the Borrower shall not terminate or reduce the
Commitments if, after giving effect to any concurrent prepayment of the Loans in
accordance with Section 2.10, the sum of the Revolving Credit Exposure plus the

<PAGE>

                                                                              20

aggregate principal amount of outstanding Competitive Loans would exceed the
total Commitments.

          (c) The Borrower shall notify the Administrative Agent of any election
to terminate or reduce the Commitments under paragraph (b) of this Section at
least three Business Days prior to the effective date of such termination or
reduction, specifying such election and the effective date thereof. Promptly
following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by the Borrower pursuant
to this Section shall be irrevocable; provided that a notice of termination of
the Commitments delivered by the Borrower may state that such notice is
conditioned upon the effectiveness of other credit facilities, in which case
such notice may be revoked by the Borrower (by notice to the Administrative
Agent on or prior to the specified effective date) if such condition is not
satisfied. Any termination or reduction of the Commitments shall be permanent.
Each reduction of the Commitments shall be made ratably among the Lenders in
accordance with their respective Commitments.

          SECTION 2.09. Repayment of Loans; Evidence of Debt. (a) The Borrower
hereby unconditionally promises to pay (i) to the Administrative Agent for the
account of each Lender the then unpaid principal amount of each Revolving Loan
on the Maturity Date and (ii) to the Administrative Agent for the account of the
applicable Lenders the then unpaid principal amount of each Competitive Loan on
the last day of the Interest Period applicable to such Loan.

          (b) Each Lender shall maintain in accordance with its usual practice
an account or accounts evidencing the indebtedness of the Borrower to such
Lender resulting from each Loan made by such Lender, including the amounts of
principal and interest payable and paid to such Lender from time to time
hereunder.

          (c) The Administrative Agent shall maintain accounts in which it shall
record (i) the amount of each Loan made hereunder, the Class and Type thereof
and the Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to each
Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender's share thereof.

          (d) The entries made in the accounts maintained pursuant to paragraph
(b) or (c) of this Section shall be prima facie evidence of the existence and
amounts of the obligations recorded therein; provided that the failure of any
Lender or the Administrative Agent to maintain such accounts or any error
therein shall not in any manner affect the obligation of the Borrower to repay
the Loans in accordance with the terms of this Agreement.

          (e) Any Lender may request that Loans made by it be evidenced by a
promissory note. In such event, the Borrower shall prepare, execute and deliver
to such Lender a promissory note payable to the order of such Lender (or, if
requested by such Lender, to such Lender and its registered assigns) and in a
form approved by the Administrative Agent. Thereafter, the Loans evidenced by
such promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 9.04) be represented by one or more promissory
notes in such form payable to the order of the payee named therein (or, if such
promissory note is a registered note, to such payee and its registered assigns).

          SECTION 2.10. Prepayment of Loans. (a) The Borrower shall have the
right at any time and from time to time to prepay any Borrowing in whole or in
part, subject to prior notice in accordance with paragraph (b) of this Section;
provided that the Borrower shall not have the right to prepay any Competitive
Loan without the prior consent of the Lender thereof.

          (b) The Borrower shall notify the Administrative Agent by telephone
(confirmed by telecopy) of any prepayment hereunder (i) in the case of
prepayment of a Eurodollar Revolving

<PAGE>

                                                                              21

Borrowing, not later than 11:00 a.m., New York City time, three Business Days
before the date of prepayment or (ii) in the case of prepayment of an ABR
Revolving Borrowing, not later than 12:00 noon, New York City time, on the date
of prepayment. Each such notice shall be irrevocable and shall specify the
prepayment date and the principal amount of each Borrowing or portion thereof to
be prepaid; provided that, if a notice of prepayment is given in connection with
a conditional notice of termination of the Commitments as contemplated by
Section 2.08, then such notice of prepayment may be revoked if such notice of
termination is revoked in accordance with Section 2.08. Promptly following
receipt of any such notice relating to a Revolving Borrowing, the Administrative
Agent shall advise the Lenders of the contents thereof. Each partial prepayment
of any Revolving Borrowing shall be in an amount that would be permitted in the
case of an advance of a Revolving Borrowing of the same Type as provided in
Section 2.02. Each prepayment of a Revolving Borrowing shall be applied ratably
to the Loans included in the prepaid Borrowing. Prepayments shall be accompanied
by accrued interest to the extent required by Section 2.12.

          SECTION 2.11. Fees. (a) The Borrower agrees to pay to the
Administrative Agent for the account of each Lender a facility fee, which shall
accrue at the Applicable Rate on the daily amount of the Commitment of such
Lender (whether used or unused), or, after such Commitment shall have
terminated, the outstanding Revolving Loans of such Lender, during the period
from and including the date hereof to but excluding the date on which such
Commitment shall have terminated and such Lender shall have no outstanding
Revolving Loans. Accrued facility fees shall be payable in arrears on the last
day of March, June, September and December of each year, on any date prior to
the Maturity Date on which the Commitments terminate and on the Maturity Date.
All facility fees shall be computed on the basis of a year of 360 days and shall
be payable for the actual number of days elapsed (including the first day but
excluding the last day).

          (b) For any day on which the outstanding principal amount of Loans
shall be greater than 50% of the total Commitments, the Borrower shall pay to
the Administrative Agent for the account of each Lender a utilization fee equal
to 0.125% per annum on the aggregate amount of each Lender's outstanding Loans
on such day. The utilization fees, if any, in respect of any fiscal quarter
shall be payable in arrears on the last day of each March, June, September and
December, on any date prior to the Maturity Date on which the Commitments
terminate and on the Maturity Date. All utilization fees shall be computed on
the basis of a year of 360 days and shall be payable for the actual number of
days elapsed (including the first day but excluding the last day).

          (c) The Borrower agrees to pay to the Administrative Agent, for its
own account, fees payable in the amounts and at the times separately agreed upon
between the Borrower and the Administrative Agent.

          (d) All fees payable hereunder shall be paid on the dates due, in
immediately available funds, to the Administrative Agent for distribution, in
the case of facility fees to the Lenders. Fees paid shall not be refundable
under any circumstances.

          SECTION 2.12. Interest. (a) The Loans comprising each ABR Borrowing
shall bear interest at the Alternate Base Rate.

          (b) The Loans comprising each Eurodollar Borrowing shall bear interest
(i) in the case of a Eurodollar Revolving Loan, at the Adjusted LIBO Rate for
the Interest Period in effect for such Borrowing plus the Applicable Rate, or
(ii) in the case of a Eurodollar Competitive Loan, at the LIBO Rate for the
Interest Period in effect for such Borrowing plus (or minus, as applicable) the
Margin applicable to such Loan.

          (c) Each Fixed Rate Loan shall bear interest at the Fixed Rate
applicable to such Loan.

<PAGE>

                                                                              22

          (d) Notwithstanding the foregoing, if any principal of or interest on
any Loan or any fee or other amount payable by the Borrower hereunder is not
paid when due, whether at stated maturity, upon acceleration or otherwise, such
overdue amount shall bear interest, after as well as before judgment, at a rate
per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the
rate otherwise applicable to such Loan as provided in the preceding paragraphs
of this Section or (ii) in the case of any other amount, 2% plus the rate
applicable to ABR Loans as provided in paragraph (a) of this Section.

          (e) Accrued interest on each Loan shall be payable in arrears on each
Interest Payment Date for such Loan and, in the case of Revolving Loans, upon
termination of the Commitments; provided that (i) interest accrued pursuant to
paragraph (d) of this Section shall be payable on demand, (ii) in the event of
any repayment or prepayment of any Loan (other than a prepayment of an ABR
Revolving Loan prior to the end of the Availability Period), accrued interest on
the principal amount repaid or prepaid shall be payable on the date of such
repayment or prepayment and (iii) in the event of any conversion of any
Eurodollar Revolving Loan prior to the end of the current Interest Period
therefor, accrued interest on such Loan shall be payable on the effective date
of such conversion.

          (f) All interest hereunder shall be computed on the basis of a year of
360 days, except that interest computed by reference to the Alternate Base Rate
at times when the Alternate Base Rate is based on the Prime Rate shall be
computed on the basis of a year of 365 days (or 366 days in a leap year), and in
each case shall be payable for the actual number of days elapsed (including the
first day but excluding the last day). The applicable Alternate Base Rate,
Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative
Agent, and such determination shall be conclusive absent manifest error.

          SECTION 2.13. Alternate Rate of Interest. If prior to the commencement
of any Interest Period for a Eurodollar Borrowing:

          (a) the Administrative Agent determines (which determination shall be
     conclusive absent manifest error) that adequate and reasonable means do not
     exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as
     applicable, for such Interest Period; or

          (b) the Administrative Agent is advised by the Required Lenders (or,
     in the case of a Eurodollar Competitive Loan, the Lender that is required
     to make such Loan) that the Adjusted LIBO Rate or the LIBO Rate, as
     applicable, for such Interest Period will not adequately and fairly reflect
     the cost to such Lenders (or Lender) of making or maintaining their Loans
     (or its Loan) included in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Revolving Borrowing to, or
continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall be
ineffective, (ii) if any Borrowing Request requests a Eurodollar Revolving
Borrowing, such Borrowing shall be made as an ABR Borrowing and (iii) any
request by the Borrower for a Eurodollar Competitive Borrowing shall be
ineffective; provided that (A) if the circumstances giving rise to such notice
do not affect all the Lenders, then requests by the Borrower for Eurodollar
Competitive Borrowings may be made to Lenders that are not affected thereby and
(B) if the circumstances giving rise to such notice affect only one Type of
Borrowings, then the other Type of Borrowings shall be permitted.

          SECTION 2.14. Increased Costs. (a) If any Change in Law shall:

<PAGE>

                                                                              23

          (i) impose, modify or deem applicable any reserve, special deposit or
     similar requirement against assets of, deposits with or for the account of,
     or credit extended by, any Lender (except any such reserve requirement
     reflected in the Adjusted LIBO Rate); or

          (ii) impose on any Lender or the London interbank market any other
     condition affecting this Agreement or Eurodollar Loans or Fixed Rate Loans
     made by such Lender;

and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurodollar Loan or Fixed Rate Loan (or of
maintaining its obligation to make any such Loan) or to reduce the amount of any
sum received or receivable by such Lender hereunder (whether of principal,
interest or otherwise), then the Borrower will pay to such Lender such
additional amount or amounts as will compensate such Lender for such additional
costs incurred or reduction suffered.

          (b) If any Lender determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on such
Lender's capital or on the capital of such Lender's holding company, if any, as
a consequence of this Agreement or the Loans made by, such Lender to a level
below that which such Lender or such Lender's holding company could have
achieved but for such Change in Law (taking into consideration such Lender's
policies and the policies of such Lender's holding company with respect to
capital adequacy), then from time to time the Borrower will pay to such Lender
such additional amount or amounts as will compensate such Lender or such
Lender's holding company for any such reduction suffered. It is acknowledged
that this Agreement is being entered into by the Lenders on the understanding
that the Lenders will not be required to maintain capital against their
Commitments under currently applicable laws, regulations and regulatory
guidelines. In the event the Lenders shall otherwise determine that such
understanding is incorrect, it is agreed that the Lenders will be entitled to
make claims under this paragraph (b) based upon market requirements prevailing
on the date hereof for commitments under comparable credit facilities against
which capital is required to be maintained.

          (c) A certificate of a Lender setting forth in reasonable detail the
amount or amounts necessary to compensate such Lender or its holding company, as
the case may be, as specified in paragraph (a) or (b) of this Section shall be
delivered to the Borrower and shall be conclusive absent manifest error. The
Borrower shall pay such Lender the amount shown as due on any such certificate
within 10 days after receipt thereof.

          (d) Failure or delay on the part of any Lender to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender's right to
demand such compensation; provided that the Borrower shall not be required to
compensate a Lender pursuant to this Section for any increased costs or
reductions incurred more than 270 days prior to the date that such Lender
notifies the Borrower of the Change in Law giving rise to such increased costs
or reductions and of such Lender's intention to claim compensation therefor;
provided further that, if the Change in Law giving rise to such increased costs
or reductions is retroactive, then the 270-day period referred to above shall be
extended to include the period of retroactive effect thereof.

          (e) Notwithstanding the foregoing provisions of this Section, a Lender
shall not be entitled to compensation pursuant to this Section in respect of any
Competitive Loan if the Change in Law that would otherwise entitle it to such
compensation shall have been publicly announced prior to submission of the
Competitive Bid pursuant to which such Loan was made.

          SECTION 2.15. Break Funding Payments. In the event of (a) the payment
of any principal of any Eurodollar Loan or Fixed Rate Loan other than on the
last day of an Interest Period applicable thereto (including as a result of an
Event of Default), (b) the conversion of any Eurodollar Loan other than on the
last day of the Interest Period applicable thereto, (c) the failure to borrow,
convert, continue or prepay any Revolving Loan on the date specified in any
notice

<PAGE>

                                                                              24

delivered pursuant hereto (regardless of whether such notice may be revoked
under Section 2.10(b) and is revoked in accordance therewith), (d) the failure
to borrow any Competitive Loan after accepting the Competitive Bid to make such
Loan, or (e) the assignment of any Eurodollar Loan or Fixed Rate Loan other than
on the last day of the Interest Period applicable thereto as a result of a
request by the Borrower pursuant to Section 2.18, then, in any such event, the
Borrower shall compensate each Lender for the loss, cost and expense
attributable to such event. In the case of a Eurodollar Loan, such loss, cost or
expense to any Lender shall be deemed to include an amount determined by such
Lender to be the excess, if any, of (i) the amount of interest which would have
accrued on the principal amount of such Loan had such event not occurred, at the
Adjusted LIBO Rate that would have been applicable to such Loan, for the period
from the date of such event to the last day of the then current Interest Period
therefor (or, in the case of a failure to borrow, convert or continue, for the
period that would have been the Interest Period for such Loan), over (ii) the
amount of interest which would accrue on such principal amount for such period
at the interest rate which such Lender would bid were it to bid, at the
commencement of such period, for dollar deposits of a comparable amount and
period from other banks in the eurodollar market. A certificate of any Lender
setting forth in reasonable detail any amount or amounts that such Lender is
entitled to receive pursuant to this Section shall be delivered to the Borrower
and shall be conclusive absent manifest error. The Borrower shall pay such
Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.

          SECTION 2.16. Taxes. (a) Any and all payments by or on account of any
obligation of the Borrower hereunder shall be made free and clear of and without
deduction for any Indemnified Taxes or Other Taxes; provided that if the
Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent or Lender
(as the case may be) receives an amount equal to the sum it would have received
had no such deductions been made, (ii) the Borrower shall make such deductions
and (iii) the Borrower shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

          (b) In addition, the Borrower shall pay any Other Taxes to the
relevant Governmental Authority in accordance with applicable law.

          (c) The Borrower shall indemnify the Administrative Agent and each
Lender within 10 days after written demand therefor, for the full amount of any
Indemnified Taxes or Other Taxes paid by the Administrative Agent or such
Lender, as the case may be, on or with respect to any payment by or on account
of any obligation of the Borrower hereunder (including Indemnified Taxes or
Other Taxes imposed or asserted on or attributable to amounts payable under this
Section) and any penalties, interest and reasonable expenses arising therefrom
or with respect thereto, whether or not such Indemnified Taxes or Other Taxes
were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate in reasonable detail as to the amount of such payment
or liability delivered to the Borrower by a Lender, or by the Administrative
Agent on its own behalf or on behalf of a Lender, shall be conclusive absent
manifest error.

          (d) As soon as practicable after any payment of Indemnified Taxes or
Other Taxes by the Borrower to a Governmental Authority, the Borrower shall
deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, a copy of
the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

          (e) Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which the
Borrower is located, or any treaty to which such jurisdiction is a party, with
respect to payments under this Agreement shall deliver to the Borrower (with a
copy to the Administrative Agent), at the time or times prescribed by

<PAGE>

                                                                              25

applicable law, such properly completed and executed documentation prescribed by
applicable law or reasonably requested by the Borrower as will permit such
payments to be made without withholding or at a reduced rate.

          SECTION 2.17. Payments Generally; Pro Rata Treatment; Sharing of
Set-offs. (a) The Borrower shall make each payment required to be made by it
hereunder (whether of principal, interest, fees or of amounts payable under
Section 2.14, 2.15 or 2.16, or otherwise) prior to 12:00 noon, New York City
time, on the date when due, in immediately available funds, without set-off or
counterclaim. Any amounts received after such time on any date may, in the
discretion of the Administrative Agent, be deemed to have been received on the
next succeeding Business Day for purposes of calculating interest thereon. All
such payments shall be made to the Administrative Agent at its offices at 270
Park Avenue, New York, New York, except that payments pursuant to Sections 2.14,
2.15, 2.16 and 9.03 shall be made directly to the Persons entitled thereto. The
Administrative Agent shall distribute any such payments received by it for the
account of any other Person to the appropriate recipient promptly following
receipt thereof. If any payment hereunder shall be due on a day that is not a
Business Day, the date for payment shall be extended to the next succeeding
Business Day, and, in the case of any payment accruing interest, interest
thereon shall be payable for the period of such extension. All payments
hereunder shall be made in dollars.

          (b) (i) If at any time insufficient funds are received by and
available to the Administrative Agent to pay fully all amounts of principal,
interest and fees then due hereunder, such funds shall be applied (x) first,
towards payment of interest and fees then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of interest and fees
then due to such parties, and (y) second, towards payment of principal then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of principal then due to such parties.

          (ii) For purposes of determining the available Commitments of the
Lenders at any time, each outstanding Competitive Borrowing shall be deemed to
have utilized the Commitments of the Lenders (including those Lenders which
shall not have made Loans as part of such Competitive Borrowing) pro rata in
accordance with such respective Commitments.

          (c) If any Lender shall, by exercising any right of set-off or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Revolving Loans resulting in such Lender receiving
payment of a greater proportion of the aggregate amount of its Revolving Loans
and accrued interest thereon than the proportion received by any other Lender,
then the Lender receiving such greater proportion shall purchase (for cash at
face value) participations in the Revolving Loans of other Lenders to the extent
necessary so that the benefit of all such payments shall be shared by the
Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Revolving Loans; provided that (i) if any
such participations are purchased and all or any portion of the payment giving
rise thereto is recovered, such participations shall be rescinded and the
purchase price restored to the extent of such recovery, without interest, and
(ii) the provisions of this paragraph shall not be construed to apply to any
payment made by the Borrower pursuant to and in accordance with the express
terms of this Agreement or any payment obtained by a Lender as consideration for
the assignment of or sale of a participation in any of its Loans to any assignee
or participant, other than to the Borrower or any Subsidiary or Affiliate
thereof (as to which the provisions of this paragraph shall apply). The Borrower
consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the
foregoing arrangements may exercise against the Borrower rights of set-off and
counterclaim with respect to such participation as fully as if such Lender were
a direct creditor of the Borrower in the amount of such participation.

          (d) Unless the Administrative Agent shall have received notice from
the Borrower prior to the date on which any payment is due to the Administrative
Agent for the

<PAGE>

                                                                              26

account of the Lenders hereunder that the Borrower will not make such payment,
the Administrative Agent may assume that the Borrower has made such payment on
such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders the amount due. In such event, if the Borrower has not
in fact made such payment, then each of the Lenders severally agrees to repay to
the Administrative Agent forthwith on demand the amount so distributed to such
Lender with interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the greater of the Federal Funds Effective Rate and a
rate determined by the Administrative Agent in accordance with banking industry
rules on interbank compensation.

          (e) If any Lender shall fail to make any payment required to be made
by it pursuant to Section 2.06(b) or 2.17(d), then the Administrative Agent may,
in its discretion (notwithstanding any contrary provision hereof), apply any
amounts thereafter received by the Administrative Agent for the account of such
Lender to satisfy such Lender's obligations under such Sections until all such
unsatisfied obligations are fully paid.

          SECTION 2.18. Mitigation Obligations; Replacement of Lenders. (a) If
any Lender requests compensation under Section 2.14, or if the Borrower is
required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.16, then such
Lender shall use reasonable efforts to designate a different lending office for
funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment
of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 2.14 or 2.16, as the case may be, in the
future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. The Borrower
hereby agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

          (b) If any Lender requests compensation under Section 2.14, or if the
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.16,
or if any Lender defaults in its obligation to fund Loans hereunder, then the
Borrower may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in
Section 9.04), all its interests, rights and obligations under this Agreement
(other than any outstanding Competitive Loans held by it) to an assignee that
shall assume such obligations (which assignee may be another Lender, if a Lender
accepts such assignment); provided that (i) the Borrower shall have received the
prior written consent of the Administrative Agent, which consent shall not
unreasonably be withheld, (ii) such Lender shall have received payment of an
amount equal to the outstanding principal of its Loans (other than Competitive
Loans), accrued interest thereon, accrued fees and all other amounts payable to
it hereunder, from the assignee (to the extent of such outstanding principal and
accrued interest and fees) or the Borrower (in the case of all other amounts)
and (iii) in the case of any such assignment resulting from a claim for
compensation under Section 2.14 or payments required to be made pursuant to
Section 2.16, such assignment will result in a reduction in such compensation or
payments. A Lender shall not be required to make any such assignment and
delegation if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling the Borrower to require such assignment
and delegation cease to apply.

<PAGE>

                                                                              27

                                   ARTICLE III

                         Representations and Warranties

          The Borrower represents and warrants to the Lenders that:

          SECTION 3.01. Organization; Powers. Each of the Borrower and its
Subsidiaries is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization, has all requisite power and
authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business in,
and is in good standing in, every jurisdiction where such qualification is
required.

          SECTION 3.02. Authorization; Enforceability. The Transactions are
within the Borrower's or Guarantor's, as the case may be, corporate powers and
have been duly authorized by all necessary corporate and, if required,
stockholder action. Each of the Loan Documents has been duly executed and
delivered by the Borrower or the Guarantors, as applicable, and constitutes a
legal, valid and binding obligation of the Borrower or the Guarantors, as
applicable, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors' rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law.

          SECTION 3.03. Governmental Approvals; No Conflicts. The Transactions
(a) do not require any consent or approval of, registration or filing with, or
any other action by, any Governmental Authority, except such as have been
obtained or made and are in full force and effect, (b) will not violate any
applicable law or regulation or the charter, by-laws or other organizational
documents of the Borrower or any of its Subsidiaries or any order of any
Governmental Authority, (c) will not violate or result in a default under any
indenture, agreement or other instrument binding upon the Borrower or any of its
Subsidiaries or its assets, or give rise to a right thereunder to require any
payment to be made by the Borrower or any of its Subsidiaries, and (d) will not
result in the creation or imposition of any Lien on any asset of the Borrower or
any of its Subsidiaries.

          SECTION 3.04. Financial Condition: No Material Adverse Change. (a) The
Borrower has heretofore furnished to the Lenders its consolidated balance sheet
and statements of income, stockholders equity and cash flows (i) as of and for
the fiscal year ended December 31, 2001, reported on by Ernst & Young LLP,
independent public accountants, and (ii) as of and for the fiscal quarter and
the portion of the fiscal year ended June 30, 2002, certified by its chief
financial officer. Such financial statements present fairly, in all material
respects, the financial position and results of operations and cash flows of the
Borrower and its consolidated Subsidiaries as of such dates and for such periods
in accordance with GAAP, subject to year-end audit adjustments and the absence
of footnotes in the case of the statements referred to in clause (ii) above.

          (b) Since December 31, 2001, there has been no material adverse change
in the business, assets, operations, prospects or condition, financial or
otherwise, of the Borrower and its Subsidiaries, taken as a whole.

          SECTION 3.05. Properties. (a) Each of the Borrower and its
Subsidiaries has good title to, or valid leasehold interests in, all its real
and personal property material to its business, except for minor defects in
title that do not interfere with its ability to conduct its business as
currently conducted or to utilize such properties for their intended purposes.

          (b) Each of the Borrower and its Subsidiaries owns, or is licensed to
use, all trademarks, tradenames, copyrights, patents and other intellectual
property material to its business, and the use thereof by the Borrower and its
Subsidiaries does not infringe upon the

<PAGE>

                                                                              28

rights of any other Person, except for any such infringements that, individually
or in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect.

          SECTION 3.06. Litigation and Environmental Matters. (a) There are no
actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Borrower, threatened
against or affecting the Borrower or any of its Subsidiaries (i) as to which
there is a reasonable possibility of an adverse determination and that, if
adversely determined, could reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect (other than the Disclosed
Matters) or (ii) that involve this Agreement or the Transactions.

          (b) Except for the Disclosed Matters and except with respect to any
other matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, neither the Borrower nor any of
its Subsidiaries (i) has failed to comply with any Environmental Law or to
obtain, maintain or comply with any permit, license or other approval required
under any Environmental Law, (ii) has become subject to any Environmental
Liability, (iii) has received notice of any claim with respect to any
Environmental Liability or (iv) knows of any basis for any Environmental
Liability.

          (c) Since the date of this Agreement, there has been no change in the
status of the Disclosed Matters that, individually or in the aggregate, has
resulted in, or materially increased the likelihood of, a Material Adverse
Effect.

          SECTION 3.07. Compliance with Laws and Agreements. The Borrower and
each Subsidiary is in compliance with all laws, regulations and orders of any
Governmental Authority applicable to it or its property and all indentures,
agreements and other instruments binding upon it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect. No Default has occurred and is
continuing.

          SECTION 3.08. Investment and Holding Company Status. Neither the
Borrower nor any of its Subsidiaries is (a) an "investment company" as defined
in, or subject to regulation under, the Investment Company Act of 1940 or (b) a
"holding company" as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935.

          SECTION 3.09. Taxes. The Borrower and each Subsidiary has timely filed
or caused to be filed all Tax returns and reports required to have been filed
and has paid or caused to be paid all Taxes required to have been paid by it,
except (a) Taxes that are being contested in good faith by appropriate
proceedings and for which the Borrower or such Subsidiary, as applicable, has
set aside on its books adequate reserves in accordance with GAAP and (b) to the
extent that the failure to do so could not reasonably be expected to result in a
Material Adverse Effect.

          SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events for
which liability is reasonably expected to occur, could reasonably be expected to
result in a Material Adverse Effect. The present value of all accumulated
benefit obligations under each Plan (based on the assumptions used for purposes
of Statement of Financial Accounting Standards No. 87) did not, as of the date
of the most recent financial statements reflecting such amounts, exceed by more
than $20,000,000 the fair market value of the assets of such Plan, and the
present value of all accumulated benefit obligations of all underfunded Plans
(based on the assumptions used for purposes of Statement of Financial Accounting
Standards No. 87) did not, as of the date of the most recent financial
statements reflecting such amounts, exceed by more than $25,000,000 the fair
market value of the assets of all such underfunded Plans.

<PAGE>

                                                                              29

          SECTION 3.11. Disclosure. Neither the Information Memorandum nor any
of the other reports, financial statements, certificates or other information
furnished by or on behalf of the Borrower to the Administrative Agent or any
Lender in connection with the negotiation of this Agreement or delivered
hereunder (as modified or supplemented by other information so furnished)
contains any material misstatement of fact or omits to state any material fact
necessary to make the statements therein, in the light of the circumstances
under which they were made, when taken as a whole, not misleading; provided
that, with respect to projected financial information, the Borrower represents
only that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time.

          SECTION 3.12. Use of Proceeds. Neither the Borrower nor any Subsidiary
is engaged principally, or as one of its important activities, in the business
of extending credit for the purpose, whether immediate, incidental or ultimate,
of buying or carrying margin stock (within the meaning of Regulation T, U or X
of the Board) and no part of the proceeds of any Loan will be used to buy or
carry any margin stock.

          SECTION 3.13. Subsidiaries. Schedule 3.13 contains an accurate list of
all of the material Subsidiaries of the Borrower on the date hereof, setting
forth their respective jurisdictions of organization and the percentage of their
respective ownership interest held by the Borrower or other Subsidiaries. All of
the issued and outstanding shares of capital stock of such material Subsidiaries
have been duly authorized and issued and are fully paid and non-assessable.

                                   ARTICLE IV

                                   Conditions

          SECTION 4.01. Effective Date. The obligations of the Lenders to make
Loans hereunder shall not become effective until the date on which each of the
following conditions is satisfied (or waived in accordance with Section 9.02):

          (a) The Administrative Agent (or its counsel) shall have received from
     each party hereto either (i) a counterpart of this Agreement signed on
     behalf of such party or (ii) written evidence satisfactory to the
     Administrative Agent (which may include telecopy transmission of a signed
     signature page of this Agreement) that such party has signed a counterpart
     of this Agreement.

          (b) The Administrative Agent (or its counsel) shall have received from
     each Guarantor either (i) a counterpart of each of the Guarantee Agreement
     and the Contribution Agreement signed on behalf of such party or (ii)
     written evidence satisfactory to the Administrative Agent (which may
     include telecopy transmission of a signed signature page of each of the
     Guarantee Agreement and the Contribution Agreement) that such party has
     signed a counterpart of the Guarantee Agreement and the Contribution
     Agreement.

          (c) The Administrative Agent shall have received favorable written
     opinions (addressed to the Administrative Agent and the Lenders and dated
     the Effective Date) of Bill Hawkins, Esq., General Counsel of the Borrower
     substantially in the form of Exhibit B, and covering such other matters
     relating to the Borrower, this Agreement or the Transactions as the
     Required Lenders shall reasonably request. The Borrower hereby requests
     such counsel to deliver such opinions.

          (d) The Administrative Agent shall have received such documents and
     certificates as the Administrative Agent or its counsel may reasonably
     request relating to

<PAGE>

                                                                              30

     the organization, existence and good standing of the Borrower and the
     Guarantors, the authorization of the Transactions and any other legal
     matters relating to the Borrower and the Guarantors, the Loan Documents or
     the Transactions, all in form and substance reasonably satisfactory to the
     Administrative Agent and its counsel.

          (e) The Administrative Agent shall have received a certificate, dated
     the Effective Date and signed by the President, a Vice President or a
     Financial Officer of the Borrower, confirming compliance with the
     conditions set forth in paragraphs (a) and (b) of Section 4.02.

          (f) The Administrative Agent shall have received all fees and other
     amounts due and payable on or prior to the Effective Date, including, to
     the extent invoiced, reimbursement or payment of all out-of-pocket expenses
     required to be reimbursed or paid by the Borrower hereunder.

          (g) There shall be no litigation or administrative proceeding that
     would reasonably be expected to have a Material Adverse Effect.

          (h) The Lenders shall have received three-year projections for the
     Borrower.

          (i) All loans outstanding under the Existing Credit Agreements shall
     have been repaid, together with accrued interest and facility fees due
     thereunder, and the Existing Credit Agreements shall have been terminated.

The Administrative Agent shall notify the Borrower and the Lenders of the
Effective Date, and such notice shall be conclusive and binding. Notwithstanding
the foregoing, the obligations of the Lenders to make Loans hereunder shall not
become effective unless each of the foregoing conditions is satisfied (or waived
pursuant to Section 9.02) at or prior to 5:00 p.m., New York City time, on
August 15, 2002 (and, in the event such conditions are not so satisfied or
waived, the Commitments shall terminate at such time).

          SECTION 4.02. Each Credit Event. The obligation of each Lender to make
a Loan on the occasion of any Borrowing is subject to the satisfaction of the
following conditions:

          (a) The representations and warranties of the Borrower set forth in
     this Agreement shall be true and correct on and as of the date of such
     Borrowing.

          (b) At the time of and immediately after giving effect to such
     Borrowing, no Default shall have occurred and be continuing.

          (c) After giving effect to such Borrowing, the aggregate amount of
     such Borrowing, together with all other short term and medium term
     borrowings by the Borrower (whether under this Agreement or otherwise),
     will not exceed the aggregate amount of short term and medium term
     borrowings authorized by the resolutions of the Board of Directors of the
     Borrower.

Each Borrowing shall be deemed to constitute a representation and warranty by
the Borrower on the date thereof as to the matters specified in paragraphs (a),
(b) and (c) of this Section.

<PAGE>

                                                                              31

                                    ARTICLE V

                              Affirmative Covenants

<PAGE>

                                                                              32

          Until the Commitments have expired or been terminated in whole and the
principal of and interest on each Loan and all fees payable hereunder shall have
been paid in full, the Borrower covenants and agrees with the Lenders that:

          SECTION 5.01. Financial Statements and Other Information. The Borrower
will furnish to the Administrative Agent and each Lender:

          (a) within 90 days after the end of each fiscal year of the Borrower,
     its audited consolidated balance sheet and related statements of
     operations, stockholders' equity and cash flows as of the end of and for
     such year, setting forth in each case in comparative form the figures for
     the previous fiscal year, all reported on by Ernst & Young LLP or other
     independent public accountants of recognized national standing (without a
     "going concern" or like qualification or exception and without any
     qualification or exception as to the scope of such audit) to the effect
     that such consolidated financial statements present fairly in all material
     respects the financial condition and results of operations of the Borrower
     and its consolidated Subsidiaries on a consolidated basis in accordance
     with GAAP consistently applied;

          (b) within 45 days after the end of each of the first three fiscal
     quarters of each fiscal year of the Borrower, its consolidated balance
     sheet and related statements of operations, stockholders' equity and cash
     flows as of the end of and for such fiscal quarter and the then elapsed
     portion of the fiscal year, setting forth in each case in comparative form
     the figures for the corresponding period or periods of (or, in the case of
     the balance sheet, as of the end of) the previous fiscal year, all
     certified by one of its Financial Officers as presenting fairly in all
     material respects the financial condition and results of operations of the
     Borrower and its consolidated Subsidiaries on a consolidated basis in
     accordance with GAAP consistently applied, subject to normal year-end audit
     adjustments and the absence of footnotes;

          (c) concurrently with any delivery of financial statements under
     clause (a) or (b) above, a certificate of a Financial Officer of the
     Borrower (i) certifying as to whether a Default has occurred and, if a
     Default has occurred, specifying the details thereof and any action taken
     or proposed to be taken with respect thereto, (ii) setting forth reasonably
     detailed calculations demonstrating compliance with Sections 6.06 and 6.07
     and (iii) stating whether any change in GAAP or in the application thereof
     has occurred since the date of the audited financial statements referred to
     in Section 3.04 and, if any such change has occurred, specifying the effect
     of such change on the financial statements accompanying such certificate;

          (d) promptly after the same become publicly available, copies of all
     periodic and other reports and proxy statements filed by the Borrower or
     any Subsidiary with the Securities and Exchange Commission, or any
     Governmental Authority succeeding to any or all of the functions of said
     Commission, or with any national securities exchange, or distributed by the
     Borrower to its shareholders generally, as the case may be;

          (e) promptly after Moody's or S&P shall have announced a change in the
     rating established or deemed to have been established for the Index Debt,
     written notice of such rating change; and

          (f) promptly following any request therefor, such other information
     regarding the operations, business affairs and financial condition of the
     Borrower or any Subsidiary, or compliance with the terms of this Agreement,
     as the Administrative Agent or any Lender may reasonably request.

          SECTION 5.02. Notices of Material Events. The Borrower will furnish to
the Administrative Agent and each Lender prompt written notice of the following:

<PAGE>

                                                                              33

          (a) the occurrence of any Default;

          (b) the filing or commencement of any action, suit or proceeding by or
     before any arbitrator or Governmental Authority against or affecting the
     Borrower or any Affiliate thereof that, if adversely determined, could
     reasonably be expected to result in a Material Adverse Effect;

          (c) the occurrence of any ERISA Event that, alone or together with any
     other ERISA Events that have occurred, could reasonably be expected to
     result in liability of the Borrower and its Subsidiaries in an aggregate
     amount exceeding $20,000,000;

          (d) any change in the date of its fiscal year end; and

          (e) any other development that results in, or could reasonably be
     expected to result in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of the Borrower setting forth the
details of the event or development requiring such notice and any action taken
or proposed to be taken with respect thereto.

          SECTION 5.03. Existence; Conduct of Business. The Borrower will, and
will cause each of the Subsidiaries to, do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its legal
existence and the rights, licenses, permits, privileges and franchises material
to the conduct of its business; provided that the foregoing shall not prohibit
any merger, consolidation, liquidation or dissolution permitted under Section
6.03.

          SECTION 5.04. Payment of Obligations. The Borrower will, and will
cause each of the Subsidiaries to, pay its obligations, including Tax
liabilities, that, if not paid, could result in a Material Adverse Effect before
the same shall become delinquent or in default, except where (a) the validity or
amount thereof is being contested in good faith by appropriate proceedings, (b)
the Borrower or such Subsidiary has set aside on its books adequate reserves
with respect thereto in accordance with GAAP and (c) the failure to make payment
pending such contest could not reasonably be expected to result in a Material
Adverse Effect.

          SECTION 5.05. Maintenance of Properties; Insurance. The Borrower will,
and will cause each of the Subsidiaries to, (a) keep and maintain all property
material to the conduct of its business in good working order and condition,
ordinary wear and tear excepted, and (b) maintain, with financially sound and
reputable insurance companies, insurance in such amounts and against such risks
as are customarily maintained by companies engaged in the same or similar
businesses operating in the same or similar locations.

          SECTION 5.06. Books and Records; Inspection Rights. The Borrower will,
and will cause each of the Subsidiaries to, keep proper books of record and
account in which full, true and correct entries are made of all dealings and
transactions in relation to its business and activities. The Borrower will, and
will cause each of the Subsidiaries to, permit any representatives designated by
the Administrative Agent or any Lender, upon reasonable prior notice, to visit
and inspect its properties, to examine and make extracts from its books and
records, and to discuss its affairs, finances and condition with its officers
and independent accountants, all at such reasonable times and as often as
reasonably requested.

          SECTION 5.07. Compliance with Laws. The Borrower will, and will cause
each of the Subsidiaries to, comply with all laws, rules, regulations and orders
of any Governmental Authority applicable to it or its property, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

<PAGE>

                                                                              34

          SECTION 5.08. Use of Proceeds. The proceeds of the Loans will be used
only for general corporate purposes (including working capital needs,
refinancing Indebtedness, providing commercial paper back-up and financing
acquisitions that are approved by the board of directors, or other governing
body, of the target entity before the acquiror commences a tender offer, proxy
solicitation or similar action with respect to the target's voting capital
stock). No part of the proceeds of any Loan will be used, whether directly or
indirectly, for any purpose that entails a violation of any of the Regulations
of the Board, including Regulations U and X.

          SECTION 5.09. Future Guarantors. The Borrower will promptly cause each
(a) direct Subsidiary not in existence (or not a direct Subsidiary) on the date
hereof and (b) indirect Subsidiary not in existence (or not an indirect
Subsidiary or not an indirect Subsidiary that has incurred the type of
Indebtedness described below) on the date hereof that has created, incurred or
permitted to exist any Indebtedness (other than (i) Intercompany Indebtedness,
(ii) Indebtedness of the type described in clauses (d), (e) and (h) of the
definition of "Indebtedness" and (iii) Indebtedness of Non-US Subsidiaries in a
principal amount at any time not greater than $10,000,000 for any Non-US
Subsidiary and not greater than $30,000,000 in aggregate, or the equivalent of
either such amount in one or more foreign currencies), in each case to become a
party to the Guarantee Agreement and the Contribution Agreement and to assume
all of the obligations of a Guarantor under each such agreement.

                                   ARTICLE VI

                               Negative Covenants

          Until the Commitments have expired or terminated in whole and the
principal of and interest on each Loan and all fees payable hereunder have been
paid in full, the Borrower covenants and agrees with the Lenders that:

          SECTION 6.01. Liens. The Borrower will not, and will not permit any
Subsidiary to, create, incur, assume or permit to exist any Lien on any property
or asset now owned or hereafter acquired by it, or assign or sell any income or
revenues (including accounts receivable) or rights in respect of any thereof,
except:

          (a) Permitted Encumbrances;

          (b) any Lien on any property or asset of the Borrower or any
     Subsidiary existing on the date hereof; provided that (i) such Lien shall
     not apply to any other property or asset of the Borrower or any Subsidiary,
     (ii) such Lien shall secure only those obligations which it secures on the
     date hereof and extensions, renewals and replacements thereof that do not
     increase the outstanding principal amount thereof and (iii) all such Liens
     secure obligations having an aggregate principal amount not exceeding at
     any time $10,000,000;

          (c) any Lien existing on any property or asset prior to the
     acquisition thereof by the Borrower or any Subsidiary or existing on any
     property or asset of any Person that becomes a Subsidiary after the date
     hereof prior to the time such Person becomes a Subsidiary; provided that
     (i) such Lien is not created in contemplation of or in connection with such
     acquisition or such Person becoming a Subsidiary, as the case may be, (ii)
     such

<PAGE>

                                                                              35

     Lien shall not apply to any other property or assets of the Borrower or any
     Subsidiary and (iii) such Lien shall secure only those obligations which it
     secures on the date of such acquisition or the date such Person becomes a
     Subsidiary, as the case may be and extensions, renewals and replacements
     thereof that do not increase the outstanding principal amount thereof;

          (d) Liens on fixed or capital assets acquired, constructed or improved
     by the Borrower or any Subsidiary; provided that (i) such security
     interests and the Indebtedness secured thereby are incurred prior to or
     within 90 days after such acquisition or the completion of such
     construction or improvement, (ii) the Indebtedness secured thereby does not
     exceed 90% of the cost of acquiring, constructing or improving such fixed
     or capital assets and (iii) such security interests shall not apply to any
     other property or assets of the Borrower or any Subsidiary; and

          (e) sales of accounts receivable and undivided interests therein under
     Receivables Purchase Facilities, and security interests in accounts
     receivable securing obligations under Receivables Lending Facilities, but
     only to the extent that the sum of (i) the aggregate amount paid by the
     purchasers under all Receivables Purchase Facilities that has not yet been
     recovered from collections on accounts receivables or otherwise paid by the
     Borrower and (ii) the aggregate principal amount of Indebtedness
     outstanding under all Receivables Lending Facilities, shall not exceed
     $250,000,000 at any time.

          SECTION 6.02. Sale and Lease-Back Transactions. The Borrower will not,
and will not permit any of its Subsidiaries to, enter into any arrangement,
directly or indirectly, with any Person whereby it shall sell or transfer any
property used or useful in its business, whether now owned or hereafter
acquired, and thereafter rent or lease such property or other property which it
intends to use for substantially the same purpose or purposes as the property
being sold or transferred, except to the extent the aggregate sales price for
the assets transferred in all such arrangements in effect at any time does not
exceed $25,000,000.

          SECTION 6.03. Fundamental Changes. (a) The Borrower will not, and will
not permit any Subsidiary to, merge into or consolidate with any other Person,
or permit any other Person to merge into or consolidate with it, or sell,
transfer, lease or otherwise dispose of (in one transaction or in a series of
transactions) all or substantially all of its assets, or all or substantially
all of the stock of any of its Subsidiaries (in each case, whether now owned or
hereafter acquired), or liquidate or dissolve, except that, if at the time
thereof and immediately after giving effect thereto no Default shall have
occurred and be continuing (i) any Subsidiary may merge into the Borrower in a
transaction in which the Borrower is the surviving corporation, (ii) any
Subsidiary may merge into any Subsidiary in a transaction in which the surviving
entity is a Subsidiary, (iii) any Subsidiary may sell, transfer, lease or
otherwise dispose of its assets to the Borrower or to another Subsidiary and
(iv) any Subsidiary may liquidate or dissolve if the Borrower determines in good
faith that such liquidation or dissolution is in the best interests of the
Borrower and is not materially disadvantageous to the Lenders.

          (b) The Borrower will not, and will not permit any of its Subsidiaries
to, engage to any material extent in any business other than businesses of the
type conducted by the Borrower and its Subsidiaries on the date of execution of
this Agreement and businesses reasonably related thereto.

          SECTION 6.04. Transactions with Affiliates. The Borrower will not, and
will not permit any of its Subsidiaries to, sell, lease or otherwise transfer
any property or assets to, or purchase, lease or otherwise acquire any property
or assets from, or otherwise engage in any other transactions with, any of its
Affiliates, except (a) in the ordinary course of business at prices and on terms
and conditions not less favorable to the Borrower or such Subsidiary than could
be obtained on an arm's-length basis from unrelated third parties, (b)
transactions between or among the Borrower and its Subsidiaries not involving
any other Affiliate and (c) dividends or other

<PAGE>

                                                                              36

distributions (whether in cash, securities or other property) with respect to
any shares of any class of capital stock of the Borrower or any Subsidiary, or
any payment (whether in cash, securities or other property), including any
sinking fund or similar deposit, on account of the purchase, redemption,
retirement, acquisition, cancelation or termination of any such shares of
capital stock of the Borrower or any option, warrant or other right to acquire
any such shares of capital stock of the Borrower.

          SECTION 6.05. Restrictive Agreements. The Borrower will not, and will
not permit any of its Subsidiaries to, directly or indirectly, enter into, incur
or permit to exist any agreement or other arrangement that prohibits, restricts
or imposes any condition upon the ability of any Subsidiary to pay dividends or
other distributions with respect to any shares of its capital stock or to make
or repay loans or advances to the Borrower or any other Subsidiary or to
Guarantee Indebtedness of the Borrower or any other Subsidiary; provided that
(i) the foregoing shall not apply to restrictions and conditions imposed by law
or by this Agreement and (ii) the foregoing shall not apply to restrictions and
conditions existing on the date hereof identified on Schedule 6.05 (but shall
apply to any extension or renewal of, or any amendment or modification expanding
the scope of, any such restriction or condition).

          SECTION 6.06. Interest Coverage Ratio. The Borrower will not permit
the ratio of (a) Consolidated EBITDA to (b) Consolidated Interest Expense, in
each case for any period of four consecutive fiscal quarters, to be less than
4.0 to 1.00.

          SECTION 6.07. Consolidated Total Debt to Consolidated Total
Capitalization Ratio. The Borrower will not permit the ratio of (a) Consolidated
Total Debt to (b) Consolidated Total Capitalization, in each case at any time,
to be greater than 0.6 to 1.0.

          SECTION 6.08. Hedging Agreements. The Borrower will not, and will not
permit any of the Subsidiaries to, enter into any Hedging Agreement, except (a)
Hedging Agreements entered into to hedge or mitigate risks (including foreign
exchange risks) to which the Borrower or any Subsidiary has actual exposure, and
(b) Hedging Agreements entered into in order to effectively cap, collar or
exchange interest rates (from fixed to floating rates, from one floating rate to
another floating rate, from floating rate to fixed rates or otherwise) interest
rates with respect to any interest-bearing liability or investment of the
Borrower or any Subsidiary.

                                   ARTICLE VII

                                Events of Default

          If any of the following events ("Events of Default") shall occur:

          (a) the Borrower shall fail to pay any principal of any Loan or note
     when and as the same shall become due and payable, whether at the due date
     thereof or at a date fixed for prepayment thereof or otherwise;

          (b) the Borrower shall fail to pay any interest on any Loan or note,
     or any fee or any other amount (other than an amount referred to in clause
     (a) of this Article) payable under this Agreement, when and as the same
     shall become due and payable, and such failure shall continue unremedied
     for a period of three Business Days;

          (c) any representation or warranty made or deemed made by or on behalf
     of the Borrower or any Subsidiary in or in connection with any Loan
     Document or any amendment or modification thereof or waiver thereunder, or
     in any report, certificate, financial statement or other document furnished
     pursuant to or in connection with any Loan Document or any amendment or
     modification thereof or waiver thereunder, shall prove to have been
     incorrect in any material respect when made or deemed made;

<PAGE>

                                                                              37

          (d) the Borrower shall fail to observe or perform any covenant,
     condition or agreement contained in Section 5.02, 5.03 (with respect to the
     Borrower's existence) or 5.08 or in Article VI;

          (e) the Borrower shall fail to observe or perform any covenant,
     condition or agreement contained in this Agreement (other than those
     specified in clause (a), (b) or (d) of this Article), and such failure
     shall continue unremedied for a period of 30 days after notice thereof from
     the Administrative Agent to the Borrower (which notice will be given at the
     request of any Lender);

          (f) the Borrower or any Subsidiary shall fail to make any payment
     (whether of principal or interest and regardless of amount) in respect of
     any Material Indebtedness, when and as the same shall become due and
     payable;

          (g) any event or condition occurs that results in any Material
     Indebtedness becoming due prior to its scheduled maturity or that enables
     or permits (with or without the giving of notice, the lapse of time or
     both) the holder or holders of any Material Indebtedness or any trustee or
     agent on its or their behalf to cause any Material Indebtedness to become
     due, or to require the prepayment, repurchase, redemption or defeasance
     thereof, prior to its scheduled maturity; provided that this clause (g)
     shall not apply to secured Indebtedness that becomes due as a result of the
     voluntary sale or transfer of the property or assets securing such
     Indebtedness;

          (h) an involuntary proceeding shall be commenced or an involuntary
     petition shall be filed seeking (i) liquidation, reorganization or other
     relief in respect of the Borrower or any Subsidiary or its debts, or of a
     substantial part of its assets, under any Federal, state or foreign
     bankruptcy, insolvency, receivership or similar law now or hereafter in
     effect or (ii) the appointment of a receiver, trustee, custodian,
     sequestrator, conservator or similar official for the Borrower or any
     Subsidiary or for a substantial part of its assets, and, in any such case,
     such proceeding or petition shall continue undismissed for 60 days or an
     order or decree approving or ordering any of the foregoing shall be
     entered;

          (i) the Borrower or any Subsidiary shall (i) voluntarily commence any
     proceeding or file any petition seeking liquidation, reorganization or
     other relief under any Federal, state or foreign bankruptcy, insolvency,
     receivership or similar law now or hereafter in effect, (ii) consent to the
     institution of, or fail to contest in a timely and appropriate manner, any
     proceeding or petition described in clause (h) of this Article, (iii) apply
     for or consent to the appointment of a receiver, trustee, custodian,
     sequestrator, conservator or similar official for the Borrower or any
     Subsidiary or for a substantial part of its assets, (iv) file an answer
     admitting the material allegations of a petition filed against it in any
     such proceeding, (v) make a general assignment for the benefit of creditors
     or (vi) take any action for the purpose of effecting any of the foregoing;

          (j) the Borrower or any Subsidiary shall become unable, admit in
     writing its inability or fail generally to pay its debts as they become
     due;

          (k) one or more judgments for the payment of money in an aggregate
     amount in excess of $15,000,000 shall be rendered against the Borrower, any
     Subsidiary or any combination thereof and the same shall remain
     undischarged for a period of 30 consecutive days during which execution
     shall not be effectively stayed, or any action shall be legally taken by a
     judgment creditor to attach or levy upon any assets of the Borrower or any
     Subsidiary to enforce any such judgment;

<PAGE>

                                                                              38

          (1) an ERISA Event shall have occurred that, in the opinion of the
     Required Lenders, when taken together with all other ERISA Events that have
     occurred, could reasonably be expected to result in a Material Adverse
     Effect;

          (m) the Guarantee Agreement or any provision thereof shall be declared
     to be unenforceable or null and void or any Guarantor or any person acting
     by or on behalf of such Guarantor shall deny or disaffirm any of such
     Guarantor's obligations under the Guarantee Agreement or any Guarantor
     shall fail to perform or observe any term, covenant or agreement on its
     part to be performed or observed pursuant to the Guarantee Agreement; or

          (n) a Change in Control shall occur;

          (o) there shall occur any event which constitutes a default, event of
     ineligibility, event of termination or similar event under any Receivables
     Purchase Facility in respect of which the aggregate amount of accounts
     receivable purchased net of the aggregate amount of accounts receivable
     collected exceeds $15,000,000 (a "Material Receivables Purchase Facility"),
     or the Borrower or any subsidiary shall fail to observe or perform any
     term, covenant, condition or agreement contained in any Material
     Receivables Purchase Facility, if, as a result of such event or failure,
     the purchasers thereunder or any agent acting on their behalf shall cause
     or be permitted to cause (any applicable grace or cure period having
     expired) such Material Receivables Purchase Facility or the commitments of
     the purchasers thereunder to terminate or cease to be fully available; or

then, and in every such event (other than an event with respect to the Borrower
described in clause (h) or (i) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Borrower, take either or
both of the following actions, at the same or different times: (i) terminate the
Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable in whole (or in part,
in which case any principal not so declared to be due and payable may thereafter
be declared to be due and payable), and thereupon the principal of the Loans so
declared to be due and payable, together with accrued interest thereon and all
fees and other obligations of the Borrower accrued hereunder, shall become due
and payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Borrower; and in case of any
event with respect to the Borrower described in clause (h) or (i) of this
Article, the Commitments shall automatically terminate and the principal of the
Loans then outstanding, together with accrued interest thereon and all fees and
other obligations of the Borrower accrued hereunder, shall automatically become
due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by the Borrower.

                                  ARTICLE VIII

                            The Administrative Agent

          Each of the Lenders hereby irrevocably appoints the Administrative
Agent as its agent and authorizes the Administrative Agent to take such actions
on its behalf and to exercise such powers as are delegated to the Administrative
Agent by the terms hereof, together with such actions and powers as are
reasonably incidental thereto.

          The bank serving as the Administrative Agent hereunder shall have the
same rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Administrative Agent and such bank
and its Affiliates may accept deposits from, lend money to and generally engage
in any kind of business with the Borrower or any Subsidiary or other Affiliate
thereof as if it were not the Administrative Agent hereunder.

<PAGE>

                                                                              39

          The Administrative Agent shall not have any duties or obligations
except those expressly set forth herein. Without limiting the generality of the
foregoing, (a) neither the Administrative Agent nor any Co-Syndication Agent
shall be subject to any fiduciary or other implied duties, regardless of whether
a Default has occurred and is continuing, (b) the Administrative Agent shall not
have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby
that the Administrative Agent is required to exercise in writing by the Required
Lenders (or such other number or percentage of the Lenders as shall be necessary
under the circumstances as provided in Section 9.02), and (c) except as
expressly set forth herein, the Administrative Agent shall not have any duty to
disclose, and shall not be liable for the failure to disclose, any information
relating to the Borrower or any of its Subsidiaries that is communicated to or
obtained by the bank serving as Administrative Agent or any of its Affiliates in
any capacity. The Administrative Agent shall not be liable for any action taken
or not taken by it with the consent or at the request of the Required Lenders
(or such other number or percentage of the Lenders as shall be necessary under
the circumstances as provided in Section 9.02) or in the absence of its own
gross negligence or wilful misconduct. The Administrative Agent shall be deemed
not to have knowledge of any Default unless and until written notice thereof is
given to the Administrative Agent by the Borrower or a Lender (in which case the
Administrative Agent shall deliver such written notice to the Lenders or the
other Lenders), and the Administrative Agent shall not be responsible for or
have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement, (ii) the contents
of any certificate, report or other document delivered hereunder or in
connection herewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement or any
other agreement, instrument or document, or (v) the satisfaction of any
condition set forth in Article IV or elsewhere herein, other than to confirm
receipt of items expressly required to be delivered to the Administrative Agent.

          The Administrative Agent shall be entitled to rely upon, and shall not
incur any liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed
by it to be made by the proper Person, and shall not incur any liability for
relying thereon. The Administrative Agent may consult with legal counsel (who
may be counsel for the Borrower), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts.

          The Administrative Agent may perform any and all its duties and
exercise its rights and powers by or through any one or more sub-agents
appointed by the Administrative Agent. The Administrative Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the
preceding paragraphs shall apply to any such sub-agent and to the Related
Parties of the Administrative Agent and any such sub-agent, and shall apply to
their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent.

          Subject to the appointment and acceptance of a successor
Administrative Agent as provided in this paragraph, the Administrative Agent may
resign at any time by notifying the Lenders and the Borrower. Upon any such
resignation, the Required Lenders shall have the right, in consultation with the
Borrower, to appoint a successor. If no successor shall have been so appointed
by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Administrative Agent gives notice of its resignation, then
the retiring Administrative Agent may, on behalf of the Lenders, appoint a
successor Administrative Agent which shall be a bank with an office in New York,
New York, or an Affiliate of any such bank. Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such

<PAGE>

                                                                              40

successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring
Administrative Agent shall be discharged from its duties and obligations
hereunder. The fees payable by the Borrower to a successor Administrative Agent
shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrower and such successor. After the Administrative Agent's
resignation hereunder, the provisions of this Article and Section 9.03 shall
continue in effect for the benefit of such retiring Administrative Agent, its
sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while it was acting as Administrative
Agent.

          Each Lender acknowledges that it has, independently and without
reliance upon the Administrative Agent or any other Lender and based on such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any related agreement or any document furnished hereunder or thereunder.

     It is agreed that the Co-Syndication Agents and Co-Documentation Agents
shall, in their capacities as such, have no duties or responsibilities under
this Agreement.

                                   ARTICLE IX

                                  Miscellaneous

          SECTION 9.01. Notices. Except in the case of notices and other
communications expressly permitted to be given by telephone, all notices and
other communications provided for herein or in any other Loan Document shall be
in writing and shall be delivered by hand or overnight courier service, mailed
by certified or registered mail or sent by telecopy, as follows:

          (a) if to the Borrower, to it at Atrium One, 201 E. Fourth Street,
     102-1910, P.O. Box 1638, Cincinnati, Ohio 45201, Attention of William
     Coleman (Telecopy No. (513) 723-6556);

          (b) if to the Administrative Agent, to JPMorgan Chase Bank, Loan and
     Agency Services Group, One Chase Manhattan Plaza, 8th Floor, New York, New
     York 10081, Attention of Janet Belden (Telecopy No. (212) 552-5658), with a
     copy to JPMorgan Chase Bank, 270 Park Avenue, New York 10017, Attention of
     Constance Coleman (Telecopy No. (212) 270-4584); and

          (c) if to any other Lender, to it at its address (or telecopy number)
     set forth in its Administrative Questionnaire.

Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and
other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of receipt.

          SECTION 9.02. Waivers; Amendments. (a) No failure or delay by the
Administrative Agent or any Lender in exercising any right or power hereunder or
under any other Loan Document shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power.

<PAGE>

                                                                              41

The rights and remedies of the Administrative Agent and the Lenders hereunder
and under any other Loan Document are cumulative and are not exclusive of any
rights or remedies that they would otherwise have. No waiver of any provision of
this Agreement or any other Loan Document or consent to any departure by the
Borrower therefrom shall in any event be effective unless the same shall be
permitted by paragraph (b) of this Section, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which
given. Without limiting the generality of the foregoing, the making of a Loan
shall not be construed as a waiver of any Default, regardless of whether the
Administrative Agent or any Lender may have had notice or knowledge of such
Default at the time.

          (b) Neither this Agreement nor any other Loan Document nor any
provision hereof or thereof may be waived, amended or modified except pursuant
to an agreement or agreements in writing entered into by the Borrower and the
Required Lenders or by the Borrower and the Administrative Agent with the
consent of the Required Lenders; provided that no such agreement shall (i)
increase the Commitment of any Lender, including pursuant to Section 2.05,
without the written consent of such Lender, (ii) reduce the principal amount of
any Loan or reduce the rate of interest thereon, or reduce any fees payable
hereunder, without the written consent of each Lender affected thereby, (iii)
postpone the scheduled date of payment of the principal amount of any Loan, or
any interest thereon, or any fees payable hereunder, or reduce the amount of,
waive or excuse any such payment, or postpone the Maturity Date or the scheduled
date of expiration of any Commitment, without the written consent of each Lender
affected thereby, (iv) change Section 2.17(b) or (c) in a manner that would
alter the pro rata sharing of payments required thereby, without the written
consent of each Lender, (v) change any of the provisions of this Section or the
definition of "Required Lenders" or any other provision hereof specifying the
number or percentage of Lenders required to waive, amend or modify any rights
hereunder or make any determination or grant any consent hereunder or (vi)
release any Guarantor from its Guarantee obligations under the Guarantee
Agreement, or limit its liability in respect of such Guarantee obligations,
without the written consent of each Lender; provided further that no such
agreement shall amend, modify or otherwise affect the rights or duties of the
Administrative Agent hereunder without the prior written consent of the
Administrative Agent.

          SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The Borrower
shall pay (i) all reasonable out-of-pocket expenses incurred by the Agents and
their Affiliates, including the reasonable fees, charges and disbursements of
counsel for the Agents, in connection with the syndication of the credit
facilities provided for herein, the preparation and administration of the Loan
Documents or any amendments, modifications or waivers of the provisions thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated) and (ii) all out-of-pocket expenses incurred by the Agents or any
Lender, including the fees, charges and disbursements of any counsel for the
Agents or any Lender, in connection with the enforcement or protection of its
rights in connection with the Loan Documents, including its rights under this
Section, or in connection with the Loans made hereunder, including all such
out-of-pocket expenses incurred during any workout, restructuring or
negotiations in respect of such Loans.

          (b) The Borrower shall indemnify the Agents and each Lender, and each
Related Party of any of the foregoing Persons (each such Person being called an
"Indemnitee") against, and hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related expenses, including the fees,
charges and disbursements of any counsel for any Indemnitee, incurred by or
asserted against any Indemnitee arising out of, in connection with, or as a
result of (i) the execution or delivery of any Loan Document or any agreement or
instrument contemplated thereby, the performance by the parties thereto of their
respective obligations thereunder or the consummation of the Transactions or any
other transactions contemplated thereby, (ii) any Loan or the use of the
proceeds therefrom, (iii) any actual or alleged presence or release of Hazardous
Materials on or from any property owned or operated by the Borrower or any of
its Subsidiaries, or any Environmental Liability related in any way to the
Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless

<PAGE>

                                                                              42

of whether any Indemnitee is a party thereto; provided that such indemnity shall
not, as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or wilful misconduct of such Indemnitee.

          (c) To the extent that the Borrower fails to pay any amount required
to be paid by it to any Agent under paragraph (a) or (b) of this Section, each
Lender severally agrees to pay to such Agent such Lender's Applicable Percentage
(determined as of the time that the applicable unreimbursed expense or indemnity
payment is sought) of such unpaid amount; provided that the unreimbursed expense
or indemnified loss, claim, damage, liability or related expense, as the case
may be, was incurred by or asserted against such Agent in its capacity as such.

          (d) To the extent permitted by applicable law, the Borrower shall not
assert, and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result
of, this Agreement or any agreement or instrument contemplated hereby, the
Transactions, any Loan or the use of the proceeds thereof.

          (e) All amounts due under this Section shall be payable promptly after
written demand therefor.

          SECTION 9.04. Successors and Assigns. (a) The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that (i)
the Borrower may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender (and any
attempted assignment or transfer by the Borrower without such consent shall be
null and void) and (ii) no Lender may assign or otherwise transfer its rights or
obligations hereunder except in accordance with this Section. Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns
permitted hereby, Participants and, to the extent expressly contemplated hereby,
the Related Parties of each of the Administrative Agent and the Lenders) any
legal or equitable right, remedy or claim under or by reason of this Agreement.

          (b)(i) Subject to the conditions set forth in paragraph (b)(ii) below,
any Lender may assign to one or more assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its
Commitments and the Loans at the time owing to it) with the prior written
consent (such consent not to be unreasonably withheld) of the Borrower and the
Administrative Agent; provided that no consent of the Borrower and the
Administrative Agent shall be required for an assignment to a Lender, an
Affiliate of a Lender, a Balance Sheet CLO, an Approved Fund (as defined below)
or, if an Event of Default has occurred and is continuing, any other assignee.

          (ii) Assignments shall be subject to the following additional
conditions:

          (A) except in the case of an assignment to a Lender or an Affiliate of
a Lender, the amount of the Commitment of the assigning Lender subject to each
such assignment (determined as of the date the Assignment and Assumption with
respect to such assignment is delivered to the Administrative Agent) shall not
be less than $10,000,000 or, if smaller, the entire remaining amount of the
assigning Lender's Commitment, unless the Borrower and the Administrative Agent
shall otherwise consent, provided that no such consent of the Borrower shall be
required if an Event of Default has occurred and is continuing;

          (B) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender's rights and obligations under
this Agreement, provided that this clause shall not apply to rights in respect
of outstanding Competitive Loans.

<PAGE>

                                                                              43

          (C) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a processing
and recordation fee of $3,500;

          (D) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire; and

          (E) in the case of an assignment to a Balance Sheet CLO (as defined
below), the assigning Lender shall retain the sole right to approve any
amendment, modification or waiver of any provision of this Agreement, except
that the Assignment and Assumption between such Lender and such Balance Sheet
CLO may provide that such Lender will not, without the consent of such Balance
Sheet CLO, agree to any amendment, modification or waiver described in the first
proviso to Section 9.02(b) that affects such Balance Sheet CLO.

          For the purposes of this Section 9.04(b), the terms "Approved Fund"
and "Balance Sheet CLO" have the following meanings:

          "Approved Fund" means, with respect to any Lender that is a fund which
invests in bank loans and similar extensions of credit, any other fund that
invests in bank loans and similar extensions of credit and is managed by the
same investment advisor as such Lender or by an Affiliate of such investment
advisor.

          "Balance Sheet CLO" means, with respect to any Lender, any Person
(other than a natural person) that is (i) established for the purpose of making,
purchasing, holding or otherwise investing in bank loans and similar extensions
of credit in order to allow such Lender to manage its balance sheet or
regulatory or the ordinary course of its business and its economic capital and
(ii) administered or managed by such Lender or an Affiliate of such Lender

          (iii) Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) of this Section, from and after the effective date specified
in each Assignment and Assumption the assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such Assignment and
Assumption, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Assumption, be released from its obligations
under this Agreement (and, in the case of an Assignment and Assumption covering
all of the assigning Lender's rights and obligations under this Agreement, such
Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.13, 2.14, 2.16 and 9.03). Any assignment or transfer by a
Lender of rights or obligations under this Agreement that does not comply with
this Section 9.04 shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with
paragraph (c) of this Section.

          (iv) The Administrative Agent, acting for this purpose as an agent of
the Borrower, shall maintain at one of its offices a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitments of, and principal amount of the
Loans owing to, each Lender pursuant to the terms hereof from time to time (the
"Register"). The entries in the Register shall be conclusive, and the Borrower,
the Administrative Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Borrower and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.

          (v) Upon its receipt of a duly completed Assignment and Assumption
executed by an assigning Lender and an assignee, the assignee's completed
Administrative Questionnaire (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of
this Section and any written consent to such assignment required by paragraph
(b) of this Section, the Administrative Agent shall accept such Assignment and

<PAGE>

                                                                              44

Assumption and record the information contained therein in the Register. No
assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.

          (c)(i) Any Lender may, without notice to or the consent of the
Borrower or the Administrative Agent, sell participations to one or more banks
or other entities (a "Participant") in all or a portion of such Lender's rights
and obligations under this Agreement (including all or a portion of its
Commitment and the Loans owing to it); provided that (A) such Lender's
obligations under this Agreement shall remain unchanged, (B) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (C) the Borrower, the Administrative Agent and the Lenders
shall continue to deal solely and directly with such Lender in connection with
such Lender's rights and obligations under this Agreement. Any agreement or
instrument pursuant to which a Lender sells such a participation shall provide
that such Lender shall retain the sole right to enforce this Agreement and to
approve any amendment, modification or waiver of any provision of this
Agreement; provided that such agreement or instrument may provide that such
Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver described in the first proviso to Section 9.02(b) that
affects such Participant. Subject to paragraph (c)(ii) of this Section, the
Borrower agrees that each Participant shall be entitled to the benefits of
Sections 2.13, 2.14 and 2.16 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section.
To the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 9.08 as though it were a Lender, provided such Participant
agrees to be subject to Section 2.17(c) as though it were a Lender.

          (ii) A Participant shall not be entitled to receive any greater
payment under Section 2.14 or 2.16 than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the
Borrower's prior written consent. A Participant that would be a Foreign Lender
if it were a Lender shall not be entitled to the benefits of Section 2.16 unless
the Borrower is notified of the participation sold to such Participant and such
Participant agrees, for the benefit of the Borrower, to comply with Section
2.16(e) as though it were a Lender.

          (d) Any Lender, without notice to or the consent of any Borrower or
the Administrative Agent, may at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement to secure obligations
of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank, and this Section shall not apply to any such pledge or
assignment of a security interest; provided that no such pledge or assignment of
a security interest shall release a Lender from any of its obligations hereunder
or substitute any such pledgee or assignee for such Lender as a party hereto.

          (e) By executing and delivering an Assignment and Assumption, the
assigning Lender thereunder and the assignee thereunder shall be deemed to
confirm to and agree with each other and the other parties hereto as follows:
(i) such assigning Lender warrants that it is the legal and beneficial owner of
the interest being assigned thereby free and clear of any adverse claim and that
its Commitments and the outstanding balances of its Loans, in each case without
giving effect to assignments thereof that have not become effective, are as set
forth in such Assignment and Assumption; (ii) except as set forth in clause (i)
above, such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with this Agreement or any other Loan Document or any
other instrument or document furnished pursuant hereto or thereto, or the
execution, legality, validity, enforceability, genuineness, sufficiency or value
of any of the foregoing, or the financial condition of the Borrower or the
performance or observance by the Borrower of any of their obligations under this
Agreement or under any other Loan Document or any other instrument or document
furnished pursuant hereto or thereto; (iii) each of the assignee and the
assignor represents and warrants that it is legally authorized to enter into
such Assignment and Assumption; (iv) such assignee confirms that it has received
a copy of this

<PAGE>

                                                                              45

Agreement, together with copies of any amendments or consents entered into prior
to the date of such Assignment and Assumption and copies of the most recent
financial statements delivered pursuant to Section 5.01 and such other documents
and information as it has deemed appropriate to make its own credit analysis and
decision to enter into such Assignment and Assumption; (v) such assignee will
independently and without reliance upon the Administrative Agent, such assigning
Lender or any other Lender and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under this Agreement; (vi) such assignee appoints
and authorizes the Administrative Agent to take such action as agents on its
behalf and to exercise such powers under this Agreement and the other Loan
Documents as are delegated to it by the terms hereof and thereof, together with
such powers as are reasonably incidental thereto; and (vii) such assignee agrees
that it will perform in accordance with their terms all the obligations that by
the terms of this Agreement are required to be performed by it as a Lender.

          SECTION 9.05. Survival. All covenants, agreements, representations and
warranties made by the Borrower or the Guarantors in the Loan Documents and in
the certificates or other instruments delivered in connection with or pursuant
to this Agreement or any other Loan Document shall be considered to have been
relied upon by the other parties hereto and shall survive the execution and
delivery of the Loan Documents and the making of any Loans, regardless of any
investigation made by any such other party or on its behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or knowledge of
any Default or incorrect representation or warranty at the time any credit is
extended hereunder, and shall continue in full force and effect as long as the
principal of or any accrued interest on any Loan or any fee or any other amount
payable under any Loan Document is outstanding and unpaid and so long as the
Commitments have not expired or terminated. The provisions of Sections 2.14,
2.15, 2.16 and 9.03 and Article VIII shall survive and remain in full force and
effect regardless of the consummation of the transactions contemplated hereby,
the repayment of the Loans or the termination of the Commitments or of this
Agreement or any provision hereof.

          SECTION 9.06. Counterparts; Integration, Effectiveness. This Agreement
may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single contract. This Agreement and any
separate letter agreements with respect to fees payable to the Administrative
Agent constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings,
oral or written, relating to the subject matter hereof. Except as provided in
Section 4.01, this Agreement shall become effective when it shall have been
executed by the Administrative Agent and when the Administrative Agent shall
have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns. Delivery of an executed counterpart of a signature page
of this Agreement by telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement.

          SECTION 9.07. Severability. Any provision of this Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

          SECTION 9.08. Right of Setoff. If an Event of Default shall have
occurred and be continuing, each Lender and each of its Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted by
law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other obligations at any time
owing by such Lender or Affiliate to or for the credit or the account of the
Borrower against any of and all the obligations of the Borrower now or hereafter
existing under this Agreement held by such Lender, irrespective of whether or
not such Lender shall have made any

<PAGE>

                                                                              46

demand under this Agreement and although such obligations may be unmatured. The
rights of each Lender under this Section are in addition to other rights and
remedies (including other rights of setoff) which such Lender may have.

          SECTION 9.09. Governing Law; Jurisdiction, Consent to Service of
Process. (a) This Agreement shall be construed in accordance with and governed
by the law of the State of New York.

          (b) The Borrower hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of the Supreme Court
of the State of New York sitting in New York County and of the United States
District Court of the Southern District of New York, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to this
Agreement, or any other Loan Document or for recognition or enforcement of any
judgment, and each of the parties hereto hereby irrevocably and unconditionally
agrees that all claims in respect of any such action or proceeding may be heard
and determined in such New York State or, to the extent permitted by law, in
such Federal court. Each of the parties hereto agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
Nothing in this Agreement or any other Loan Document shall affect any right that
the Administrative Agent or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement against the Borrower or its properties in
the courts of any jurisdiction.

          (c) The Borrower hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement or any other Loan Document in any
court referred to in paragraph (b) of this Section. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, the defense
of an inconvenient forum to the maintenance of such action or proceeding in any
such court.

          (d) Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 9.01. Nothing in this
Agreement or any other Loan Document will affect the right of any party to this
Agreement to serve process in any other manner permitted by law.

          SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

          SECTION 9.11. Headings. Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of this
Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

          SECTION 9.12. Confidentiality. Each of the Lenders agrees to maintain
the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its and its Affiliates' directors, officers,
employees and agents, including accountants, legal counsel and other advisors
(it being understood that the Persons to whom such disclosure is made

<PAGE>

                                                                              47

will be informed of the confidential nature of such Information and instructed
to keep such Information confidential), (b) to the extent requested by any
regulatory authority, (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) to any other party
to this Agreement, (e) in connection with the exercise of any remedies hereunder
or any suit, action or proceeding relating to this Agreement or any other Loan
Document or the enforcement of rights hereunder, (f) subject to an agreement
containing provisions substantially the same as those of this Section, to any
assignee of or Participant in, or any prospective assignee of or Participant in,
any of its rights or obligations under this Agreement, (g) with the consent of
the Borrower or (h) to the extent such Information (i) becomes publicly
available other than as a result of a breach of this Section or (ii) becomes
available to the Administrative Agent or any Lender on a nonconfidential basis
from a source other than the Borrower. For the purposes of this Section,
"Information" means all information received from the Borrower relating to the
Borrower or its business, other than any such information that is available to
the Administrative Agent or any Lender on a nonconfidential basis prior to
disclosure by the Borrower; provided that, in the case of information received
from the Borrower after the date hereof, such information is clearly identified
at the time of delivery as confidential. Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered
to have complied with its obligation to do so if such Person has exercised the
same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

          SECTION 9.13. Interest Rate Limitation. Notwithstanding anything
herein to the contrary, if at any time the interest rate applicable to any Loan,
together with all fees, charges and other amounts which are treated as interest
on such Loan under applicable law (collectively the "Charges"), shall exceed the
maximum lawful rate (the "Maximum Rate") which may be contracted for, charged,
taken, received or reserved by the Lender holding such Loan in accordance with
applicable law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the
Maximum Rate and, to the extent lawful, the interest and Charges that would have
been payable in respect of such Loan but were not payable as a result of the
operation of this Section shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or periods shall be increased
(but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender.

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed by their respective authorized officers as of the day and year
first above written.

                                     CONVERGYS CORPORATION,

                                     by  /s/ William R. Coleman
                                       -----------------------------------------
                                       Name: William R. Coleman
                                       Title: Vice President and Treasurer

                                     JPMORGAN CHASE BANK, individually
                                     and as Administrative Agent,

                                     by  /s/ Constance Coleman
                                       -----------------------------------------
                                       Name: Constance Coleman
                                       Title: Vice President

                                     CITICORP USA, INC., individually
                                     and as Co-Syndication Agent,

                                     by  /s/ Jeffrey Rothman
                                       -----------------------------------------
                                       Name: Jeffrey Rothman
                                       Title: Director

                                     PNC BANK, NATIONAL ASSOCIATION,
                                     individually and as Co-Syndication Agent,

                                     by  /s/ Jeffrey L. Stein
                                       -----------------------------------------
                                       Name: Jeffrey L. Stein
                                       Title: Vice President

                                     BANK ONE, NA, individually and
                                     as Co-Syndication Agent,

                                     by  /s/ Micheal R. Zaksheske
                                       -----------------------------------------
                                       Name: Micheal R. Zaksheske
                                       Title: Director

<PAGE>

                                                                              49

                                     US BANK N.A., individually and as
                                     Co-Documentation Agent,

                                     by /s/ Richard Popp
                                       -----------------------------------------
                                       Name:  Richard Popp
                                       Title: Vice President

                                     THE ROYAL BANK OF SCOTLAND PLC,
                                     individually and as Co-Documentation Agent,

                                     by /s/ Julian Dakin
                                       -----------------------------------------
                                       Name:  Julian Dakin
                                       Title: Senior Vice PresidentQuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

Exhibit 4.1    
  

 
 

SASOL LIMITED    
  

 
 

TRUST DEED CONSTITUTING A SHARE
  PURCHASE AND OPTION SCHEME
  (as amended)    
  

Amended 29/11/2002 

1

 
 
 

INDEX    
  

	 
	 	 
	 	Page number

	1	 	Definitions	 	3
	

2	
 	

Purpose	
 	

5
	

3	
 	

Establishment and administration of the trust	
 	

5
	

4	
 	

Appointment of trustees	
 	

6
	

5	
 	

Succession	
 	

6
	

6	
 	

Powers of trustees	
 	

7
	

7	
 	

Duties of trustees	
 	

8
	

8	
 	

Privileges of trustees	
 	

9
	

9	
 	

Remuneration of trustees	
 	

9
	

10	
 	

Indemnity	
 	

9
	

11	
 	

Termination of trust	
 	

9
	

12	
 	

Offers and grants of option	
 	

10
	

13	
 	

Price, terms of payment and pledge in respect of accepted offers	
 	

12
	

14	
 	

Financial assistance	
 	

13
	

15	
 	

Participant's right in respect of scheme shares	
 	

14
	

16	
 	

Obligations of Participant	
 	

15
	

17	
 	

Payment for scheme shares in respect of offers	
 	

15
	

18	
 	

Options	
 	

17
	

19	
 	

Rights issues	
 	

20
	

20	
 	

Capitalisation issues	
 	

20
	

21	
 	

Adjustments on reorganisations of the share capital of the company	
 	

21
	

22	
 	

Prohibition against cession	
 	

21
	

23	
 	

Amendments to this deed	
 	

21
	

24	
 	

Disputes	
 	

22
	

25	
 	

Notices and domicilia	
 	

22
	

26	
 	

General	
 	

23
	

27	
 	

Company's duty to report	
 	

23
	

28	
 	

Issue of shares to any party	
 	

23
	

29	
 	

Costs	
 	

23
	

30	
 	

Specific provisions for overseas territories	
 	

24

2

 

	1.	 	DEFINITIONS
	

1.1	
 	

In this trust deed, unless inconsistent with the context, the following words and expressions shall have the following meanings -
	

1.1.1	
 	
"Act", the Companies Act No 61 of 1973, as amended, and any statutory amendment or re-enactment thereof;
	

1.1.2	
 	
"auditors", the auditors from time to time and for the time being of the company;
	

1.1.3	
 	
"capitalisation issue", the issue of shares on a capitalisation of the company's profits and/or reserves including the company's share premium account;
	

1.1.4	
 	
"capitalisation share", a fully paid share allotted, in a capitalisation issue, by the company in respect of a scheme share and any further fully paid share similarly allotted in
respect of that capitalisation share;
	

1.1.5	
 	
"the chairman", the chairman of the company holding office as such from time to time;
	

1.1.6	
 	
"company", Sasol Limited;
	

1.1.7	
 	
"determine", to determine in the sole and absolute discretion of the person or directors concerned and "determination" has the corresponding meaning;
	

1.1.8	
 	
"directors", the board of directors for the time being of the company or any committee thereof to whom the powers of the directors in respect of this scheme are delegated;
	

1.1.9	
 	
"early retirement", retirement by an employee from the employ of the company, permitted in terms of the company's pension fund rules prior to usual retirement age applicable to him
with the consent of the company.
	

1.1.10	
 	
"employee", a person eligible for participation in the scheme, namely an officer or other employee of the group including any present or future executive or non-executive Director of
the group; (amended 3/12/2001).
	

1.1.11	
 	
"grant of option", an offer made to an offeree, in terms of the scheme, to take up an option;
	

1.1.12	
 	
"group", the company and its subsidiaries; and
	

1.1.12.1	
 	

companies of which 50% (fifty per centum) or more of the equity share capital is held by the company and/or its subsidiaries; or
	

1.1.12.2	
 	

unincorporated joint ventures or entities in which the company and/or its subsidiaries has a 50% (fifty per centum) or bigger ownership interest. (amended 25 October 1999)
	

1.1.13	
 	
"issued shares", all issued shares in the capital of the company and including scheme shares in terms of the provisions of this scheme;
	

1.1.14	
 	
"JSE", The JSE Securities Exchange South Africa (amended 3/12/2001;
	

1.1.15	
 	
"the managing director", the managing director of the company holding office as such from time to time;
	

1.1.16	
 	
"offer", an offer made under the scheme to an offeree to subscribe for shares;
	

1.1.17	
 	
"offeree", an employee nominated in terms of the provisions of the scheme to receive an offer or be granted an option; (amended 3/12/2001);
	

1.1.18	
 	
"offer date", the date on which an offer to an offeree, in terms of the scheme, is made;
	
 	
 	

 

3

 

	

1.1.19	
 	
"option", an option granted under the scheme to an offeree, which when exercised in respect of any shares to which the option relates result in -
	

1.1.19.1	
 	

an allotment an issue of those shares to which such exercise relates from the company to the participant; and/or
	

1.1.19.2	
 	

a sale of those shares to which such exercise relates from the trust to the participant;
	

1.1.20	
 	
"option date", the date on which an option is granted to an offeree;
	

1.1.21	
 	
"ordinary share", an ordinary share in the share capital of the company;
	

1.1.22	
 	
"participant", any offeree who has accepted an offer or to whom an option has been granted;
	

1.1.23	
 	
"purchase price", in relation to a share, an amount equal to the closing price of an ordinary share (as shown by the official price list published by the JSE) on the most recent
trading day on the JSE immediately preceding the offer date or the option date, as the case may be;
	

1.1.24	
 	
"release of scheme shares", the release by the trustees of scheme shares, subject to the provisions of this trust deed, to the secretary of the company who in turn will release the
same to the participant concerned or to a nominee (if so required by the trustees) on the shares in question being listed on the JSE, all as more fully provided in 15,4 (in relation to offers) and in 18.7 (in relation to shares acquired pursuant to
an option). "Released" and cognate expressions in relation to scheme shares shall bear the corresponding meaning;
	

1.1.25	
 	
"record date", the record date of a rights or capitalisation issue, as the case may be;
	

1.1.26	
 	
"retired employee", any former employee who was a participant and has retired at or after the retirement age (as laid down in the company's pension fund regulations from time to time),
 but does not include an employee who takes early retirement;
	

1.1.27	
 	
"rights issue", the offer of any securities of the company or of any other body corporate to ordinary shareholders of the company in accordance with the articles of association of the
company;
	

1.1.28	
 	
"rights shares", shares which are acquired by a participant in terms of a rights issue;
	

1.1.29	
 	
"share debt", the amount from time to time owing by a participant to the trust in respect of the purchase price of scheme shares and includes any interest due thereon and
unpaid;
	

1.1.30	
 	
"scheme", the scheme set out in this trust deed, as may be amended form time to time in terms of 23;
	

1.1.31	
 	
"scheme shares", any ordinary shares in the company which are allotted and issued to a participant or acquired on behalf of the participant in terms of an offer and includes any
capitalisation shares in relation thereto;
	

1.1.32	
 	
"secretary", the secretary of the company for the time being;
	

1.1.33	
 	
"trust", the Sasol Share Trust constituted in terms of this deed;
	

1.1.34	
 	
"trustees", the trustees holding office as such in terms of this trust deed from time to time and for the time being;
	

1.1.35	
 	
"year", a financial year of the company.
	

1.2	
 	

Words importing -
	

1.2.1	
 	

the singular shall include the plural and vice versa;
	
 	
 	

 

4

 

	

1.2.2	
 	

the masculine shall include the feminine and vice versa;
	

1.2.3	
 	

natural persons shall include bodies corporate and vice versa.
	

1.3	
 	

Expressions defined in the Act shall bear the meanings therein assigned to them.
	

1.4	
 	

The clause headings in this agreement have been inserted for convenience only and shall not be taken into consideration in its interpretation.
	

1.5	
 	

This agreement shall be governed by and interpreted in accordance with the laws of the Republic of South Africa (new clause, approved on 3/12/2001).
	
2.	
 	

PURPOSE
	

 	
 	

The scheme is intended as an incentive for those employees (including executive directors) of the group who participate in management and also non-executive directors of the group, as determined by the directors from time to time. The objective of
the scheme is to motivate the participants by providing them with incentives to advance the group's interests, to promote an identity of interest between the group and its employees, to retain key personnel and to enable the group to attract new and
competent personnel (amended 3/12/2001).
	
3.	
 	

ESTABLISHMENT AND ADMINISTRATION OF THE TRUST
	

3.1	
 	

The Sasol Share Trust is hereby constituted, which trust shall be administered for the purposes and in the manner as set out herein.
	

3.2	
 	

The directors shall, subject to the provisions of this trust deed, be entitled to -
	

3.2.1	
 	

establish such rules and regulations as they deem necessary for the proper administration of the scheme and the trust;
	

3.2.2	
 	

make such determinations and interpretations and take such steps in connection therewith as they deem necessary or desirable.
	

3.3	
 	

All rules and regulations made in terms of 3.2 shall be in writing and shall become operative when a copy thereof is received by the trustees.
	

3.4	
 	

The administration of the trust shall be vested in the trustees in the manner and to the extent provided in this trust deed. The trustees may determine the manner and time of convening of their meetings.
	

3.4.1	
 	

A quorum for meetings of trustees shall be 3 (three) trustees personally present.
	

3.4.2	
 	

Any resolution passed by a majority of trustees shall be deemed to be a resolution of the trustees notwithstanding that any trustee may have voted against the same.
	

3.4.3	
 	

In event of an equality of votes, the chairman shall have a second or casting vote.
	

3.4.4	
 	

A trustee shall be counted in the quorum at a meeting considering matters affecting him, but shall recuse himself from and shall accordingly not participate in the voting on any resolution or a cession directly reckoned to his own participation in
the scheme.
	

3.5	
 	

Notwithstanding anything to the contrary herein contained -
	
 	
 	

 

5

 

	

3.5.1	
 	

a resolution of the trustees may be taken telephonically via video-link or via any other form of communication, provided that the trustees taking such resolution are in constant communication with each other, and provided that the trustees taking
such resolution number at least a quorum, such resolution shall, if subsequently reduced to writing and signed as contemplated in 3.5.2 be as valid and effective as a resolution passed at a meeting of trustees (amended
3/12/2001);
	

3.5.2	
 	

a resolution of trustees signed by all the trustees present in Johannesburg as at the date of signature thereof by the last trustee so to sign, provided that such trustees number at least a quorum, shall be as valid and effective as a resolution
passed at a meeting of trustees. A resolution referred to in this paragraph need not be contained in a single document.
	
4.	
 	

APPOINTMENT OF TRUSTEES
	

4.1	
 	

There shall be at least 4 (four) trustees of the Trust, 1 (one) of whom shall be the chairman, 1 (one) of whom shall be the managing director and 2 (two) of whom shall be non-executive directors of the company nominated as trustees by the
directors.
	

4.2	
 	

No person shall be eligible for appointment as a trustee unless he is a director of the company.
	

4.2.1	
 	

the directors pass a resolution that he should cease to act as a trustee or when the term for which a trustee has been appointed expires (new clause, approved on 3/12/2001).
	

4.3	
 	

A person shall be disqualified from acting as a trustee if -
	

4.3.1	
 	

he ceases to be a director of the company;
	

4.3.2	
 	

he is found guilty of any offence involving dishonesty; or
	

4.3.3	
 	

in the case of an individual his estate is sequestrated (provisionally or otherwise) or he surrenders his estate.
	

4.4	
 	

The power of appointing new or additional trustees shall be exercisable by the directors or, if the directors fail, refuse or neglect to appoint a trustee, then by the chairman acting alone.
	

4.5	
 	

A trustee may retire at any time without assigning any reason therefor on giving 30 (thirty) days (or such shorter period as the chairman may approve in writing) written notice to the remaining trustees to that effect.
	

4.6	
 	

Every trustee shall have the power to appoint any person who is qualified to be a trustee to act as an alternate in his place during his absence or inability to act as a trustee, provided that such appointment be approved by the remaining trustees,
and on such appointment being made, the person so appointed shall be entitled to exercise all powers, rights and duties exercisable by the trustee appointing him, or (if such be the case) such limited rights and powers as may be conferred upon him by
his appointor.
	
5.	
 	

SUCCESSION
	

5.1	
 	

Upon any trustee or trustees succeeding to office as such, he or they shall in their representative capacity/ies ipso facto become vested with the assets and liabilities of the trust and in every way,
with immediate effect, take the place of and assume the powers and duties of the trustees whom he or they will have succeeded.
	

5.2	
 	

The directors shall immediately appoint another trustee to succeed a trustee who has ceased to hold office in terms of 4.2 or 4.4 (amended 3/12/2001).

6

 

	6.	 	POWERS OF TRUSTEES
	

6.1	
 	

The trustees shall, in addition to such other powers as may be conferred upon him/them by law or elsewhere in this trust deed, have the following powers -
	

6.1.1	
 	

to acquire, for purposes of the scheme, shares in the company by original subscription or to purchase scheme shares from participants in the circumstances provided for in this trust deed;
	

6.1.2.1	
 	

to invest surplus moneys of the trust from time to time with the company;
	

6.1.2.2	
 	

subject to the authority having been conferred upon them by a resolution of the directors, to invest the surplus moneys of the trust in such other investments, on such terms and in such manner as they in their sole and absolute discretion may
determine;
	

6.1.2.3	
 	

subject to authority having been conferred upon them by a resolution of the directors, to realise any such investment and to reinvest the proceeds in the manner aforesaid;
	

6.1.3	
 	

to borrow or raise moneys from the company and/or any other member of the group for the purposes of the scheme on such terms as they may deem fit;
	

6.1.4	
 	

instead of acting personally, subject to approval by the directors, to employ, as far as may reasonably be necessary, and to pay any attorney or any other person to transact business or do any act of whatsoever nature required to be done pursuant to
this trust deed, including the receipt and payment of money, provided that any reasonable payment made in terms hereof shall be refunded to the trustees by the trust; and a trustee being an attorney or other person engaged in any profession may be so
employed to act and shall be entitled to charge and be paid by the trust all reasonable professional charges for any business or act done by him or his firm in pursuance of this trust deed;
	

6.1.5	
 	

to take and act upon any expert or professional advice;
	

6.1.6	
 	

to delegate to any person the performance of all or any acts or the exercise of all or any powers which they are entitled to perform or exercise under this trust deed;
	

6.1.7	
 	

to open and operate on banking and building society accounts of all descriptions;
	

6.1.8	
 	

to draw, accept, make or endorse cheques, bills of exchange or promissory notes for and on behalf of the trust;
	

6.1.9	
 	

to exercise all rights pertaining to scheme shares including voting rights, rights to take up further allotment of shares and the like as they in their sole and absolute discretion may deem fit;
	

6.1.10	
 	

to make loans to any person, whether interest bearing or otherwise or whether secured or unsecured for any purpose considered by the trustees to be in the interests of the trust and the participants;
	

6.1.11	
 	

to exercise such further rights, powers and authorities as may from time to time be conferred upon them by resolution of the directors;
	

6.2	
 	

without prejudice to anything aforesaid, the trustees shall have -
	

6.2.1	
 	

full capacity to contract on behalf of the trust but subject always to such limitations, if any, as may be imposed by this trust deed, and provided always that they will under no circumstances be personally liable on any such contract;
	
 	
 	

 

7

 

	

6.2.2	
 	
locus standi in judicio and be capable of bringing, defending, opposing, withdrawing, settling and/or otherwise acting in connection with any proceedings whatsoever in or before any Court or
in any arbitration or before any other forum, provided that all costs reasonably incurred by them in that regard shall be for account of the trust
	
7.	
 	

DUTIES OF TRUSTEES
	

 	
 	

The trustees, in addition to any other duty imposed by this trust deed, whether express or implied, shall -
	

7.1.1	
 	

make offers or grant options to offerees on the terms and conditions as directed in terms of 12, but always subject to the provisions of the Act;
	

7.1.2	
 	

procure that all circulars, letters and other documents issued to shareholders of the company and any rights issue are issued to participants as well;
	

7.1.3	
 	

arrange the release of scheme shares upon the compliance by a participant with all of his obligations in terms of the trust deed relating thereto;
	

7.1.4	
 	

ensure that all scheme shares are pledged to the trustees as security for the payment of the full purchase price and interest thereon payable by such participant in respect thereof, the form of such pledge to be determined by the
trustees;
	

7.2	
 	

cause proper records and books of account to be kept of the business and affairs of the trust and its/their administration thereof, which records and books shall be in the custody of the secretary, on behalf of the trustees;
	

7.3	
 	

keep separate accounts in respect of -
	

7.3.1	
 	

all moneys lent and advanced by the company and all shares acquired pursuant to such loans;
	

7.3.2	
 	

all moneys lent and advanced by any subsidiary and all shares acquired pursuant to such loans;
	

7.3.3	
 	

all options granted;
	

7.4	
 	

keep separate accounts in respect of each participant, which shall reflect -
	

7.4.1	
 	

the number of shares pledged to the trust for his account or in respect of which options have been granted, the purchase price of such shares and the relevant offer date or option date in respect thereof;
	

7.4.2	
 	

the liability of such participant in respect thereof;
	

7.4.3	
 	

all payments made in respect thereof;
	

7.5	
 	

ensure that the records and books of account referred to above are at all times available for inspection by any director or other authorised representative of the company;
	

7.6	
 	

cause to be prepared and audited, as soon as possible after the end of each financial year of the trust (which shall coincide with that of the company) -
	

7.6.1	
 	

a balance sheet and income statement and profit and loss account;
	

7.6.2	
 	

such further accounts, if any, of the trust as the trustees may deem fit;
	

7.7	
 	

as soon as possible after the completion of the balance sheet and accounts referred to in 7.6, deliver to the company 3 (three) copies of the balance sheet and accounts referred to in 7.6, duly signed by the trustees.
	
 	
 	

 

8

 

	
8.	
 	

PRIVILEGES OF TRUSTEES
	

 	
 	

A trustee shall not -
	

8.1	
 	

be obliged to furnish any security to the Master of the High Court or to any other officer of official under the Trust Property Control Act, 1988 or any other law enacted or to be enacted for the performance of his duties in terms hereof and all such
security shall be and is hereby dispensed with (amended 3/12/2001);
	

8.2	
 	

be disqualified from -
	

8.2.1	
 	

acting as adviser, agent, broker or attorney to or contracting with the trust;
	

8.2.2	
 	

obtaining any remuneration in respect of his services in any capacity referred to in 8.2.1
	
9.	
 	

REMUNERATION OF TRUSTEES
	

9.1	
 	

The trustees shall receive for his/their services as trustees such remuneration as may from time to time be resolved by a quorum of the directors who are not trustees.
	

9.2	
 	

The trustees shall be entitled to be reimbursed from the trust for all expenses incurred by him/them in and about the execution of his/their duties as trustees.
	
10.	
 	

INDEMNITY
	

10.1	
 	

The trustees shall not be liable for any loss sustained by the trust or any participant arising from any cause whatsoever, save and except any loss sustained as a result of gross negligence or the wilful dishonesty of the trustees, either
collectively or individually.
	

10.2	
 	

The trust hereby indemnifies the trustees, and may, if the trustees so resolve, indemnify every attorney, agent or other person appointed by the trustees hereunder against all actions, proceedings, costs, liabilities, claims, expenses and demands in
respect of any matter or thing done or omitted to be done in any way in the execution of their office as trustees, attorney or agent, otherwise than claims arising out of their gross negligence or wilful dishonesty.
	
11.	
 	

TERMINATION OF TRUST
	

11.1	
 	

The trust shall terminate if -
	

11.1.1	
 	

the trust -
	

11.1.1.1	
 	

ceases to hold any scheme shares, and all rights and obligations under all grants of option have been discharged;
	

11.1.1.2	
 	

has received payment in full of all amounts owed to it by the participants; and
	

11.1.1.3	
 	

has no obligation to any of the participants to purchase any of their respective scheme shares and the directors resolve that the trust shall then terminate; or
	

11.1.2	
 	

the company is placed in final liquidation other than for the purposes of reorganisation.
	
 	
 	

 

9

 

	

11.2	
 	

On termination the trustees shall realise the assets of the trust and first pay the claims of all creditors of the trust (other than the company) in priority to the claims of the company, and if thereafter there shall remain any surplus the net
surplus shall be paid to the company in discharge, or partial discharge, of the claims of the company, and if that surplus shall be insufficient to enable the repayment in full of all the claims of the company, the trust shall be released and
unconditionally discharged from all liability in respect of the shortfall and the shortfall shall constitute a loss to be borne by the company. For the purposes of this clause the expression "the claims of the company" shall include the claims of any
company within the group as if the claims of that company were claims of the company itself.
	

11.3	
 	

If, after payment in full of all the claims of the company, there shall remain a surplus in the trust, such surplus shall be paid by the trustees to the company for the use by the company in such manner, at such times, and for such purposes as the
directors in their sole and absolute discretion deem fit.
	

11.4	
 	

If the company is placed in liquidation other than for purposes of reorganisation -
	

11.4.1	
 	

and any liquidation dividend is paid in respect of the company's shares, then the liquidation dividend payable on any scheme shares held by a participant shall be utilized towards discharging any balance owed by the participant to the trust. Any
surplus will be paid over to the participant and in the event of a shortfall the participant will have no further liability in respect of any amount owed by such participant to the trust;
	

11.4.2	
 	

and no liquidation dividend is paid, a participant will have no further liability in respect of any amount owed by such participant to the trust.
	
12.	
 	

OFFERS AND GRANTS OF OPTIONS
	

12.1	
 	

The directors shall from time to time instruct the trustees to offer and/or grant options to offerees in respect of such number of ordinary shares, which, together with scheme shares already in issue at that time in terms of this trust deed, shall
not exceed 60 000 0001 (sixty million) (presently approximately 9,02% (nine comma zero two per centum) as at 4/9/2001 (amended 3/12/2001)) of the issued ordinary share capital of the company)
or such increased number of shares as may from time to time be approved by the JSE and by the company in general meeting. The directors shall forward to the trustees a certified copy of the resolution authorising an offer or grant of option to
specific employees or to categories of employees and the trustees shall offer the number of ordinary shares or options determined in accordance with the directives contained in such resolution to the offeree or offerees named or referred to in such
resolution.
	

1 Amended: Shares increased from 20 million to 40 million on 26/10/1998 and from 40 million to 60 million on 3/12/2001).
	
 	
 	

 

10

 

	

12.2	
 	

Where the directors so instruct the trustees, an offeree may be given the election to acquire scheme shares pursuant to an offer or to accept the grant of an option in respect of shares, in either case upon the applicable terms and conditions of this
trust deed. More than one offer and/or grant of option may be made from time to time to any offeree, provided that the maximum number of scheme shares to which any one offeree is entitled (either by way of allotment and issue of scheme shares and/or
the grant of options) in terms of the scheme and this trust shall not exceed 1 000 0002 (one million) shares (as amended on 29 November 2002).
	

2 Amended: Shares increased from 100000 to 200000 on 27/10/89; from 200000 to 400000 on 30/10/92; from 400 000 to 600 000 on 27 November 2000; and from 600 000 to 1 000 000 on 29 November 2002)
	

12.3	
 	

Each offer and grant of option shall be in writing and shall be delivered in duplicate to an offeree and, if the offeree has an election as contemplated in 12.2 above, shall require the offeree to elect whether he wishes to accept the offer and/or
whether he wishes to be granted an option and shall state the following insofar as it is relevant -
	

12.3.1	
 	

the number of ordinary shares in respect of which the offer is made or in respect of which an option is granted, in multiples of 100 (one hundred) shares;
	

12.3.2	
 	

the purchase price per ordinary share and in total for all ordinary shares under an offer or in respect of which an option is granted;
	

12.3.3	
 	

that the offer or grant of options is made pursuant to the scheme and upon the terms and conditions contained in this trust deed and in particular the terms of the pledge of the shares to the trust in respect of offers accepted;
	

12.3.4	
 	

that the trust deed is available for inspection and that, if requested, a copy will be furnished to the offeree;
	

12.3.5	
 	

the initial rate of interest which is to be paid on the share debt in respect of offers accepted;
	

12.3.6	
 	

that an amount of R0,01 (one cent) per share is payable on acceptance of an offer;
	

12.3.7	
 	

that if the offeree has been given the election to accept an offer or the grant of an option, the offer or the grant of option may be accepted in whole or in part or in such proportions as the offeree may in his discretion determine, provided that
all offers and grants of option (whether or not the offeree has been given an election as aforesaid) must be accepted in respect of 100 (one hundred) ordinary shares or multiples thereof and provided further that no offeree may accept an offer and
the grant of an option in respect of an aggregate number of shares exceeding the aggregate number of shares stipulated in terms of 12.3.1;
	

12.3.8	
 	

that the offer or grant of option is open for acceptance for a period of 1 (one) month from the offer date as evidenced by the date on the written offer or for such longer period as the trustees in their discretion deem fit;
	

12.3.9	
 	

that the scheme shares shall be listed on the JSE as soon as reasonably possible after allotment and issue;
	

12.3.10	
 	

that the offer or grant of option is exclusive to the offeree and cannot be ceded, assigned or transferred in any manner whatsoever;
	

12.3.11	
 	

that the offer or grant of option will lapse if not accepted by the offeree in the required manner and within the specified period;
	
 	
 	

 

11

 

	

12.3.12	
 	

that the acceptance must be exercised in writing (unless the trustees permit acceptance other than in writing) by the offeree personally and shall be evidenced by the offeree in such manner as is acceptable to the trustees, and, in the case of an
offer of shares for purchase, shall be accompanied by the payment of an amount equal to R0,01 (one cent) per scheme share referred to therein (amended 3/12/2001);
	

12.3.13	
 	

that where a grant of option is accepted, the option may be exercised at any time during the period from the date of such acceptance until the ninth anniversary of the option date, provided however that, subject to 18.4.1 and 18.4.2 a
participant-
	

12.3.13.1	
 	

shall not be entitled to tender payment for shares referred to therein before the relevant period specified in 18.3 has elapsed; and
	

12.3.13.2	
 	

shall not be obliged to make payment for any shares in respect of which an option has been granted before the ninth anniversary of the option date, except where the participant has exercised an option, in which event the participant shall be entitled
and obliged to pay the relevant proportions of such shares on the basis provided in 18.3; and
	

12.3.13.3	
 	

shall not be entitled to claim that the shares in question be allotted and issued to him or registered in his name or to dispose of or deal with the same until payment in respect thereof has been made to the Company or the trustees (amended 3/12/2001).
	

12.3.14	
 	

that if the trustees so direct, the participant's shares, when he is entitled to registration thereof, shall be registered in the name of a nominee company as nominee for the participant and remain so registered for as long as the participant remains
in the employ of the company unless the trustees otherwise direct, on the basis however, that any additional cost incurred by the participant by virtue of the enforcement of the provisions of this clause shall be borne and paid by the
trust.
	
13.	
 	

PRICE, TERMS OF PAYMENT AND PLEDGE IN RESPECT OF ACCEPTED OFFERS
	

13.1	
 	

The purchase price payable by an offeree who has accepted an offer shall be the aggregate purchase price of that number of shares which the offeree takes up.
	

13.2	
 	

The said purchase price shall be paid as to the amount fixed in terms of 12.3.6 immediately upon acceptance of an offer, and the balance as set out in this trust deed.
	

13.3	
 	

The amount of every dividend in respect of the scheme shares allotted and issued to participants pursuant to offers shall be paid over to the trust by the company in terms of the cession of dividends by the participant referred to in 13.5 and shall
be appropriated by the trust -
	

13.3.1	
 	

firstly, in paying the interest accrued (if any) in respect of a participant's share debt;
	

13.3.2	
 	

secondly, should any balance remain, in satisfaction of the share debt.
	

13.4	
 	

The share debt in respect of any scheme shares shall -
	

13.4.1	
 	

while the balance due remains unpaid, bear interest at a rate per annum determined from time to time by the directors of the company. In the exercise of their discretion, the directors may be guided by any legislation introduced to tax as a benefit,
interest-free or low interest bearing loans;
	

13.4.2	
 	

such interest shall, subject to the provisions of 13.4.1, be payable on the date on which dividends on the shares are paid and the trustees are hereby empowered to apply the dividends in payment of such interest (if any).

12

  

	13.5	 	The allotment and issue of scheme shares to any offeree entitled thereto by virtue of acceptance of an offer in respect thereof shall be effected within a period of 14 (fourteen) days from the date the offeree accepts an
offer, provided that -
	

13.5.1	
 	

the offeree shall be deemed to have pledged his scheme shares in favour of the trust and shall be deemed to have ceded, assigned and transferred to the trust all his rights and action against the company for payment of any dividends, other
distributions and profits, including liquidation dividends arising on his scheme shares upon the terms and conditions in 13.6 and shall, if so required by the trustee, execute a separate pledge upon such terms and conditions as the trustees may
determine; and
	

13.5.2	
 	

the trust shall be entitled irrevocably and in rem suam to recover or take possession, from the company's transfer secretaries, of the certificates relating to the relevant scheme shares.
	

13.6	
 	

The pledge of scheme shares by the participant to the trust shall be upon the terms that -
	

13.6.1	
 	

the shares which shall be subject to the pledge shall include the ordinary shares issued under the scheme and capitalisation shares acquired by a participant on the terms and conditions set out herein (all of which are hereinafter collectively and
singularly called the "pledged shares");
	

13.6.2	
 	

the pledged shares shall be pledged as security for the due payment by the participant of the purchase price and also for the due performance by the participant of all other obligations arising in terms of the scheme;
	

13.6.3	
 	

if the trustees for any reason become entitled in terms of the scheme to realise or deal with the pledged shares by reason of a breach by a participant of his obligations hereunder, then the participant shall be obliged to offer the scheme shares in
question to the trust which shall be entitled but not obliged to purchase the same at the selling price to the participant concerned, in which event the said participant shall be released pro tanto from liability in respect of such scheme
shares;
	

13.6.4	
 	

the trust shall be irrevocably and in rem suam empowered to execute any instrument in respect of pledged shares to give effect to the implementation by it of the powers conferred upon it in terms of this clause 13;
	

13.6.5	
 	

the trust shall be entitled to retain possession of all share certificates and of all share transfer forms until a participant has paid his share debt in full.
	
14.	
 	

FINANCIAL ASSISTANCE
	

14.1	
 	

By acceptance of an offer -
	

14.1.1	
 	

an offeree authorises the trust to subscribe for the relevant number of shares on his behalf; or
	

14.1.2	
 	

at the election of the trust (and on the basis that the trust will pay any additional stamp duty thereby occasioned), an offeree agrees and undertakes to purchase shares from the trust,
	

 	
 	

and the trust shall lend to the offeree and advance by payment to the company or the seller of such shares (as the case may be) on the offeree's behalf, the purchase price of the shares acquired by the offeree pursuant to acceptance of the offer less
the amount referred to in 12.3.6. The net amount so lent and advanced shall constitute the initial principal amount of that participant's share debt in respect of the scheme shares in question.
	
 	
 	

 

13

 

	

14.2	
 	

Upon every issue by the company of ordinary shares in terms of the scheme and upon purchase by the trustees of any ordinary shares in the company on the instructions of the directors or otherwise in pursuance of their rights and obligations hereunder,
 an amount equal to the total consideration payable on account of those shares by the trust, less the amount payable by a participant in terms of 12.3.6 in respect of an offer accepted (if any) shall be lent and advanced by the company or another
member of the group to the trustees, in terms of the further provisions hereof.
	

14.3	
 	

The company, or any other member of the group shall, subject to the approval of its directors, lend and advance to the trustees, as and when required by them, moneys for the proper execution of their duties as such, including, without derogating from
the generality of the aforegoing, moneys required by the trustees -
	

14.3.1	
 	

for payment of any disbursements and expenditure incurred by them in their capacity as trustees;
	

14.3.2	
 	

for payment of any indemnity in terms of 10.2.
	

14.4	
 	

The directors may charge interest on the loans at the same rate, from time to time, as the trustees may charge in terms of 13.4, excepting loans made in terms of 14.3.1 and 14.3.2 which shall be interest free.
	

14.5	
 	

All loans made by the group to the trust shall be reduced or repaid -
	

14.5.1	
 	

when any moneys become available to the trust including on payment by a participant or upon the release of scheme shares in terms of this trust deed;
	

14.5.2	
 	

upon termination of the trust, in which event, any amount then owing shall, subject to 11, become payable in cash.
	
15.	
 	

PARTICIPANT'S RIGHT IN RESPECT OF SCHEME SHARES
	

15.1	
 	

A participant accepting an offer shall, subject to the pledge referred to in 13 and the other obligations of the participant in terms of this trust deed, be the beneficial owner of his scheme shares and those shares to which he is entitled shall be
registered in his name (or, if the trustees so require in terms of 12.3.14, in the name of a nominee company as nominee for him) in the share register of the company.
	

15.2	
 	

All voting rights attaching to scheme shares shall be exercised by the trustees and a participant shall be deemed to have irrevocably authorised the trustees to exercise such voting rights.
	

15.3	
 	

It shall not be competent for a participant to cede any of his rights or assign any of his obligations in respect of any scheme shares, or allotment of any capitalisation shares to him except to the trust or, in the case of the participant's death,
to his estate, save that a participant shall be entitled to cede his rights (but not to assign his obligations) in respect of, or otherwise vest beneficial ownership of, all or any of his scheme shares pursuant to an offer accepted or an option
granted in favour of any trust created for the benefit of his spouse or issue, or any company, the entire issued ordinary share capital of which is held by the participant concerned, his spouse, or any trust or any close corporation, the only members
of which is the participant concerned, his spouse, or any trust, provided the scheme shares remain subject to the pledge thereof in terms of 13 in respect of offers accepted.
	

15.4	
 	

Upon a participant paying the share debt in respect of any scheme shares in full -
	
 	
 	

 

14

 

	

15.4.1	
 	

such scheme shares (including all capitalisation shares linked thereto) shall cease to be scheme shares, and all such shares shall thereupon rank pari passu in all respects with the issued ordinary shares in the share capital of the company and any
burdens attached to any such shares in respect of this trust deed shall cease to operate;
	

15.4.2	
 	

the secretary shall forthwith, subject to the provisions of 15.1.2 and the other terms and conditions of this trust deed, cause the said shares to be released to the participant entitled thereto against payment of the stamp duty, if any, payable
thereon provided that, if the trustees or the directors so require, such shares shall be or remain registered in the name of a nominee company as nominee for the participant for as long as the participant remains as employee of the company or until
the trustees or the directors (as the case may be) otherwise resolve;
	

15.4.3	
 	

the secretary shall forthwith apply to the JSE for a listing of such shares if such listing has not already been granted.
	
16.	
 	

OBLIGATIONS OF PARTICIPANT
	

 	
 	

Every participant shall, in addition to and without prejudice to any obligations imposed elsewhere in this trust deed, whether express or implied -
	

16.1	
 	

ensure that payment of the purchase price owing, in respect of any scheme shares, is punctually made on due date;
	

16.2	
 	

at all time strictly observe the provisions of this trust deed.
	
17.	
 	

PAYMENT FOR SCHEME SHARES IN RESPECT OF OFFERS
	

17.1	
 	

Should a participant, being entitled thereto in terms of 17.4, elect to pay up his share debt and have his scheme shares released he shall within 30 (thirty) days of the date on which scheme shares may be released in terms of 17.4 hereof give an
irrevocable written notice to the trustees specifying that he elects that the scheme shares subject to the notice are to be released, in which event payment of the share debt in full in respect of the scheme share to be released must accompany the
notice.
	

17.2	
 	

The trustees shall inform the company of the participant's election and the provisions of 15.4 shall apply mutatis mutandis.
	

17.3	
 	

The notice referred to in 17.1 may specify that only some of the participant's scheme shares are to be released, provided that the shares so released shall be in multiples of 100 (one hundred) scheme shares.
	

17.4	
 	

A participant shall be entitled, subject to 17.5, 17.6 and 18.3, on a cumulative basis to pay the share debt due on his scheme shares and have them released provided that the number of scheme shares so paid for and released do not exceed the limit
set out below -
	

17.4.1	
 	

up to 1/3 (one third) of the scheme shares referred to in an offer on or after the fourth anniversary of the offer date;
	

17.4.2	
 	

up to 2/3 (two thirds) of the scheme shares referred to in an offer (which proportion shall include any shares released or capable of release in terms of 17.4.1) on or after the sixth anniversary of the offer date;
	

17.4.3	
 	

all scheme shares referred to in an offer on or after the eighth anniversary of the offer date;
	
 	
 	

 

15

 

	

 	
 	

On the ninth anniversary of the offer date in terms of which the participant acquired scheme shares the participant shall be obliged to pay the share debt in respect of such scheme shares in full and shall upon such payment be entitled to have the
scheme shares released to him.
	

17.5	
 	

Notwithstanding the terms of 17.4 -
	

17.5.1	
 	

a participant who becomes a retired employee shall within 18 (eighteen) months after his so becoming a retired employee, in respect of any scheme shares beneficially held by him, be obliged to pay the share debt in respect of such scheme shares and
shall upon such payment be entitled to have the scheme shares in question released to him;
	

17.5.2	
 	

a participant who takes early retirement shall continue to be bound by the provisions of 17.4 above until he reaches the age at which he could, had he remained in the employ of the company, have become a retired employee, from which date the
provisions of 17.5.1 above shall apply to him.
	

17.6	
 	

Notwithstanding 17.4, if the employment of any participant is terminated as a result of his death, retirement due to ill health or disability, then notwithstanding anything to the contrary herein contained, the participant shall be deemed to have
sold his scheme shares to the trust at a price per share equal to the last price at which Sasol shares traded on the JSE on the latest trading day on which such shares were so traded immediately preceding the date of death or retirement as aforesaid,
and the price payable by the trust shall be discharged by way of set-off against the participant's share debt and the balance, if any, shall be payable in cash; provided that the trustees may, in lieu of purchasing such shares, released the shares to
the participant against payment in full of participant's share debt.
	

17.7	
 	

If a participant, for any reason other than death or retirement in terms of 17.5 and 17.6, does not remain as an employee for a period of 8 (eight) years from the offer date, then upon the date upon which he ceases to be employed by the company or by
any other member of the group, the participant shall, unless the trustees are otherwise instructed by the directors -
	

17.7.1	
 	

be entitled to pay for and receive release of any scheme shares, to the release of which he is entitled in terms of 17.4;
	

17.7.2	
 	

the trust shall purchase all scheme shares (other than those paid for and released in terms of 17.7.1) which were acquired by the participant pursuant to the scheme at the cost thereof to the participant; provided that the trustees may, in their
discretion, pay the participant an additional consideration determined by them as being the amount which in their opinion is required to put the participant in the same position as he would have been had he not participated in the scheme;
and
	

17.7.3	
 	

the participant shall forfeit all other rights which he might otherwise have had in terms of the scheme.
	

17.8	
 	

Where payments are made by a participant to the trust in respect of his share debt, such payments -
	

17.8.1	
 	

shall not be apportioned specifically to the purchase price of any particular scheme shares until such time as the participant is entitled to obtain the release of the same;
	

17.8.2	
 	

subject to 17.8.1 above, may, when a participant is entitled to obtain release of any scheme shares and if the participant so directs, be apportioned to the purchase price of such specific scheme shares as may then be released.
	
 	
 	

 

16

 

	
18.	
 	

OPTIONS

(Clause 18 amended on 27 November 2000 to include sub-clause 18.7)
	

18.1	
 	

A participant shall obtain an option by accepting a grant of option and any such option may be exercised by the participant wholly or in part (and if exercised in part, from time to time), but always in multiples of 100 (one hundred) shares, at any
time during the period from the option date until the ninth anniversary of that date subject always to provisions of 12.3.13 above.
	

18.2	
 	

An option shall lapse and may be withdrawn -
	

18.2.1	
 	

to the extent that an option is not exercised by the ninth anniversary of the option date in respect of the shares which are the subject-matter of the option not so exercised; and
	

18.2.2	
 	

if a participant ceases to be an employee for reasons other than death, becoming a retired employee, taking early retirement, or due to incapacity or ill health (amended 3/12/2001); or
	

18.2.3	
 	

if the participant is a non-executive director of the company, ceases to be a director of the company for reasons other than death, retirement, incapacity or ill health; (amended 3/12/2001;
or
	

18.2.4	
 	

if an employee ceases to be an employee as a result of the fact that that employee's employer ceases to be a subsidiary of the company, or has sold the business in respect of which the employee was employed (amended
3/12/2001); or
	

18.2.5	
 	

if the interests of a participant in an option or in the shares or right to shares acquired by him pursuant thereto (except shares which may be released to him) are attached by process of law under any circumstances whatsoever,
	

 	
 	

and insofar as an option has been exercised prior to the date on which the participant is entitled to pay for and obtain transfer of or be issued with and deal in the shares to which such option relates, and thereafter any circumstance referred to in
18.2.2, 18.2.3, 18.2.4 or 18.2.5 above occurs, the agreement consequent upon the exercise of the option shall automatically terminate unless prior to the occurrence of the relevant circumstance the directors resolve that the agreement shall not
terminate by reason only of the occurrence of the circumstances referred to in 18.2.2, 18.2.4 or 18.2.5. If the agreement does terminate in terms of this clause 18.2, neither party shall have any claim against the other.
	

18.3	
 	

Notwithstanding the date on which an option is exercised a participant who is not a non-Executive Director of the Company shall only be entitled to pay for or take transfer of or be issued with or deal in any shares in respect of which an option has
been granted to the extent provided by the trustees who shall, at the time when the grant of option is made (and in accordance with the Directors' instructions), stipulate (amended 3/12/2001)
-
	

18.3.1	
 	

each time period which has to lapse before the participant becomes entitled to tender payment for the shares which are the subject of the option, provided that the minimum time period and the maximum time period shall, respectively, be the second and
ninth anniversaries of the option date, and provided further that there shall be at least two such periods which shall be of a duration of at least 18 months each (new clause, approved on 3/12/2001);
	
 	
 	

 

17

 

	

18.3.2	
 	

the percentage of shares in respect of which the participant may tender payment after the time periods stipulated in accordance with 18.3.1 have lapsed provided that such percentages stipulated for periods subsequent to the first period shall be
equal to or greater than the percentage stipulated for the first period (new clause, approved on 3/12/2001);
	

18.3.3	
 	

the date(s) by which the participants shall be obliged to pay for the shares which are the subject of the option, provided that the earliest date and the latest date shall be, respectively, the second anniversary and the ninth anniversary of the
option date (new clause, approved on 3/12/2001),
	

 	
 	

provided that where a participant has made an offer for the purchase of shares and a grant of option and has accepted both, the provisions of 17.4 above and this clause 18.3 shall be so applied that the number of shares which may be purchased or
subscribed for, paid for and released may be apportioned between shares purchased pursuant to an offer for the purchase of shares or upon exercise of the option, as the participant may elect (amended 3/12/2001);
	

 	
 	

provided however that the aggregate scheme shares thus purchased by and released to the participant shall not exceed the permitted proportionate limits of the aggregate number of shares to which he is entitled in terms of the scheme referred to above,
 as at the relevant dates;
	

 	
 	

provided further that the purchase price of shares in respect of which an option is exercised shall be paid by not later than the ninth anniversary of the option date (amended 3/12/2001).
	

18.3bis	
 	

Notwithstanding anything to the contrary contained in clause 18.3 no participant who is a non-executive director shall be entitled to pay for or take transfer of or deal in any shares in respect of which an option has been granted except to the
extent provided below:
	

18.3bis(1)	
 	

up to 1/2 (one half) of all shares which were the subject of the option, on or after the second anniversary of the option date;
	

18.3bis(2)	
 	

all remaining shares which were the subject of the option, on or after the fourth anniversary of the option date.
	
(Clause 18.3bis approved by the Shareholders of Sasol Limited at the Annual General Meeting held on 27 November 2000)
	

18.4	
 	

If a participant ceases to be an employee -
	

18.4.1	
 	

by becoming a retired employee, that participant or the executor of his estate, as the case may be, shall:
	

18.4.1.1	
 	

If the participant became a retired employee before 25 October 1999, be entitled to exercise the participants option and pay for the shares to which it relates at any time (and if the option is exercised in part only, from time to time) within a
period of 18 (eighteen) months after the participant becoming a retired employee or, if the option has been exercised prior to retirement, shall be entitled as well as obliged to pay for the shares in question within the aforesaid period of 18
(eighteen) months; (amended 25 October 1999)
	
 	
 	

 

18

 

	

18.4.1.2	
 	

If the participant became a retired employee on or after 25 October 1999, be entitled to exercise the participants options and pay for the shares to which it relates at any time (and if the option is exercised in part only from time to time) before
the ninth anniversary of the option date or, if the option has been exercised prior to retirement, shall be entitled as well as obliged to pay for the shares in question before the aforesaid ninth anniversary date; (amended 25
October 1999)
	

18.4.2	
 	

by taking early retirement, that participant shall nonetheless continue to be bound by the provisions of 18.3 above until he reaches the age at which he could, had he remained in the employ of the company, have become a retired employee from which
date the provisions of 18.4.1 above shall apply;
	

18.4.3	
 	

by death or retirement due to ill health or disability:
	

18.4.3.1	
 	

before 25 October 1999, that participant or the executor of his estate, as the case may be, may exercise the participant's option and pay for the shares to which it relates at any time (and if the option is exercised in part only, from time to time)
within 6 (six) months after the date of death or termination of employment for the aforementioned reasons or, if the option has been exercised prior to his retirement, shall be entitled as well as obliged to pay for the shares in question within the
aforesaid period of 6 (six) months; (amended 25 October 1999)
	

18.4.3.2	
 	

on or after 25 October 1999, that participant or the executor of his estate, as the case may be, may exercise the participant's option and pay for the shares to which it related at any time (and if the option is exercised in part only, from time to
time) within 12 (twelve) months after the date of death or termination of employment for the aforementioned reasons or, if the option has been exercised prior to his retirement, shall be entitled as well as obliged to pay for the shares in question
within the aforesaid period of 12 (twelve) months. (amended 25 October 1999)
	

18.5	
 	

If a participant ceases to be an employee for any reason other than one referred to in 18.4 and the participant has not exercised the option granted to him, such option shall lapse forthwith and the participant shall have no further right against the
company or, the trust in respect thereof (amended 3/12/2001).
	

18.6	
 	

The amount payable of a participant who has accepted a grant of option and exercised the resultant option shall be paid by that participant to the trust when the participant is entitled or obliged to do so in terms hereof and the trustees shall apply
the same in subscribing or acquiring shares in the company on his behalf. Forthwith and upon such payment and subscription or acquisition the participant shall be entitled to release of the scheme shares mutatis mutandis in the manner and upon the
terms and conditions and subject to the restrictions provided in 15.4 above (amended 3/12/2001).
	

18.7	
 	

Notwithstanding anything to the contrary contained in this clause 18, and notwithstanding the date on which the option is exercised and the sale of any shares between the trustees and the participant arising from the exercise of the option in respect
of those shares, a participant shall, at any time within a period of 60 (sixty) days calculated from the effective date or completion date (whichever is the later) of any affected transaction which will on implementation result in a change of control
of the company, be entitled to pay for or take transfer of or deal in any shares in respect of which an option has been granted. For purposes of this clause 18.7 "affected transaction" and "control" shall have the meanings assigned to those terms by
section 440A of the Companies Act 1973, as amended".
	
 	
 	

 

19

 

	
19.	
 	

RIGHTS ISSUES
	

 	
 	

The following provisions shall apply in the event of a rights offer -
	

19.1	
 	

as regards a participant who has accepted an offer, the participant shall be entitled to follow the rights arising on scheme shares but shall be obliged to pay the subscription price of the rights shares from his own resources and such shares shall
not form part of his scheme.
	

19.2	
 	

As regards a participant who has accepted a grant of option -
	

19.2.1	
 	

the trustees shall if the directors so determine offer the participant an option to acquire such additional number of shares in the company at the rights offer price as the participant would have been entitled to receive had the option held by him
been exercised on the record date for the registration to participate in the rights offer concerned provided however that the participant shall be both entitled and obliged to pay the subscription price of tights shares from his own resources and to
have the rights shares released to him at any time and such rights shares shall not form part of his scheme shares;
	

19.2.2	
 	

the provision of 19.2.1 above shall not be construed so as to confer any rights on any participant.
	
20.	
 	

CAPITALISATION ISSUES

(Clause 20 amended on 26 October 1994 to include sub-clause 20.1.4)
	

 	
 	

The following provisions shall apply in the event of a capitalisation issue:
	

20.1	
 	

As regards a participant who has accepted an offer:
	

20.1.1	
 	

Every participant shall participate in any capitalisation issue by the company in respect of his scheme shares, as if the purchase price of those scheme shares was, at the record date, already paid in full.
	

20.1.2	
 	

Capitalisation shares arising upon scheme shares shall be issued as scheme shares in terms of this trust deed.
	

20.1.3	
 	

No participant shall be entitled to renounce his rights to any capitalisation shares, or dispose thereof in any other way, and all such shares -
	

20.1.3.1	
 	

shall be allotted and issued subject to the restrictions and provisions of this trust deed and the company's articles of association; and
	

20.1.3.2	
 	

shall for so long as the option in respect of the relevant scheme shares has not been exercised and/or continue the purchase price of the scheme shares in respect of which they are issued is not paid in full, become part of a participant's holding of
scheme shares and shall mutatis mutandis be subject in all respects to the same rights, restrictions and provisions as attach to the scheme shares in terms of this trust deed.
	

20.1.4	
 	

Clause 20.1.3 should not be interpreted to preclude participants from electing to receive dividends in lieu of capitalisation shares.
	

20.2	
 	

As regards the participant who has accepted the grant of an option -
	

20.2.1	
 	

the trustees shall if so determined by the directors offer the participant an additional option to acquire such number of shares as would have been issued to him as capitalisation shares had the option held by him been exercised as at the record date
for participation in the capitalisation issue;
	
 	
 	

 

20

 

	

20.2.2	
 	

the price of shares on exercise of the option may be such price as the directors may lawfully determine;
	

20.2.3	
 	

the provisions of 20.2.1 and 20.2.2 above shall not be construed so as to confer any rights on any participant.
	
21.	
 	

ADJUSTMENTS ON THE RE-ORGANISATION OF THE SHARE CAPITAL OF THE COMPANY
	

21.1	
 	

If the company at any time before the share debt owing on any scheme shares has been paid in full or an option exercised -
	

21.1.1	
 	

is put into final liquidation for the purpose of re-organisation; or
	

21.1.2	
 	

is a party to a scheme of arrangement affecting the structure of its share capital; or
	

21.1.3	
 	

reduces its share capital; or
	

21.1.4	
 	

splits or consolidates its shares; or
	

21.1.5	
 	

is a party to a re-organisation,
	

 	
 	

such adjustments shall be made to the purchase price in respect of those shares as have not been fully paid for, or those shares in respect of which an option granted has not been exercised, as the auditors acting as experts, and not as arbitrators,
certify as being fair and reasonable in the circumstances and subject (where necessary) to the sanction of the court.
	

21.2	
 	

if the company is wound up or dissolved otherwise than in terms of 21.1.1 and finally de-registered -
	

21.2.1	
 	

the trust shall have no further right to recover any part of any share debt outstanding as at the date of commencement of winding up or dissolution proceedings; and
	

21.2.2	
 	

save for any right which the trust may then have against the company, this scheme shall ipso facto lapse as and from the date of commencement of such winding up or dissolution proceedings; and
	

21.2.3	
 	

any option which has not yet been exercised shall ipso facto lapse from the date of liquidation.
	
22.	
 	

PROHIBITION AGAINST CESSION
	

 	
 	

Save as provided for in this trust deed, no participant shall be entitled to cede (whether as security for indebtedness or as an out-and-cession) or otherwise deal in or with any of his rights against the trust.
	
23.	
 	

AMENDMENTS TO THIS DEED
	

 	
 	

This deed may be amended from time to time by the directors, but
	

23.1	
 	

No amendment shall operate without the prior approval of the JSE and all other stock exchanges on which the company's shares are listed or quoted or dealt in, nor may the terms or conditions of allotment of any scheme or capitalisation shares or
rights shares or of any offer be altered without such consent on the part of the participants who have rights in respect of such shares hereunder as would be required under the company's articles of association for variation or cancellation of the
rights attached to shares.
	

23.2	
 	

Without derogating from the terms of 23.1 above, no amendment in respect of the following matters shall operate unless such amendment has received the approval of the company in general meeting -
	
 	
 	

 

21

 

	

23.2.1	
 	

the persons who may become participants under the scheme;
	

23.2.2	
 	

the total number of the shares subject to the scheme;
	

23.2.3	
 	

the maximum entitlement of any one participant to acquire scheme shares;
	

23.2.4	
 	

the amount payable on acceptance and the basis for determining the price at which scheme shares are acquired by participants or the period in or after which payments may be made or called; and
	

23.2.5	
 	

the voting, dividend, and other rights (including those arising on the liquidation of the company and the right to sell scheme shares back to the trust) attaching to scheme shares.
	
24.	
 	

DISPUTES
	

 	
 	

Should any dispute arise between or amongst the company, the trustees or any participant or between or amongst any of them in connection with or arising from this trust deed or the share purchase or option scheme herein contained, such dispute shall
be referred to arbitration by a single arbitrator who shall be a partner of the auditors of the company for the time being, such partner to be nominated by such auditors. The arbitration shall be held informally at Johannesburg and otherwise in
accordance with the provisions of the Arbitration Act. The arbitrator may, if he deems it necessary or desirable, seek, adopt and act on independent legal advice. The finding of the arbitrator shall be final and biding upon the parties.
	
25.	
 	

NOTICES AND DOMICILIA
	

25.1	
 	

Domicilia citandi et executandi are for all purposes of and in connection with the scheme (including, without limitation, the receipt of notices), appointed at the following:
	

25.1.1	
 	

The company, secretary and trustees - the registered address of the company from time to time.
	

25.1.2	
 	

The participant - the address recorded on his acceptance of the offer or grant of option.
	

25.2	
 	

Any notice to any person shall be addressed to him at his domicilium aforesaid and either sent by prepaid registered post or delivered by hand to the responsible person. In the case of any notice -
	

25.2.1	
 	

sent by prepaid registered post, it shall be deemed to have been received, unless the contrary is proved, on the seventh business day after posting;
	

25.2.2	
 	

delivered by hand, it shall be deemed to have been received, unless the contrary is proved, on the date of delivery, provided that such date is a business day or otherwise on the next following business day.
	

25.3	
 	

Any person shall be entitled by notice to the other persons, to change his domicilium, provided that the change shall become effective only 14 (fourteen) days after service of the notice in question.
	

25.4	
 	

For the purposes hereof, "business day" means any date other than a Saturday, Sunday or public holiday.
	
 	
 	

 

22

 

	

25.5	
 	

Notwithstanding the preceding provisions of clause 25, unless and until and insofar as the directors determine otherwise, the trustees shall be entitled to deliver any notice to any offeree or participant (including but not limited to, any offer or
grant of option) by electronic transmission to his e-mail address, and to require that he delivers any notice to the Company, secretary and trustees (including, but not limited to, any acceptance of an option) by electronic transmission to its or
their e-mail address (new clause, approved on 3/12/2001).
	
26.	
 	

GENERAL
	

 	
 	

The trustees may in their sole and absolute discretion, and without assigning any reason therefor waive, renounce, abandon or decline to enforce any right of action against any participant, but no concession granted to any participant, shall, be
itself, constitute a waiver, renunciation, forfeiture or abandonment by the trust of its rights to enforce any right which it may have against any participant.
	
27.	
 	

COMPANY'S DUTY TO REPORT
	

 	
 	

The company in its annual reports and accounts shall summarise -
	

27.1	
 	

the number of shares available in terms of the scheme;
	

27.2	
 	

the number of shares which have actually been taken up by participants in terms of offers made to them or in respect of which options have been granted, which shares are still subject to this trust deed;
	

27.3	
 	

any changes in the number of scheme shares available in terms of the scheme during the year to which the report and accounts aforesaid related;
	

27.4	
 	

any changes in the number of scheme shares which have actually been taken up by participants during the year;
	

27.5	
 	

the number of shares initially taken up by participants as scheme shares and which during the year have ceased to rank as scheme shares;
	

27.6	
 	

the prices at which employees have been invited to take up scheme shares during the year and the total number of shares taken up by employees at each price.
	

27.7	
 	

the total number of shares still available to be taken up by employees in terms of the scheme; and
	

27.8	
 	

the aggregate amount owing by the participants to the trust, as at the close of the financial year, for assistance given in the taking up by participants of scheme shares.
	
28.	
 	

ISSUE OF SHARES TO A PARTY
	

 	
 	

The company shall be entitled at any time to issue new shares to any party, on such terms and conditions as the directors may determine. None of the participants (nor their representatives nor their successors in title) shall have any action of
whatsoever nature (including an action based on alleged oppression or fraud on minority shareholders) arising from any such issue of shares to any parties.
	
29.	
 	

COSTS
	

 	
 	

The costs of the preparation of this trust deed and all matters incidental thereto and all costs incurred by the trustees in the execution and administration of the trust shall be borne by the company.
	
 	
 	

 

23

 

	

 30.	

 	

SPECIFIC PROVISIONS FOR OVERSEAS TERRITORIES
	

30.1	
 	

Notwithstanding the provisions of clause 1.1.23, the "purchase price" in relation to a share payable by a participant who is a resident of Italy shall be an amount equal to the average closing price of an ordinary share (determined with reference to
the official price lists published by the JSE) in the month preceding the date on which the directors resolve that the relevant option be granted to the participant (new clause, approved on 3/12/2001).
	

30.2	
 	

Notwithstanding anything to the contrary contained elsewhere in this scheme, a citizen, resident or national of the Unites States of America may not be a participant unless he is an employee, executive director, or executive officer of the company or
its subsidiaries (new clause, approved on 3/12/2001).
	

30.3	
 	

Notwithstanding anything to the contrary contained elsewhere in this scheme, the sale or transfer of shares acquired under this scheme is not permitted within Germany unless the seller knows the acquiror in person, and the acquiror does not need, in
view of his specific knowledge, disclosure by way of a sales prospectus, and the seller informs the acquiror that the shares are not listed on a German stock exchange, and that a sales prospectus in accordance with a German sales prospectus has not
been published for those shares and that, consequently, the shares may not be publicly offered (new clause, approved on 3/12/2001).

	SIGNED AT	 	on
	
AS WITNESSES:	
 	

 
	

1.	
 	

    
	
 	

For:
	

2.	
 	

    
	
 	

Duly Authorised
	

SIGNED AT	
 	

on
	
AS WITNESSES:	
 	

 
	

1.	
 	

    
	
 	

For:
	

2.	
 	

    
	
 	

Duly Authorised
	

SIGNED AT	
 	

on
	
AS WITNESSES:	
 	

 
	

1.	
 	

    
	
 	

For:
	

2.	
 	

    
	
 	

Duly Authorised
	

SIGNED AT	
 	

on
	
AS WITNESSES:	
 	

 
	

1.	
 	

    
	
 	

For:
	

2.	
 	

    
	
 	

Duly Authorised
	

SIGNED AT	
 	

on
	
AS WITNESSES:	
 	

 
	

1.	
 	

    
	
 	

For:
	

2.	
 	

    
	
 	

Duly Authorised
	
 	
 	

 	
 	

 

24

 

	

SIGNED AT	
 	

on
	
AS WITNESSES:	
 	

 
	

1.	
 	

    
	
 	

For:
	

2.	
 	

    
	
 	

Duly Authorised
	

SIGNED AT	
 	

on
	
AS WITNESSES:	
 	

 
	

1.	
 	

    
	
 	

For:
	

2.	
 	

    
	
 	

Duly Authorised

25

QuickLinks

Exhibit 4.1

SASOL LIMITED

TRUST DEED CONSTITUTING A SHARE PURCHASE AND OPTION SCHEME (as amended)

INDEX

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00047-of-00352.parquet"}]]