Document:

<PAGE>

                  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

         This Second Amended and Restated Credit Agreement, dated as of November
22, 2002, is among DMI FURNITURE, INC., a Delaware corporation, the Lenders from
time to time party hereto, and BANK ONE, NA, a national banking association
having its principal office in Chicago, Illinois, as Agent.

         The Borrower and Bank One are parties to a certain Amended and Restated
Credit Agreement, dated as of October 23, 2001, as amended by a First Amendment
to Amended and Restated Credit Agreement, dated as of January 3, 2002, and a
Second Amendment to Amended and Restated Credit Agreement, dated as of March 29,
2002, and by the Loan Modification Agreement (the "Modification Agreement"), of
even date, among the Borrower, Bank One, and Fifth Third Bank, Kentucky, Inc.
(the "Original Agreement").

         The parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         As used in this Agreement:

         "Acquisition" means any transaction, or any series of related
transactions, consummated on or after the date of this Agreement, by which the
Borrower or any of its Subsidiaries (i) acquires any going business or all or
substantially all of the assets of any firm, corporation or limited liability
company, or division thereof, whether through purchase of assets, merger or
otherwise or (ii) directly or indirectly acquires (in one transaction or as the
most recent transaction in a series of transactions) at least a majority (in
number of votes) of the securities of a corporation which have ordinary voting
power for the election of directors (other than securities having such power
only by reason of the happening of a contingency) or a majority (by percentage
or voting power) of the outstanding ownership interests of a partnership or
limited liability company.

         "Advance" means a borrowing of the Revolving Loan or Term Loan
hereunder, (i) made by the Lenders on the same Borrowing Date, or (ii) converted
or continued by the Lenders on the same date of conversion or continuation,
consisting, in either case, of the aggregate amount of the several Loans of the
same Type and, in the case of Eurodollar Loans, for the same Interest Period.

         "Affiliate" of any Person means any other Person directly or indirectly
controlling, controlled by or under common control with such Person. A Person
shall be deemed to control another Person if the controlling Person owns 10% or
more of any class of voting securities (or other ownership interests) of the
controlled Person or possesses, directly or indirectly, the power to direct or
cause the direction of the management or policies of the controlled Person,
whether through ownership of stock, by contract or otherwise.
<PAGE>
         "Agent" means Bank One in its capacity as contractual representative of
the Lenders pursuant to Article X, and not in its individual capacity as a
Lender, and any successor Agent appointed pursuant to Article X.

         "Aggregate Commitment" means the aggregate of the Commitments of all
the Lenders, as reduced from time to time pursuant to the terms hereof.

         "Aggregate Outstanding Credit Exposure" means, at any time, the
aggregate of the Outstanding Credit Exposure of all the Lenders.

         "Aggregate Term Loan Commitment" means, at any time, the aggregate of
the Term Loan Commitments of all the Lenders.

         "Agreement" means this credit agreement, as it may be amended or
modified and in effect from time to time.

         "Agreement Accounting Principles" means generally accepted accounting
principles as in effect from time to time, applied in a manner consistent with
that used in preparing the financial statements referred to in Section 5.4.

         "Alternate Base Rate" means, for any day, a rate of interest per annum
equal to the higher of (i) the Prime Rate for such day and (ii) the sum of the
Federal Funds Effective Rate for such day plus 1/2% per annum.

         "Applicable Fee Rate" means, at any time, the percentage rate per annum
at which commitment fees are accruing on the Unused Revolving Loan Aggregate
Commitment at such time as set forth in the Pricing Schedule.

         "Applicable LC Fee" means at any time, with respect to the 1993
Direct-Pay Letter of Credit, the 1994 Refunding Direct-Pay Letter of Credit, and
a Facility LC that is a standby letter of credit, the percentage rate per annum
which is applicable at such time as set forth in the Pricing Schedule.

         "Applicable Margin" means, with respect to Advances of any Type at any
time, the percentage rate per annum which is applicable at such time with
respect to Advances of such Type as set forth in the Pricing Schedule.

         "Approved Fund" means any Fund that is administered or managed by (a) a
Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an
entity that administers or manages a Lender.

         "Arranger" means Banc One Capital Markets, Inc., a Delaware
corporation, and its successors, in its capacity as Lead Arranger and Sole Book
Runner.

         "Article" means an article of this Agreement unless another document is
specifically referenced.

         "Authorized Officer" means any of the President or the Chief Financial
Officer of the Borrower, acting singly.

                                      -2-
<PAGE>
         "Bank One" means Bank One, NA, a national banking association having
its principal office in Chicago, Illinois, in its individual capacity (successor
by merger with Bank One, Indiana, N.A.), and its successors.

         "Bond Document" means any of the 1993 Bond Documents or any of the 1994
Refunding Bond Documents as the context requires, and when used in the plural
form, refers to all or any combination of the Bond Documents as the context
requires.

         "Borrower" means DMI Furniture, Inc., a Delaware corporation, and its
successors and assigns.

         "Borrowing Base" means, at any date a determination thereof is to be
made, an amount equal to the sum of: (i) Eighty Percent (80%) of (a) the net
book value (as determined in accordance with Agreement Accounting Principles) of
Eligible Accounts minus (b) an amount equal to the net book value of all
Eligible Accounts owed by account debtors for goods supplied by Borrower for use
in showroom or displays for which extended payment terms (i.e., payment terms
which are longer than customarily extended for purchases of inventory from
Borrower on account) were given to the account debtor by the Borrower,
determined as of the last day of the fiscal quarter of Borrower preceding the
date of determination; (ii) Fifty Percent (50%) of the Eligible Finished Goods
Inventory Value and the Eligible Wood Stock Inventory Value; (iii) Twenty-Five
Percent (25%) of the Eligible Miscellaneous Inventory Value; and (iv) during the
period beginning on the first day of the fourth Fiscal Month of each fiscal year
of the Borrower and ending on the last day of the sixth Fiscal Month of the same
fiscal year of the Borrower, and during the period beginning on the first day of
the eighth Fiscal Month of each fiscal year of the Borrower and ending on the
last day of the tenth Fiscal Month of the same fiscal year of the Borrower, the
sum of $1,000,000.00 (all of the foregoing as determined on the basis of the
information contained in the most recent Borrowing Base Certificate provided to
the Agent or as determined by the Agent upon an inspection of the Borrower's
books and records and inventory by the Agent or any other representative of the
Lenders); provided, however, the Borrowing Base shall be $0 commencing five (5)
calendar days after the Borrower's failure to furnish to the Agent a monthly
Borrowing Base Certificate within the period of time required under Section 6.1
and continuing until the Agent shall have received a properly completed and
certified Borrowing Base Certificate.

         "Borrowing Base Certificate" means a certificate signed by an
Authorized Officer of the Borrower certifying the amount of the Borrowing Base
and the Maximum Availability as of a stated date and in such form and showing
such detail as the Agent reasonably may require from time to time.

         "Borrowing Date" means a date on which an Advance is made hereunder.

         "Borrowing Notice" is defined in Section 2.8.

         "Business Day" means (i) with respect to any borrowing, payment or rate
selection of Eurodollar Advances, a day (other than a Saturday or Sunday) on
which banks generally are open in Chicago and New York City for the conduct of
substantially all of their commercial lending activities, interbank wire
transfers can be made on the Fedwire system and dealings in United States
dollars are carried on in the London interbank market and (ii) for all other
purposes, a day (other than a Saturday or Sunday) on which banks generally are
open in Indianapolis for the conduct of substantially all of their commercial
lending activities and interbank wire transfers can be made on the Fedwire
system.

                                      -3-
<PAGE>
         "Capital Expenditures" means, without duplication, any expenditures for
any purchase or other acquisition of any asset which would be classified as a
fixed or capital asset on a consolidated balance sheet of the Borrower and its
Subsidiaries prepared in accordance with Agreement Accounting Principles,
including the amount capitalized under all Capital Leases.

         "Capitalized Lease" of a Person means any lease of Property by such
Person as lessee which would be capitalized on a balance sheet of such Person
prepared in accordance with Agreement Accounting Principles.

         "Capitalized Lease Obligations" of a Person means the amount of the
obligations of such Person under Capitalized Leases which would be shown as a
liability on a balance sheet of such Person prepared in accordance with
Agreement Accounting Principles.

         "Cash Capital Expenditures" means Capital Expenditures that are not
financed through the incurring of new Indebtedness.

         "Cash Equivalent Investments" means (i) short-term obligations of, or
fully guaranteed by, the United States of America, (ii) commercial paper rated
A-1 or better by S&P or P-1 or better by Moody's, (iii) demand deposit accounts
maintained in the ordinary course of business, and (iv) certificates of deposit
issued by and time deposits with commercial banks (whether domestic or foreign)
having capital and surplus in excess of $100,000,000; provided in each case that
the same provides for payment of both principal and interest (and not principal
alone or interest alone) and is not subject to any contingency regarding the
payment of principal or interest.

         "Change in Control" means the occurrence of any of the following:

                  (i)      Any "person", as such term is used in Sections 13(d)
                           and 14(d)(2) of the Securities Exchange Act of 1934,
                           as amended (the "Exchange Act") (other than the
                           Borrower, any trustee or other fiduciary holding
                           securities under an employee benefit plan of the
                           Borrower, or any corporation owned, directly or
                           indirectly, by the shareholders of the Borrower in
                           substantially the same proportions as their ownership
                           of stock of the Borrower, or any of the existing
                           Series C Preferred shareholders), is or becomes the
                           "beneficial owner" (as defined in Rule 13d-3 under
                           the Exchange Act), directly or indirectly, of
                           securities of the Borrower representing 40% or more
                           of the combined voting power of the Borrower's then
                           outstanding securities.

                  (ii)     During any period of one year, individuals who at the
                           beginning of such period constitute the Board of
                           Directors of the Borrower cease to constitute at
                           least a majority thereof. If the election or
                           nomination for election by the Borrower's
                           shareholders of a new director (other than a director
                           designated by a person who has entered into an
                           agreement with the Borrower to effect a transaction
                           described in clause (a), (c) or (d) of this
                           definition) was approved by a vote of at least
                           two-thirds of the directors then still in office who
                           either were directors at the beginning of the period
                           or whose election or nomination for election was
                           previously so approved, that director shall not be
                           counted for purposes of the preceding sentence.

                                      -4-
<PAGE>
                  (iii)    The shareholders of the Borrower approve a merger or
                           consolidation of the Borrower with any other
                           corporation, other than (A) a merger or consolidation
                           which would result in the voting securities of the
                           Borrower outstanding immediately prior thereto
                           continuing to represent (either by remaining
                           outstanding or by being converted into voting
                           securities of the surviving entity) more than 80% of
                           the combined voting power of the voting securities of
                           the Borrower or such surviving entity outstanding
                           immediately after such merger or consolidation, or
                           (B) a merger or consolidation effected to implement a
                           recapitalization of the Borrower (or similar
                           transaction) in which no "person" (as hereinabove
                           defined) acquires more than 50% of the combined
                           voting power of the Borrower's then outstanding
                           securities.

                  (d)      The shareholders of the Borrower approve a plan of
                           complete liquidation of the Borrower or an agreement
                           for the sale of disposition by the Borrower of all or
                           substantially all of the Borrower's asset.

                  (e)      Any other transaction which is of a nature that would
                           be require to be reported in response to Item 6(e) of
                           Schedule 14A of Regulation 14A promulgated under the
                           Exchange Act occurs.

         "Change in Management" means neither (i) Donald D. Dreher nor (ii)
Joseph G. Hill is a senior executive of the Borrower.

         "City" means the City of Huntingburg, Indiana.

         "Closing Date" means November 22, 2002.

         "Code" means the Internal Revenue Code of 1986, as amended, reformed or
otherwise modified from time to time.

         "Collateral Documents" means, collectively, the Security Agreement, the
Mortgages, the Mortgage Assignment and the Guaranty.

         "Collateral Shortfall Amount" is defined in Section 8.1.

         "Commission Due Date" means the first Business Day of each November,
February, May and August of each year.

         "Commitment" means, for each Lender, the sum of its LC Commitment and
its Revolving Commitment.

         "Consolidated EBITDA" means with respect to any period, Consolidated
Net Income plus, to the extent deducted from revenues in determining
Consolidated Net Income, (i) Consolidated Interest Expense, (ii) expense for
taxes paid or accrued, (iii) depreciation, (iv) amortization and (v)
extraordinary losses incurred other than in the ordinary course of business,
minus, to the extent included in Consolidated Net Income, extraordinary gains
realized other than in the ordinary course of business, all calculated for the
Borrower and its Subsidiaries on a consolidated basis.

                                      -5-
<PAGE>
         "Consolidated Fixed Charges" means with respect to any period, the sum
of interest which was due and payable by the Borrower and its Subsidiaries in
cash during such period, plus Cash Capital Expenditures made by the Borrower and
its Subsidiaries during such period, plus scheduled principal payments of
Indebtedness of the Borrower and each of its Subsidiaries which were due and
payable in cash during such period (excluding payments to the Designated Account
that are required under Section 2.21.1 or 2.22.1 to the extent that such
payments are funded with Advances of the Term Loans, plus taxes of the Borrower
and its Subsidiaries which were due and payable during such period, plus
dividends that were paid to the shareholders of the Borrower in cash during such
period.

         "Consolidated Funded Indebtedness" means at any time the aggregate
dollar amount of the Indebtedness of the Borrower and its Subsidiaries
calculated on a consolidated basis which has actually been funded and is
outstanding at such time, whether or not such amount is due or payable at such
time.

         "Consolidated Interest Expense" means, with reference to any period,
the interest expense of the Borrower and its Subsidiaries calculated on a
consolidated basis for such period.

         "Consolidated Net Income" means, with reference to any period, the net
income (or loss) of the Borrower and its Subsidiaries calculated on a
consolidated basis for such period.

         "Consolidated Tangible Net Worth" means the consolidated shareholders'
equity of the Borrower and its Subsidiaries, less any allowance for goodwill,
patents, trademarks, trade secrets, and any other assets which would be
classified as intangible assets under Agreement Accounting Principles, and less
the deferred tax asset arising from the recognition of net operating loss carry
forward, and less the portion of "other comprehensive income" (determined in
accordance with Agreement Accounting Principles and being either a positive or
negative amount) which relates to interest rate swaps and minimum pension
liabilities and which directly affects the equity section of the balance sheet
without being reflected in the income statement, all determined on a
consolidated basis for the Borrower and its Subsidiaries.

         "Contingent Obligation" of a Person means any agreement, undertaking or
arrangement by which such Person assumes, guarantees, endorses, contingently
agrees to purchase or provide funds for the payment of, or otherwise becomes or
is contingently liable upon, the obligation or liability of any other Person, or
agrees to maintain the net worth or working capital or other financial condition
of any other Person, or otherwise assures any creditor of such other Person
against loss, including, without limitation, any comfort letter, operating
agreement, take-or-pay contract or the obligations of any such Person as general
partner of a partnership with respect to the liabilities of the partnership.

         "Conversion/Continuation Notice" is defined in Section 2.9.

         "Controlled Group" means all members of a controlled group of
corporations or other business entities and all trades or businesses (whether or
not incorporated) under common control which, together with the Borrower or any
of its Subsidiaries, are treated as a single employer under Section 414 of the
Code.

         "Credit Enhancement Business Day" means a "Business Day," as defined in
each of the Credit Enhancement Letters of Credit, as the context requires.

                                      -6-
<PAGE>
         "Credit Enhancement Letter of Credit" means the 1993 Direct-Pay Letter
of Credit or the 1994 Refunding Direct-Pay Letter of Credit as the context
requires, and when used in the plural form, refers to both of them.

         "Credit Extension" means the making of an Advance or the issuance of a
Facility LC hereunder.

         "Credit Extension Date" means the Borrowing Date for an Advance or the
issuance date for a Facility LC.

         "Default" means an event described in Article VII.

         "Designated Account" is defined in Section 2.21.1.

         "Drawing" means an Interest Drawing, a Principal Drawing or a
Remarketing Drawing, as the context requires, and when used in the plural form,
means all or any combination of them as the context requires.

         "Eligible Accounts" means, at any date a determination thereof is to be
made, all outstanding accounts receivable of the Borrower for which the Borrower
shall have furnished to the Agent information adequate for purposes of
identification at times and in form and substance as may be reasonably requested
by the Agent; provided, however, that an account receivable shall not constitute
an Eligible Account if it: (i) remains unpaid sixty (60) days after the original
due date for its payment stated on the applicable invoice or one hundred fifty
(150) days after the invoice date; (ii) is an account receivable with respect to
which the account receivable debtor is the subject of a bankruptcy or similar
insolvency proceeding or has made an assignment for the benefit of creditors or
whose assets have been conveyed to a receiver or trustee or who is no longer
conducting its customary business, except and to the extent the Agent otherwise
agrees in writing; (iii) is an account receivable which is not invoiced (and
dated as of the date of such invoice) and sent to the account receivable debtor
within the ordinary course of the business of the Borrower and in accordance
with customary billing practices after delivery of the underlying goods to, or
performance of the underlying services for, the accounts receivable debtor; (iv)
is an account receivable arising with respect to goods which have not been
shipped or arising with respect to services which have not been fully performed;
(v) is an account receivable with respect to which the account receivable
debtor's obligation to pay the account receivable is conditional upon the
account receivable debtor's approval or is otherwise subject to any repurchase
obligation or return right, as with sales made on a bill-and-hold, guaranteed
sale, sale-and-return, sale on approval or consignment basis; (vi) is an account
receivable in which the Bank does not have a first priority, perfected security
interest; (vii) is an account receivable due from any Subsidiary, Affiliate,
employee or sales agent of the Borrower or which is due solely from an accounts
receivable debtor which is a United States federal governmental entity or
agency, except and to the extent the Bank otherwise agrees in writing; or (viii)
is an account receivable evidenced by an instrument (as defined in Article 9.1
of the Indiana Uniform Commercial Code). At any time more than Twenty-Five
Percent (25%) of the aggregate amount of accounts receivable due from an
accounts receivable debtor remain unpaid more than sixty (60) days after the
date(s) due as stated on the original invoice(s) evidencing such accounts
receivable, then no accounts receivable due the Borrower from that accounts
receivable debtor shall constitute an Eligible Account; provided that accounts
receivable from Sam's Club shall not be excluded from Eligible Accounts unless
more than Fifty Percent (50%) of the aggregate amount of accounts receivable due
from Sam's Club remain unpaid more than sixty (60) days after the date(s) due
stated on the original invoice(s). Further, to the extent that an Eligible
Account is subject to any set-off, offset, credit or other

                                      -7-
<PAGE>
reduction right held by the account receivable debtor, then for purposes of
determining the Borrowing Base the amount of such Eligible Account shall be
reduced by the sum of all such offsets, credits and reductions.

         "Eligible Finished Goods Inventory Value" means, at any date a
determination thereof is to be made, an amount equal to the sum of (i) the
aggregate book value of the Borrower's finished goods inventory (all as
determined and classified in accordance with Agreement Accounting Principles)
but excluding all such inventory: (a) held by a third party on consignment or
subject to any repurchase option or arrangement or return right, as with sales
made on a bill-and-hold, guaranteed sale, sale-and-return, sale on approval or
consignment basis; (b) located outside the United States of America, except such
inventory with respect to which the Borrower has provided to the Agent evidence
satisfactory to the Agent that the Agent holds a perfected, first priority
security in such inventory, or (c) which does not comply with any of the
following requirements:

                  (1)      It is in good and merchantable condition for sale to
                           an end user and is readily marketable by the Borrower
                           in the ordinary course of the Borrower's business;

                  (2)      It conforms in all material respects to all
                           applicable specifications, standards and
                           requirements; and

                  (3)      It complies with or exceeds all standards, mandates
                           and requirements of Governmental Authority with which
                           it must be in compliance for it to be lawfully sold
                           to an end user in the United States of America;

and (ii) the aggregate amount available to be drawn under all Facility LCs
issued by the LC Issuer against which a vendor may draw to obtain payment of the
purchase price of finished goods inventory, minus the book value of any such
inventory included in the calculation of the Eligible Finished Goods Inventory
Value pursuant to clause (i) above as to which the vendors who are the
beneficiaries of such Facility LCs have not yet presented or the LC Issuer has
not yet honored a draft or demand for payment.

         "Eligible Miscellaneous Inventory Value" means, at any date a
determination thereof is to be made, an amount equal to the aggregate book value
(as determined and classified in accordance with Agreement Accounting
Principles) of the Borrower's raw material inventory, including furniture
hardware which is not yet part of work in process or finished goods, but
excluding all lumber (cut or uncut), board stock, timber, logs and other wood.

         "Eligible Wood Stock Inventory Value" means, at any date a
determination thereof is to be made, an amount equal to the aggregate book value
of the Borrower's inventory of timber, logs, rough cut lumber and full-board
stock (all as determined and classified in accordance with Agreement Accounting
Principles) and that is readily marketable in established wood markets in its
existing condition, but excluding all such lumber and board stock which is not
in standard market dimensions.

         "Enhancement Issuer" means Bank One, as issuer of the Credit
Enhancement Letters of Credit.

         "Environmental Laws" means any and all federal, state, local and
foreign statutes, laws, judicial decisions, regulations, ordinances, rules,
judgments, orders, decrees, plans, injunctions, permits, concessions, grants,
franchises, licenses, agreements and other governmental restrictions relating to
(i) the protection of the environment, (ii) the effect of the environment on
human health, (iii) emissions,

                                      -8-
<PAGE>
discharges or releases of pollutants, contaminants, hazardous substances or
wastes into surface water, ground water or land, or (iv) the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or
handling of pollutants, contaminants, hazardous substances or wastes or the
clean-up or other remediation thereof.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and any rule or regulation issued thereunder.

         "Eurodollar Advance" means an Advance which, except as otherwise
provided in Section 2.11, bears interest at the applicable Eurodollar Rate.

         "Eurodollar Base Rate" means, with respect to a Eurodollar Advance for
the relevant Interest Period, the applicable British Bankers' Association LIBOR
rate for deposits in U.S. dollars as reported by any generally recognized
financial information service as of 11:00 a.m. (London time) two Business Days
prior to the first day of such Interest Period, and having a maturity equal to
such Interest Period, provided that, if no such British Bankers' Association
LIBOR rate is available to the Agent, the applicable Eurodollar Base Rate for
the relevant Interest Period shall instead be the rate determined by the Agent
to be the rate at which Bank One or one of its Affiliate banks offers to place
deposits in U.S. dollars with first-class banks in the London interbank market
at approximately 11:00 a.m. (London time) two Business Days prior to the first
day of such Interest Period, in the approximate amount of Bank One's relevant
Eurodollar Loan and having a maturity equal to such Interest Period.

         "Eurodollar Loan" means a Loan which, except as otherwise provided in
Section 2.11, bears interest at the applicable Eurodollar Rate.

         "Eurodollar Rate" means, with respect to a Eurodollar Advance for the
relevant Interest Period, the sum of (i) the quotient of (a) the Eurodollar Base
Rate applicable to such Interest Period, divided by (b) one minus the Reserve
Requirement (expressed as a decimal) applicable to such Interest Period, plus
(ii) the Applicable Margin.

         "Excluded Taxes" means, in the case of each Lender or applicable
Lending Installation and the Agent, taxes imposed on its overall net income, and
franchise taxes imposed on it, by (i) the jurisdiction under the laws of which
such Lender or the Agent is incorporated or organized or (ii) the jurisdiction
in which the Agent's or such Lender's principal executive office or such
Lender's applicable Lending Installation is located.

         "Exhibit" refers to an exhibit to this Agreement, unless another
document is specifically referenced.

         "Extension Request" is defined in Section 2.20.

         "Facility LC" is defined in Section 2.19.1.

         "Facility LC Application" is defined in Section 2.19.3.

         "Facility LC Collateral Account" is defined in Section 2.19.11.

                                      -9-
<PAGE>
         "Facility Termination Date" means December 31, 2004 or any later date
as may be specified as the Facility Termination Date in accordance with Section
2.20, or any earlier date on which the Aggregate Commitment is reduced to zero
or otherwise terminated pursuant to the terms hereof.

         "Federal Funds Effective Rate" means, for any day, an interest rate per
annum equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published for such day (or, if such day is not a
Business Day, for the immediately preceding Business Day) by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations at approximately 10:00 a.m. (Chicago
time) on such day on such transactions received by the Agent from three Federal
funds brokers of recognized standing selected by the Agent in its sole
discretion.

         "Fiscal Month" means a 4-week or 5-week period comprising a fiscal
month of the Borrower.

         "Fixed Charge Coverage Ratio" means, with respect to the Borrower and
its Subsidiaries for any fiscal period, the ratio of Consolidated EBITDA for
such period to Consolidated Fixed Charges for such period.

         "Floating Rate" means, for any day, a rate per annum equal to (i) the
Alternate Base Rate for such day plus (ii) the Applicable Margin, in each case
changing when and as the Alternate Base Rate changes.

         "Floating Rate Advance" means an Advance which, except as otherwise
provided in Section 2.11, bears interest at the Floating Rate.

         "Floating Rate Loan" means a Loan which, except as otherwise provided
in Section 2.11, bears interest at the Floating Rate.

         "Fund" means any Person (other than a natural person) that is (or will
be) engaged in making, purchasing, holding or otherwise investing in commercial
loans and similar extensions of credit in the ordinary course of its business.

         "Guarantor" means DMI Management, Inc., a Kentucky corporation, and its
successors and assigns.

         "Guaranty" means that certain Second Amended and Restated Guaranty
dated as of the Closing Date, executed by the Guarantor in favor of the Agent
for the benefit of the Lenders, as it may be amended or modified and in effect
from time to time.

         "Hazardous Substance" means any hazardous or toxic substance regulated
by any Environmental Laws, including but not limited to the Comprehensive
Environmental Response, Compensation and Liability Act, the Resource
Conservation and Recovery Act and the Toxic Substance Control Act, or by any
federal or state governmental agencies having jurisdiction over the control of
any such substance including but not limited to the United States Environmental
Protection Agency.

         "Indebtedness" of a Person means such Person's (i) obligations for
borrowed money, (ii) obligations representing the deferred purchase price of
Property or services (other than accounts payable

                                      -10-
<PAGE>
arising in the ordinary course of such Person's business payable on terms
customary in the trade), (iii) obligations, whether or not assumed, secured by
Liens or payable out of the proceeds or production from Property now or
hereafter owned or acquired by such Person, (iv) obligations which are evidenced
by notes, acceptances, or other negotiable instruments, (v) obligations of such
Person to purchase securities or other Property arising out of or in connection
with the sale of the same or substantially similar securities or Property, (vi)
Capitalized Lease Obligations, (vii) any other obligation for borrowed money or
other financial accommodation which in accordance with Agreement Accounting
Principles would be shown as a liability on the consolidated balance sheet of
such Person, and (viii) Contingent Obligations.

         "Interest Drawing" is used as defined in each of the Credit Enhancement
Letters of Credit, as the context requires.

         "Interest Payment Date" is used as defined in the 1993 Trust Indenture
or the 1994 Refunding Trust Indenture, as the context requires.

         "Interest Period" means, with respect to a Eurodollar Advance, a period
of one, two, three or six months commencing on a Business Day selected by the
Borrower pursuant to this Agreement. Such Interest Period shall end on the day
which corresponds numerically to such date one, two, three or six months
thereafter, provided, however, that if there is no such numerically
corresponding day in such next, second, third or sixth succeeding month, such
Interest Period shall end on the last Business Day of such next, second, third
or sixth succeeding month. If an Interest Period would otherwise end on a day
which is not a Business Day, such Interest Period shall end on the next
succeeding Business Day, provided, however, that if said next succeeding
Business Day falls in a new calendar month, such Interest Period shall end on
the immediately preceding Business Day.

         "Investment" of a Person means any loan, advance (other than
commission, travel and similar advances to officers and employees made in the
ordinary course of business), extension of credit (other than accounts
receivable arising in the ordinary course of business on terms customary in the
trade) or contribution of capital by such Person; stocks, bonds, mutual funds,
partnership interests, notes, debentures or other securities owned by such
Person; any deposit accounts and certificate of deposit owned by such Person;
and structured notes, derivative financial instruments and other similar
instruments or contracts owned by such Person.

         "LC Commitment" means, for each Lender, the obligation of such Lender
to participate in Facility LCs, in an aggregate amount not exceeding the amount
set forth opposite its signature below, as it may be modified as a result of any
assignment that has become effective pursuant to Section 12.3.2 or as otherwise
modified from time to time pursuant to the terms hereof.

         "LC Fee" is defined in Section 2.19.4.

         "LC Issuer" means Bank One (or any subsidiary or affiliate of Bank One
designated by Bank One) in its capacity as issuer of Facility LCs hereunder.

         "LC Obligations" means, at any time, the sum, without duplication, of
(i) the aggregate undrawn stated amount under all Facility LCs and Credit
Enhancement Letters of Credit outstanding at such time, plus (ii) the aggregate
unpaid amount at such time of all Reimbursement Obligations.

         "LC Payment Date" is defined in Section 2.19.5.

                                      -11-
<PAGE>
         "Lenders" means the lending institutions listed on the signature pages
of this Agreement (including any Lender in the capacity of LC Issuer or
Enhancement Issuer) and their respective successors and assigns.

         "Lending Installation" means, with respect to a Lender or the Agent,
the office, branch, subsidiary or affiliate of such Lender or the Agent listed
on the signature pages hereof or on a Schedule or otherwise selected by such
Lender or the Agent pursuant to Section 2.17.

         "Leverage Ratio" means, as of any date of calculation, the ratio of (i)
Consolidated Funded Indebtedness outstanding on such date to (ii) Consolidated
EBITDA for the period of twelve consecutive Fiscal Months ending on the last day
of the most-recently ended fiscal quarter.

         "Lien" means any lien (statutory or other), mortgage, pledge,
hypothecation, assignment, deposit arrangement, encumbrance or preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever (including, without limitation, the interest of a vendor or
lessor under any conditional sale, Capitalized Lease or other title retention
agreement).

         "Loan" means, with respect to a Lender, such Lender's loan made
pursuant to Article II (or any conversion or continuation thereof).

         "Loan Documents" means the Modification Agreement, this Agreement, the
Notes, the Facility LC Applications, the Collateral Documents and the Guaranty.

         "Material Adverse Effect" means a material adverse effect on (i) the
business, Property, condition (financial or otherwise), results of operations,
or prospects of the Borrower and its Subsidiaries taken as a whole, (ii) the
ability of the Borrower to perform its obligations under the Loan Documents or
the Bond Documents, or (iii) the validity or enforceability of any of the Loan
Documents or the Bond Documents or the Bond Documents, or the rights or remedies
of the Agent, the LC Issuer, the Enhancement Issuer or the Lenders thereunder.

         "Material Indebtedness" means Indebtedness in an outstanding principal
amount of $100,000.00 or more in the aggregate (or the equivalent thereof in any
currency other than U.S. dollars).

         "Material Indebtedness Agreement" means any agreement under which any
Material Indebtedness was created or is governed or which provides for the
incurrence of Indebtedness in an amount which would constitute Material
Indebtedness (whether or not an amount of Indebtedness constituting Material
Indebtedness is outstanding thereunder).

         "Maximum Availability" means, as of any date of determination, the
lesser of: (i) (a) during the period beginning July 31 of each year until
January 30 of the following year, $20,000,000.00, and (b) during the period
beginning on January 31 of each year until July 30 of that year, $19,000,000.00;
and (ii) the Borrowing Base, minus the LC Obligations in respect of Facility
LCs.

         "Maximum Available Credit" means the sum of (i) the 1993 Maximum
Available Credit, plus (ii) the 1994 Refunding Maximum Available Credit.

         "Modification Agreement" is defined in the preamble of this Agreement.

                                      -12-
<PAGE>
         "Modify" and "Modification" are defined in Section 2.19.1.

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

         "Mortgages" means amendments and restatements of the 1992 Huntingburg
Mortgage, the 1993 Huntingburg Mortgage-Warehouse, the 1993 Huntingburg
Mortgage-Mfg., and the 1997 Project Mortgage, in form and substance acceptable
to the Agent and the Lenders, providing for Liens granted to the Agent, for the
benefit of the Lenders, to secure all of the Secured Obligations.

         "Mortgage Assignments" means assignments of the 1992 Huntingburg
Mortgage, the 1993 Huntingburg Mortgage-Warehouse, the 1993 Huntingburg
Mortgage-Mfg., and the 1997 Project Mortgage, in form and substance acceptable
to the Agent and the Lenders, whereby the liens and rights of Bank One
thereunder are assigned to the Agent for the benefit of the Lenders, the LC
Issuer and the Enhancement Issuer, to secure all of the Secured Obligations.

         "Multiemployer Plan" means a Plan maintained pursuant to a collective
bargaining agreement or any other arrangement to which the Borrower or any
member of the Controlled Group is a party to which more than one employer is
obligated to make contributions.

         "Non-U.S. Lender" is defined in Section 3.5(iv).

         "Note" means any of the Revolving Note, the Term Notes, the Remarketing
Reimbursement Notes-1993 Bonds, or the Remarketing Reimbursement Notes-1994
Refunding Bonds.

         "Obligations" means all unpaid principal of and accrued and unpaid
interest on the Loans, all Reimbursement Obligations, all accrued and unpaid
fees and all expenses, reimbursements, indemnities and other obligations of the
Borrower to the Lenders or to any Lender, the Agent, the LC Issuer, the
Enhancement Issuer, or any indemnified party arising under the Loan Documents.

         "Operating Lease" of a Person means any lease of Property (other than a
Capitalized Lease) by such Person as lessee which has an original term
(including any required renewals and any renewals effective at the option of the
lessor) of one year or more.

         "Original Agreement" is defined in the preamble to this Agreement.

         "Other Taxes" is defined in Section 3.5(ii).

         "Outstanding Credit Exposure" means, as to any Lender at any time, the
sum of (i) the aggregate principal amount of its Advances of the Revolving Loan
outstanding at such time, plus (ii) an amount equal to its Pro Rata Share of the
LC Obligations in respect of Facility LCs at such time.

         "Participants" is defined in Section 12.2.1.

         "Participation" means, for each Lender, the obligation of such Lender
to participate in the Credit Enhancement Letters of Credit, the Remarketing
Reimbursement Loans-1993 Bonds, and the Remarketing Reimbursement Loans-1994
Refunding Bonds in proportion to its Pro Rata Share, as it may

                                      -13-
<PAGE>
be modified as a result of any assignment that has become effective pursuant to
Section 12.3.2 or as otherwise modified from time to time pursuant to the terms
hereof.

         "Payment Date" means the last Business Day of each calendar month.

         "PBGC" means the Pension Benefit Guaranty Corporation, or any successor
thereto.

         "Permitted Liens" means Liens described in Section 6.15(i) through
(vii).

         "Person" means any natural person, corporation, firm, joint venture,
partnership, limited liability company, association, enterprise, trust or other
entity or organization, or any government or political subdivision or any
agency, department or instrumentality thereof.

         "Plan" means an employee pension benefit plan which is covered by Title
IV of ERISA or subject to the minimum funding standards under Section 412 of the
Code as to which the Borrower or any member of the Controlled Group may have any
liability.

         "Pricing Schedule" means the Schedule attached hereto identified as
such.

         "Prime Rate" means a rate per annum equal to the prime rate of interest
announced from time to time by Bank One or its parent (which is not necessarily
the lowest rate charged to any customer), changing when and as said prime rate
changes.

         "Principal Drawing" is used as defined in each of the Credit
Enhancement Letters of Credit, as the context requires.

         "Pro Rata Share" means, with respect to a Lender, a portion equal to a
fraction the numerator of which is the sum of such Lender's Commitment and Term
Loan Commitment and the denominator of which is the sum of the Aggregate
Commitment and the Aggregate Term Loan Commitment. The Pro Rata Share of each
Lender as of the Closing Date, stated as a percentage, is set forth opposite its
signature below.

         "Property" of a Person means any and all property, whether real,
personal, tangible, intangible, or mixed, of such Person, or other assets owned,
leased or operated by such Person.

         "Purchasers" is defined in Section 12.3.1.

         "Rate Management Obligations" of a Person means any and all obligations
of such Person, whether absolute or contingent and howsoever and whensoever
created, arising, evidenced or acquired (including all renewals, extensions and
modifications thereof and substitutions therefor), under (i) any and all Rate
Management Transactions, and (ii) any and all cancellations, buy backs,
reversals, terminations or assignments of any Rate Management Transactions.

         "Rate Management Transaction" means any transaction (including an
agreement with respect thereto) now existing or hereafter entered by the
Borrower which is a rate swap, basis swap, forward rate transaction, commodity
swap, commodity option, equity or equity index swap, equity or equity index
option, bond option, interest rate option, foreign exchange transaction, cap
transaction, floor transaction, collar transaction, forward transaction,
currency swap transaction, cross-currency rate swap transaction,

                                      -14-
<PAGE>
currency option or any other similar transaction (including any option with
respect to any of these transactions) or any combination thereof, whether linked
to one or more interest rates, foreign currencies, commodity prices, equity
prices or other financial measures.

         "Regulation D" means Regulation D of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor thereto
or other regulation or official interpretation of said Board of Governors
relating to reserve requirements applicable to member banks of the Federal
Reserve System.

         "Regulation U" means Regulation U of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor or other
regulation or official interpretation of said Board of Governors relating to the
extension of credit by banks for the purpose of purchasing or carrying margin
stocks applicable to member banks of the Federal Reserve System.

         "Reimbursement Obligations" means, at any time, the aggregate of (i)
all obligations of the Borrower then outstanding under Section 2.19 to reimburse
the LC Issuer for amounts paid by the LC Issuer in respect of any one or more
drawings under Facility LCs, (ii) all obligations of the Borrower then
outstanding under Sections 2.21 and 2.22 to reimburse the Enhancement Issuer for
amounts paid by the Enhancement Issuer in respect of Drawings under the Credit
Enhancement Letters of Credit, and (iii) the indebtedness evidenced by all
Remarketing Reimbursement Notes-1993 Bonds and all Remarketing Reimbursement
Notes-1994 Refunding Bonds.

         "Remarketing Drawing" is used as defined in each of the Credit
Enhancement Letters of Credit, as the context requires.

         "Remarketing Reimbursement Loan - 1993 Bonds" is defined in Section
2.21.3.

         "Remarketing Reimbursement Note - 1993 Bonds" is defined in Section
2.21.3.

         "Remarketing Reimbursement Loan - 1994 Refunding Bonds" is defined in
Section 2.22.3.

         "Remarketing Reimbursement Note - 1994 Refunding Bonds" is defined in
Section 2.22.3.

         "Rentals" of a Person means the aggregate fixed amounts payable by such
Person under any Operating Lease.

         "Reportable Event" means a reportable event as defined in Section 4043
of ERISA and the regulations issued under such section, with respect to a Plan,
excluding, however, such events as to which the PBGC has by regulation waived
the requirement of Section 4043(a) of ERISA that it be notified within 30 days
of the occurrence of such event, provided, however, that a failure to meet the
minimum funding standard of Section 412 of the Code and of Section 302 of ERISA
shall be a Reportable Event regardless of the issuance of any such waiver of the
notice requirement in accordance with either Section 4043(a) of ERISA or Section
412(d) of the Code.

         "Reports" is defined in Section 9.6.

         "Required Lenders" means Lenders in the aggregate holding at least
sixty-seven percent (67%) of the Aggregate Commitment, Aggregate Term Loan
Commitment, and the aggregate LC Obligations in

                                      -15-
<PAGE>
respect of Credit Enhancement Letters of Credit, or if the Aggregate Commitment
has been terminated, Lenders in the aggregate holding at least sixty-seven
percent (67%) of the Aggregate Outstanding Credit Exposure, Aggregate Term Loan
Commitment and the aggregate LC Obligations in respect of Credit Enhancement
Letters of Credit.

         "Reserve Requirement" means, with respect to an Interest Period, the
maximum aggregate reserve requirement (including all basic, supplemental,
marginal and other reserves) which is imposed under Regulation D on Eurocurrency
liabilities.

         "Revolving Commitment" means, as to each Lender, the obligation of such
Lender to make Advances to the Borrower under the Revolving Loan, in an
aggregate amount not exceeding the amount set forth opposite its signature
below, as it may be modified as a result of any assignment that has become
effective pursuant to Section 12.3.2 or as otherwise modified from time to time
pursuant to the terms hereof.

         "Revolving Loan" is defined in Section 2.2.

         "Revolving Loan Maturity Date" means the earlier of (i) the Facility
Termination Date, and (ii) that date upon which the Required Lenders accelerate
payment of the Revolving Loan in accordance with Section 8.1 of this Agreement.

         "Revolving Notes" is defined in Section 2.13.

         "S&P" means Standard and Poor's Ratings Services, a division of The
McGraw Hill Companies, Inc.

         "Schedule" refers to a specific schedule to this Agreement, unless
another document is specifically referenced.

         "Section" means a numbered section of this Agreement, unless another
document is specifically referenced.

         "Secured Obligations" means, collectively, (i) the Obligations and (ii)
all Rate Management Obligations owing to one or more Lenders.

         "Security Agreement" means that certain Second Amended and Restated
Security Agreement, dated as of the Closing Date, executed by Borrower in favor
of the Agent, for the benefit of the Lenders, as it may be amended or modified
and in effect from time to time.

         "Single Employer Plan" means a Plan maintained by the Borrower or any
member of the Controlled Group for employees of the Borrower or any member of
the Controlled Group.

         "Subsidiary" of a Person means (i) any corporation more than 50% of the
outstanding securities having ordinary voting power of which shall at the time
be owned or controlled, directly or indirectly, by such Person or by one or more
of its Subsidiaries or by such Person and one or more of its Subsidiaries, or
(ii) any partnership, limited liability company, association, joint venture or
similar business organization more than 50% of the ownership interests having
ordinary voting power of which shall at

                                      -16-
<PAGE>
the time be so owned or controlled. Unless otherwise expressly provided, all
references herein to a "Subsidiary" shall mean a Subsidiary of the Borrower.

         "Substantial Portion" means, with respect to the Property of the
Borrower and its Subsidiaries, Property which represents more than 10% of the
consolidated assets of the Borrower and its Subsidiaries or property which is
responsible for more than 10% of the consolidated net sales or of the
consolidated net income of the Borrower and its Subsidiaries, in each case, as
would be shown in the consolidated financial statements of the Borrower and its
Subsidiaries as at the beginning of the twelve-month period ending with the
month in which such determination is made (or if financial statements have not
been delivered hereunder for that month which begins the twelve-month period,
then the financial statements delivered hereunder for the quarter ending
immediately prior to that month).

         "Taxes" means any and all present or future taxes, duties, levies,
imposts, deductions, charges or withholdings, and any and all liabilities with
respect to the foregoing, but excluding Excluded Taxes and Other Taxes.

         "Term Loan" is defined in Section 2.2.

         "Term Loan Commitment" means, for each Lender, the obligation of such
Lender to make Advances of the Term Loan, in an aggregate amount not exceeding
the amount set forth opposite its signature below, as it may be modified as a
result of any assignment that has become effective pursuant to Section 12.3.2 or
as otherwise modified from time to time pursuant to the terms hereof.

         "Term Loan Maturity Date" means the earlier of (i) September 30, 2006,
and (ii) that date upon which the Required Lenders accelerate payment of the
Term Loan in accordance with Section 8.1 of this Agreement.

         "Term Notes" is defined in Section 2.13.

         "Total Credit Exposure" means, as to any Lender at any time, the sum of
(i) its Outstanding Credit Exposure, (ii) the aggregate outstanding principal
amount of its Advances of the Term Loan at such time, and (iii) an amount equal
to its Pro Rata Share of LC Obligations in respect of Credit Enhancement Letters
of Credit at such time.

         "Transferee" is defined in Section 12.4.

         "Type" means, with respect to any Advance, its nature as a Floating
Rate Advance or a Eurodollar Advance and with respect to any Loan, its nature as
a Floating Rate Loan or a Eurodollar Loan.

         "Unfunded Liabilities" means the amount (if any) by which the present
value of all vested and unvested accrued benefits under all Single Employer
Plans exceeds the fair market value of all such Plan assets allocable to such
benefits, all determined as of the then most recent valuation date for such
Plans using PBGC actuarial assumptions for single employer plan terminations.

         "Unmatured Default" means an event which but for the lapse of time or
the giving of notice, or both, would constitute a Default.

                                      -17-
<PAGE>
         "Unused Revolving Loan Commitment" means, on any day, the positive
difference, if any, which results from subtracting from the Maximum Availability
on such day the outstanding principal balance on such day of Advances of the
Revolving Loan.

         "1992 Huntingburg Mortgage" means a Mortgage, Security Agreement,
Assignment of Rents and Fixture Filing dated December 4, 1992, and recorded on
December 7, 1992, as Document No. 168207 in Mortgage Book 281, Page 97, as
amended by a First Amendment to Mortgage, Security Agreement, Assignment of
Rents and Fixture Filing effective as of November 12, 1993, and recorded on
November 12, 1993, as Document No. 174844, in Mortgage Book 304, Page 390, by a
Second Amendment to Mortgage, Security Agreement, Assignment of Rents and
Fixture Filling dated June 9, 1994, and recorded on June 13, 1994, as Document
No. 178773 in Mortgage book 318, Page 25, by a Third Amendment to Mortgage,
Security Agreement, Assignment of Rents and Fixture Filing, dated as of October
11, 1994, recorded on October 28, 1994, as Document No. 181216, in Mortgage Book
325, Page 158, by a Fourth Amendment to Mortgage, Security Agreement, Assignment
of Rents and Fixture Filing, dated as October 2, 1997, recorded on October 29,
1997, as Instrument No. 202983, in Mortgage Record 400, Page 150, by a Fifth
Amendment to Mortgage, Security Agreement, Assignment of Rents and Fixture
Filing, dated as of August 27, 1998, recorded on April 19, 1999, as Instrument
No. 217033, in Mortgage Record 459, Page 224, and by a Sixth Amendment to
Mortgage, Security Agreement, Assignment of Rents and Fixture Filing, dated as
of October 23, 2001, recorded on November 8, 2001, as Document No. 239916, with
all recording occurring in the Office of the Recorder of Dubois County, Indiana,
as the same has been or hereafter may be amended, modified, supplemented and/or
restated from time to time and at any time.

         "1993 Bond Documents" means the 1993 Bonds, the 1993 Trust Indenture,
the 1993 Loan Agreement and any other documents or agreement executed by the
Borrower as an incident to the issuance of the 1993 Bonds (other than the Loan
Documents), as the same have been and hereafter may be amended, modified,
supplemented and/or restated from time to time and at any time.

         "1993 Bonds" means the $3,420,000 in original principal amount of City
of Huntingburg, Indiana, Adjustable Rate Economic Development Revenue Bonds,
(DMI Furniture, Inc. Project) Series 1993 issued by the City pursuant to the
1993 Trust Indenture, as the same have been and hereafter may be amended,
modified, supplemented and/or restated from time to time and at any time.

         "1993 Direct-Pay Letter of Credit" is defined in Section 2.21.

         "1993 Huntingburg Mortgage-Warehouse" means a Mortgage, Security
Agreement, Assignment of Rents and Fixture Filing dated November 10, 1993, and
recorded on November 12, 1993, as Document No. 17845, in Mortgage book 304, Page
393, as amended by a First Amendment to Mortgage, Security Agreement, Assignment
of Rents and Fixture Filing dated June 9, 1994, and recorded on June 14, 1994,
as Document No. 178806, in Mortgage Book 318, Page 108, by a Second Amendment to
Mortgage, Security Agreement, Assignment of Rents and Fixture Filing, dated as
of October 10, 1994, recorded on October 28, 1994, as Document No. 181214 in
Mortgage Book 325, Page 152, by a Third Amendment to Mortgage, Security
Agreement, Assignment of Rents and Fixture Filing, dated as of October 2, 1997,
recorded on October 28, 1997, as Instrument No. 202981, in Mortgage Record 400,
Page 142, by a Fourth Amendment to Mortgage, Security Agreement, Assignment of
Rents and Fixture Filing, dated as of August 27, 1998, recorded on April 19,
1999, as Instrument No. 217035, in Mortgage Record 459, Page 232, and by a Fifth
Amendment to Mortgage, Security Agreement, Assignment of Rents and Fixture

                                      -18-
<PAGE>
Filing, dated as of October 23, 2001, recorded on October 30, 2001, as Document
No. RD239558, with all recording occurring in the Office of the Recorder of
Dubois County, Indiana, as the same has been and hereafter may be amended,
modified, supplemented and/or restated from time to time and at any time.

         "1993 Huntingburg Mortgage-Mfg." means a Mortgage, Security Agreement,
Assignment of Rents and Fixture Filing dated December 15, 1993, and recorded on
December 16, 1993, as Document No. 175583 in Mortgage Book 307, Page 154, as
amended by a First Amendment to Mortgage, Security Agreement, Assignment of
Rents and Fixture Filing dated June 9, 1994, and recorded on June 14, 1994, as
Document No. 178807, in Mortgage book 318, Page 111, by a Second Amendment to
Mortgage, Security Agreement, Assignment of Rents and Fixture Filing, dated as
of October 11, 1994, recorded on October 28, 1994, as Document No. 181215, in
Mortgage Book 325, Page 155, by a Third Amendment to Mortgage, Security
Agreement, Assignment of Rents and Fixture Filing, dated as of October 3, 1997,
recorded on October 28, 1997, as Instrument No. 202982, in Mortgage Record 400,
Page 146, by a Fourth Amendment to Mortgage, Security Agreement, Assignment of
Rents and Fixture Filing, dated as of August 27, 1998, recorded on April 19,
1999, as Instrument No. 217034, in Mortgage Record 459, Page 228, and by a Fifth
Amendment to Mortgage, Security Agreement, Assignment of Rents and Fixture
Filing, dated as of October 23, 2001, recorded October 30, 2001, as Document No.
RD239557, with all recording occurring in the Office of the Recorder of Dubois
County, Indiana, as the same has been and hereafter may be amended, modified,
supplemented and/or restated from time to time and at any time.

         "1993 Loan Agreement" means the Loan Agreement dated as of October 1,
1993, between the Borrower and the City as an incident to the issuance of the
1993 Bonds, as the same has been and hereafter may be amended, modified,
supplemented and/or restated from time to time and at any time.

         "1993 Maturity Date" means October 1, 2003.

         "1993 Maximum Available Credit" meant initially the sum of
$3,462,750.00, and thereafter shall mean the maximum amount available to be
drawn by the 1993 Trustee under the 1993 Direct-Pay Letter of Credit for payment
of principal and interest due on the 1993 Bonds, whether such payments become
due as scheduled, upon mandatory or optional redemption of the 1993 Bonds, or on
account of acceleration of the 1993 Bonds following the occurrence of an "Event
of Default" as defined in the 1993 Trust Indenture.

         "1993 Trust Indenture" means the Trust Indenture entered into by the
City and the 1993 Trustee dated as of October 1, 1993 pursuant to which the City
issued the 1993 Bonds, as the same has been and hereafter may be amended,
modified, supplemented and/or restated from time to time and at any time.

         "1993 Trustee" means PNC Bank, Indiana, Inc., in its capacity as
Trustee under the 1993 Trust Indenture, or any successor Trustee under the 1993
Trust Indenture.

         "1994 Maturity Date" means June 1, 2004.

         "1994 Refunding Bond Documents" means the 1994 Refunding Bonds, the
1994 Refunding Trust Indenture, the 1994 Refunding Loan Agreement and any other
document or agreement executed by the Borrower as an incident to the issuance of
the 1994 Refunding Bonds (other than the Loan Documents), as the same have been
and hereafter may be amended, modified, supplemented and/or restated from time
to time and at any time.

                                      -19-
<PAGE>
         "1994 Refunding Bonds" means the $2,940,000 in original principal
amount of City of Huntingburg, Indiana, Adjustable Rate Economic Development
Revenue Refunding Bonds, (DMI Furniture, Inc. Project) Series 1994, issued by
the City pursuant to the 1994 Refunding Trust Indenture, as the same have been
and hereafter may be amended, modified, supplemented and/or restated from time
to time and at any time.

         "1994 Refunding Direct-Pay Letter of Credit" is defined in Section
2.22.

         "1994 Refunding Loan Agreement" means the Loan Agreement dated as of
June 1, 1994, between the Borrower and the City as an incident to the issuance
of the 1994 Refunding Bonds, as the same has been and hereafter may be amended,
modified, supplemented and/or restated from time to time and at any time.

         "1994 Refunding Maximum Available Credit" means initially the sum of
$2,976,750, and thereafter shall mean the maximum amount available to be drawn
by the 1994 Refunding Trustee under the 1994 Refunding Direct-Pay Letter of
Credit for principal and interest due on account of the 1994 Refunding Bonds
upon (i) mandatory or optional redemption of the 1994 Refunding Bonds, or (ii)
on account of acceleration of the 1994 Refunding Bonds following the occurrence
of an "Event of Default" as defined in the 1994 Refunding Trust Indenture.

         "1994 Refunding Trust Indenture" means the Trust Indenture entered into
between the City and the 1994 Refunding Trustee dated as of June 1, 1994,
pursuant to which the City is issuing the 1994 Refunding Bonds, as the same has
been and hereafter may be amended, modified, supplemented and/or restated from
time to time and at any time.

         "1994 Refunding Trustee" means PNC Bank, Indiana, Inc., in its capacity
as Trustee under the 1994 Refunding Trust Indenture, or any successor Trustee
under the 1994 Refunding Trust Indenture.

         "1997 Project Mortgage" means the Mortgage, Security Agreement and
Assignment of Leases and Rents dated as of October 23, 2001, recorded on October
30, 2001 as Document No. RD239559, in the Office of the Recorder of Dubois
County, Indiana, as the same may be amended, modified, supplemented and/or
restated from time to time and at any time.

         The foregoing definitions shall be equally applicable to both the
singular and plural forms of the defined terms.

                                   ARTICLE II

                                   THE CREDITS

         2.1.     Commitments, Term Loan Commitments, and Participations. From
and including the date of this Agreement, each Lender severally agrees, on the
terms and conditions set forth in this Agreement, to (i) make Loans to the
Borrower, (ii) participate in Facility LCs issued upon the request of the
Borrower and (iii) participate in the Credit Enhancement Letters of Credit,
provided that, (x) after giving effect to the making of each such Advance of the
Revolving Loan and the issuance of each such

                                      -20-
<PAGE>
Facility LC, such Lender's Outstanding Credit Exposure shall not exceed its
Commitment, and (y) after giving effect to the making of each Advance of the
Term Loan, the aggregate principal amount of its Advances of the Term Loan
outstanding shall not exceed its Term Loan Commitment. The Lender will make
Loans on the terms and conditions set forth in Sections 2.2. The LC Issuer will
issue Facility LCs and the Lenders will participate in Facility LCs on the terms
and conditions set forth in Section 2.19. The Enhancement Issuer will maintain
the Credit Enhancement Letters of Credit previously issued by the Enhancement
Issuer for the account of the Borrower and the Lenders will participate in the
Credit Enhancement Letters of Credit on the terms and conditions set forth in
Sections 2.21, 2.22 and 2.23.

         2.2.     Revolving Loan Facility and Term Loan Facility.

         (i)      The Revolving Loan. The Lenders agree to make Advances to the
Borrower on a revolving basis (collectively, the "Revolving Loan") from time to
time from and after the Closing Date until the Revolving Loan Maturity Date, in
an amount not exceeding in the aggregate at any time outstanding the Maximum
Availability, provided that all of the conditions of lending stated in Sections
4.1 and 4.2 applicable to the Revolving Loan have been fulfilled at the time of
each such Advance. Proceeds of the Revolving Loan from and after the Closing
Date may be used by the Borrower only to fund working capital requirements. So
long as no Default or Unmatured Default shall have occurred and be continuing
and until the Revolving Loan Maturity Date, the Borrower may borrow, repay
(subject to the requirements of Section 2.7(iii) of this Agreement) under the
Revolving Loan on any Business Day, provided that the Borrower shall not be
entitled to receive and the Lenders shall not be obligated to make any Advance
under the Revolving Loan: (i) if the making of such Advance would cause or
result in a Default or an Unmatured Default; or (ii) if after making such
Advance the principal balance of the Revolving Loan would exceed the Maximum
Availability.

         The Revolving Loan under this Agreement is a continuation, on amended
terms, of the "Revolving Loan" extended to the Borrower by Bank One under the
Original Agreement and the Borrower affirms, acknowledges and agrees that (a)
the principal balance thereof as of the Closing Date is $16,207,762.00, and
that, accordingly, the initial unpaid principal balance of the Revolving Loan on
the Closing Date is also such amount, (b) all outstanding advances thereof shall
constitute Advances of the Revolving Loan under this Agreement, and (c) all
interest which is accrued and unpaid thereon shall be due and payable on the
Closing Date.

         (ii)     The Term Loan. Each Lender agrees, subject to the terms and
conditions of this Agreement, to make a term loan to the Borrower to be advanced
and re-advanced as hereinafter provided, in principal amounts not exceeding in
the aggregate at any time for all Lenders the sum of Four Million Twenty
Thousand Dollars ($4,020,000.00) for the term period beginning on the Closing
Date and ending on the Term Loan Maturity Date (collectively, the "Term Loan").
On the Closing Date, initial Advances of the Term Loan will be made for the
purpose of paying off the unpaid balance of the "Term Loan" extended to the
Borrower by Bank One under the Original Agreement, and the Borrower affirms,
acknowledges and agrees that the unpaid principal balance of such term loan, as
of the Closing Date, is $1,239,833.40, which shall be the aggregate amount of
the initial Advances of the Term Loan.

         In addition to the initial Advances of the Term Loan on the Closing
Date, each Lender agrees, subject to the terms and conditions of this Agreement,
to make not more than two (2) Advances to the Borrower under the Term Loan, in a
principal amount not to exceed in the aggregate for all Lenders the sum of
$4,250,000.00 to be used in their entirety by the Borrower as follows: (A) to
pay an amount not to exceed $2,230,000.00 to fund the portion of the Borrower's
deposit to the Designated Account required

                                      -21-
<PAGE>
under Section 2.21.1 which is equal to the outstanding principal amount of the
1993 Bonds due on the 1993 Maturity Date; and (B) to pay an amount not to exceed
$2,020,000.00 to fund the portion of the Borrower's deposit to the Designated
Account required under Section 2.22.1 which is equal to the outstanding
principal amount of the 1994 Refunding Bonds due on the 1994 Maturity Date. So
long as no Default or Unmatured Default shall have occurred and be continuing,
the Borrower may request such additional Advances of the Term Loan not earlier
than three (3) Business Days prior to the date the deposit to the relevant
Designated Account related to the 1993 Maturity Date or the 1994 Maturity Date,
as applicable, is required to be made, provided that the Borrower shall not be
entitled to receive and the Lenders shall not be obligated to make any such
additional Advance of the Term Loan: (1) if the making of such Advance would
cause or result in a Default or an Unmatured Default; or (2) if after making
such Advance the principal balance of the Term Loan would exceed $4,020,000.00.

         2.3.     Ratable Loans. Each Advance hereunder shall consist of Loans
made by the several Lenders ratably according to their Pro Rata Shares.

         2.4.     Types of Advances. The Advances may be Floating Rate Advances
or Eurodollar Advances, or a combination thereof, selected by the Borrower in
accordance with Sections 2.8 and 2.9.

         2.5.     Commitment Fee; Reductions in Aggregate Commitment. The
Borrower agrees to pay to the Agent, for the account of each Lender according to
its Pro Rata Share, a commitment fee at a per annum rate equal to the Applicable
Fee Rate on the average daily Unused Revolving Loan Commitment from the date
hereof to and including the Facility Termination Date, payable quarterly and on
the Facility Termination Date. The commitment fees for each fiscal quarter shall
be due and payable within ten (10) days following the Agent's submission,
following the close of such quarter, of a statement of the amount due. The
Borrower may permanently reduce the Aggregate Commitment in whole, or in part
ratably among the Lenders in integral multiples of $1,000,000.00, upon at least
five Business Days' written notice to the Agent, which notice shall specify the
amount of any such reduction, provided, however, that the amount of the
Aggregate Commitment may not be reduced below the Aggregate Outstanding Credit
Exposure. All accrued commitment fees shall be payable on the effective date of
any termination of the Commitments of all Lenders.

         2.6.     Minimum Amount of Each Advance. Each Eurodollar Advance shall
be in the minimum amount of $1,000,000.00, and each Floating Rate Advance shall
be in the minimum amount of $50,000.00, provided, however, that any Floating
Rate Advance may be in the amount of the Unused Revolving Loan Commitment.

         2.7.     Principal Payments.

         (i)      The principal of the Revolving Loan shall be due and payable
in full on the Revolving Loan Termination Date.

         (ii)     If at any time a determination thereof is to be made, the
principal balance of the Revolving Loan outstanding at such time exceeds the
Maximum Availability, the Borrower shall immediately repay the Revolving Notes
in an aggregate principal amount equal to such excess. If at any time a
determination thereof is to be made, the principal balance of the Term Loan
outstanding at such time exceeds $4,020,000, the Borrower shall immediately
repay the Term Notes in an aggregate principal amount equal to such excess.

                                      -22-
<PAGE>
         (iii)    The principal of the Term Loan shall be payable in equal
monthly installments, each in the amount of $77,500, due and payable on the last
Business Day of November, 2002, and on the last Business Day of each successive
calendar month thereafter until (unless the Term Loan shall have been earlier
paid in full) the Term Loan Maturity Date, at which time the entire principal
balance of the Term Loan and all unpaid, accrued interest thereon, shall be due
and payable in full without demand. Subject to Section 2.7(iv) and Section 3.4,
the principal of the Term Loan may be prepaid at any time in whole or in part,
provided that all partial prepayments shall be applied to the latest maturing
installments of principal payable under the Term Loan in inverse order of
maturity.

         (iv)     The Borrower may from time to time pay, without penalty or
premium, all outstanding Floating Rate Advances, or, in a minimum aggregate
amount of $100,000.00 or any integral multiple of $25,000.00 in excess thereof,
any portion of the outstanding Floating Rate Advances upon two Business Days'
prior notice to the Agent. The Borrower may from time to time pay, subject to
the payment of any funding indemnification amounts required by Section 3.4 but
without penalty or premium, all outstanding Eurodollar Advances, or, in a
minimum aggregate amount of $1,000,000.00 or any integral multiple of
$100,000.00 in excess thereof, any portion of the outstanding Eurodollar
Advances upon three Business Days' prior notice to the Agent.

         2.8.     Method of Selecting Types and Interest Periods for New
Advances. The Borrower shall select the Type of Advance and, in the case of each
Eurodollar Advance, the Interest Period applicable thereto from time to time.
The Borrower shall give the Agent irrevocable notice (a "Borrowing Notice") not
later than 12:00 noon (Indianapolis time) on the Borrowing Date of each Floating
Rate Advance and three Business Days before the Borrowing Date for each
Eurodollar Advance, specifying:

         (i)      the Borrowing Date, which shall be a Business Day, of such
                  Advance,

         (ii)     the aggregate amount of such Advance,

         (iii)    the Type of Advance selected, and

         (iv)     in the case of each Eurodollar Advance, the Interest Period
                  applicable thereto.

Not later than 2:00 p.m. (Indianapolis time) on each Borrowing Date, each Lender
shall make available its Loan or Loans in funds immediately available in
Indianapolis to the Agent at its address specified pursuant to Article XIII. The
Agent will make the funds so received from the Lenders available to the Borrower
at the Agent's aforesaid address.

         2.9.     Conversion and Continuation of Outstanding Advances. Floating
Rate Advances shall continue as Floating Rate Advances unless and until such
Floating Rate Advances are converted into Eurodollar Advances pursuant to this
Section 2.9 or are repaid in accordance with Section 2.7. Each Eurodollar
Advance shall continue as a Eurodollar Advance until the end of the then
applicable Interest Period therefor, at which time such Eurodollar Advance shall
be automatically converted into a Floating Rate Advance unless (x) such
Eurodollar Advance is or was repaid in accordance with Section 2.7 or (y) the
Borrower shall have given the Agent a Conversion/Continuation Notice (as defined
below) requesting that, at the end of such Interest Period, such Eurodollar
Advance continue as a Eurodollar Advance for the same or another Interest
Period. Subject to the terms of Section 2.6, the Borrower may elect from time to
time to convert all or any part of a Floating Rate Advance into a Eurodollar
Advance. The Borrower shall give the Agent irrevocable notice (a
"Conversion/Continuation Notice") of each

                                      -23-
<PAGE>
conversion of a Floating Rate Advance into a Eurodollar Advance or continuation
of a Eurodollar Advance not later than 10:00 a.m. (Chicago time) at least three
Business Days prior to the date of the requested conversion or continuation,
specifying:

         (i)      the requested date, which shall be a Business Day, of such
                  conversion or continuation,

         (ii)     the aggregate amount and Type of the Advance which is to be
                  converted or continued, and

         (iii)    the amount of such Advance which is to be converted into or
                  continued as a Eurodollar Advance and the duration of the
                  Interest Period applicable thereto.

         2.10.    Changes in Interest Rate, etc. Each Floating Rate Advance
shall bear interest on the outstanding principal amount thereof, for each day
from and including the date such Advance is made or is automatically converted
from a Eurodollar Advance into a Floating Rate Advance pursuant to Section 2.9,
to but excluding the date it is paid or is converted into a Eurodollar Advance
pursuant to Section 2.9 hereof, at a rate per annum equal to the Floating Rate
for such day. Changes in the rate of interest on that portion of any Advance
maintained as a Floating Rate Advance will take effect simultaneously with each
change in the Alternate Base Rate. Each Eurodollar Advance shall bear interest
on the outstanding principal amount thereof from and including the first day of
the Interest Period applicable thereto to (but not including) the last day of
such Interest Period at the interest rate determined by the Agent as applicable
to such Eurodollar Advance based upon the Borrower's selections under Sections
2.8 and 2.9 and otherwise in accordance with the terms hereof. No Interest
Period selected with respect to an Advance of the Revolving Loan may end after
the Facility Termination Date, and no Interest Period selected with respect to
an Advance of the Term Loan may end after September 30, 2006.

         2.11.    Rates Applicable After Default. Notwithstanding anything to
the contrary contained in Section 2.8, 2.9 or 2.10, during the continuance of a
Default or Unmatured Default the Required Lenders may, at their option, by
notice to the Borrower (which notice may be revoked at the option of the
Required Lenders notwithstanding any provision of Section 8.2 requiring
unanimous consent of the Lenders to changes in interest rates), declare that no
Advance may be made as, converted into or continued as a Eurodollar Advance.
During the continuance of a Default the Required Lenders may, at their option,
by notice to the Borrower (which notice may be revoked at the option of the
Required Lenders notwithstanding any provision of Section 8.2 requiring
unanimous consent of the Lenders to changes in interest rates), declare that (i)
each Eurodollar Advance shall bear interest for the remainder of the applicable
Interest Period at the rate otherwise applicable to such Interest Period plus 2%
per annum, (ii) each Floating Rate Advance shall bear interest at a rate per
annum equal to the Floating Rate in effect from time to time plus 2% per annum
and (iii) the LC Fee shall be increased by 2% per annum, provided that, during
the continuance of a Default under Section 7.6 or 7.7, the interest rates set
forth in clauses (i) and (ii) above and the increase in the LC Fee set forth in
clause (iii) above shall be applicable to all Credit Extensions without any
election or action on the part of the Agent or any Lender.

         2.12.    Method of Payment. All payments of the Obligations hereunder
shall be made, without setoff, deduction, or counterclaim, in immediately
available funds to the Agent at the Agent's address specified pursuant to
Article XIII, or at any other Lending Installation of the Agent specified in
writing by the Agent to the Borrower, by noon (local time) on the date when due
and shall (except in the case of Reimbursement Obligations for which the LC
Issuer or the Enhancement Issuer, as applicable, has not been fully indemnified
by the Lenders, or as otherwise specifically required hereunder) be applied

                                      -24-
<PAGE>
ratably by the Agent among the Lenders. Each payment delivered to the Agent for
the account of any Lender shall be delivered promptly by the Agent to such
Lender in the same type of funds that the Agent received at its address
specified pursuant to Article XIII or at any Lending Installation specified in a
notice received by the Agent from such Lender. The Agent is hereby authorized to
charge the account of the Borrower maintained with Bank One for each payment of
principal, interest, Reimbursement Obligations and fees as it becomes due
hereunder. Each reference to the Agent in this Section 2.12 shall also be deemed
to refer, and shall apply equally, (i) to the LC Issuer, in the case of payments
required to be made by the Borrower to the LC Issuer pursuant to Section 2.19.6
and (ii) to the Enhancement Issuer, in the case of payments required to be made
by the Borrower to the Enhancement Issuer pursuant to Section 2.21 and Section
2.22.

         2.13.    Evidence of Indebtedness. (i) 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 from time to time, including the amounts of principal and interest
payable and paid to such Lender from time to time hereunder.

         (ii)     The Agent shall also maintain accounts in which it will record
(a) the amount of each Advance made hereunder, the Type thereof and the Interest
Period with respect thereto, (b) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender hereunder,
(c) the original stated amount of each Facility LC and the amount of LC
Obligations outstanding at any time, and (d) the amount of any sum received by
the Agent hereunder from the Borrower and each Lender's share thereof.

         (iii)    The entries maintained in the accounts maintained pursuant to
paragraphs (i) and (ii) above shall be prima facie evidence of the existence and
amounts of the Obligations therein recorded; provided, however, that the failure
of the Agent or any Lender to maintain such accounts or any error therein shall
not in any manner affect the obligation of the Borrower to repay the Obligations
in accordance with their terms.

         (iv)     The obligation of the Borrower to repay the Revolving Loan
shall be evidenced by promissory notes executed by Borrower to each of the
Lenders in substantially the form and substance of Exhibit E attached hereto (as
the same may be amended, modified, supplemented, and/or restated from time to
time and at any time, the "Revolving Notes").

         (v)      The obligation of the Borrower to repay the Term Loan shall be
evidenced by promissory notes executed by the Borrower to each of the Lenders in
the form of Exhibit F attached hereto (as the same may be amended, modified,
extended, renewed, supplemented, replaced and/or restated from time to time and
at any time, the "Term Notes").

         2.14.    Telephonic Notices. The Borrower hereby authorizes the Lenders
and the Agent to extend, convert or continue Advances, effect selections of
Types of Advances and to transfer funds based on telephonic notices made by any
person or persons the Agent or any Lender in good faith believes to be acting on
behalf of the Borrower, it being understood that the foregoing authorization is
specifically intended to allow Borrowing Notices and Conversion/Continuation
Notices to be given telephonically. The Borrower agrees to deliver promptly to
the Agent a written confirmation, if such confirmation is requested by the Agent
or any Lender, of each telephonic notice signed by an Authorized Officer. If the
written confirmation differs in any material respect from the action taken by
the Agent and the Lenders, the records of the Agent and the Lenders shall govern
absent manifest error.

                                      -25-
<PAGE>
         2.15.    Interest Payment Dates; Interest and Fee Basis. Interest
accrued on each Floating Rate Advance shall be payable on each Payment Date,
commencing with the first such date to occur after the date hereof and at
maturity. Interest accrued on each Eurodollar Advance shall be payable on the
last day of its applicable Interest Period, on any date on which the Eurodollar
Advance is prepaid, whether by acceleration or otherwise, and at maturity.
Interest accrued on each Eurodollar Advance having an Interest Period longer
than three months shall also be payable on the last day of each three-month
interval during such Interest Period. Interest, commitment fees, LC Fees and
commissions payable to the Enhancement Issuer under Section 2.21 and 2.22 shall
be calculated for actual days elapsed on the basis of a 360-day year. Interest
shall be payable for the day an Advance is made but not for the day of any
payment on the amount paid if payment is received prior to noon (local time) at
the place of payment. If any payment of principal of or interest on an Advance
or under any of the Notes shall become due on a day which is not a Business Day,
such payment shall be made on the next succeeding Business Day and, in the case
of a principal payment, such extension of time shall be included in computing
interest in connection with such payment.

         2.16.    Notification of Advances, Interest Rates, Prepayments and
Commitment Reductions. Promptly after receipt thereof, the Agent will notify
each Lender of the contents of each Aggregate Commitment reduction notice,
Borrowing Notice, Conversion/Continuation Notice, and repayment notice received
by it hereunder. Promptly after notice from the LC Issuer, the Agent will notify
each Lender of the contents of each request for issuance of a Facility LC
hereunder. The Agent will notify each Lender of the interest rate applicable to
each Eurodollar Advance promptly upon determination of such interest rate and
will give each Lender prompt notice of each change in the Alternate Base Rate.

         2.17.    Lending Installations. Each Lender may book its Loans and its
participation in any LC Obligations, the LC Issuer may book the Facility LCs,
and the Enhancement Issuer may book the Credit Enhancement Letters of Credit at
any Lending Installation selected by such Lender or the LC Issuer or Enhancement
Issuer, as the case may be, and may change its Lending Installation from time to
time. All terms of this Agreement shall apply to any such Lending Installation
and the Loans, Facility LCs, Credit Enhancement Letters of Credit,
participations in LC Obligations and any Notes issued hereunder shall be deemed
held by each Lender, the LC Issuer, or Enhancement Issuer as the case may be,
for the benefit of any such Lending Installation. Each Lender, the LC Issuer,
and the Enhancement Issuer may, by written notice to the Agent and the Borrower
in accordance with Article XIII, designate replacement or additional Lending
Installations through which Loans will be made by it or Facility LCs will be
issued by it or by which its participation in LC Obligations will be held, and
for whose account Loan payments or payments with respect to Reimbursement
Obligations are to be made.

         2.18.    Non-Receipt of Funds by the Agent. Unless the Borrower or a
Lender, as the case may be, notifies the Agent prior to the date on which it is
scheduled to make payment to the Agent of (i) in the case of a Lender, the
proceeds of a Loan or funding of its participation in Facility LCs or its
Participation or (ii) in the case of the Borrower, a payment of principal,
interest or fees to the Agent for the account of the Lenders, that it does not
intend to make such payment, the Agent may assume that such payment has been
made. The Agent may, but shall not be obligated to, make the amount of such
payment available to the intended recipient in reliance upon such assumption. If
such Lender or the Borrower, as the case may be, has not in fact made such
payment to the Agent, the recipient of such payment shall, on demand by the
Agent, repay to the Agent the amount so made available together with interest
thereon in respect of each day during the period commencing on the date such
amount was so made available by the Agent until the date the Agent recovers such
amount at a rate per annum equal to (x) in the case of payment by a

                                      -26-
<PAGE>
Lender, the Federal Funds Effective Rate for such day for the first three days
and, thereafter, the interest rate applicable to the relevant Loan or (y) in the
case of payment by the Borrower, the interest rate applicable to the relevant
Loan.

         2.19.    Facility LCs.

                  2.19.1.  Issuance. The LC Issuer hereby agrees, on the terms
         and conditions set forth in this Agreement, to issue standby and
         commercial letters of credit (each, a "Facility LC") and to renew,
         extend, increase, decrease or otherwise modify each Facility LC
         ("Modify," and each such action a "Modification"), from time to time
         from and including the date of this Agreement and prior to the Facility
         Termination Date upon the request of the Borrower; provided that
         immediately after each such Facility LC is issued or Modified, (i) the
         aggregate amount of the outstanding LC Obligations shall not exceed the
         lesser of (a) $3,000,000.00 and (b) the Borrowing Base, minus the
         aggregate principal amount of all outstanding Advances of the Revolving
         Loan; and (ii) the Aggregate Outstanding Credit Exposure shall not
         exceed the Aggregate Commitment. No Facility LC shall have an expiry
         date later than the earlier of (x) the fifth Business Day prior to the
         Facility Termination Date and (y) one year after its issuance or
         Modification.

                  2.19.2.  Participations. Upon the issuance or Modification by
         the LC Issuer of a Facility LC in accordance with this Section 2.19,
         the LC Issuer shall be deemed, without further action by any party
         hereto, to have unconditionally and irrevocably sold to each Lender,
         and each Lender shall be deemed, without further action by any party
         hereto, to have unconditionally and irrevocably purchased from the LC
         Issuer, a participation in such Facility LC (and each Modification
         thereof) and the related LC Obligations in proportion to its Pro Rata
         Share.

                  2.19.3.  Notice. Subject to Section 2.19.1, the Borrower shall
         give the LC Issuer notice prior to 10:00 a.m. (Indianapolis time) at
         least five Business Days prior to the proposed date of issuance or
         Modification of each Facility LC, specifying the beneficiary, the
         proposed date of issuance (or Modification) and the expiry date of such
         Facility LC, and describing the proposed terms of such Facility LC and
         the nature of the transactions proposed to be supported thereby. Upon
         receipt of such notice, the LC Issuer shall promptly notify the Agent,
         and the Agent shall promptly notify each Lender, of the contents
         thereof and of the amount of such Lender's participation in such
         proposed Facility LC. The issuance or Modification by the LC Issuer of
         any Facility LC shall, in addition to the conditions precedent set
         forth in Article IV (the satisfaction of which the LC Issuer shall have
         no duty to ascertain), be subject to the conditions precedent that such
         Facility LC shall be satisfactory to the LC Issuer and that the
         Borrower shall have executed and delivered such application agreement
         and/or such other instruments and agreements relating to such Facility
         LC as the LC Issuer shall have reasonably requested (each, a "Facility
         LC Application"). In the event of any conflict between the terms of
         this Agreement and the terms of any Facility LC Application, the terms
         of this Agreement shall control.

                  2.19.4.  LC Fees. The Borrower shall pay to the Agent, for the
         account of the Lenders ratably in accordance with their respective Pro
         Rata Shares, (i) with respect to each standby Facility LC, a letter of
         credit fee at a per annum rate equal to the Applicable LC Fee on the
         average daily undrawn stated amount under such standby Facility LC,
         such fee to be payable in arrears on each Payment Date, and (ii) with
         respect to each commercial Facility LC, a one-time letter of credit fee
         in an amount equal to 1.0% per annum of the initial stated amount (or,
         with

                                      -27-
<PAGE>
         respect to a Modification of any such commercial Facility LC which
         increases the stated amount thereof, such increase in the stated
         amount) for the period from the date of issuance until its expiration
         date (or in the case of an extension of the expiration date, from the
         existing expiration date to the new expiration date), such fee to be
         payable on the date of such issuance, increase or extension (each such
         fee described in this sentence an "LC Fee"). The Borrower shall also
         pay to the LC Issuer for its own account (x) at the time of issuance of
         each Facility LC, a fronting fee in an amount equal to .125% of the
         stated amount of such Facility LC, and (y) documentary and processing
         charges in connection with the issuance or Modification of and draws
         under Facility LCs in accordance with the LC Issuer's standard schedule
         for such charges as in effect from time to time.

                  2.19.5.  Administration; Reimbursement by Lenders. Upon
         receipt from the beneficiary of any Facility LC of any demand for
         payment under such Facility LC, the LC Issuer shall notify the Agent
         and the Agent shall promptly notify the Borrower and each other Lender
         as to the amount to be paid by the LC Issuer as a result of such demand
         and the proposed payment date (the "LC Payment Date"). The
         responsibility of the LC Issuer to the Borrower and each Lender shall
         be only to determine that the documents (including each demand for
         payment) delivered under each Facility LC in connection with such
         presentment shall be in conformity in all material respects with such
         Facility LC. The LC Issuer shall endeavor to exercise the same care in
         the issuance and administration of the Facility LCs as it does with
         respect to letters of credit in which no participations are granted, it
         being understood that in the absence of any gross negligence or willful
         misconduct by the LC Issuer, each Lender shall be unconditionally and
         irrevocably liable without regard to the occurrence of any Default or
         any condition precedent whatsoever, to reimburse the LC Issuer on
         demand for (i) such Lender's Pro Rata Share of the amount of each
         payment made by the LC Issuer under each Facility LC to the extent such
         amount is not reimbursed by the Borrower pursuant to Section 2.19.6
         below, plus (ii) interest on the foregoing amount to be reimbursed by
         such Lender, for each day from the date of the LC Issuer's demand for
         such reimbursement (or, if such demand is made after 11:00 a.m.
         (Indianapolis time) on such date, from the next succeeding Business
         Day) to the date on which such Lender pays the amount to be reimbursed
         by it, at a rate of interest per annum equal to the Federal Funds
         Effective Rate for the first three days and, thereafter, at a rate of
         interest equal to the rate applicable to Floating Rate Advances.

                  2.19.6.  Reimbursement by Borrower. The Borrower shall be
         irrevocably and unconditionally obligated to reimburse the LC Issuer on
         or before the applicable LC Payment Date for any amounts to be paid by
         the LC Issuer upon any drawing under any Facility LC, without
         presentment, demand, protest or other formalities of any kind; provided
         that neither the Borrower nor any Lender shall hereby be precluded from
         asserting any claim for direct (but not consequential) damages suffered
         by the Borrower or such Lender to the extent, but only to the extent,
         caused by (i) the willful misconduct or gross negligence of the LC
         Issuer in determining whether a request presented under any Facility LC
         issued by it complied with the terms of such Facility LC or (ii) the LC
         Issuer's failure to pay under any Facility LC issued by it after the
         presentation to it of a request strictly complying with the terms and
         conditions of such Facility LC. All such amounts paid by the LC Issuer
         and remaining unpaid by the Borrower shall bear interest, payable on
         demand, for each day until paid at a rate per annum equal to (x) the
         rate applicable to Floating Rate Advances for such day if such day
         falls on or before the applicable LC Payment Date and (y) the sum of 2%
         plus the rate applicable to Floating Rate Advances for such day if such
         day falls after such LC Payment Date. The LC Issuer will pay to each
         Lender

                                      -28-
<PAGE>
         ratably in accordance with its Pro Rata Share all amounts received by
         it from the Borrower for application in payment, in whole or in part,
         of the Reimbursement Obligations in respect of any Facility LC issued
         by the LC Issuer, but only to the extent such Lender has made payment
         to the LC Issuer in respect of such Facility LC pursuant to Section
         2.19.5. Subject to the terms and conditions of this Agreement
         (including without limitation the submission of a Borrowing Notice in
         compliance with Section 2.8 and the satisfaction of the applicable
         conditions precedent set forth in Article IV), the Borrower may request
         an Advance hereunder for the purpose of satisfying any Reimbursement
         Obligation.

                  2.19.7.  Obligations Absolute. The Borrower's obligations
         under this Section 2.19 shall be absolute and unconditional under any
         and all circumstances and irrespective of any setoff, counterclaim or
         defense to payment which the Borrower may have or have had against the
         LC Issuer, any Lender or any beneficiary of a Facility LC. The Borrower
         further agrees with the LC Issuer and the Lenders that the LC Issuer
         and the Lenders shall not be responsible for, and the Borrower's
         Reimbursement Obligation in respect of any Facility LC shall not be
         affected by, among other things, the validity or genuineness of
         documents or of any endorsements thereon, even if such documents should
         in fact prove to be in any or all respects invalid, fraudulent or
         forged, or any dispute between or among the Borrower, any of its
         Affiliates, the beneficiary of any Facility LC or any financing
         institution or other party to whom any Facility LC may be transferred
         or any claims or defenses whatsoever of the Borrower or of any of its
         Affiliates against the beneficiary of any Facility LC or any such
         transferee. The LC Issuer shall not be liable for any error, omission,
         interruption or delay in transmission, dispatch or delivery of any
         message or advice, however transmitted, in connection with any Facility
         LC. The Borrower agrees that any action taken or omitted by the LC
         Issuer or any Lender under or in connection with each Facility LC and
         the related drafts and documents, if done without gross negligence or
         willful misconduct, shall be binding upon the Borrower and shall not
         put the LC Issuer or any Lender under any liability to the Borrower.
         Nothing in this Section 2.19.7 is intended to limit the right of the
         Borrower to make a claim against the LC Issuer for damages as
         contemplated by the proviso to the first sentence of Section 2.19.6.

                  2.19.8.  Actions of LC Issuer. The LC Issuer shall be entitled
         to rely, and shall be fully protected in relying, upon any Facility LC,
         draft, writing, resolution, notice, consent, certificate, affidavit,
         letter, cablegram, telegram, telecopy, telex or teletype message,
         statement, order or other document believed by it to be genuine and
         correct and to have been signed, sent or made by the proper Person or
         Persons, and upon advice and statements of legal counsel, independent
         accountants and other experts selected by the LC Issuer. The LC Issuer
         shall be fully justified in failing or refusing to take any action
         under this Agreement unless it shall first have received such advice or
         concurrence of the Required Lenders as it reasonably deems appropriate
         or it shall first be indemnified to its reasonable satisfaction by the
         Lenders against any and all liability and expense which may be incurred
         by it by reason of taking or continuing to take any such action.
         Notwithstanding any other provision of this Section 2.19, the LC Issuer
         shall in all cases be fully protected in acting, or in refraining from
         acting, under this Agreement in accordance with a request of the
         Required Lenders, and such request and any action taken or failure to
         act pursuant thereto shall be binding upon the Lenders and any future
         holders of a participation in any Facility LC.

                  2.19.9.  Indemnification. The Borrower hereby agrees to
         indemnify and hold harmless each Lender, the LC Issuer and the Agent,
         and their respective directors, officers, agents and

                                      -29-
<PAGE>
         employees from and against any and all claims and damages, losses,
         liabilities, costs or expenses which such Lender, the LC Issuer or the
         Agent may incur (or which may be claimed against such Lender, the LC
         Issuer or the Agent by any Person whatsoever) by reason of or in
         connection with the issuance, execution and delivery or transfer of or
         payment or failure to pay under any Facility LC or any actual or
         proposed use of any Facility LC, including, without limitation, any
         claims, damages, losses, liabilities, costs or expenses which the LC
         Issuer may incur by reason of or in connection with (i) the failure of
         any other Lender to fulfill or comply with its obligations to the LC
         Issuer hereunder (but nothing herein contained shall affect any rights
         the Borrower may have against any defaulting Lender) or (ii) by reason
         of or on account of the LC Issuer issuing any Facility LC which
         specifies that the term "beneficiary" included therein includes any
         successor by operation of law of the named beneficiary, but which
         Facility LC does not require that any drawing by any such successor
         beneficiary be accompanied by a copy of a legal document, satisfactory
         to the LC Issuer, evidencing the appointment of such successor
         beneficiary; provided that the Borrower shall not be required to
         indemnify any Lender, the LC Issuer or the Agent for any claims,
         damages, losses, liabilities, costs or expenses to the extent, but only
         to the extent, caused by (x) the willful misconduct or gross negligence
         of the LC Issuer in determining whether a request presented under any
         Facility LC complied with the terms of such Facility LC or (y) the LC
         Issuer's failure to pay under any Facility LC after the presentation to
         it of a request strictly complying with the terms and conditions of
         such Facility LC. Nothing in this Section 2.19.9 is intended to limit
         the obligations of the Borrower under any other provision of this
         Agreement.

                  2.19.10. Lenders' Indemnification Each Lender shall, ratably
         in accordance with its Pro Rata Share, indemnify the LC Issuer, its
         affiliates and their respective directors, officers, agents and
         employees (to the extent not reimbursed by the Borrower) against any
         cost, expense (including reasonable counsel fees and disbursements),
         claim, demand, action, loss or liability (except such as result from
         such indemnitees' gross negligence or willful misconduct or the LC
         Issuer's failure to pay under any Facility LC after the presentation to
         it of a request strictly complying with the terms and conditions of the
         Facility LC) that such indemnitees may suffer or incur in connection
         with this Section 2.19 or any action taken or omitted by such
         indemnitees hereunder.

                  2.19.11. Facility LC Collateral Account. The Borrower agrees
         that it will, upon the request of the Agent or the Required Lenders and
         until the final expiration date of any Facility LC and thereafter as
         long as any amount is payable to the LC Issuer or the Lenders in
         respect of any Facility LC, maintain a special collateral account
         pursuant to arrangements satisfactory to the Agent (the "Facility LC
         Collateral Account") at the Agent's office at the address specified
         pursuant to Article XIII, in the name of such Borrower but under the
         sole dominion and control of the Agent, for the benefit of the Lenders
         and in which such Borrower shall have no interest other than as set
         forth in Section 8.1. The Borrower hereby pledges, assigns and grants
         to the Agent, on behalf of and for the ratable benefit of the Lenders
         and the LC Issuer, a security interest in all of the Borrower's right,
         title and interest in and to all funds which may from time to time be
         on deposit in the Facility LC Collateral Account to secure the prompt
         and complete payment and performance of the Obligations. The Agent will
         invest any funds on deposit from time to time in the Facility LC
         Collateral Account in certificates of deposit of Bank One having a
         maturity not exceeding 30 days. Nothing in this Section 2.19.11 shall
         either obligate the Agent to require the Borrower to deposit any funds
         in the Facility LC Collateral Account or limit the right of the Agent
         to release any funds held in the Facility LC Collateral Account in each
         case other than as required by Section 8.1.

                                      -30-
<PAGE>
                  2.19.12. Rights as a Lender. In its capacity as a Lender, the
         LC Issuer shall have the same rights and obligations as any other
         Lender.

         2.20.    Extension of Facility Termination Date. The Borrower may
request a one-year extension of the Facility Termination Date by submitting a
request for an extension to the Agent (an "Extension Request") no more than 90
and no less than 30 days prior to the second anniversary of the closing of this
Agreement. Promptly upon receipt of an Extension Request, the Agent shall notify
each Lender thereof and shall request each Lender to approve the Extension
Request. Each Lender approving the Extension Request shall deliver its written
consent no later than 15 days prior to such second anniversary of the closing of
this Agreement. If the consent of each of the Lenders is received by the Agent,
the Facility Termination Date shall be extended by one year and the Agent shall
promptly notify the Borrower and each Lender of the new Facility Termination
Date.

         2.21.    The 1993 Direct-Pay Letter of Credit. The Enhancement Issuer
previously has issued its Letter of Credit No. ST04689 (as the same has been or
hereafter may be amended, modified, extended, supplemented and/or restated from
time to time and at any time, the "1993 Direct-Pay Letter of Credit") in the
original principal amount of $3,462,750.00 in favor of the 1993 Trustee. On the
Closing Date, the Enhancement Issuer shall issue an amendment to the 1993
Direct-Pay Letter of Credit extending the expiration date thereof to December
31, 2003. The 1993 Direct-Pay Letter of Credit secures payment of the 1993 Bonds
and is subject to the terms stated therein. The 1993 Direct-Pay Letter of Credit
is subject to the following terms and conditions and all other terms and
conditions of this Agreement concerning the Borrower's obligations with respect
to the 1993 Direct-Pay Letter of Credit:

                  2.21.1   Reimbursement. So long as the 1993 Direct-Pay Letter
         of Credit is outstanding, the Borrower will maintain a demand deposit
         account with the Agent (the "Designated Account") which the Borrower
         shall designate as the account through which the transactions described
         in this Section 2.21 will regularly be accomplished. On the Credit
         Enhancement Business Day of each calendar month which is two (2) Credit
         Enhancement Business Days prior to an Interest Payment Date for the
         1993 Bonds, the Borrower will deposit into the Designated Account such
         amount as may be necessary to cause the balance of the Designated
         Account to be not less than the sum of (i) the anticipated amount of
         interest that will be due on account of the 1993 Bonds at the next
         Interest Payment Date for the 1993 Bonds, plus (ii) the amount of the
         transaction fee provided for in Section 2.21.2 which will be due upon
         the Enhancement Issuer's payment of the related Drawing or Drawings
         under the 1993 Direct-Pay Letter of Credit, plus (iii) any balance
         required under other provisions of this Agreement. On the Credit
         Enhancement Business Day which is two (2) Credit Enhancement Business
         Days prior to the 1993 Maturity Date, the Borrower will deposit into
         the Designated Account such amount as may be necessary to cause the
         balance of the Designated Account to be not less than the sum of : (i)
         any amount required by this Section 2.21.2 to be deposited in
         connection with the payment of interest on the 1993 Bonds, plus (ii)
         the amount of outstanding principal of the 1993 Bonds that will be due
         on the 1993 Maturity Date, plus (iii) the amount of the transaction fee
         provided for in Section 2.21.2 which will be due upon the Enhancement
         Issuer's payment of the related Drawing or Drawings under the 1993
         Direct-Pay Letter of Credit, plus (iv) any balance required under other
         provisions of this Agreement. Only after honoring a Drawing, the
         Enhancement Issuer shall be entitled, without further authorization
         from the Borrower, (1) to direct the Agent to charge, whereupon the
         Agent shall charge the amount of such Drawing and the related
         transaction fee to the Designated Account and shall remit such amount
         to the Enhancement Issuer, and (2) to the extent that the

                                      -31-
<PAGE>
         balance of the Designated Account is insufficient to cover such Drawing
         and the related transaction fee, to charge the amount of such Drawing
         and the related transaction fee to any other deposit account maintained
         by the Borrower with the Enhancement Issuer. Should the Borrower's
         deposit balances with the Enhancement Issuer be insufficient to
         reimburse the Enhancement Issuer for any Drawing under the 1993
         Direct-Pay Letter of Credit, together with the related transaction fee,
         then the Borrower shall pay to the Enhancement Issuer immediately and
         unconditionally upon demand, an amount equal to the unreimbursed
         portion of such Drawing and the related transaction fee, together with
         interest on such amount at the Floating Rate, plus Two Percent (2%) per
         annum from the date of payment of such Drawing until the amount thereof
         is reimbursed to the Enhancement Issuer. In the case of any Remarketing
         Drawing, the Borrower shall unconditionally pay to the Enhancement
         Issuer on the ninetieth (90th) day following payment by the Enhancement
         Issuer of such Drawing, or if such ninetieth day is not a Business Day,
         then on the next following Business Day, any balance of the amount of
         such Drawing which shall not then have been reimbursed to the
         Enhancement Issuer by the payment of remarketing proceeds to the
         Enhancement Issuer or otherwise, together with interest on such
         portions of such Remarketing Drawing as shall not, from time to time,
         have been reimbursed to the Enhancement Issuer, accrued at the Floating
         Rate, plus One Percent (1%) per annum, and with interest thereafter
         accrued at the Floating Rate, plus Three Percent (3%) per annum. Upon
         being reimbursed in full with interest as provided in this Agreement
         for any Remarketing Drawing, the Enhancement Issuer shall deliver any
         Pledged Bonds that were purchased by the 1993 Trustee with the proceeds
         of such Remarketing Drawing, and which shall not have previously been
         delivered by the Enhancement Issuer upon sale by the Remarketing Agent,
         to the 1993 Trustee for cancellation pursuant to the terms of the 1993
         Trust Indenture. As used in this paragraph (and in Section 2.23, as the
         context requires), the term "remarketing proceeds" means proceeds from
         the resale of Pledged Bonds by the Remarketing Agent, which Pledged
         Bonds shall have been tendered or deemed tendered to the 1993 Trustee
         for repurchase pursuant to the terms of the 1993 Trust Indenture.

                  2.21.2   Commission and Transaction Fees. On each Commission
         Due Date, the Borrower shall pay to the Enhancement Issuer a commission
         for maintaining the 1993 Direct-Pay Letter of Credit, computed on the
         adjusted 1993 Maximum Available Credit at a rate per annum equal to the
         Applicable LC Fee in effect for each Commission Due Date, for the
         period beginning on the Commission Due Date and ending on the next
         following Commission Due Date. As used in the preceding sentence, the
         term "adjusted 1993 Maximum Available Credit" means the 1993 Maximum
         Available Credit as it is scheduled to increase and decrease during the
         period beginning on a Commission Due Date and ending on the following
         Commission Due Date by reason of anticipated draws for scheduled
         payments of principal and interest on the 1993 Bonds, and assuming the
         reinstatement of the availability of all Interest Drawings to the
         extent provided for in the 1993 Direct-Pay Letter of Credit, provided
         that for purposes of computing each annual commission, the amount of an
         Interest Drawing which is subject to automatic reinstatement will be
         considered to be reinstated as of the date of such Drawing. There shall
         be no reduction in the amount of commission due and payable on any
         Commission Due Date, nor shall any refund of commission be due the
         Borrower on account of full or partial prepayment of the 1993 Bonds or
         because of the cancellation of the Pledged Bonds purchased with the
         proceeds of a Remarketing Drawing during the year following the
         Commission Due Date as of which the amount of such commission is
         established or on account of the election of the Bank not to restore
         the availability of any Interest Drawing. The amount of commission due
         and payable as of any Commission Due Date shall not be reduced, nor
         shall any refund of the commission be due

                                      -32-
<PAGE>
         because of cancellation or termination of the 1993 Direct-Pay Letter of
         Credit for whatever reason, except that, so long as the Borrower's
         fiscal year ends on or about August 31, upon delivery to the Agent by
         the Borrower of the Borrower's annual audited Financial Statements for
         the Borrower's fiscal year ended prior to any Commission Due Date in
         any calendar year, the commission due on that Commission Due Date shall
         be recalculated on the basis of the Leverage Ratio as indicated by such
         audited Financial Statements. If the amount of the commission as so
         recalculated is greater or less than the amount of commission paid on
         such Commission Due Date, then the Enhancement Issuer will refund to
         the Borrower the excess of the amount of the commission paid on such
         Commission Due Date over the commission determined in accordance with
         such recalculation (and each Lender shall pay to the Agent, for the
         account of the Enhancement Issuer, its Pro Rata Share of the
         Enhancement Issuer's refund to the Borrower), or the Borrower will pay
         to the Enhancement Issuer the excess of the commission determined in
         accordance with such recalculation over the commission paid on such
         Commission Due Date, such refund or such payment of additional
         commission to be due within ten (10) days following delivery of such
         annual audited Financial Statements. A transaction fee shall be payable
         by the Borrower to the Enhancement Issuer (solely for its own account)
         for each Drawing under the 1993 Direct-Pay Letter of Credit in the
         amount of One-Eighth of One Percent (1/8%) of the amount of the Drawing
         or Sixty-Five Dollars ($65.00), whichever is greater. Transaction fees
         on account of Drawings shall be due on the day when the Drawing is paid
         by the Bank. On the Business Day preceding each Commission Due Date,
         the Borrower shall deposit into the Designated Account such amount as
         may be necessary to cause the balance of the Designated Account to be
         not less than the amount of commission due on such Commission Due Date,
         plus any other amounts required to be on deposit in the Designated
         Account on such date pursuant to other provisions of this Agreement.
         The Enhancement Issuer shall be entitled, without further authorization
         from the Borrower, to direct the Agent to charge the amount of the
         commission due on each Commission Due Date to the Designated Account,
         and if the balance of the Designated Account is insufficient to satisfy
         the entire amount then due to the Enhancement Issuer on account of the
         commission, the Enhancement Issuer may, without further authorization
         of the Borrower, charge such deficiency to any other deposit account of
         the Borrower maintained with the Enhancement Issuer. All commissions
         and fees payable under the terms of this Section 2.21(ii) shall be
         payable with interest at the Floating Rate, plus Two Percent (2%) per
         annum from the date due until paid. If the 1993 Direct-Pay Letter of
         Credit is transferred to a new beneficiary pursuant to the terms
         thereof, then the Borrower covenants and agrees to pay to the
         Enhancement Issuer (solely for its own account) promptly upon its
         demand a transfer fee in the amount then customarily assessed by the
         Enhancement Issuer for transfers of letters of credit of the same type
         and amount as the 1993 Direct-Pay Letter of Credit.

                  2.21.3   Remarketing Reimbursement Loan-1993 Bonds. At the
         option of the Borrower exercised by a written notice to the Enhancement
         Issuer given not less than ten (10) days prior to the expiration of a
         period of ninety (90) days following a Remarketing Drawing on the 1993
         Direct-Pay Letter of Credit (which expiration date is hereafter
         referred to in this subsection as the "reimbursement due date"), the
         Enhancement Issuer shall make a loan (a "Remarketing Reimbursement
         Loan-1993 Bonds") to the Borrower on the reimbursement due date,
         provided that the 1993 Direct-Pay Letter of Credit as it may have been
         extended from time to time shall not then have expired or been
         terminated, and provided further that no Default or Unmatured Default
         shall have occurred and is then continuing. Each Remarketing
         Reimbursement Loan-1993 Bonds shall be in an amount not in excess of
         the amount due to the Enhancement Issuer from the Borrower on the
         related reimbursement due date on account of the portion of the

                                      -33-
<PAGE>
         Remarketing Drawing representing the Principal Amount. The term
         "Principal Amount" is used in the preceding sentence as that term is
         defined in the 1993 Direct-Pay Letter of Credit. Proceeds of the
         Remarketing Reimbursement Loan-1993 Bonds shall be used solely to
         reimburse the Enhancement Issuer for all or a portion of the Principal
         Amount of the related Remarketing Drawing for the 1993 Bonds which have
         not been sold by the Remarketing Agent subsequent to the Remarketing
         Drawing. Each Remarketing Reimbursement Loan-1993 Bonds shall be
         represented by the promissory note of the Borrower (a "Remarketing
         Reimbursement Note-1993 Bonds"), delivered to the Enhancement Issuer
         contemporaneously with the making of the Remarketing Reimbursement
         Loan-1993 Bonds, with each such note substantially in the form of the
         Term Note, with the following exceptions:

         (a)      No Remarketing Reimbursement Loan-1993 Bonds will be made
                  after the earlier of the expiration or termination of the 1993
                  Direct-Pay Letter of Credit;

         (b)      The final maturity of such Remarketing Reimbursement Note-1993
                  Bonds shall be a date which is the earlier of (1) 288 days
                  after the date the Remarketing Reimbursement Loan-1993 Bonds
                  evidenced by such Note was made, or (2) the date that the 1993
                  Direct-Pay Letter of Credit (as it may have been extended from
                  time to time in the Required Lenders' sole discretion) expires
                  or is terminated;

         (c)      Each Remarketing Reimbursement Note-1993 Bonds shall bear
                  interest prior to maturity at a per annum rate equal to the
                  Floating Rate plus One Percent (1%) and after maturity at a
                  per annum rate equal to the Floating Rate plus Three Percent
                  (3%) per annum;

         (d)      All accrued interest on the outstanding principal balance of
                  the Remarketing Reimbursement Loan-1993 Bonds is due and
                  payable prior to maturity on each Payment Date, and after
                  maturity, all interest is due and payable as accrued and
                  without demand; and

         (e)      The principal of each Remarketing Reimbursement Note-1993
                  Bonds shall be payable prior to maturity on the same dates as
                  the scheduled principal payments under the 1993 Bonds
                  purchased with the related Remarketing Drawing would have
                  become due and payable, and the principal amount payable on
                  each such date shall be equal to the principal payments
                  scheduled to have been paid on the same date on the 1993 Bonds
                  redeemed with the related Remarketing Drawing.

         2.22     The 1994 Refunding Direct-Pay Letter of Credit. The
Enhancement Issuer previously has issued its Letter of Credit No. ST04846 (as
the same has been or hereafter may be amended, modified, extended, supplemented
and/or restated from time to time and at any time, the "1994 Refunding
Direct-Pay Letter of Credit") in the original principal amount of $2,976,750 in
favor of the 1994 Refunding Trustee for the account of the Borrower. On the
Closing Date, the Enhancement Issuer shall issue an amendment to the 1994
Refunding Direct-Pay Letter of Credit extending the expiration date thereof to
September 1, 2004. The 1994 Refunding Direct-Pay Letter of Credit secures
payment of the 1994 Refunding Bonds and is subject to the terms stated therein.
The 1994 Refunding Direct-Pay Letter of Credit is subject to the following terms
and conditions, and all other terms and conditions of this Agreement concerning
the Borrower's obligations with respect to the 1994 Refunding Direct-Pay Letter
of Credit:

                                      -34-
<PAGE>
                  2.22.1   Reimbursement. So long as the 1994 Refunding
         Direct-Pay Letter of Credit is outstanding, the Borrower will maintain
         the Designated Account through which the transactions described in this
         Section 2.22 will regularly be accomplished. On the Credit Enhancement
         Business Day of each calendar month which is two (2) Credit Enhancement
         Business Days prior to an Interest Payment Date for the 1994 Refunding
         Bonds, the Borrower will deposit into the Designated Account such
         amount as may be necessary to cause the balance of the Designated
         Account to be not less than the sum of (i) the anticipated amount of
         interest that will be due on account of the 1994 Refunding Bonds at the
         next Interest Payment Date for the 1994 Refunding Bonds, plus (ii) the
         amount of the transaction fee provided for in Section 2.22.2 which will
         be due upon the Enhancement Issuer's payment of the related Drawing or
         Drawings under the 1994 Refunding Direct-Pay Letter of Credit, plus
         (iv) any balance required under other provisions of this Agreement. On
         the Credit Enhancement Business Day which is two (2) Credit Enhancement
         Business Days prior to the 1994 Maturity Date, the Borrower will
         deposit into the Designated Account such amount as may be necessary to
         cause the balance of the Designated Account to be not less than the sum
         of: (a) any amount required by this Section 2.22.1 to be deposited in
         connection with the payment of interest on the 1994 Refunding Bonds,
         plus (b) the amount of outstanding principal of the 1994 Refunding
         Bonds that will be due on the 1994 Maturity Date, plus (c) the amount
         of the transaction fee provided for in Section 2.22.2 which will be due
         upon the Enhancement Issuer's payment of the related Drawing or
         Drawings under the 1994 Refunding Direct-Pay Letter of Credit, plus (d)
         any balance required under other provisions of this Agreement. Only
         after honoring a Drawing, the Enhancement Issuer shall be entitled,
         without further authorization from the Borrower, (1) to direct the
         Agent to charge, whereupon the Agent shall charge the amount of such
         Drawing and the related transaction fee to the Designated Account and
         shall remit such amount to the Enhancement Issuer, and (2) to the
         extent that the balance of the Designated Account is insufficient to
         cover such Drawing and the related transaction fee, to charge the
         amount of such Drawing and the related transaction fee to any other
         deposit account maintained by the Borrower with the Enhancement Issuer.
         Should the Borrower's deposit balances with the Enhancement Issuer be
         insufficient to reimburse the Enhancement Issuer for any Drawing under
         the 1994 Refunding Direct-Pay Letter of Credit, together with the
         related transaction fee, then the Borrower shall pay to the Enhancement
         Issuer immediately and unconditionally upon demand, an amount equal to
         the unreimbursed portion of such Drawing and the related transaction
         fee, together with interest on such amount at the Floating Rate, plus
         Two Percent (2%) per annum from the date of payment of such Drawing
         until the amount thereof is reimbursed to the Enhancement Issuer. In
         the case of any Remarketing Drawing, the Borrower shall unconditionally
         pay to the Enhancement Issuer on the ninetieth (90th) day following
         payment by the Enhancement Issuer of such Drawing, or if such ninetieth
         day is not a Business Day, then on the next following Business Day, any
         balance of the amount of such Drawing which shall not then have been
         reimbursed to the Enhancement Issuer by the payment of remarketing
         proceeds to the Enhancement Issuer or otherwise, together with interest
         on such portions of such Remarketing Drawing as shall not, From time to
         time, have been reimbursed to the Enhancement Issuer, accrued at the
         Floating Rate, plus One Percent (1%) per annum, and with interest
         thereafter accrued at the Floating Rate, plus Three Percent (3%) per
         annum. Upon being reimbursed in full with interest as provided in this
         Agreement for any Remarketing Drawing, the Enhancement Issuer shall
         deliver appropriate instructions, with respect to any Pledged Bonds
         that were purchased by the 1994 Refunding Trustee with the proceeds of
         such Remarketing Drawing, and which shall not have previously been
         delivered by the Enhancement Issuer upon sale by the Remarketing Agent,
         to the 1994 Refunding Trustee for cancellation pursuant to the terms of
         the 1994 Refunding Trust Indenture. As used in this

                                      -35-
<PAGE>
         paragraph, the term "remarketing proceeds" means proceeds from the
         resale of Pledged Bonds by the Remarketing Agent, which Pledged Bonds
         shall have been tendered or deemed tendered to the 1994 Refunding
         Trustee for repurchase pursuant to the terms of the 1994 Refunding
         Trust Indenture.

                  2.22.2   Commission and Transaction Fees. On each Commission
         Due Date, the Borrower shall pay to the Enhancement Issuer a commission
         for maintaining the 1994 Direct-Pay Letter of Credit, computed on the
         adjusted 1994 Refunding Maximum Available Credit at a rate per annum
         equal to the Applicable LC Fee in effect for each Commission Due Date,
         for the period beginning on the Commission Due Date and ending on the
         next following Commission Due Date. As used in the preceding sentence,
         the term "adjusted 1994 Refunding Maximum Available Credit" means the
         1994 Refunding Maximum Available Credit as it is scheduled to increase
         and decrease during the period beginning on a Commission Due Date and
         ending on the following Commission Due Date by reason of anticipated
         draws for scheduled payments of principal and interest on the 1994
         Refunding Bonds, and assuming the reinstatement of the availability of
         all Interest Drawings to the extent provided for in the 1994 Refunding
         Direct-Pay Letter of Credit, provided that for purposes of computing
         each annual commission, the amount of an Interest Drawing which is
         subject to automatic reinstatement will be considered to be reinstated
         as of the date of such drawing. There shall be no reduction in the
         amount of commission due and payable on any Commission Due Date, nor
         shall any refund of commission be due the Borrower on account of full
         or partial prepayment of the 1994 Refunding Bonds or because of the
         cancellation of the Pledged Bonds purchased with the proceeds of a
         Remarketing Drawing during the year following the Commission Due Date
         as of which the amount of such commission is established or on account
         of the election of the Enhancement Issuer not to restore the
         availability of any Interest Drawing. The amount of the commission due
         and payable as of any Commission Due Date shall not be reduced, nor
         shall any refund of the commission be due because of cancellation or
         termination of the 1994 Refunding Direct-Pay Letter of Credit for
         whatever reason nor shall the amount of the commission due and payable
         as of any Commission Due Date be reduced or refunded for any other
         reason, except that, so long as the Borrower's fiscal year ends on or
         about August 31, upon delivery to the Agent by the Borrower of the
         Borrower's annual audited Financial Statements for the Borrower's
         fiscal year ended prior to any Commission Due Date in any calendar
         year, the commission due on that Commission Due Date shall be
         recalculated on the basis of the ratio of the Leverage Ratio as
         indicated by such audited Financial Statements. If the amount of
         commission as so recalculated is greater or less than the amount of
         commission paid on such Commission Due Date, then the Enhancement
         Issuer will refund to the Borrower the excess of the amount of the
         commission paid on such Commission Due Date over the commission
         determined in accordance with such recalculation (and each Lender shall
         pay to the Agent, for the account of the Enhancement Issuer, its Pro
         Rata Share of the Enhancement Issuer's refund to the Borrower), or the
         Borrower will pay to the Enhancement Issuer the excess of the
         commission determined in accordance with such recalculation over the
         commission paid on such Commission Due Date, such refund or such
         payment of additional commission to be due within ten (10) days
         following delivery of such annual audited financial statements. A
         transaction fee shall be payable by the Borrower to the Enhancement
         Issuer (solely for its own account) for each Drawing under the 1994
         Refunding Direct-Pay Letter of Credit in the amount of One-Eighth of
         One Percent (1/8%) of the amount of the Drawing or Sixty-Five Dollars
         ($65.00), whichever is greater. Transaction fees on account of Drawings
         shall be due on the day when the Drawing is paid by the Enhancement
         Issuer. On the Business Day preceding each Commission Due Date, the
         Borrower shall deposit into the Designated Account,

                                      -36-
<PAGE>
         such amount as may be necessary to cause the balance of the Designated
         Account to be not less than the amount of commission due on such
         Commission Due Date, plus any other amounts required to be on deposit
         in the Designated Account on such date pursuant to other provisions of
         this Agreement. The Enhancement Issuer shall be entitled, without
         further authorization from the Borrower, to direct the Agent to charge
         the amount of the commission due on each Commission Due Date to the
         Designated Account, and if the balance of the Designated Account is
         insufficient to satisfy the entire amount then due to the Enhancement
         Issuer on account of the commission, the Enhancement Issuer may,
         without further authorization of the Borrower, charge such deficiency
         to any other deposit account of the Borrower maintained with the
         Enhancement Issuer. All commissions and fees payable under the terms of
         this Section 2.22.2 shall be payable with interest at the Floating
         Rate, plus Two Percent (2%) per annum from the date due until paid. If
         the 1994 Refunding Direct-Pay Letter of Credit is transferred to a new
         beneficiary pursuant to the terms thereof, then the Borrower covenants
         and agrees to pay to the Enhancement Issuer (solely for its own
         account) promptly upon its demand a transfer fee in the amount then
         customarily assessed by the Enhancement Issuer for transfers of letters
         of credit of the same type and amount as the 1994 Refunding Direct-Pay
         Letter of Credit.

                  2.22.3   Remarketing Reimbursement Loan-1994 Refunding Bonds.
         At the option of the Borrower exercised by a written notice to the
         Enhancement Issuer given not less than ten (10) days prior to the
         expiration of a period of ninety (90) days following a Remarketing
         Drawing on the 1994 Direct-Pay Letter of Credit (which expiration date
         is hereafter referred to in this subsection as the "reimbursement due
         date"), the Enhancement Issuer will make a loan (a "Remarketing
         Reimbursement Loan-1994 Refunding Bonds") to the Borrower on the
         reimbursement due date, provided that the 1994 Refunding Direct-Pay
         Letter of Credit as it may have been extended from time to time shall
         not then have expired or been terminated, and provided further that no
         Default or Unmatured Default shall have occurred and is then
         continuing. Each Remarketing Reimbursement Loan-1994 Refunding Bonds
         shall be in an amount not in excess of the amount due to the
         Enhancement Issuer from the Borrower on the related reimbursement due
         date on account of the portion of the Remarketing Drawing representing
         the Principal Amount. The term "Principal Amount" is used in the
         preceding sentence as that term is defined in the 1994 Refunding
         Direct-Pay Letter of Credit. Proceeds of the Remarketing Reimbursement
         Loan-1994 Refunding Bonds shall be used solely to reimburse the
         Enhancement Issuer for all or a portion of the Principal Amount of the
         related Remarketing Drawing for the 1994 Refunding Bonds which have not
         been sold by the Remarketing Agent subsequent to the Remarketing
         Drawing. Each Remarketing Reimbursement Loan-1994 Refunding Bonds shall
         be represented by the promissory note of the Borrower (a "Remarketing
         Reimbursement Note-1994 Refunding Bonds"), delivered to the Enhancement
         Issuer contemporaneously with the making of the Remarketing
         Reimbursement Loan-1994 Refunding Bonds, with each such promissory note
         substantially in the form of the Term Note, with the following
         exceptions:

         (a)      No Remarketing Reimbursement Loan-1994 Refunding Bonds will be
                  made after the earlier of the expiration or termination of the
                  1994 Refunding Direct-Pay Letter of Credit;

         (b)      The final maturity of such Remarketing Reimbursement Note-1994
                  Refunding Bonds shall be a date which is the earlier of (1)
                  288 days after the date the Remarketing Reimbursement
                  Loan-1994 Refunding Bonds evidenced by such Remarketing

                                      -37-
<PAGE>
                  Reimbursement Note-1994 Refunding Bonds was made, or (2) the
                  date that the 1994 Refunding Direct-Pay Letter of Credit (as
                  it may have been extended from time to time in the Required
                  Lenders' sole discretion) expires or is terminated;

         (c)      Each Remarketing Reimbursement Note-1994 Refunding Bonds shall
                  bear interest prior to maturity at a per annum rate equal to
                  the Floating Rate plus One Percent (1%) and after maturity at
                  a per annum rate equal to the Floating Rate plus Three Percent
                  (3%) per annum;

         (d)      All accrued interest on the outstanding principal balance of
                  the Remarketing Reimbursement Loan-1994 Refunding Bonds is due
                  and payable prior to maturity on each Payment Date, and after
                  maturity, all interest is due and payable as accrued and
                  without demand; and

         (e)      The principal of each Remarketing Reimbursement Note-1994
                  Refunding Bonds shall be payable prior to maturity on the same
                  dates as the scheduled principal payments under the 1994
                  Refunding Bonds purchased with the related Remarketing Drawing
                  would have become due and payable, and the principal amount
                  payable on each such date shall be equal to the principal
                  payments scheduled to have been paid on the same date on the
                  1994 Refunding Bonds redeemed with the related Remarketing
                  Drawing.

         2.23     Provisions Applicable to All Credit Enhancement Letters of
Credit. The following provisions are applicable to all Credit Enhancement
Letters of Credit:

                  2.23.1   Participations. Pursuant to the Modification
         Agreement, without further action by any party hereto, the Enhancement
         Issuer has and shall be deemed to have unconditionally and irrevocably
         sold to each Lender, and each Lender has and shall be deemed to have
         unconditionally and irrevocably purchased from the Enhancement Issuer a
         participation in the 1993 Direct-Pay Letter of Credit, each Remarketing
         Reimbursement Loan - 1993 Bonds, the 1994 Refunding Direct-Pay Letter
         of Credit, each Remarketing Reimbursement Loan - 1994 Refunding Bonds,
         and the related LC Obligations, in proportion to its Pro Rata Share.

                  2.23.2   Place and Application of Payments -- Calculation of
         Interest and Fees. All payments required to be made under Sections 2.21
         and 2.22 shall be made to the Enhancement Issuer at its principal
         office in Indianapolis, Indiana, in funds available for the Enhancement
         Issuer's immediate use at that city and no such payment will be
         considered to have been made until received in such funds. The
         Enhancement Issuer shall remit to the Agent, for the accounts of the
         Lenders ratably in accordance with their Pro Rata Shares, all
         commissions payable in respect of the Credit Enhancement Letters of
         Credit, all reimbursement of Interest Drawings and Principal Drawings
         with respect to which the Lenders have funded their participations and
         payments of interest thereon, all reimbursements of Remarketing
         Drawings from the payment of remarketing proceeds or otherwise, and all
         payments of the principal of and interest on each Remarketing
         Reimbursement Note - 1993 Bonds and each Remarketing Reimbursement Note
         - 1994 Refunding Bonds.

                  2.23.3   Administration; Funding of Participations by Lenders.
         The Enhancement Issuer shall notify the Agent, and the Agent shall
         promptly notify the Borrower and each other Lender as to the amount of
         (a) any Interest Drawing or Principal Drawing that has been honored by
         the

                                      -38-
<PAGE>
         Enhancement Issuer and for which the Enhancement Issuer has not been
         fully reimbursed pursuant to Section 2.21.1 or Section 2.22.1, (b) any
         Remarketing Drawing, and (c) any Remarketing Reimbursement Loan - 1993
         Bonds and any Remarketing Reimbursement Loan - 1994 Refunding Bonds
         extended by the Enhancement Issuer. Without regard to the occurrence of
         any Default or Unmatured Default, or any condition precedent
         whatsoever, each Lender shall pay to the Agent, for the account of the
         Enhancement Issuer, (a) such Lender's Pro Rata Share of the amount
         stated in the Agent's notice, plus (b) interest on the foregoing amount
         to be paid by such Lender, for each day from the date of payment of
         such amount by the Enhancement Issuer (or, if the Agent's notice is
         given after 11:00 a.m. (Indianapolis time) on such date, from the next
         succeeding Business Day) to the date on which such Lender pays its Pro
         Rata Share of such amount, at a rate of interest per annum equal to the
         Federal Funds Effective Rate for the first three days and, thereafter,
         at a rate of interest equal to the rate then applicable to Floating
         Rate Advances.

                  2.23.4   Presentment and Collection. The beneficiaries of the
         Credit Enhancement Letters of Credit shall be deemed for purposes of
         this Agreement to be the agents of the Borrower and the Borrower
         assumes all risks of their acts, omissions or misrepresentations.
         Neither the Enhancement Issuer nor any of its affiliates or
         correspondents shall be responsible for the validity, sufficiency,
         truthfulness or genuineness of any document required to draw under any
         of the Credit Enhancement Letters of Credit even if such document
         should in fact prove to be in any or all respects invalid,
         insufficient, fraudulent or forged, provided only that the document
         appears on its face to be in accordance with the terms of the related
         Credit Enhancement Letter of Credit, or for failure of any draft to
         bear reference or adequate reference to any of the related Credit
         Enhancement Letters of Credit or failure of any person to note the
         amount of any draft on any of the Credit Enhancement Letters of Credit
         or to surrender or take up any of the Credit Enhancement Letters of
         Credit, each of which provisions may be waived by the Enhancement
         Issuer, or for errors, omissions, interruptions, or delays in
         transmission or delivery of any messages or documents. Without limiting
         the generality of the foregoing, any action taken by the Enhancement
         Issuer or any of its correspondents under or in connection with any of
         the Credit Enhancement Letters of Credit, if taken in good faith, shall
         be binding upon the Borrower and shall not put the Enhancement Issuer
         or any such correspondent under any resulting liability to the Borrower
         and the Borrower makes like agreement as to any omission unless in
         breach of good faith. The Enhancement Issuer is expressly authorized to
         honor any request for payment which is made under and in compliance
         with the terms of any of the Credit Enhancement Letters of Credit
         without regard to and without any duty on its part to inquire into the
         existence of any disputes or controversies between the Borrower and the
         beneficiaries of any of the Credit Enhancement Letters of Credit or any
         other person, firm or corporation or into the respective rights, duties
         or liabilities of any of them or whether any facts or occurrences
         represented in any of the documents presented under any of the Credit
         Enhancement Letters of Credit are true and correct.

                  2.23.5   Change in Interest Rate Modes. The Borrower shall not
         change the Interest Rate Mode to a Six Month Interest Rate Mode, a One
         Year Interest Rate Mode, a Five Year Interest Rate Mode or a Fixed
         Interest Rate Mode without the prior written consent of the Required
         Lenders. As used in this subsection, the terms "Interest Rate Mode",
         "Six Month Interest Rate Mode", "One Year Interest Rate Mode", "Five
         Year Interest Rate Mode" and "Fixed Interest Rate Mode" are used as
         defined in the 1993 Trust Indenture or the 1994 Refunding Trust
         Indenture, as the context requires.

                                      -39-
<PAGE>
                  2.23.6   Monies in the Designated Account. All amounts
         deposited into the Designated Account shall be held by the Agent as
         cash collateral for all of the Obligations. The Designated Account
         shall be used by the Borrower only for the purposes provided for in
         this Agreement, and the terms of the Designated Account shall be such
         that it shall be a "blocked" account, so that transfers of funds from
         the Designated Account may be made only by the Agent, at the direction
         of the Enhancement Issuer, or by the Borrower with the concurrence of
         the Enhancement Issuer.

                  2.23.7   Annual Administrative Fees and Other Fees. From and
         after the Closing Date, on each anniversary date of the issuance of any
         Credit Enhancement Letter of Credit, the Borrower shall pay to the
         Enhancement Issuer (solely for its own account) a processing and
         administration fee of $125 for such Credit Enhancement Letter of
         Credit. On the Closing Date, and on the first anniversary thereof, the
         Borrower shall pay to the Enhancement Issuer for its own account, a
         fronting fee with respect to each Credit Enhancement Letter of Credit,
         in an amount equal to .125% of the stated amount of such Credit
         Enhancement Letter of Credit.

                  2.23.8   Rights as a Lender. In its capacity as Lender, the
         Enhancement Issuer shall have the same rights and obligations as any
         other Lender.

         2.24.    Replacement of Lender. If the Borrower is required pursuant to
Section 3.1, 3.2 or 3.5 to make any additional payment to any Lender or if any
Lender's obligation to make or continue, or to convert Floating Rate Advances
into, Eurodollar Advances shall be suspended pursuant to Section 3.3 (any Lender
so affected an "Affected Lender"), the Borrower may elect, if such amounts
continue to be charged or such suspension is still effective, to replace such
Affected Lender as a Lender party to this Agreement, provided that no Default or
Unmatured Default shall have occurred and be continuing at the time of such
replacement, and provided further that, concurrently with such replacement, (i)
another bank or other entity which is reasonably satisfactory to the Borrower
and the Agent shall agree, as of such date, to purchase for cash the Advances
and other Obligations due to the Affected Lender pursuant to an assignment
substantially in the form of Exhibit C and to become a Lender for all purposes
under this Agreement and to assume all obligations of the Affected Lender to be
terminated as of such date and to comply with the requirements of Section 12.3
applicable to assignments, and (ii) the Borrower shall pay to such Affected
Lender in same day funds on the day of such replacement (A) all interest, fees
and other amounts then accrued but unpaid to such Affected Lender by the
Borrower hereunder to and including the date of termination, including without
limitation payments due to such Affected Lender under Sections 3.1, 3.2 and 3.5,
and (B) an amount, if any, equal to the payment which would have been due to
such Lender on the day of such replacement under Section 3.4 had the Loans of
such Affected Lender been prepaid on such date rather than sold to the
replacement Lender.

         2.25     Pledged Bonds. In addition to all other collateral for the
Obligations, the Obligations will further be secured by a first priority pledge
of and a security interest in favor of the Agent in any 1993 Bonds and any 1994
Refunding Bonds and in any Beneficial ownership Interests (as that term is
defined in the Trust Indentures) for any Bonds which, in any case, are purchased
with the proceeds of any Remarketing Drawing (the "Pledged Bonds"), which pledge
and security interest the Borrower hereby grants to the Agent, subject only to
Liens permitted under Section 6.15. As soon as possible following any
Remarketing Drawing, and in any event within ten (10) days of the date of such
Drawing, the Borrower shall take such acts and execute such documents as the
Enhancement Issuer may require to perfect and maintain the perfection of the
Agent's pledge of and security interest in and to the Pledged Bonds under
applicable law, including to the extent applicable, Articles 8.1 and 9.1 of the
Indiana

                                      -40-
<PAGE>
Uniform Commercial Code, and the Borrower hereby authorizes the Agent to file
such financing statements, amendments and continuations in such filing offices
as the Agent deems necessary to effect same.

                                   ARTICLE III

                             YIELD PROTECTION; TAXES

         3.1.     Yield Protection. If, on or after the date of this Agreement,
the adoption of any law or any governmental or quasi-governmental rule,
regulation, policy, guideline or directive (whether or not having the force of
law), or any change in the interpretation or administration thereof by any
governmental or quasi-governmental authority, central bank or comparable agency
charged with the interpretation or administration thereof, or compliance by any
Lender or applicable Lending Installation or the LC Issuer or Enhancement Issuer
with any request or directive (whether or not having the force of law) of any
such authority, central bank or comparable agency:

         (i)      subjects any Lender or any applicable Lending Installation or
                  the LC Issuer or the Enhancement Issuer to any Taxes, or
                  changes the basis of taxation of payments (other than with
                  respect to Excluded Taxes) to any Lender, the LC Issuer, or
                  the Enhancement Issuer in respect of its Eurodollar Loans,
                  Facility LCs, Credit Enhancement Letters of Credit, or
                  participations therein, or

         (ii)     imposes or increases or deems applicable any reserve,
                  assessment, insurance charge, special deposit or similar
                  requirement against assets of, deposits with or for the
                  account of, or credit extended by, any Lender or any
                  applicable Lending Installation, the LC Issuer, the
                  Enhancement Issuer (other than reserves and assessments taken
                  into account in determining the interest rate applicable to
                  Eurodollar Advances), or

         (iii)    imposes any other condition the result of which is to increase
                  the cost to any Lender or any applicable Lending Installation,
                  the LC Issuer, or the Enhancement Issuer, of making, funding
                  or maintaining its Eurodollar Loans, or of issuing or
                  participating in Facility LCs or Credit Enhancement Letters of
                  Credit, or reduces any amount receivable by any Lender or any
                  applicable Lending Installation or the LC Issuer or the
                  Enhancement Issuer in connection with its Eurodollar Loans,
                  Facility LCs, Credit Enhancement Letters of Credit, or
                  participations therein, or requires any Lender or any
                  applicable Lending Installation, the LC Issuer, or the
                  Enhancement Issuer to make any payment calculated by reference
                  to the amount of Eurodollar Loans, Facility LCs, Credit
                  Enhancement Letters of Credit, or participations therein held
                  or interest, LC Fees or commissions received by it, by an
                  amount deemed material by such Lender, the LC Issuer or the
                  Enhancement Issuer, as the case may be,

and the result of any of the foregoing is to increase the cost to such Lender or
applicable Lending Installation, or the LC Issuer, or the Enhancement Issuer, as
the case may be, of making or maintaining its Eurodollar Loans, Commitment, or
Term Loan Commitment, or of issuing or participating in Facility LCs or Credit
Enhancement Letters of Credit or to reduce the return received by it, in
connection with such Eurodollar Loans, Facility LCs, Credit Enhancement Letters
of Credit, or participations therein,

                                      -41-
<PAGE>
then, within 15 days of demand by it, the Borrower shall pay such Lender, the LC
Issuer, or the Enhancement Issuer, as the case may be, such additional amount or
amounts as will compensate it for such increased cost or reduction in amount
received.

         3.2.     Changes in Capital Adequacy Regulations. If a Lender, the LC
Issuer, or the Enhancement Issuer determines the amount of capital required or
expected to be maintained by it or any of its Lending Installations or any
corporation controlling it is increased as a result of a Change, then, within 15
days of demand by such Lender, the LC Issuer, or the Enhancement Issuer, the
Borrower shall pay such Lender, the LC Issuer, or the Enhancement Issuer, the
amount necessary to compensate for any shortfall in the rate of return on the
portion of such increased capital which such Lender, the LC Issuer, or the
Enhancement Issuer, determines is attributable to this Agreement, its Total
Credit Exposure or its commitment to make Loans and issue or participate in
Facility LCs and Credit Enhancement Letters of Credit, as the case may be,
hereunder (after taking into account its policies as to capital adequacy).
"Change" means (i) any change after the date of this Agreement in the Risk-Based
Capital Guidelines or (ii) any adoption of or change in any other law,
governmental or quasi-governmental rule, regulation, policy, guideline,
interpretation, or directive (whether or not having the force of law) after the
date of this Agreement which affects the amount of capital required or expected
to be maintained by any Lender, the LC Issuer, or the Enhancement Issuer, or any
Lending Installation or any corporation controlling any Lender, the LC Issuer,
or the Enhancement Issuer. "Risk-Based Capital Guidelines" means (i) the
risk-based capital guidelines in effect in the United States on the date of this
Agreement, including transition rules, and (ii) the corresponding capital
regulations promulgated by regulatory authorities outside the United States
implementing the July 1988 report of the Basle Committee on Banking Regulation
and Supervisory Practices Entitled "International Convergence of Capital
Measurements and Capital Standards," including transition rules, and any
amendments to such regulations adopted prior to the date of this Agreement.

         3.3.     Availability of Types of Advances. If any Lender determines
that maintenance of its Eurodollar Loans at a suitable Lending Installation
would violate any applicable law, rule, regulation, or directive, whether or not
having the force of law, or if the Required Lenders determine that (i) deposits
of a type and maturity appropriate to match fund Eurodollar Advances are not
available or (ii) the interest rate applicable to Eurodollar Advances does not
accurately reflect the cost of making or maintaining Eurodollar Advances, then
the Agent shall suspend the availability of Eurodollar Advances and require any
affected Eurodollar Advances to be repaid or converted to Floating Rate
Advances, subject to the payment of any funding indemnification amounts required
by Section 3.4.

         3.4.     Funding Indemnification. If any payment of a Eurodollar
Advance occurs on a date which is not the last day of the applicable Interest
Period, whether because of acceleration, prepayment or otherwise, or a
Eurodollar Advance is not made on the date specified by the Borrower for any
reason other than default by the Lenders, the Borrower will indemnify each
Lender for any loss or cost incurred by it resulting therefrom, including,
without limitation, any loss or cost in liquidating or employing deposits
acquired to fund or maintain such Eurodollar Advance.

         3.5.     Taxes. (i) All payments by the Borrower to or for the account
of any Lender, the LC Issuer, the Enhancement Issuer, or the Agent hereunder or
under any Note or Facility LC Application shall be made free and clear of and
without deduction for any and all Taxes. If the Borrower shall be required by
law to deduct any Taxes from or in respect of any sum payable hereunder to any
Lender, the LC Issuer, the Enhancement Issuer, or the Agent, (a) the sum payable
shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable

                                      -42-
<PAGE>
under this Section 3.5) such Lender, the LC Issuer, the Enhancement Issuer, or
the Agent (as the case may be) receives an amount equal to the sum it would have
received had no such deductions been made, (b) the Borrower shall make such
deductions, (c) the Borrower shall pay the full amount deducted to the relevant
authority in accordance with applicable law and (d) the Borrower shall furnish
to the Agent the original copy of a receipt evidencing payment thereof within 30
days after such payment is made.

         (ii)     In addition, the Borrower hereby agrees to pay any present or
future stamp or documentary taxes and any other excise or property taxes,
charges or similar levies which arise from any payment made hereunder or under
any Note or Facility LC Application or from the execution or delivery of, or
otherwise with respect to, this Agreement or any Note or Facility LC Application
("Other Taxes").

         (iii)    The Borrower hereby agrees to indemnify the Agent, the LC
Issuer, the Enhancement Issuer, and each Lender for the full amount of Taxes or
Other Taxes (including, without limitation, any Taxes or Other Taxes imposed on
amounts payable under this Section 3.5) paid by the Agent, the LC Issuer, the
Enhancement Issuer, or such Lender as a result of its Commitment or Term Loan
Commitment, any Loans made by it hereunder, or otherwise in connection with its
participation in this Agreement and any liability (including penalties, interest
and expenses) arising therefrom or with respect thereto. Payments due under this
indemnification shall be made within 30 days of the date the Agent, the LC
Issuer, the Enhancement Issuer, as issuer of the Credit Enhancement Letters of
Credit or such Lender makes demand therefor pursuant to Section 3.6.

         (iv)     Each Lender that is not incorporated under the laws of the
United States of America or a state thereof (each a "Non-U.S. Lender") agrees
that it will, not more than ten Business Days after the date of this Agreement,
(i) deliver to the Agent two duly completed copies of United States Internal
Revenue Service Form W-8BEN or W-8ECI, certifying in either case that such
Lender is entitled to receive payments under this Agreement without deduction or
withholding of any United States federal income taxes, and (ii) deliver to the
Agent a United States Internal Revenue Form W-8 or W-9, as the case may be, and
certify that it is entitled to an exemption from United States backup
withholding tax. Each Non-U.S. Lender further undertakes to deliver to each of
the Borrower and the Agent (x) renewals or additional copies of such form (or
any successor form) on or before the date that such form expires or becomes
obsolete, and (y) after the occurrence of any event requiring a change in the
most recent forms so delivered by it, such additional forms or amendments
thereto as may be reasonably requested by the Borrower or the Agent. All forms
or amendments described in the preceding sentence shall certify that such Lender
is entitled to receive payments under this Agreement without deduction or
withholding of any United States federal income taxes, unless an event
(including without limitation any change in treaty, law or regulation) has
occurred prior to the date on which any such delivery would otherwise be
required which renders all such forms inapplicable or which would prevent such
Lender from duly completing and delivering any such form or amendment with
respect to it and such Lender advises the Borrower and the Agent that it is not
capable of receiving payments without any deduction or withholding of United
States federal income tax.

         (v)      For any period during which a Non-U.S. Lender has failed to
provide the Borrower with an appropriate form pursuant to clause (iv), above
(unless such failure is due to a change in treaty, law or regulation, or any
change in the interpretation or administration thereof by any governmental
authority, occurring subsequent to the date on which a form originally was
required to be provided), such Non-U.S. Lender shall not be entitled to
indemnification under this Section 3.5 with respect to Taxes imposed by the
United States; provided that, should a Non-U.S. Lender which is otherwise exempt
from or subject to a reduced rate of withholding tax become subject to Taxes
because of its failure to deliver a form

                                      -43-
<PAGE>
required under clause (iv), above, the Borrower shall take such steps as such
Non-U.S. Lender shall reasonably request to assist such Non-U.S. Lender to
recover such Taxes.

         (vi)     Any Lender that is entitled to an exemption from or reduction
of withholding tax with respect to payments under this Agreement or any Note
pursuant to the law of any relevant jurisdiction or any treaty shall deliver to
the Borrower (with a copy to the Agent), at the time or times prescribed by
applicable law, such properly completed and executed documentation prescribed by
applicable law as will permit such payments to be made without withholding or at
a reduced rate.

         (vii)    If the U.S. Internal Revenue Service or any other governmental
authority of the United States or any other country or any political subdivision
thereof asserts a claim that the Agent did not properly withhold tax from
amounts paid to or for the account of any Lender (because the appropriate form
was not delivered or properly completed, because such Lender failed to notify
the Agent of a change in circumstances which rendered its exemption from
withholding ineffective, or for any other reason), such Lender shall indemnify
the Agent fully for all amounts paid, directly or indirectly, by the Agent as
tax, withholding therefor, or otherwise, including penalties and interest, and
including taxes imposed by any jurisdiction on amounts payable to the Agent
under this subsection, together with all costs and expenses related thereto
(including attorneys fees and time charges of attorneys for the Agent, which
attorneys may be employees of the Agent). The obligations of the Lenders under
this Section 3.5(vii) shall survive the payment of the Obligations and
termination of this Agreement.

         3.6.     Lender Statements; Survival of Indemnity. To the extent
reasonably possible, each Lender shall designate an alternate Lending
Installation with respect to its Eurodollar Loans to reduce any liability of the
Borrower to such Lender under Sections 3.1, 3.2 and 3.5 or to avoid the
unavailability of Eurodollar Advances under Section 3.3, so long as such
designation is not, in the judgment of such Lender, disadvantageous to such
Lender. Each Lender shall deliver a written statement of such Lender to the
Borrower (with a copy to the Agent) as to the amount due, if any, under Section
3.1, 3.2, 3.4 or 3.5. Such written statement shall set forth in reasonable
detail the calculations upon which such Lender determined such amount and shall
be final, conclusive and binding on the Borrower in the absence of manifest
error. Determination of amounts payable under such Sections in connection with a
Eurodollar Loan shall be calculated as though each Lender funded its Eurodollar
Loan through the purchase of a deposit of the type and maturity corresponding to
the deposit used as a reference in determining the Eurodollar Rate applicable to
such Loan, whether in fact that is the case or not. Unless otherwise provided
herein, the amount specified in the written statement of any Lender shall be
payable on demand after receipt by the Borrower of such written statement. The
obligations of the Borrower under Sections 3.1, 3.2, 3.4 and 3.5 shall survive
payment of the Obligations and termination of this Agreement.

                                   ARTICLE IV

                              CONDITIONS PRECEDENT

         4.1.     Initial Credit Extension. The Lenders shall not be required to
make the initial Credit Extension hereunder or to renew the Credit Enhancement
Letters of Credit unless the Borrower has furnished to the Agent, with
sufficient copies for the Lenders:

                                      -44-
<PAGE>
         (i)      Copies of the articles or certificate of incorporation of the
                  Borrower, together with all amendments, and a certificate of
                  good standing, each certified by the appropriate governmental
                  officer in its jurisdiction of incorporation.

         (ii)     Copies, certified by the Secretary or Assistant Secretary of
                  the Borrower, of its by-laws and of its Board of Directors'
                  resolutions and of resolutions or actions of any other body
                  authorizing the execution of the Loan Documents to which the
                  Borrower is a party.

         (iii)    An incumbency certificate, executed by the Secretary or
                  Assistant Secretary of the Borrower, which shall identify by
                  name and title and bear the signatures of the Authorized
                  Officers and any other officers of the Borrower authorized to
                  sign the Loan Documents to which the Borrower is a party, upon
                  which certificate the Agent and the Lenders shall be entitled
                  to rely until informed of any change in writing by the
                  Borrower.

         (iv)     A certificate, signed by the chief financial officer of the
                  Borrower, stating that on the Closing Date no Default or
                  Unmatured Default has occurred and is continuing.

         (v)      A written opinion of the Borrower's and Guarantor's counsel,
                  addressed to the Lenders in substantially the form of Exhibit
                  A.

         (vi)     The Revolving Notes and the Term Notes, executed by the
                  Borrower payable to the order of each Lender.

         (vii)    The Collateral Documents, executed (and acknowledged where
                  applicable) by the Borrower.

         (viii)   The Guaranty, executed by the Guarantor.

         (ix)     Written money transfer instructions, in substantially the form
                  of Exhibit D, addressed to the Agent and signed by an
                  Authorized Officer, together with such other related money
                  transfer authorizations as the Agent may have reasonably
                  requested.

         (x)      Copies of the articles or certificate of incorporation of the
                  Guarantor, together with all amendments, and a certificate of
                  good standing, each certified by the appropriate governmental
                  officer in its jurisdiction of incorporation.

         (xi)     Copies, certified by the Secretary or Assistant Secretary of
                  the Guarantor, of its by-laws and of its Board of Directors'
                  resolutions and of resolutions or actions of any other body
                  authorizing the execution of the Loan Documents to which the
                  Guarantor is a party.

         (xii)    An incumbency certificate, executed by the Secretary or
                  Assistant Secretary of the Guarantor, which shall identify by
                  name and title and bear the signatures of the officers of the
                  Guarantor authorized to sign the Loan Documents to which the
                  Guarantor is a party.

         (xiii)   Evidence satisfactory to the Agent and the Lenders that the
                  liens and security interests granted to the Agent under the
                  Collateral Documents are first and prior perfected lien and
                  security interests, subject only to the liens, security
                  interests and encumbrances

                                      -45-
<PAGE>
                  permitted under Section 6.15.

         (xiv)    Endorsements to the title policies previously provided to Bank
                  One with regard to the 1992 Huntingburg Mortgage, the 1993
                  Huntingburg Mortgage-Warehouse, and the 1993 Huntingburg
                  Mortgage-Mfg. (i) advancing the effective dates of such
                  policies to the date of recording of the Mortgages, (ii)
                  providing that the insured party is the Agent, for the benefit
                  of the Lenders, and (iii) providing that the insured mortgages
                  are the Mortgages.

         (xv)     If an initial Credit Extension will be the issuance of a
                  Facility LC, a properly completed Facility LC Application.

         (xvi)    Such other documents as any Lender or its counsel may have
                  reasonably requested.

         4.2.     Each Credit Extension. The Lenders shall not be required to
make any Credit Extension unless on the applicable Credit Extension Date:

         (i)      There exists no Default or Unmatured Default.

         (ii)     The representations and warranties contained in Article V are
                  true and correct as of such Borrowing Date except to the
                  extent any such representation or warranty is stated to relate
                  solely to an earlier date, in which case such representation
                  or warranty shall have been true and correct on and as of such
                  earlier date.

         (iii)    All legal matters incident to the making of such Advance shall
                  be satisfactory to the Lenders and their counsel.

         Each Borrowing Notice with respect to each such Advance shall
constitute a representation and warranty by the Borrower that the conditions
contained in Sections 4.2(i) and (ii) have been satisfied. Any Lender may
require a duly completed compliance certificate in substantially the form of
Exhibit B as a condition to making an Advance.

                                    ARTICLE V

                         REPRESENTATIONS AND WARRANTIES

         The Borrower represents and warrants to the Lenders that:

         5.1.     Existence and Standing. Each of the Borrower and its
Subsidiaries is a corporation, partnership (in the case of Subsidiaries only) or
limited liability company duly and properly incorporated or organized, as the
case may be, validly existing and (to the extent such concept applies to such
entity) in good standing under the laws of its jurisdiction of incorporation or
organization and has all requisite authority to conduct its business in each
jurisdiction in which its business is conducted.

         5.2.     Authorization and Validity. The Borrower has the power and
authority and legal right to execute and deliver the Loan Documents and Bond
Documents to which it is a party and to perform its obligations thereunder. The
execution and delivery by the Borrower of the Loan Documents and Bond

                                      -46-
<PAGE>
Documents to which it is a party and the performance of its obligations
thereunder have been duly authorized by proper corporate proceedings, and the
Loan Documents and Bond Documents to which the Borrower is a party constitute
legal, valid and binding obligations of the Borrower enforceable against the
Borrower in accordance with their terms, except as enforceability may be limited
by bankruptcy, insolvency or similar laws affecting the enforcement of
creditors' rights generally.

         5.3.     No Conflict; Government Consent. Neither the execution and
delivery by the Borrower of the Loan Documents and Bond Documents, nor the
consummation of the transactions therein contemplated, nor compliance with the
provisions thereof will violate (i) any law, rule, regulation, order, writ,
judgment, injunction, decree or award binding on the Borrower or any of its
Subsidiaries or (ii) the Borrower's or any Subsidiary's articles or certificate
of incorporation, partnership agreement, certificate of partnership, articles or
certificate of organization, by-laws, or operating or other management
agreement, as the case may be, or (iii) the provisions of any indenture,
instrument or agreement to which the Borrower or any of its Subsidiaries is a
party or is subject, or by which it, or its Property, is bound, or conflict with
or constitute a default thereunder, or result in, or require, the creation or
imposition of any Lien (other than a lien permitted under Section 6.5) in, of or
on the Property of the Borrower or a Subsidiary pursuant to the terms of any
such indenture, instrument or agreement. No order, consent, adjudication,
approval, license, authorization, or validation of, or filing, recording or
registration with, or exemption by, or other action in respect of any
governmental or public body or authority, or any subdivision thereof, which has
not been obtained by the Borrower or any of its Subsidiaries, is required to be
obtained by the Borrower or any of its Subsidiaries in connection with the
execution and delivery of the Loan Documents, the borrowings under this
Agreement, the payment and performance by the Borrower of the Obligations or the
legality, validity, binding effect or enforceability of any of the Loan
Documents and the Bond Documents.

         5.4.     Financial Statements. The September 1, 2002 consolidated
financial statements of the Borrower and its Subsidiaries heretofore delivered
to the Agent were prepared in accordance with generally accepted accounting
principles in effect on the date such statements were prepared and fairly
present the consolidated financial condition and operations of the Borrower and
its Subsidiaries at such date and the consolidated results of their operations
for the period then ended.

         5.5.     Material Adverse Change. Since September 1, 2002 there has
been no change in the business, Property, prospects, condition (financial or
otherwise) or results of operations of the Borrower and its Subsidiaries which
could reasonably be expected to have a Material Adverse Effect.

         5.6.     Taxes. The Borrower and its Subsidiaries have filed all United
States federal tax returns and all other tax returns which are required to be
filed and have paid all taxes due pursuant to said returns or pursuant to any
assessment received by the Borrower or any of its Subsidiaries, except such
taxes, if any, as are being contested in good faith and as to which adequate
reserves have been provided in accordance with Agreement Accounting Principles
and as to which no Lien exists. No tax liens have been filed and no claims are
being asserted with respect to any such taxes. The charges, accruals and
reserves on the books of the Borrower and its Subsidiaries in respect of any
taxes or other governmental charges are adequate.

         5.7.     Litigation and Contingent Obligations. Except as set forth on
Schedule 3, there is no litigation, arbitration, governmental investigation,
proceeding or inquiry pending or, to the knowledge of any of their officers,
threatened against or affecting the Borrower or any of its Subsidiaries which
could reasonably be expected to have a Material Adverse Effect or which seeks to
prevent, enjoin or delay the

                                      -47-
<PAGE>
making of any Credit Extensions. Other than any liability incident to any
litigation, arbitration or proceeding which (i) could not reasonably be expected
to have a Material Adverse Effect or (ii) is set forth on Schedule 3, the
Borrower has no material contingent obligations not provided for or disclosed in
the financial statements referred to in Section 5.4.

         5.8.     Subsidiaries. Schedule 1 contains an accurate list of all
Subsidiaries of the Borrower as of the date of this Agreement, setting forth
their respective jurisdictions of organization and the percentage of their
respective capital stock or other ownership interests owned by the Borrower or
other Subsidiaries. All of the issued and outstanding shares of capital stock or
other ownership interests of such Subsidiaries have been (to the extent such
concepts are relevant with respect to such ownership interests) duly authorized
and issued and are fully paid and non-assessable.

         5.9.     ERISA. As of the most recent valuation date preceding the
Closing Date, the Unfunded Liabilities of all Single Employer Plans do not in
the aggregate exceed $963,472.00. Neither the Borrower nor any other member of
the Controlled Group is a party to any Multiemployer Plan. Each Plan complies in
all material respects with all applicable requirements of law and regulations,
no Reportable Event has occurred with respect to any Plan, neither the Borrower
nor any other member of the Controlled Group has withdrawn from any Plan or
initiated steps to do so, and no steps have been taken to reorganize or
terminate any Plan.

         5.10.    Accuracy of Information. No information, exhibit or report
furnished by the Borrower or any of its Subsidiaries to the Agent or to any
Lender in connection with the negotiation of, or compliance with, the Loan
Documents contained any material misstatement of fact or omitted to state a
material fact or any fact necessary to make the statements contained therein not
misleading.

         5.11.    Regulation U. Margin stock (as defined in Regulation U)
constitutes less than 25% of the value of those assets of the Borrower and its
Subsidiaries which are subject to any limitation on sale, pledge, or other
restriction hereunder.

         5.12.    Material Agreements. Neither the Borrower nor any Subsidiary
is a party to any agreement or instrument or subject to any charter or other
corporate restriction which could reasonably be expected to have a Material
Adverse Effect. Neither the Borrower nor any Subsidiary is in default in the
performance, observance or fulfillment of any of the obligations, covenants or
conditions contained in (i) any agreement to which it is a party, which default
could reasonably be expected to have a Material Adverse Effect or (ii) any
agreement or instrument evidencing or governing Indebtedness.

         5.13.    Compliance With Laws. The Borrower and its Subsidiaries have
complied with all applicable statutes, rules, regulations, orders and
restrictions of any domestic or foreign government or any instrumentality or
agency thereof having jurisdiction over the conduct of their respective
businesses or the ownership of their respective Property except for any failure
to comply with any of the foregoing which could not reasonably be expected to
have a Material Adverse Effect.

         5.14.    Ownership of Properties. Except as set forth on Schedule 2, on
the date of this Agreement, the Borrower and its Subsidiaries will have good
title, free of all Liens other than those permitted by Section 6.15, to all of
the Property and assets reflected in the Borrower's most recent consolidated
financial statements provided to the Agent as owned by the Borrower and its
Subsidiaries.

                                      -48-
<PAGE>
         5.15.    Plan Assets; Prohibited Transactions. The Borrower is not an
entity deemed to hold "plan assets" within the meaning of 29 C.F.R. Section.
2510.3-101 of an employee benefit plan (as defined in Section 3(3) of ERISA)
which is subject to Title I of ERISA or any plan (within the meaning of Section
4975 of the Code), and neither the execution of this Agreement nor the making of
Credit Extensions hereunder gives rise to a prohibited transaction within the
meaning of Section 406 of ERISA or Section 4975 of the Code.

         5.16.    Environmental Matters. In the ordinary course of its business,
the officers of the Borrower consider the effect of Environmental Laws on the
business of the Borrower and its Subsidiaries, in the course of which they
identify and evaluate potential risks and liabilities accruing to the Borrower
due to Environmental Laws. On the basis of this consideration, the Borrower has
concluded that Environmental Laws cannot reasonably be expected to have a
Material Adverse Effect. Neither the Borrower nor any Subsidiary has received
any notice to the effect that its operations are not in material compliance with
any of the requirements of applicable Environmental Laws or are the subject of
any federal or state investigation evaluating whether any remedial action is
needed to respond to a release of any toxic or hazardous waste or substance into
the environment, which non-compliance or remedial action could reasonably be
expected to have a Material Adverse Effect.

         5.17     Hazardous Substances. To the best knowledge of the Borrower
after due inquiry and investigation, there are no underground storage tanks of
any kind on any premises owned or occupied by or under lease to the Borrower or
any of its Subsidiaries and there are no tanks, drums, or other containers of
any kind on premises owned or occupied by or under lease to the Borrower or any
of its Subsidiaries, the contents of which are unknown to the Borrower. To the
best knowledge of the Borrower after due inquiry and investigation, no Hazardous
Substances in reportable quantities have been released on any such premises nor
is there any threat of release of any Hazardous Substances in reportable
quantities on any such premises.

         5.18.    Investment Company Act. Neither the Borrower nor any
Subsidiary is an "investment company" or a company "controlled" by an
"investment company", within the meaning of the Investment Company Act of 1940,
as amended.

         5.19.    Public Utility Holding Company Act. Neither the Borrower nor
any Subsidiary is a "holding company" or a "subsidiary company" of a "holding
company", or an "affiliate" of a "holding company" or of a "subsidiary company"
of a "holding company", within the meaning of the Public Utility Holding Company
Act of 1935, as amended.

                                   ARTICLE VI

                                    COVENANTS

         During the term of this Agreement, unless the Required Lenders shall
otherwise consent in writing:

         6.1.     Financial Reporting. The Borrower will maintain, for itself
and each Subsidiary, a system of accounting established and administered in
accordance with generally accepted accounting principles, and furnish to the
Lenders:

                                      -49-
<PAGE>
         (i)      Within 120 days after the close of each of its fiscal years,
                  an unqualified audit report certified by independent certified
                  public accountants acceptable to the Lenders, prepared in
                  accordance with Agreement Accounting Principles on a
                  consolidated and consolidating basis (consolidating statements
                  need not be certified by such accountants) for itself and its
                  Subsidiaries, including balance sheets as of the end of such
                  period, related profit and loss and reconciliation of surplus
                  statements, and a statement of cash flows, accompanied by (a)
                  any management letter prepared by said accountants, and (b) a
                  certificate of said accountants that, in the course of their
                  examination necessary for their certification of the
                  foregoing, they have obtained no knowledge of any Default or
                  Unmatured Default, or if, in the opinion of such accountants,
                  any Default or Unmatured Default shall exist, stating the
                  nature and status thereof.

         (ii)     Within 30 days after the close of each successive Fiscal
                  Month, for itself and its Subsidiaries, consolidated and
                  consolidating unaudited balance sheets as at the close of each
                  such period and consolidated and consolidating profit and loss
                  and reconciliation of surplus statements and a statement of
                  cash flows for the period from the beginning of such fiscal
                  year to the end of such quarter, all certified by its chief
                  financial officer.

         (iii)    Together with the financial statements required under Sections
                  6.1(i) and (ii), a compliance certificate in substantially the
                  form of Exhibit B signed by its chief financial officer
                  showing the calculations necessary to determine compliance
                  with this Agreement and stating that no Default or Unmatured
                  Default exists, or if any Default or Unmatured Default exists,
                  stating the nature and status thereof.

         (iv)     Within twenty (20) days after the last Business Day of each
                  Fiscal Month, a completed Borrowing Base Certificate,
                  certified to the Agent and the Lenders by an Authorized
                  Officer, setting forth a computation of the Borrowing Base as
                  of the last day of the period covered thereby.

         (v)      As soon as available and in any event within twenty (20) days
                  after the end of each Fiscal Month, a detailed report of the
                  Borrower's accounts receivable, with agings and in such detail
                  as the Lenders may reasonably request from time to time.

         (vi)     Prompt notice of any orders in any material proceedings to
                  which the Borrower or any Subsidiary is a party, issued by any
                  court or regulatory agency, federal or state, and if the
                  Lenders should so request, a copy of any such order.

         (vii)    Immediately upon learning of the institution of or any adverse
                  determination in any litigation, arbitration proceeding or
                  governmental proceeding which is material to the Borrower or
                  any of its Subsidiaries, or the occurrence of any event which
                  could have a material adverse effect upon the Borrower or any
                  of its Subsidiaries, written notice thereof describing the
                  same and the steps being taken with respect thereto.

         (viii)   As soon as possible and in any event within 10 days after
                  receipt by the Borrower, a copy of (a) any notice or claim to
                  the effect that the Borrower or any of its Subsidiaries is or
                  may be liable to any Person as a result of the release by the
                  Borrower, any of its Subsidiaries, or any other Person of any
                  toxic or hazardous waste or substance into the

                                      -50-
<PAGE>
                  environment, and (b) any notice alleging any violation of any
                  federal, state or local environmental, health or safety law or
                  regulation by the Borrower or any of its Subsidiaries, which,
                  in either case, could reasonably be expected to have a
                  Material Adverse Effect.

         (ix)     Promptly upon the furnishing thereof to the shareholders of
                  the Borrower, copies of all financial statements, reports and
                  proxy statements so furnished.

         (x)      Promptly upon the filing thereof, copies of all registration
                  statements and annual, quarterly, monthly or other regular
                  reports which the Borrower or any of its Subsidiaries files
                  with the Securities and Exchange Commission.

         (xi)     Such other information (including non-financial information)
                  as the Agent or any Lender may from time to time reasonably
                  request.

         6.2.     Use of Proceeds. The Borrower will, and will cause each
Subsidiary to, use the proceeds of the Credit Extensions for general corporate
purposes and for the purposes expressly authorized in Article II. The Borrower
will not, nor will it permit any Subsidiary to, use any of the proceeds of the
Advances to purchase or carry any "margin stock" (as defined in Regulation U).

         6.3.     Notice of Default. The Borrower will, and will cause each
Subsidiary to, give prompt notice in writing to the Lenders of the occurrence of
any Default or Unmatured Default and of any other development, financial or
otherwise, which could reasonably be expected to have a Material Adverse Effect.

         6.4.     Conduct of Business. The Borrower will, and will cause each
Subsidiary to, carry on and conduct its business in substantially the same
manner and in substantially the same fields of enterprise as it is presently
conducted and do all things necessary to remain duly incorporated or organized,
validly existing and (to the extent such concept applies to such entity) in good
standing as a domestic corporation, partnership or limited liability company in
its jurisdiction of incorporation or organization, as the case may be, and
maintain all requisite authority to conduct its business in each jurisdiction in
which its business is conducted.

         6.5.     Taxes. The Borrower will, and will cause each Subsidiary to,
timely file complete and correct United States federal and applicable foreign,
state and local tax returns required by law and pay when due all taxes,
assessments and governmental charges and levies upon it or its income, profits
or Property, except those which are being contested in good faith by appropriate
proceedings and with respect to which adequate reserves have been set aside in
accordance with Agreement Accounting Principles.

         6.6.     Insurance. The Borrower will, and will cause each Subsidiary
to, maintain with financially sound and reputable insurance companies insurance
on all their Property in such amounts and covering such risks as is consistent
with sound business practice, and the Borrower will furnish to any Lender upon
request full information as to the insurance carried.

         6.7.     Compliance with Laws. The Borrower will, and will cause each
Subsidiary to, comply with all laws, rules, regulations, orders, writs,
judgments, injunctions, decrees or awards to which it may be subject including,
without limitation, all Environmental Laws.

                                      -51-
<PAGE>
         6.8.     Maintenance of Properties. The Borrower will, and will cause
each Subsidiary to, do all things necessary to maintain, preserve, protect and
keep its Property in good repair, working order and condition, and make all
necessary and proper repairs, renewals and replacements so that its business
carried on in connection therewith may be properly conducted at all times.

         6.9.     Inspection. The Borrower will, and will cause each Subsidiary
to, permit the Agent and the Lenders, by their respective representatives and
agents, to inspect any of the Property, books and financial records of the
Borrower and each Subsidiary, to examine and make copies of the books of
accounts and other financial records of the Borrower and each Subsidiary, and to
discuss the affairs, finances and accounts of the Borrower and each Subsidiary
with, and to be advised as to the same by, their respective officers at such
reasonable times and intervals as the Agent or any Lender may designate.

         6.10.    Dividends. The Borrower will not, nor will it permit any
Subsidiary to, declare or pay any dividends or make any distributions on its
capital stock (other than dividends payable in its own capital stock) or redeem,
repurchase or otherwise acquire or retire any of its capital stock at any time
outstanding, except that so long as there exists no Default or Unmatured
Default, the Borrower may make distributions from Net Income for the immediately
preceding fiscal year to its shareholders of the Borrower's Series C preferred
stock as required by the agreements between the Borrower and such shareholders
governing such stock (as such agreements were in effect on the closing date of
the Original Agreement).

         6.11.    Indebtedness. The Borrower will not, nor will it permit any
Subsidiary to, create, incur or suffer to exist any Indebtedness, except:

         (i)      The Loans, the Reimbursement Obligations, and Contingent
                  Obligations under the Guaranty.

         (ii)     Indebtedness existing on the date hereof and described in
                  Schedule 2.

         (iii)    Indebtedness arising under Rate Management Transactions with
                  one or more Lenders.

         (iv)     Indebtedness of the Borrower under the Bond Documents.

         (v)      Indebtedness incurred by the Borrower as all or part of the
                  purchase price for, or to enable the Borrower to acquire
                  equipment, in an aggregate amount not to exceed $500,000 at
                  any one time outstanding.

         (vi)     Guaranties by endorsement of instruments for deposit made in
                  the ordinary course of business.

         6.12.    Merger. The Borrower will not, nor will it permit any
Subsidiary to, merge or consolidate with or into any other Person, except that
any Subsidiary may merge into the Borrower.

         6.13.    Sale of Assets. The Borrower will not, nor will it permit any
Subsidiary to, lease, sell or otherwise dispose of its Property to any other
Person, except:

         (i)      Sales of inventory in the ordinary course of business.

                                      -52-
<PAGE>
         (ii)     Leases, sales or other dispositions of its Property that,
                  together with all other Property of the Borrower and its
                  Subsidiaries previously leased, sold or disposed of (other
                  than inventory in the ordinary course of business) as
                  permitted by this Section during the twelve-month period
                  ending with the month in which any such lease, sale or other
                  disposition occurs, do not constitute a Substantial Portion of
                  the Property of the Borrower and its Subsidiaries.

         6.14.    Investments and Acquisitions. The Borrower will not, nor will
it permit any Subsidiary to, make or suffer to exist any Investments (including
without limitation, loans and advances to, and other Investments in,
Subsidiaries), or commitments therefor, or to create any Subsidiary or to become
or remain a partner in any partnership or joint venture, or to make any
Acquisition of any Person, except:

         (i)      Cash Equivalent Investments.

         (ii)     Extensions of credit or credit accommodations to customers or
                  vendors made by the Borrower or a Subsidiary in the ordinary
                  course of its business as conducted on the Closing Date.

         (iii)    Reasonable salary advances to non-executive employees, and
                  other advances to agents and employees for anticipated
                  expenses to be incurred on behalf of the Borrower or a
                  Subsidiary in the course of discharging their assigned duties.

         (iv)     Existing Investments in Subsidiaries and other Investments in
                  existence on the date hereof and described in Schedule 1.

         6.15.    Liens. The Borrower will not, nor will it permit any
Subsidiary to, create, incur, or suffer to exist any Lien in, of or on the
Property of the Borrower or any of its Subsidiaries, except:

         (i)      Liens for taxes, assessments or governmental charges or levies
                  on its Property if the same shall not at the time be
                  delinquent or thereafter can be paid without penalty, or are
                  being contested in good faith and by appropriate proceedings
                  and for which adequate reserves in accordance with Agreement
                  Accounting Principles shall have been set aside on its books.

         (ii)     Liens imposed by law, such as carriers', warehousemen's and
                  mechanics' liens and other similar liens arising in the
                  ordinary course of business which secure payment of
                  obligations not past due or which are being contested in good
                  faith by appropriate proceedings and for which adequate
                  reserves shall have been set aside on its books.

         (iii)    Liens arising out of pledges or deposits under worker's
                  compensation laws, unemployment insurance, old age pensions,
                  or other social security or retirement benefits, or similar
                  legislation.

         (iv)     Utility easements, building restrictions, minor irregularities
                  in title and such other encumbrances or charges against real
                  property as are of a nature generally existing with respect to
                  properties of a similar character and which do not in any
                  material way affect

                                      -53-
<PAGE>
                  the marketability of the same or interfere with the use
                  thereof in the business of the Borrower or its Subsidiaries.

         (v)      Liens existing on the date hereof and described in Schedule 2.

         (vi)     Liens in favor of the Agent, for the benefit of the Lenders,
                  granted pursuant to any Collateral Document.

         (vii)    Liens against equipment acquired by the Borrower by incurring
                  Indebtedness permitted under Section 6.11(v), but only to the
                  extent (a) the Lien attaches only to the equipment acquired in
                  such transaction and secures only the Indebtedness incurred in
                  such transaction, and (b) the aggregate Indebtedness secured
                  by such Liens does not exceed $500,000.00 at any time.

         6.16.    Capital Expenditures. The Borrower will not, nor will it
permit any Subsidiary to, expend, or be committed to expend during any one
fiscal year on a non-cumulative basis in the aggregate for the Borrower and its
Subsidiaries, which in the aggregate exceeds [$1,000,000.00].

         6.17.    Primary Banking Relationship. The Borrower shall maintain its
primary concentration and deposit accounts with Bank One.

         6.18.    Affiliates. The Borrower will not, and will not permit any
Subsidiary to, enter into any transaction (including, without limitation, the
purchase or sale of any Property or service) with, or make any payment or
transfer to, any Affiliate except (i) in the ordinary course of business and
pursuant to the reasonable requirements of the Borrower's or such Subsidiary's
business and upon fair and reasonable terms no less favorable to the Borrower or
such Subsidiary than the Borrower or such Subsidiary would obtain in a
comparable arms-length transaction.

         6.19.    Bond Documents. The Borrower will fully and timely pay and
perform all of its obligations under the Bond Documents, and will not amend or
terminate any of the Bond Documents.

         6.20.    Financial Covenants.

                  6.20.1.  Fixed Charge Coverage Ratio. The Borrower will not
         permit the Fixed Charge Coverage Ratio, determined as of the end of
         each of its fiscal quarters, to be less than 1.15 to 1.0 for all fiscal
         quarters ending prior to August 31, 2003, and 1.20 to 1.0 beginning
         with the fiscal quarter ending on or closest to August 31, 2003, and
         thereafter.

                  6.20.2.  Leverage Ratio. The Borrower will not permit the
         Leverage Ratio, determined as of the end of each of its fiscal quarters
         ending on or closest to the dates listed below to be greater, on such
         fiscal quarter ending date, than the ratio listed opposite such date
         below:

<TABLE>
<CAPTION>
FISCAL QUARTER ENDING         LEVERAGE RATIO
    ON OR ABOUT
<S>                           <C>
11/30/2002                    5.35 to 1.00
2/28/2003                     4.75 to 1.00
5/31/2003                     4.75 to 1.00
8/31/2003                     4.25 to 1.00
</TABLE>

                                      -54-
<PAGE>
<TABLE>
<S>                           <C>
11/30/2003                    4.25 to 1.00
2/28/2004 and thereafter      3.75 to 1.00
</TABLE>

                  6.20.3.  Minimum Consolidated Tangible Net Worth. The Borrower
         will at all times maintain Consolidated Tangible Net Worth of not less
         than the sum of (i) $15,000,000.00 plus (ii) 90% of Consolidated Net
         Income earned in each fiscal year beginning with the fiscal year ending
         on or about August 31, 2002 (without deduction for losses).

         6.21     Employee Benefit Plans. (a) The Borrower shall maintain and
shall cause any Subsidiary to maintain any Plan in material compliance with
ERISA, the Code, and all rules and regulations of regulatory authorities
pursuant thereto and shall file and shall cause any Subsidiary to file all
reports required to be filed pursuant to ERISA, the Code, and such rules and
regulations.

         (b)      The Borrower shall not permit the Unfunded Liabilities of all
Single Employer Plans to exceed in the aggregate $1,500,000.00.

         6.22     Hazardous Substances. Not later than December 6, 2002,
Borrower shall provide to the Agent written information regarding all Hazardous
Substances that are used, generated, transported, stored or disposed of by the
Borrower, in reportable quantities. If the Borrower or any Subsidiary should
commence the use, treatment, transportation, generation, storage or disposal of
any Hazardous Substance in reportable quantities in its operations in addition
to those noted in such information, the Borrower shall immediately notify the
Agent of the commencement of such activity with respect to each such Hazardous
Substance. The Borrower shall cause any Hazardous Substances which are now or
may hereafter be used or generated in the operations of the Borrower or any
Subsidiary in reportable quantities to be accounted for and disposed of in
compliance with all Environmental Laws and other applicable federal, state and
local laws and regulations. Neither the Borrower nor any Subsidiary shall allow
or permit to continue the release or threatened release of any Hazardous
Substance on any premises owned or occupied by or under lease to the Borrower or
any Subsidiary. The Borrower shall notify the Agent immediately upon obtaining
knowledge that:

         (i)      any premises which have at any time been owned or occupied by
                  or have been under lease to the Borrower or any Subsidiary are
                  the subject of an environmental investigation by any federal,
                  state or local governmental agency having jurisdiction over
                  the regulation of any Hazardous Substances, the purpose of
                  which investigation is to quantify the levels of Hazardous
                  Substances located on such premises, or

         (ii)     the Borrower or any Subsidiary has been named or is threatened
                  to be named as a party responsible for the possible
                  contamination of any real property or ground water with
                  Hazardous Substances, including, but not limited to the
                  contamination of past and present waste disposal sites.

         If the Borrower or any Subsidiary is notified of any event described in
(i) or (ii) above, the Borrower shall immediately engage or cause the Subsidiary
to engage a firm or firms of engineers or environmental consultants
appropriately qualified to determine as quickly as practical the extent of
contamination and the potential financial liability of the Borrower or the
Subsidiary with respect thereto, and the Agent shall be provided with a copy of
any report prepared by such firm or by any governmental

                                      -55-
<PAGE>
agency as to such matters as soon as any such report becomes available to the
Borrower, and the Borrower shall immediately establish reserves in the amount
of the potential financial liability of the Borrower or the Subsidiary
identified by such environmental consultants or engineers. The selection of any
engineers or environmental consultants engaged pursuant to the requirements of
this Section 6.22 shall be subject to the approval of the Agent, which approval
shall not be unreasonably withheld. The Borrower shall provide an adequate
reserve for the payment of all potential financial liability not covered by
insurance upon the occurrence of any event described in this Section 6.22.

         6.23     Other Agreements. The Borrower shall not enter into any
agreement containing any provision which would be violated or breached in
material respect by the performance of its obligations under this Agreement or
under any other Loan Documents or any of the Bond Documents.

         6.24     Judgments. Neither the Borrower nor any Subsidiary shall
permit any uninsured judgment or monetary penalty rendered against it in any
judicial or administrative proceeding to remain unsatisfied for a period in
excess of forty-five (45) days unless such judgment or penalty is being
contested in good faith by appropriate proceedings and execution upon such
judgment has been stayed, and unless an appropriate reserve has been established
with respect thereto.

         6.25     Principal Office. The Borrower shall not change the location
of its principal office unless it gives not less than thirty (30) days prior
written notice of such change to the Agent.

         6.26     Survey. Not later than forty-five (45) days following the
Closing Date, the Borrower shall provide to the Agent, at the Borrower's
expense, a boundary survey of the real estate subject to the 1997 Project
Mortgage. If such boundary survey suggests that any improvements are located on
such real estate, the Borrower shall provide to the Agent, at the Borrower's
expense and within forty-five (45) days after the Agent's request, an ALTA
minimum standard survey of such real estate. Upon completion of such surveys,
Borrower shall provide to the Agent, at the Borrower's expense, a mortgagee's
title insurance policy in an amount acceptable to the Agent insuring the Agent's
interest under the 1997 Project Mortgage on the American Land Title Association
form of mortgagee's title policy (1992 Revision), subject to an ALTA form of
comprehensive endorsement, an ALTA form 3.1 zoning endorsement, a mechanics lien
endorsement, an access endorsement and such other endorsements as the Agent may
reasonably request. The coverage provided by the title insurance policy shall
not be subject to the standard exceptions as to rights of parties in possession
and matters which would be disclosed by survey, easements not shown by the
public records and mechanic's liens not shown by the public records, and
otherwise the coverage shall be subject to no exceptions other than (A)
easements and use restrictions and encroachments disclosed by survey which do
not materially and adversely affect the value or marketability of the real
estate or the usefulness of the real estate in the operations of the Company and
(B) Permitted Liens.

                                   ARTICLE VII

                                    DEFAULTS

         The occurrence of any one or more of the following events shall
constitute a Default:

                                      -56-
<PAGE>
         7.1.     Any representation or warranty made or deemed made by or on
behalf of the Borrower or any of its Subsidiaries to the Lenders or the Agent
under or in connection with this Agreement, any Credit Extension, or any
certificate or information delivered in connection with this Agreement or any
other Loan Document shall be materially false on the date as of which made.

         7.2.     Nonpayment of principal of any Loan when due, nonpayment of
any Reimbursement Obligation within one Business Day after the same becomes due,
or nonpayment of interest upon any Loan or of any commitment fee, LC Fee,
commission, or other obligations under any of the Loan Documents within five
days after the same becomes due.

         7.3.     The breach by the Borrower of any of the terms or provisions
of Section 6.2, 6.10, 6.11, 6.12, 6.13, 6.14, 6.16, 6.17, 6.18, 6.19, 6.20,
6.21(a), 6.23, 6.24, 6.25, or 6.26.

         7.4.     The breach by the Borrower (other than a breach which
constitutes a Default under another Section of this Article VII) of any of the
terms or provisions of this Agreement which is not remedied within thirty (30)
days after written notice from the Agent or any Lender, provided that a breach
of Section 6.21(b) shall not constitute a Default unless it remains unremedied
sixty (60) days after such written notice.

         7.5.     Failure of the Borrower or any of its Subsidiaries to pay when
due any Material Indebtedness; or the default by the Borrower or any of its
Subsidiaries in the performance of any term, provision or condition contained in
any Material Indebtedness Agreement, or any other event shall occur or condition
exist, the effect of which default, event or condition is to cause, or to permit
the holder(s) of such Material Indebtedness or the lender(s) under any Material
Indebtedness Agreement to cause, such Material Indebtedness to become due prior
to its stated maturity or any commitment to lend under any Material Indebtedness
Agreement to be terminated prior to its stated expiration date; or any Material
Indebtedness of the Borrower or any of its Subsidiaries shall be declared to be
due and payable or required to be prepaid or repurchased (other than by a
regularly scheduled payment) prior to the stated maturity thereof; or the
Borrower or any of its Subsidiaries shall not pay, or admit in writing its
inability to pay, its debts generally as they become due.

         7.6.     The Borrower or any of its Subsidiaries shall (i) have an
order for relief entered with respect to it under the Federal bankruptcy laws as
now or hereafter in effect, (ii) make an assignment for the benefit of
creditors, (iii) apply for, seek, consent to, or acquiesce in, the appointment
of a receiver, custodian, trustee, examiner, liquidator or similar official for
it or any Substantial Portion of its Property, (iv) institute any proceeding
seeking an order for relief under the Federal bankruptcy laws as now or
hereafter in effect or seeking to adjudicate it a bankrupt or insolvent, or
seeking dissolution, winding up, liquidation, reorganization, arrangement,
adjustment or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors or fail to file an
answer or other pleading denying the material allegations of any such proceeding
filed against it, (v) take any corporate or partnership action to authorize or
effect any of the foregoing actions set forth in this Section 7.6 or (vi) fail
to contest in good faith any appointment or proceeding described in Section 7.7.

         7.7.     Without the application, approval or consent of the Borrower
or any of its Subsidiaries, a receiver, trustee, examiner, liquidator or similar
official shall be appointed for the Borrower or any of its Subsidiaries or any
Substantial Portion of its Property, or a proceeding described in Section
7.6(iv) shall be instituted against the Borrower or any of its Subsidiaries and
such appointment continues undischarged or such proceeding continues undismissed
or unstayed for a period of 60 consecutive days.

                                      -57-
<PAGE>
         7.8.     Any court, government or governmental agency shall condemn,
seize or otherwise appropriate, or take custody or control of, all or any
portion of the Property of the Borrower and its Subsidiaries which, when taken
together with all other Property of the Borrower and its Subsidiaries so
condemned, seized, appropriated, or taken custody or control of, during the
twelve-month period ending with the month in which any such action occurs,
constitutes a Substantial Portion.

         7.9.     The Borrower or any of its Subsidiaries shall fail within 30
days to pay, bond or otherwise discharge one or more (i) judgments or orders for
the payment of money in excess of $100,000.00 (or the equivalent thereof in
currencies other than U.S. Dollars) in the aggregate, or (ii) nonmonetary
judgments or orders which, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect, which judgment(s), in any such case,
is/are not stayed on appeal or otherwise being appropriately contested in good
faith.

         7.10.    Any Reportable Event shall occur in connection with any Plan.

         7.11.    Nonpayment by the Borrower or any Subsidiary of any Rate
Management Obligation when due or the breach by the Borrower or any Subsidiary
of any term, provision or condition contained in any Rate Management Transaction
or any transaction of the type described in the definition of "Rate Management
Transactions," whether or not any Lender or Affiliate of a Lender is a party
thereto.

         7.12.    Any Change in Control or Change in Management shall occur.

         7.13.    The Borrower or any of its Subsidiaries shall (i) be the
subject of any proceeding or investigation pertaining to the release by the
Borrower, any of its Subsidiaries or any other Person of any toxic or hazardous
waste or substance into the environment, or (ii) violate any Environmental Law,
which, in the case of an event described in clause (i) or clause (ii), could
reasonably be expected to have a Material Adverse Effect.

         7.14.    The occurrence of any "default", as defined in any Loan
Document (other than this Agreement) or the breach of any of the terms or
provisions of any Loan Document (other than this Agreement), which default or
breach continues beyond any period of grace therein provided.

         7.15.    The Guaranty shall fail to remain in full force or effect or
any action shall be taken to discontinue or to assert the invalidity or
unenforceability of the Guaranty, or the Guarantor shall fail to comply with any
of the terms or provisions of the Guaranty, or the Guarantor shall deny that it
has any further liability under the Guaranty, or shall give notice to such
effect.

         7.16.    Any Collateral Document shall for any reason fail to create a
valid and perfected first priority security interest in any collateral purported
to be covered thereby, except as permitted by the terms of any Collateral
Document, or any Collateral Document shall fail to remain in full force or
effect or any action shall be taken to discontinue or to assert the invalidity
or unenforceability of any Collateral Document, or the Borrower shall fail to
comply with any of the terms or provisions of any Collateral Document.

         7.17.    The representations and warranties set forth in Section 5.15
(Plan Assets; Prohibited Transactions") shall at any time not be true and
correct.

                                      -58-
<PAGE>
                                  ARTICLE VIII

                 ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES

         8.1.     Acceleration; Facility LC Collateral Account. (i) If any
Default described in Section 7.6 or 7.7 occurs with respect to the Borrower, the
obligations of the Lenders to make Loans hereunder (including, without
limitation, the obligation of the Enhancement Issuer to make any Remarketing
Reimbursement Loan-1993 Bonds or Remarketing Reimbursement Loan-1994 Refunding
Bonds) and the obligation and power of the LC Issuer to issue Facility LCs shall
automatically terminate and the Obligations shall immediately become due and
payable without any election or action on the part of the Agent, the LC Issuer,
the Enhancement Issuer or any Lender and the Borrower will be and become thereby
unconditionally obligated, without any further notice, act or demand, to pay to
the Agent an amount in immediately available funds, which funds shall be held in
the Facility LC Collateral Account, equal to the difference of (x) the amount of
LC Obligations at such time, less (y) the amount on deposit in the Facility LC
Collateral Account at such time which is free and clear of all rights and claims
of third parties and has not been applied against the Obligations (such
difference, the "Collateral Shortfall Amount"). If any other Default occurs, the
Required Lenders (or the Agent with the consent of the Required Lenders) may (a)
terminate or suspend the obligations of the Lenders to make Loans hereunder
(including, without limitation, the obligation of the Enhancement Issuer to make
any Remarketing Reimbursement Loan-1993 Bonds or Remarketing Reimbursement
Loan-1994 Refunding Bonds) and the obligation and power of the LC Issuer to
issue Facility LCs, or declare the Obligations to be due and payable, or both,
whereupon the Obligations shall become immediately due and payable, without
presentment, demand, protest or notice of any kind, all of which the Borrower
hereby expressly waives, and (b) upon notice to the Borrower and in addition to
the continuing right to demand payment of all amounts payable under this
Agreement, make demand on the Borrower to pay, and the Borrower will, forthwith
upon such demand and without any further notice or act, pay to the Agent the
Collateral Shortfall Amount, which funds shall be deposited in the Facility LC
Collateral Account.

         (ii)     If at any time while any Default is continuing, the Agent
determines that the Collateral Shortfall Amount at such time is greater than
zero, the Agent may make demand on the Borrower to pay, and the Borrower will,
forthwith upon such demand and without any further notice or act, pay to the
Agent the Collateral Shortfall Amount, which funds shall be deposited in the
Facility LC Collateral Account.

         (iii)    The Agent may at any time or from time to time after funds are
deposited in the Facility LC Collateral Account, apply such funds to the payment
of the Obligations and any other amounts as shall from time to time have become
due and payable by the Borrower to the Lenders or the LC Issuer under the Loan
Documents.

         (iv)     At any time while any Default is continuing, neither the
Borrower nor any Person claiming on behalf of or through the Borrower shall have
any right to withdraw any of the funds held in the Facility LC Collateral
Account. After all of the Obligations have been indefeasibly paid in full and
the Aggregate Commitment has been terminated, any funds remaining in the
Facility LC Collateral Account shall be returned by the Agent to the Borrower or
paid to whomever may be legally entitled thereto at such time.

                                      -59-
<PAGE>
         (v)      At any time while any Default is continuing:

                  (a)      The Enhancement Issuer may refuse to reinstate any
                           Interest Drawing under any of the Credit Enhancement
                           Letters of Credit by giving notice to the appropriate
                           Trustee of such refusal in the manner and within the
                           time provided under the terms of the appropriate
                           Credit Enhancement Letter of Credit, and may direct
                           such Trustee to accelerate the maturity of the Bonds
                           secured by such Credit Enhancement Letter of Credit
                           as provided under the terms of the appropriate Trust
                           Indenture.

                  (b)      The Enhancement Issuer may notify each of the
                           Trustees of the Default with the result that the
                           Trustees will, as required by the appropriate Trust
                           Indenture, declare the principal of all the Bonds and
                           the interest accrued thereon to be immediately due
                           and payable and the Enhancement Issuer may exercise
                           any other remedy available to the Enhancement Issuer
                           under any of the Bond Documents.

                  (c)      The Enhancement Issuer may demand that the Borrower
                           immediately deposit with the Agent an amount equal to
                           the Maximum Available Credit. Such amount shall be
                           due and payable immediately upon demand. The Borrower
                           grants to the Agent a pledge of and security interest
                           in any and all funds (a "Special Collateral Account")
                           so deposited by the Borrower with the Agent pursuant
                           to the demand made pursuant to this Section 8.1(v).
                           Such pledge and security interest shall secure all of
                           the Obligations. The Borrower acknowledges that the
                           Enhancement Issuer would not have adequate remedies
                           at law for failure of the Borrower to honor any
                           demand made pursuant to this Section 8.1(v) and,
                           therefore, the Enhancement Issuer shall have the
                           right to require the Borrower specifically to perform
                           such undertaking whether or not any amounts are then
                           due and payable by the Borrower to the Enhancement
                           Issuer on account of its Reimbursement Obligations
                           with respect to Drawings made under any of the Credit
                           Enhancement Letters of Credit. In the event the
                           Enhancement Issuer makes a demand pursuant to this
                           Section 8.1(v) and the Borrower pays the funds
                           demanded, the Agent will hold any Special Collateral
                           Account without liability for interest thereon,
                           provided that the Agent will, at the direction of the
                           Borrower and for the account and risk of the
                           Borrower, invest the funds of a Special Collateral
                           Account in U.S. Treasury Bills with 30 days or less
                           remaining until maturity. Any earnings from such
                           investment may, at the discretion of the Enhancement
                           Issuer, be released to the Borrower. After the Credit
                           Enhancement Letters of Credit have expired and all of
                           the Obligations have been satisfied, the Agent shall
                           return to the Borrower any balance remaining in any
                           Special Collateral Account established pursuant to
                           the requirements of this Section 8.1(v).

                  (d)      The Enhancement Issuer may pursue any other remedies
                           available to it under any Loan Document or any Bond
                           Document. The Enhancement Issuer, or the Agent on its
                           behalf, may bring any other action available at law
                           or in equity to enforce payment and performance or
                           otherwise to collection the Reimbursement Obligations
                           owed to the Enhancement Issuer.

                                      -60-
<PAGE>
         (vi)     If, within 30 days after acceleration of the maturity of the
Obligations or termination of the obligations of the Lenders to make Loans and
the obligation and power of the LC Issuer to issue Facility LCs hereunder as a
result of any Default (other than any Default as described in Section 7.6 or 7.7
with respect to the Borrower) and before any judgment or decree for the payment
of the Obligations due shall have been obtained or entered, the Required Lenders
(in their sole discretion) shall so direct, the Agent shall, by notice to the
Borrower, rescind and annul such acceleration and/or termination.

         8.2.     Amendments. Subject to the provisions of this Section 8.2, the
Required Lenders (or the Agent with the consent in writing of the Required
Lenders) and the Borrower may enter into agreements supplemental hereto for the
purpose of adding or modifying any provisions to the Loan Documents or changing
in any manner the rights of the Lenders or the Borrower hereunder or waiving any
Default hereunder; provided, however, that no such supplemental agreement shall,
without the consent of all of the Lenders:

         (i)      Extend the final maturity of any Loan, or extend the expiry
                  date of any Facility LC to a date after the Facility
                  Termination Date, or postpone any regularly scheduled payment
                  of principal of any Loan or forgive all or any portion of the
                  principal amount thereof or any Reimbursement Obligation, or
                  reduce the rate or extend the time of payment of interest or
                  fees thereon.

         (ii)     Reduce the percentage specified in the definition of Required
                  Lenders.

         (iii)    Extend the Facility Termination Date, the date stated in
                  clause (i) of the definition of Term Loan Maturity Date, or
                  the final maturity date stated for a Remarketing Reimbursement
                  Note-1993 Bonds or any Remarketing Reimbursement Note-1994
                  Refunding Bonds, or reduce the amount or extend the payment
                  date for, the mandatory payments required under Section 2.13,
                  or increase the amount of the Aggregate Commitment, the
                  Aggregate Term Loan Commitment, or the Commitment or Term Loan
                  Commitment of any Lender, or the commitment to issue Facility
                  LCs, or permit the Borrower to assign its rights under this
                  Agreement.

         (iv)     Amend this Section 8.2.

         (v)      Release or terminate the Guaranty or, except as provided in
                  the Collateral Documents, release all or substantially all of
                  the Collateral.

No amendment of any provision of this Agreement relating to the Agent shall be
effective without the written consent of the Agent, and no amendment of any
provision relating to the LC Issuer or the Enhancement Issuer shall be effective
without the written consent of the LC Issuer or the Enhancement Issuer, as the
case may be. The Agent may waive payment of the fee required under Section
12.3.2 without obtaining the consent of any other party to this Agreement.

         8.3.     Preservation of Rights. No delay or omission of the Lenders,
the LC Issuer, the Enhancement Issuer or the Agent to exercise any right under
the Loan Documents or Bond Documents shall impair such right or be construed to
be a waiver of any Default or an acquiescence therein, and the making of a
Credit Extension notwithstanding the existence of a Default or the inability of
the Borrower to satisfy the conditions precedent to such Credit Extension shall
not constitute any waiver or acquiescence. Any single or partial exercise of any
such right shall not preclude other or further exercise

                                      -61-
<PAGE>
thereof or the exercise of any other right, and no waiver, amendment or other
variation of the terms, conditions or provisions of the Loan Documents
whatsoever shall be valid unless in writing signed by the Lenders required
pursuant to Section 8.2, and then only to the extent in such writing
specifically set forth. All remedies contained in the Loan Documents or Bond
Documents or by law afforded shall be cumulative and all shall be available to
the Agent, the LC Issuer, the Enhancement Issuer and the Lenders (as applicable)
until the Obligations have been paid in full.

                                   ARTICLE IX

                               GENERAL PROVISIONS

         9.1.     Survival of Representations. All representations and
warranties of the Borrower contained in this Agreement shall survive the making
of the Credit Extensions herein contemplated.

         9.2.     Governmental Regulation. Anything contained in this Agreement
to the contrary notwithstanding, neither the LC Issuer, the Enhancement Issuer
nor any Lender shall be obligated to extend credit to the Borrower in violation
of any limitation or prohibition provided by any applicable statute or
regulation.

         9.3.     Headings. Section headings in the Loan Documents are for
convenience of reference only, and shall not govern the interpretation of any of
the provisions of the Loan Documents.

         9.4.     Entire Agreement. The Loan Documents embody the entire
agreement and understanding among the Borrower, the Agent, the LC Issuer, the
Enhancement Issuer and the Lenders and supersede all prior agreements and
understandings among the Borrower, the Agent, the LC Issuer, the Enhancement
Issuer and the Lenders relating to the subject matter thereof.

         9.5.     Several Obligations; Benefits of this Agreement. The
respective obligations of the Lenders hereunder are several and not joint and no
Lender shall be the partner or agent of any other (except to the extent to which
the Agent is authorized to act as such). The failure of any Lender to perform
any of its obligations hereunder shall not relieve any other Lender from any of
its obligations hereunder. This Agreement shall not be construed so as to confer
any right or benefit upon any Person other than the parties to this Agreement
and their respective successors and assigns, provided, however, that the parties
hereto expressly agree that the Arranger shall enjoy the benefits of the
provisions of Sections 9.6, 9.10 and 10.11 to the extent specifically set forth
therein and shall have the right to enforce such provisions on its own behalf
and in its own name to the same extent as if it were a party to this Agreement.

         9.6.     Expenses; Indemnification. (i) The Borrower shall reimburse
the Agent and the Arranger for any costs, internal charges and out-of-pocket
expenses (including attorneys' fees and time charges of attorneys for the Agent,
which attorneys may be employees of the Agent) paid or incurred by the Agent or
the Arranger in connection with the preparation, negotiation, execution,
delivery, syndication, distribution (including, without limitation, via the
internet), review, amendment, modification, and administration of the Loan
Documents. The Borrower also agrees to reimburse the Agent, the Arranger, the LC
Issuer, the Enhancement Issuer and the Lenders for any costs, internal charges
and out-of-pocket expenses (including attorneys' fees and time charges of
attorneys for the

                                      -62-
<PAGE>
Agent, the Arranger, the LC Issuer, the Enhancement Issuer and the Lenders,
which attorneys may be employees of the Agent, the Arranger, the LC Issuer, the
Enhancement Issuer or the Lenders) paid or incurred in connection with the
collection and enforcement of the Loan Documents. Expenses being reimbursed by
the Borrower under this Section include, without limitation, the cost and
expense of obtaining an appraisal of each parcel of real property or interest in
real property described in the Mortgages, which appraisal shall be in conformity
with the applicable requirements of any law or any governmental rule,
regulation, policy, guideline or directive (whether or not having the force of
law), or any interpretation thereof, including, without limitation, the
provisions of Title XI of the Financial Institutions Reform, Recovery and
Enforcement Act of 1989, as amended, reformed or otherwise modified from time to
time, and any rules promulgated to implement such provisions and costs and
expenses incurred in connection with the Reports described in the following
sentence. The Borrower acknowledges that from time to time the Agent may prepare
and may distribute to the Lenders (but shall have no obligation or duty to
prepare or to distribute to the Lenders) certain audit reports (the "Reports")
pertaining to the Borrower's assets for internal use by the Agent from
information furnished to it by or on behalf of the Borrower, after the Agent has
exercised rights of inspection pursuant to this Agreement.

         (ii)     The Borrower hereby further agrees to indemnify the Agent, the
Arranger, the LC Issuer, the Enhancement Issuer and each Lender, their
respective affiliates, and each of their directors, officers and employees
against all losses, claims, damages, penalties, judgments, liabilities and
expenses (including, without limitation, all expenses of litigation or
preparation therefor whether or not the Agent, the Arranger, the LC Issuer, the
Enhancement Issuer or any Lender or any affiliate is a party thereto) which any
of them may pay or incur arising out of or relating to this Agreement, the other
Loan Documents, the transactions contemplated hereby or the direct or indirect
application or proposed application of the proceeds of any Credit Extension
hereunder except to the extent that they are determined in a final
non-appealable judgment by a court of competent jurisdiction to have resulted
from the gross negligence or willful misconduct of the party seeking
indemnification. The obligations of the Borrower under this Section 9.6 shall
survive the termination of this Agreement.

         9.7.     Numbers of Documents. All statements, notices, closing
documents, and requests hereunder shall be furnished to the Agent with
sufficient counterparts so that the Agent may furnish one to each of the
Lenders.

         9.8.     Accounting. Except as provided to the contrary herein, all
accounting terms used herein shall be interpreted and all accounting
determinations hereunder shall be made in accordance with Agreement Accounting
Principles.

         9.9.     Severability of Provisions. Any provision in any Loan Document
that is held to be inoperative, unenforceable, or invalid in any jurisdiction
shall, as to that jurisdiction, be inoperative, unenforceable, or invalid
without affecting the remaining provisions in that jurisdiction or the
operation, enforceability, or validity of that provision in any other
jurisdiction, and to this end the provisions of all Loan Documents are declared
to be severable.

         9.10.    Nonliability of Lenders. The relationship between the Borrower
on the one hand and the Lenders, the LC Issuer, the Enhancement Issuer, and the
Agent on the other hand shall be solely that of borrower and lender. Neither the
Agent, the Arranger, the LC Issuer, the Enhancement Issuer nor any Lender shall
have any fiduciary responsibilities to the Borrower. Neither the Agent, the
Arranger, the LC Issuer, the Enhancement Issuer nor any Lender undertakes any
responsibility to the Borrower to review or inform the Borrower of any matter in
connection with any phase of the Borrower's business or

                                      -63-
<PAGE>
operations. The Borrower agrees that neither the Agent, the Arranger, the LC
Issuer, the Enhancement Issuer nor any Lender shall have liability to the
Borrower (whether sounding in tort, contract or otherwise) for losses suffered
by the Borrower in connection with, arising out of, or in any way related to,
the transactions contemplated and the relationship established by the Loan
Documents, or any act, omission or event occurring in connection therewith,
unless it is determined in a final non-appealable judgment by a court of
competent jurisdiction that such losses resulted from the gross negligence or
willful misconduct of the party from which recovery is sought. Neither the
Agent, the Arranger, the LC Issuer, the Enhancement Issuer nor any Lender shall
have any liability with respect to, and the Borrower hereby waives, releases and
agrees not to sue for, any special, indirect, consequential or punitive damages
suffered by the Borrower in connection with, arising out of, or in any way
related to the Loan Documents or the transactions contemplated thereby.

         9.11.    Confidentiality. Each Lender agrees to hold any confidential
information which it may receive from the Borrower pursuant to this Agreement in
confidence, except for disclosure (i) to its Affiliates and to other Lenders and
their respective Affiliates, (ii) to legal counsel, accountants, and other
professional advisors to such Lender or to a Transferee, (iii) to regulatory
officials, (iv) to any Person as requested pursuant to or as required by law,
regulation, or legal process, (v) to any Person in connection with any legal
proceeding to which such Lender is a party, (vi) to such Lender's direct or
indirect contractual counterparties in swap agreements or to legal counsel,
accountants and other professional advisors to such counterparties, (vii)
permitted by Section 12.4 and (viii) to rating agencies if requested or required
by such agencies in connection with a rating relating to the Advances hereunder.

         9.12.    Nonreliance. Each Lender hereby represents that it is not
relying on or looking to any margin stock (as defined in Regulation U of the
Board of Governors of the Federal Reserve System) for the repayment of the
Credit Extensions provided for herein.

         9.13.    Disclosure. The Borrower and each Lender hereby acknowledge
and agree that Bank One and/or its Affiliates from time to time may hold
investments in, make other loans to or have other relationships with the
Borrower and its Affiliates.

                                    ARTICLE X

                                    THE AGENT

         10.1.    Appointment; Nature of Relationship. Bank One, NA is hereby
appointed by each of the Lenders as its contractual representative (herein
referred to as the "Agent") hereunder and under each other Loan Document, and
each of the Lenders irrevocably authorizes the Agent to act as the contractual
representative of such Lender with the rights and duties expressly set forth
herein and in the other Loan Documents. The Agent agrees to act as such
contractual representative upon the express conditions contained in this Article
X. Notwithstanding the use of the defined term "Agent," it is expressly
understood and agreed that the Agent shall not have any fiduciary
responsibilities to any Lender by reason of this Agreement or any other Loan
Document and that the Agent is merely acting as the contractual representative
of the Lenders with only those duties as are expressly set forth in this
Agreement and the other Loan Documents. In its capacity as the Lenders'
contractual representative, the Agent (i) does not hereby assume any fiduciary
duties to any of the Lenders, (ii) is a "representative" of the Lenders within
the meaning of the term "secured party" as defined in the Indiana Uniform
Commercial Code and (iii) is acting as an independent contractor, the rights and
duties of which are

                                      -64-
<PAGE>
limited to those expressly set forth in this Agreement and the other Loan
Documents. Each of the Lenders hereby agrees to assert no claim against the
Agent on any agency theory or any other theory of liability for breach of
fiduciary duty, all of which claims each Lender hereby waives.

         10.2.    Powers. The Agent shall have and may exercise such powers
under the Loan Documents as are specifically delegated to the Agent by the terms
of each thereof, together with such powers as are reasonably incidental thereto.
The Agent shall have no implied duties to the Lenders, or any obligation to the
Lenders to take any action thereunder except any action specifically provided by
the Loan Documents to be taken by the Agent.

         10.3.    General Immunity. Neither the Agent nor any of its directors,
officers, agents or employees shall be liable to the Borrower, the Lenders or
any Lender for any action taken or omitted to be taken by it or them hereunder
or under any other Loan Document or in connection herewith or therewith except
to the extent such action or inaction is determined in a final non-appealable
judgment by a court of competent jurisdiction to have arisen from the gross
negligence or willful misconduct of such Person.

         10.4.    No Responsibility for Loans, Recitals, etc. Neither the Agent
nor any of its directors, officers, agents or employees shall be responsible for
or have any duty to ascertain, inquire into, or verify (a) any statement,
warranty or representation made in connection with any Loan Document or any
borrowing hereunder; (b) the performance or observance of any of the covenants
or agreements of any obligor under any Loan Document, including, without
limitation, any agreement by an obligor to furnish information directly to each
Lender; (c) the satisfaction of any condition specified in Article IV, except
receipt of items required to be delivered solely to the Agent; (d) the existence
or possible existence of any Default or Unmatured Default; (e) the validity,
enforceability, effectiveness, sufficiency or genuineness of any Loan Document
or any other instrument or writing furnished in connection therewith; (f) the
value, sufficiency, creation, perfection or priority of any Lien in any
collateral security; or (g) the financial condition of the Borrower or any
guarantor of any of the Obligations or of any of the Borrower's or any such
guarantor's respective Subsidiaries. The Agent shall have no duty to disclose to
the Lenders information that is not required to be furnished by the Borrower to
the Agent at such time, but is voluntarily furnished by the Borrower to the
Agent (either in its capacity as Agent or in its individual capacity).

         10.5.    Action on Instructions of Lenders. The Agent shall in all
cases be fully protected in acting, or in refraining from acting, hereunder and
under any other Loan Document in accordance with written instructions signed by
the Required Lenders, and such instructions and any action taken or failure to
act pursuant thereto shall be binding on all of the Lenders. The Lenders hereby
acknowledge that the Agent shall be under no duty to take any discretionary
action permitted to be taken by it pursuant to the provisions of this Agreement
or any other Loan Document unless it shall be requested in writing to do so by
the Required Lenders. The Agent shall be fully justified in failing or refusing
to take any action hereunder and under any other Loan Document unless it shall
first be indemnified to its satisfaction by the Lenders pro rata against any and
all liability, cost and expense that it may incur by reason of taking or
continuing to take any such action.

         10.6.    Employment of Agents and Counsel. The Agent may execute any of
its duties as Agent hereunder and under any other Loan Document by or through
employees, agents, and attorneys-in-fact and shall not be answerable to the
Lenders, except as to money or securities received by it or its authorized
agents, for the default or misconduct of any such agents or attorneys-in-fact
selected by it with

                                      -65-
<PAGE>
reasonable care. The Agent shall be entitled to advice of counsel concerning the
contractual arrangement between the Agent and the Lenders and all matters
pertaining to the Agent's duties hereunder and under any other Loan Document.

         10.7.    Reliance on Documents; Counsel. The Agent shall be entitled to
rely upon any Note, notice, consent, certificate, affidavit, letter, telegram,
statement, paper or document believed by it to be genuine and correct and to
have been signed or sent by the proper person or persons, and, in respect to
legal matters, upon the opinion of counsel selected by the Agent, which counsel
may be employees of the Agent.

         10.8.    Agent's Reimbursement and Indemnification. The Lenders agree
to reimburse and indemnify the Agent ratably in proportion to their respective
Commitments or Term Loan Commitments (or, if the Commitments have been
terminated, in proportion to their Term Loan Commitments and Commitments
immediately prior to such termination) (i) for any amounts not reimbursed by the
Borrower for which the Agent is entitled to reimbursement by the Borrower under
the Loan Documents, (ii) for any other expenses incurred by the Agent on behalf
of the Lenders, in connection with the preparation, execution, delivery,
administration and enforcement of the Loan Documents (including, without
limitation, for any expenses incurred by the Agent in connection with any
dispute between the Agent and any Lender or between two or more of the Lenders)
and (iii) for any liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind and nature
whatsoever which may be imposed on, incurred by or asserted against the Agent in
any way relating to or arising out of the Loan Documents or any other document
delivered in connection therewith or the transactions contemplated thereby
(including, without limitation, for any such amounts incurred by or asserted
against the Agent in connection with any dispute between the Agent and any
Lender or between two or more of the Lenders), or the enforcement of any of the
terms of the Loan Documents or of any such other documents, provided that (i) no
Lender shall be liable for any of the foregoing to the extent any of the
foregoing is found in a final non-appealable judgment by a court of competent
jurisdiction to have resulted from the gross negligence or willful misconduct of
the Agent and (ii) any indemnification required pursuant to Section 3.5(vii)
shall, notwithstanding the provisions of this Section 10.8, be paid by the
relevant Lender in accordance with the provisions thereof. The obligations of
the Lenders under this Section 10.8 shall survive payment of the Obligations and
termination of this Agreement.

         10.9.    Notice of Default. The Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Unmatured Default
hereunder unless the Agent has received written notice from a Lender or the
Borrower referring to this Agreement describing such Default or Unmatured
Default and stating that such notice is a "notice of default". In the event that
the Agent receives such a notice, the Agent shall give prompt notice thereof to
the Lenders.

         10.10.   Rights as a Lender. In the event the Agent is a Lender, the
Agent shall have the same rights and powers hereunder and under any other Loan
Document with respect to its Commitment and its Loans as any Lender and may
exercise the same as though it were not the Agent, and the term "Lender" or
"Lenders" shall, at any time when the Agent is a Lender, unless the context
otherwise indicates, include the Agent in its individual capacity. The Agent and
its Affiliates may accept deposits from, lend money to, and generally engage in
any kind of trust, debt, equity or other transaction, in addition to those
contemplated by this Agreement or any other Loan Document, with the Borrower or
any of its Subsidiaries in which the Borrower or such Subsidiary is not
restricted hereby from engaging with any other Person.

                                      -66-
<PAGE>
         10.11.   Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon the Agent, the Arranger or any other
Lender and based on the financial statements prepared by the Borrower and such
other documents and information as it has deemed appropriate, made its own
credit analysis and decision to enter into this Agreement and the other Loan
Documents. Each Lender also acknowledges that it will, independently and without
reliance upon the Agent, the Arranger 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 and the other Loan Documents.

         10.12.   Successor Agent. The Agent may resign at any time by giving
written notice thereof to the Lenders and the Borrower, such resignation to be
effective upon the appointment of a successor Agent or, if no successor Agent
has been appointed, forty-five days after the retiring Agent gives notice of its
intention to resign. The Agent may be removed at any time with or without cause
by written notice received by the Agent from the Required Lenders, such removal
to be effective on the date specified by the Required Lenders. Upon any such
resignation or removal, the Required Lenders shall have the right to appoint, on
behalf of the Borrower and the Lenders, a successor Agent. If no successor Agent
shall have been so appointed by the Required Lenders within thirty days after
the resigning Agent's giving notice of its intention to resign, then the
resigning Agent may appoint, on behalf of the Borrower and the Lenders, a
successor Agent. Notwithstanding the previous sentence, the Agent may at any
time without the consent of the Borrower or any Lender, appoint any of its
Affiliates which is a commercial bank as a successor Agent hereunder. If the
Agent has resigned or been removed and no successor Agent has been appointed,
the Lenders may perform all the duties of the Agent hereunder and the Borrower
shall make all payments in respect of the Obligations to the applicable Lender
and for all other purposes shall deal directly with the Lenders. No successor
Agent shall be deemed to be appointed hereunder until such successor Agent has
accepted the appointment. Any such successor Agent shall be a commercial bank
having capital and retained earnings of at least $100,000,000. Upon the
acceptance of any appointment as Agent hereunder by a successor Agent, such
successor Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the resigning or removed Agent. Upon
the effectiveness of the resignation or removal of the Agent, the resigning or
removed Agent shall be discharged from its duties and obligations hereunder and
under the Loan Documents. After the effectiveness of the resignation or removal
of an Agent, the provisions of this Article X shall continue in effect for the
benefit of such Agent in respect of any actions taken or omitted to be taken by
it while it was acting as the Agent hereunder and under the other Loan
Documents. In the event that there is a successor to the Agent by merger, or the
Agent assigns its duties and obligations to an Affiliate pursuant to this
Section 10.12, then the term "Prime Rate" as used in this Agreement shall mean
the prime rate, base rate or other analogous rate of the new Agent.

         10.13.   Delegation to Affiliates. The Borrower and the Lenders agree
that the Agent may delegate any of its duties under this Agreement to any of its
Affiliates. Any such Affiliate (and such Affiliate's directors, officers, agents
and employees) which performs duties in connection with this Agreement shall be
entitled to the same benefits of the indemnification, waiver and other
protective provisions to which the Agent is entitled under Articles IX and X.

         10.14.   Execution of Collateral Documents. The Lenders hereby empower
and authorize the Agent to execute and deliver to the Borrower on their behalf
the Collateral Documents and all related financing statements and any financing
statements, agreements, documents or instruments as shall be necessary or
appropriate to effect the purposes of the Collateral Documents.

                                      -67-
<PAGE>
         10.15.   Collateral Releases. The Lenders hereby empower and authorize
the Agent to execute and deliver to the Borrower on their behalf any agreements,
documents or instruments as shall be necessary or appropriate to effect any
releases of Collateral which shall be permitted by the terms hereof or of any
other Loan Document or which shall otherwise have been approved by the Required
Lenders (or, if required by the terms of Section 8.2, all of the Lenders) in
writing.

                                   ARTICLE XI

                            SETOFF; RATABLE PAYMENTS

         11.1.    Setoff. In addition to, and without limitation of, any rights
of the Lenders under applicable law, if the Borrower becomes insolvent, however
evidenced, or any Default occurs, any and all deposits (including all account
balances, whether provisional or final and whether or not collected or
available) and any other Indebtedness at any time held or owing by any Lender or
any Affiliate of any Lender to or for the credit or account of the Borrower may
be offset and applied toward the payment of the Secured Obligations owing to
such Lender, whether or not the Secured Obligations, or any part thereof, shall
then be due.

         11.2.    Ratable Payments. If any Lender, whether by setoff or
otherwise, has payment made to it upon its Total Credit Exposure (other than
payments received pursuant to Section 3.1, 3.2, 3.4 or 3.5) in a greater
proportion than that received by any other Lender, such Lender agrees, promptly
upon demand, to purchase a portion of the Total Credit Exposures held by the
other Lenders so that after such purchase each Lender will hold its Pro Rata
Share of the Obligations. If any Lender, whether in connection with setoff or
amounts which might be subject to setoff or otherwise, receives collateral or
other protection for its Obligations or such amounts which may be subject to
setoff, such Lender agrees, promptly upon demand, to take such action necessary
such that all Lenders share in the benefits of such collateral ratably in
proportion to their respective Pro Rata Shares of the Obligation. In case any
such payment is disturbed by legal process, or otherwise, appropriate further
adjustments shall be made.

                                   ARTICLE XII

                BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS

         12.1.    Successors and Assigns. The terms and provisions of the Loan
Documents shall be binding upon and inure to the benefit of the Borrower and the
Lenders and their respective successors and assigns permitted hereby, except
that (i) the Borrower shall not have the right to assign its rights or
obligations under the Loan Documents without the prior written consent of each
Lender, (ii) any assignment by any Lender must be made in compliance with
Section 12.3, and (iii) any transfer by participation must be made in compliance
with Section 12.2. Any attempted assignment or transfer by any party not made in
compliance with this Section 12.1 shall be null and void, unless such attempted
assignment or transfer is treated as a participation in accordance with Section
12.3.2. The parties to this Agreement acknowledge that clause (ii) of this
Section 12.1 relates only to absolute assignments and this Section 12.1 does not
prohibit assignments creating security interests, including, without limitation,
(x) any pledge or assignment by any Lender of all or any portion of its rights
under this Agreement and any

                                      -68-
<PAGE>
Note to a Federal Reserve Bank or (y) in the case of a Lender which is a Fund,
any pledge or assignment of all or any portion of its rights under this
Agreement and any Note to its trustee in support of its obligations to its
trustee; provided, however, that no such pledge or assignment creating a
security interest shall release the transferor Lender from its obligations
hereunder unless and until the parties thereto have complied with the provisions
of Section 12.3. The Agent may treat the Person which made any Loan or which
holds any Note as the owner thereof for all purposes hereof unless and until
such Person complies with Section 12.3; provided, however, that the Agent may in
its discretion (but shall not be required to) follow instructions from the
Person which made any Loan or which holds any Note to direct payments relating
to such Loan or Note to another Person. Any assignee of the rights to any Loan
or any Note agrees by acceptance of such assignment to be bound by all the terms
and provisions of the Loan Documents. Any request, authority or consent of any
Person, who at the time of making such request or giving such authority or
consent is the owner of the rights to any Loan (whether or not a Note has been
issued in evidence thereof), shall be conclusive and binding on any subsequent
holder or assignee of the rights to such Loan.

         12.2.    Permitted Participations.

                  12.2.1.  Permitted Participants; Effect. Any Lender may, in
         the ordinary course of its business and in accordance with applicable
         law, at any time sell to one or more banks or other entities
         ("Participants") participating interests in its Total Credit Exposure,
         any Note held by such Lender, its Commitment or Term Loan Commitment,
         its Participation or any other interest of such Lender under the Loan
         Documents. In the event of any such sale by a Lender of participating
         interests to a Participant, such Lender's obligations under the Loan
         Documents shall remain unchanged, such Lender shall remain solely
         responsible to the other parties hereto for the performance of such
         obligations, such Lender shall remain the owner of its Total Credit
         Exposure and the holder of any Note issued to it in evidence thereof
         for all purposes under the Loan Documents, all amounts payable by the
         Borrower under this Agreement shall be determined as if such Lender had
         not sold such participating interests, and the Borrower and the Agent
         shall continue to deal solely and directly with such Lender in
         connection with such Lender's rights and obligations under the Loan
         Documents.

                  12.2.2.  Voting Rights. Each Lender shall retain the sole
         right to approve, without the consent of any Participant, any
         amendment, modification or waiver of any provision of the Loan
         Documents other than any amendment, modification or waiver which would
         require consent of all of the Lenders pursuant to the terms of Section
         8.2 or of any other Loan Document.

                  12.2.3.  Benefit of Certain Provisions. The Borrower agrees
         that each Participant shall be deemed to have the right of setoff
         provided in Section 11.1 in respect of its participating interest in
         amounts owing under the Loan Documents to the same extent as if the
         amount of its participating interest were owing directly to it as a
         Lender under the Loan Documents, provided that each Lender shall retain
         the right of setoff provided in Section 11.1 with respect to the amount
         of participating interests sold to each Participant. The Lenders agree
         to share with each Participant, and each Participant, by exercising the
         right of setoff provided in Section 11.1, agrees to share with each
         Lender, any amount received pursuant to the exercise of its right of
         setoff, such amounts to be shared in accordance with Section 11.2 as if
         each Participant were a Lender. The Borrower further agrees that each
         Participant shall be entitled to the benefits of Sections 3.1, 3.2, 3.4
         and 3.5 to the same extent as if it were a Lender and had acquired its
         interest by assignment pursuant to Section 12.3, provided that (i) a
         Participant shall not be

                                      -69-
<PAGE>
         entitled to receive any greater payment under Section 3.1, 3.2 or 3.5
         than the Lender who sold the participating interest to such Participant
         would have received had it retained such interest for its own account,
         unless the sale of such interest to such Participant is made with the
         prior written consent of the Borrower, and (ii) any Participant not
         incorporated under the laws of the United States of America or any
         State thereof agrees to comply with the provisions of Section 3.5 to
         the same extent as if it were a Lender.

         12.3.    Assignments.

                  12.3.1.  Permitted Assignments. Any Lender may, in the
         ordinary course of its business and in accordance with applicable law,
         at any time assign to one or more banks or other entities
         ("Purchasers") all or any part of its rights and obligations under the
         Loan Documents. Such assignment shall be substantially in the form of
         Exhibit C or in such other form as may be agreed to by the parties
         thereto. The consent of the Borrower, the Agent, the LC Issuer and the
         Enhancement Issuer shall be required prior to an assignment becoming
         effective with respect to a Purchaser which is not a Lender or an
         Affiliate thereof or an Approved Fund; provided, however, that if a
         Default has occurred and is continuing, the consent of the Borrower
         shall not be required. Such consent shall not be unreasonably withheld
         or delayed. Each such assignment with respect to a Purchaser which is
         not a Lender or an Affiliate thereof or an Approved Fund shall (unless
         each of the Borrower and the Agent otherwise consents) be in an amount
         not less than $5,000,000.00.

                  12.3.2.  Effect; Effective Date. Upon (i) delivery to the
         Agent of a notice of assignment, substantially in the form attached as
         Exhibit I to Exhibit C (a "Notice of Assignment"), together with any
         consents required by Section 12.3.1, and (ii) payment of a $3,500 fee
         to the Agent for processing such assignment, such assignment shall
         become effective on the effective date specified in such Notice of
         Assignment. The Notice of Assignment shall contain a representation by
         the Purchaser to the effect that none of the consideration used to make
         the purchase of the Commitment, Term Loan Commitment, Participation,
         and Total Credit Exposure under the applicable assignment agreement are
         "plan assets" as defined under ERISA and that the rights and interests
         of the Purchaser in and under the Loan Documents will not be "plan
         assets" under ERISA. On and after the effective date of such
         assignment, such Purchaser shall for all purposes be a Lender party to
         this Agreement and any other Loan Document executed by or on behalf of
         the Lenders and shall have all the rights and obligations of a Lender
         under the Loan Documents, to the same extent as if it were an original
         party hereto, and no further consent or action by the Borrower, the
         Lenders or the Agent shall be required to release the transferor Lender
         with respect to the percentage of the Commitment, Term Loan Commitment,
         and Participation assigned to such Purchaser. Upon the consummation of
         any assignment to a Purchaser pursuant to this Section 12.3.2, the
         transferor Lender, the Agent and the Borrower shall, if the transferor
         Lender or the Purchaser desires that its Loans be evidenced by Notes,
         make appropriate arrangements so that new Notes or, as appropriate,
         replacement Notes are issued to such transferor Lender and new Notes
         or, as appropriate, replacement Notes, are issued to such Purchaser, in
         each case in principal amounts reflecting their respective Commitments,
         as adjusted pursuant to such assignment.

                  12.3.3.  Register. The Agent, acting solely for this purpose
         as an agent of the Borrower, shall maintain at one of its offices in
         Indianapolis, Indiana a copy of each Assignment and Assumption
         delivered to it and a register for the recordation of the names and
         addresses of the

                                      -70-
<PAGE>
         Lenders, and the Commitments, Term Loan Commitments and Participations
         of, and principal amounts 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 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.

         12.4.    Dissemination of Information. The Borrower authorizes each
Lender to disclose to any Participant or Purchaser or any other Person acquiring
an interest in the Loan Documents by operation of law (each a "Transferee") and
any prospective Transferee any and all information in such Lender's possession
concerning the creditworthiness of the Borrower and its Subsidiaries, including
without limitation any information contained in any Reports; provided that each
Transferee and prospective Transferee agrees to be bound by Section 9.11 of this
Agreement.

         12.5.    Tax Treatment. If any interest in any Loan Document is
transferred to any Transferee which is not incorporated under the laws of the
United States or any State thereof, the transferor Lender shall cause such
Transferee, concurrently with the effectiveness of such transfer, to comply with
the provisions of Section 3.5(iv).

                                  ARTICLE XIII

                                     NOTICES

         13.1.    Notices. Except as otherwise permitted by Section 2.14 with
respect to borrowing notices, all notices, requests and other communications to
any party hereunder shall be in writing (including electronic transmission,
facsimile transmission or similar writing) and shall be given to such party: (x)
in the case of the Borrower or the Agent, at its address or facsimile number set
forth on the signature pages hereof, (y) in the case of any Lender, at its
address or facsimile number set forth below its signature hereto or in its
administrative questionnaire or (z) in the case of any party, at such other
address or facsimile number as such party may hereafter specify for the purpose
by notice to the Agent and the Borrower in accordance with the provisions of
this Section 13.1. Each such notice, request or other communication shall be
effective (i) if given by facsimile transmission, when transmitted to the
facsimile number specified in this Section and confirmation of receipt is
received, (ii) if given by mail, 72 hours after such communication is deposited
in the mails with first class postage prepaid, addressed as aforesaid, or (iii)
if given by any other means, when delivered (or, in the case of electronic
transmission, received) at the address specified in this Section; provided that
notices to the Agent under Article II shall not be effective until received.

         13.2.    Change of Address. The Borrower, the Agent and any Lender may
each change the address for service of notice upon it by a notice in writing to
the other parties hereto.

                                      -71-
<PAGE>
                                   ARTICLE XIV

                                  COUNTERPARTS

         This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one agreement, and any of the parties
hereto may execute this Agreement by signing any such counterpart. This
Agreement shall be effective when it has been executed by the Borrower, the
Agent, the LC Issuer, the Enhancement Issuer and the Lenders and each party has
notified the Agent by facsimile transmission or telephone that it has taken such
action.

                                   ARTICLE XV

          CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL

         15.1.    CHOICE OF LAW. THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING
A CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE CONSTRUED IN ACCORDANCE
WITH THE INTERNAL LAWS OF THE STATE OF INDIANA, BUT GIVING EFFECT TO FEDERAL
LAWS APPLICABLE TO NATIONAL BANKS.

         15.2.    CONSENT TO JURISDICTION. THE BORROWER HEREBY IRREVOCABLY
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR
INDIANA STATE COURT SITTING IN INDIANAPOLIS, INDIANA IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENTS AND THE BORROWER HEREBY
IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY
BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION
IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR
PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM.
NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE AGENT, THE LC ISSUER , THE
ENHANCEMENT ISSUER, OR ANY LENDER TO BRING PROCEEDINGS AGAINST THE BORROWER IN
THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING BY THE BORROWER
AGAINST THE AGENT, THE LC ISSUER, THE ENHANCEMENT ISSUER, OR ANY LENDER OR ANY
AFFILIATE OF THE AGENT, THE LC ISSUER, THE ENHANCEMENT ISSUER OR ANY LENDER
INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED
TO, OR CONNECTED WITH ANY LOAN DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN
INDIANAPOLIS, INDIANA.

         15.3.    WAIVER OF JURY TRIAL. THE BORROWER, THE AGENT, THE LC ISSUER
AND EACH LENDER HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING,
DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR
OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY LOAN
DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER.

                                      -72-
<PAGE>
         IN WITNESS WHEREOF, the Borrower, the Lenders, the LC Issuer, the
Credit Enhancer and the Agent have executed this Agreement as of the date first
above written.

                                   DMI FURNITURE, INC.

                                   By:__________________________________________
                                           Phillip J. Keller
                                   Title:  Vice President-Finance and Chief
                                           Financial Officer
                                   (address) One Oxmoor Place
                                             101 Bullitt Lane
                                             Louisville, Kentucky 40222
                                   Attention: Phillip J. Keller
                                           Telephone:     (502) 426-4351
                                           FAX:           (502) 429-6285

LC Commitment:                     BANK ONE, NA, as a Lender, the LC Issuer,
         $1,950,000.00             the Enhancement Issuer, and the Agent
Revolving Commitment:
         $13,000,000.00            By:__________________________________________
Term Loan Commitment:                      Robert E. McElwain
         $2,613,000.00             Title:  First Vice President
Pro Rate Share: 65%                (address) Bank One Center/Tower-4th Floor
                                             111 Monument Circle
                                             P.O. Box 7700
                                             Indianapolis, Indiana 46277-0119
                                   Attention: Manager, Specialty Industries
                                           Telephone:     (317) 321-8244
                                           FAX:           (317) 592-5270

LC Commitment:                     FIFTH THIRD BANK, KENTUCKY, INC.
         $1,050,000.00
Revolving Commitment:              By:__________________________________________
         $7,000,000.00                     Edward B. Martin
Term Loan Commitment:              Title:  Vice President
         $1,407,000.00             (address) 401 South 4th Avenue
Pro Rata Share: 35%                          Louisville, Kentucky 40202-3411
                                   Attention: Edward B. Martin
                                           Telephone:     (502) 562-5536
                                           FAX:           (502) 562-5540

                                      -73-
<PAGE>
                                PRICING SCHEDULE

<TABLE>
<CAPTION>
========================================================================================================================
APPLICABLE             LEVEL I      LEVEL II       LEVEL III      LEVEL IV      LEVEL V      LEVEL VI       LEVEL VII
  MARGIN               STATUS        STATUS         STATUS         STATUS       STATUS        STATUS         STATUS
========================================================================================================================
<S>                    <C>          <C>            <C>            <C>           <C>          <C>            <C>
Eurodollar Rate         1.75%         2.0%           2.25%          2.5%         2.75%          3.0%          3.25%
========================================================================================================================
Floating Rate              0%           0%              0%            0%            0%          .25%           .50%
========================================================================================================================
</TABLE>

<TABLE>
<CAPTION>
========================================================================================================================
APPLICABLE             LEVEL I      LEVEL II       LEVEL III      LEVEL IV      LEVEL V      LEVEL VI       LEVEL VII
 FEE RATE              STATUS        STATUS         STATUS         STATUS       STATUS        STATUS         STATUS
========================================================================================================================
<S>                    <C>          <C>            <C>            <C>           <C>          <C>            <C>
                         .25%         .25%          .3125%         .375%          .50%          .50%           .50%
========================================================================================================================
</TABLE>

<TABLE>
<CAPTION>
========================================================================================================================
APPLICABLE             LEVEL I      LEVEL II       LEVEL III      LEVEL IV      LEVEL V      LEVEL VI       LEVEL VII
 LC FEE                STATUS        STATUS         STATUS         STATUS       STATUS        STATUS         STATUS
========================================================================================================================
<S>                    <C>          <C>            <C>            <C>           <C>          <C>            <C>
                        1.75%         2.0%           2.25%          2.5%         2.75%          3.0%          3.25%
========================================================================================================================
</TABLE>

         For the purposes of this Schedule, the following terms have the
following meanings, subject to the final paragraph of this Schedule:

         "Financials" means the annual or interim financial statements for a
period ending on the last day of a fiscal quarter of the Borrower delivered
pursuant to Section 6.1(i) or (ii).

         "Level I Status" exists at any date if, as of the last day of the
fiscal quarter of the Borrower referred to in the most recent Financials, the
Leverage Ratio is less than 2.50 to 1.00.

         "Level II Status" exists at any date if, as of the last day of the
fiscal quarter of the Borrower referred to in the most recent Financials, (i)
the Borrower has not qualified for Level I Status and (ii) the Leverage Ratio is
less than 3.00 to 1.00.

         "Level III Status" exists at any date if, as of the last day of the
fiscal quarter of the Borrower referred to in the most recent Financials, (i)
the Borrower has not qualified for Level I Status or Level II Status and (ii)
the Leverage Ratio is less than 3.50 to 1.00.

         "Level IV Status" exists at any date if, as of the last of the fiscal
quarter of the Borrower referred to in the most recent Financials (i) the
Borrower has not qualified for Level I Status, Level II Status, or Level III
Status and (ii) the Leverage Ratio is less than 4.00 to 1.00.
<PAGE>
         "Level V Status" exists at any date if the Borrower has not qualified
for Level I Status, Level II Status, Level III Status, or Level IV Status, and
(ii) the Leverage Ratio is less than 4.50 to 1.00.

         "Level VI Status" exists at any date if the Borrower has not qualified
for Level I Status, Level II Status, Level III Status, Level IV Status, or Level
V Status, and (iii) the Leverage Ratio is less than 5.00 to 1.00.

         "Level VII Status" exists if the Borrower has not qualified for any
other Status.

         "Status" means either Level I Status, Level II Status, Level III
Status, Level IV Status, Level V Status, Level VI Status, or Level VII Status.

         The Applicable Margin, the Applicable Fee Rate, and the Applicable LC
Fee shall be determined in accordance with the foregoing table based on the
Borrower's Status as reflected in the then most recent Financials. Adjustments,
if any, to the Applicable Margin, Applicable Fee Rate or Applicable LC Fee shall
be effective five Business Days after the Agent has received the applicable
Financials. If the Borrower fails to deliver the Financials to the Agent at the
time required pursuant to Section 6.1, then the Applicable Margin, Applicable
Fee Rate and Applicable LC Fee shall be the highest Applicable Margin,
Applicable Fee Rate and Applicable LC Fee set forth in the foregoing table until
five days after such Financials are so delivered.
<PAGE>
                                    EXHIBIT A
                                 FORM OF OPINION
                                             _______________,

The Agent, the LC Issuer and the Lenders who are parties to the
Credit Agreement described below.

Gentlemen/Ladies:

         We are counsel for DMI Furniture, Inc. (the "Borrower") and DMI
Management, Inc. (the "Guarantor"), and have represented the Borrower and the
Guarantor in connection with the Borrower's execution and delivery of a Second
Amended and Restated Credit Agreement dated as of __________ (the "Agreement")
among the Borrower, the Lenders named therein, and Bank One, NA, as Agent, as LC
Issuer and as Enhancement Issuer. All capitalized terms used in this opinion and
not otherwise defined herein shall have the meanings attributed to them in the
Agreement.

         We have examined the Borrower's and Guarantor's [describe constitutive
documents of Borrower and Guarantor and appropriate evidence of authority to
enter into the transaction] Loan Documents and such other matters of fact and
law which we deem necessary in order to render this opinion. Based upon the
foregoing, it is our opinion that:

         l.       Each of the Borrower and the Guarantor is a corporation, duly
and properly incorporated, validly existing and (to the extent such concept
applies to such entity) in good standing under the laws of its jurisdiction of
incorporation and has all requisite authority to conduct its business in each
jurisdiction in which its business is conducted.

         2.       The execution and delivery by the Borrower and the Guarantor
of the Loan Documents to which it is a party and the performance by the Borrower
and the Guarantor of their respective obligations thereunder have been duly
authorized by proper corporate proceedings on the part of the Borrower and the
Guarantor and will not:

                  (a)      require any consent of the Borrower's or Guarantor's
         shareholders (other than any such consent as has already been given and
         remains in full force and effect);

                  (b)      violate (i) any law, rule, regulation, order, writ,
         judgment, injunction, decree or award binding on the Borrower or
         Guarantor or (ii) the Borrower's or Guarantor's articles or certificate
         of incorporation, or by-laws, or (iii) the provisions of any indenture,
         instrument or agreement to which the Borrower or Guarantor is a party
         or is subject, or by which it, or its Property, is bound, or conflict
         with or constitute a default thereunder; or
<PAGE>
                  (c)      result in, or require, the creation or imposition of
         any Lien in, of or on the Property of the Borrower or the Guarantor
         pursuant to the terms of any indenture, instrument or agreement binding
         upon the Borrower or the Guarantor.

         3.       The Loan Documents to which the Borrower or the Guarantor is a
party have been duly executed and delivered by the Borrower and constitute
legal, valid and binding obligations of the Borrower or the Guarantor
enforceable against the Borrower or the Guarantor in accordance with their terms
except to the extent the enforcement thereof may be limited by bankruptcy,
insolvency or similar laws affecting the enforcement of creditors' rights
generally and subject also to the availability of equitable remedies if
equitable remedies are sought.

         4.       There is no litigation, arbitration, governmental
investigation, proceeding or inquiry pending or, to the best of our knowledge
after due inquiry, threatened against the Borrower or the Guarantor which, if
adversely determined, could reasonably be expected to have a Material Adverse
Effect.

         5.       No order, consent, adjudication, approval, license,
authorization, or validation of, or filing, recording or registration with, or
exemption by, or other action in respect of any governmental or public body or
authority, or any subdivision thereof, which has not been obtained by the
Borrower or the Guarantor, is required to be obtained by the Borrower or the
Guarantor in connection with the execution and delivery of the Loan Documents,
the borrowings under the Agreement, the payment and performance by the Borrower
or guaranty by the Guarantor of the Obligations, or the legality, validity,
binding effect or enforceability of any of the Loan Documents.

         6.       The provisions of the Collateral Documents are sufficient to
create in favor of the Agent and, to the extent they have entered into Rate
Management Transactions with the Borrower, the Lenders' Affiliates, a security
interest in all right, title and interest of the Borrower in those items and
types of collateral described in the Collateral Documents in which a security
interest may be created under Article 9 of the Uniform Commercial Code as in
effect on the date hereof in Indiana. Financing statements on Form UCC-1's have
been duly filed in each filing office indicated in Exhibit A hereto under the
Uniform Commercial Code in effect in each state in which said filing offices are
located. The description of the collateral set forth in said financing
statements is sufficient to perfect a security interest in the items and types
of collateral described therein in which a security interest may be perfected by
the filing of a financing statement under the Uniform Commercial Code as in
effect in such states. Such filings are sufficient to perfect the security
interest created by the Collateral Documents in all right, title and interest of
the Borrower in those items and types of collateral described in the Collateral
Documents in which a security interest may be perfected by the filing of a
financing statement under the Uniform Commercial Code in such states.

         This opinion may be relied upon by the Agent, the LC Issuer, the
Enhancement Issuer, the Lenders and their participants, assignees and other
transferees.

                               Very truly yours,
<PAGE>
                                    EXHIBIT B

                             COMPLIANCE CERTIFICATE

To:      The Lenders parties to the
         Credit Agreement Described Below

         This Compliance Certificate is furnished pursuant to that certain
Second Amended and Restated Credit Agreement dated as of November 22, 2002 (as
amended, modified, renewed or extended from time to time, the "Agreement") among
the DMI Furniture, Inc. (the "Borrower"), the lenders party thereto and Bank
One, NA, as Agent for the Lenders and as the LC Issuer, and Enhancement Issuer.
Unless otherwise defined herein, capitalized terms used in this Compliance
Certificate have the meanings ascribed thereto in the Agreement.

         THE UNDERSIGNED HEREBY CERTIFIES THAT:

         1.       I am the duly elected ________________ of the Borrower;

         2.       I have reviewed the terms of the Agreement and I have made, or
have caused to be made under my supervision, a detailed review of the
transactions and conditions of the Borrower and its Subsidiaries during the
accounting period covered by the attached financial statements;

         3.       The examinations described in paragraph 2 did not disclose,
and I have no knowledge of, the existence of any condition or event which
constitutes a Default or Unmatured Default during or at the end of the
accounting period covered by the attached financial statements or as of the date
of this Certificate, except as set forth below; and

         4.       Schedule I attached hereto sets forth financial data and
computations evidencing the Borrower's compliance with certain covenants of the
Agreement, all of which data and computations are true, complete and correct.

         5.       Schedule II hereto sets forth the Borrower's determination of
the interest rates to be paid for Advances, the LC Fee rates and the commitment
fee rates commencing on the fifth day following the delivery hereof.

         6.       Schedule III attached hereto sets forth the various reports
and deliveries which are required at this time under the Credit Agreement, the
Security Agreement and the other Loan Documents and the status of compliance.

         Described below are the exceptions, if any, to paragraph 3 by listing,
in detail, the nature of the condition or event, the period during which it has
existed and the action which the Borrower has taken, is taking, or proposes to
take with respect to each such condition or event:

         _______________________________________________________________________
<PAGE>
         _______________________________________________________________________

         _______________________________________________________________________

         _______________________________________________________________________

         The foregoing certifications, together with the computations set forth
in Schedule I and Schedule II hereto and the financial statements delivered with
this Certificate in support hereof, are made and delivered this ___ day of
_________, ______.

                                           _____________________________
                                           _____________________________, the
                                           _____________of DMI Furniture, Inc.
<PAGE>
                      SCHEDULE I TO COMPLIANCE CERTIFICATE

                      Compliance as of _________, ____ with
                            Sections 6.16 and 6.20 of
                                  the Agreement

All calculations herein are made in accordance with Agreement Accounting
Principles.

I.  Capital Expenditures (Section 6.16)

    A.  Depreciation expense for prior
        fiscal year ending ______________                         $_____________

    B.  Aggregate Capital Expenditure
        during current fiscal year
        beginning_______________                                  $_____________

         (A. must equal or exceed B.)

II. Financial Covenants (Section 6.20)

    A.  Fixed Charge Coverage Ratio

        1.  Consolidated EBITDA                                   $_____________

            a.  Consolidated Net Income                           $_____________

            b.  plus Consolidated Interest Expense                $_____________

            c.  plus expenses for taxes paid or accrued           $_____________

            d.  plus depreciation                                 $_____________

            e.  plus amortization                                 $_____________

            f.  plus extraordinary losses                         $_____________

            g.  minus extraordinary gain                          $_____________

            h.  = Consolidated EBITDA                             $_____________
                (sum of II.A.1. a-g)

        2.  Consolidated Fixed Charges

            a.  Interest due and payable in cash                  $_____________

            b.  plus Cash Capital Expenditures                    $_____________

            c.  plus scheduled principal payments of
                Indebtedness due and payable                      $_____________

            d.  plus taxes due and payable                        $_____________

            e.  plus cash dividends paid to shareholders          $_____________

            f.  Consolidated Fixed Charges                        $_____________
                (sum of II.A.2. a-e)

        3.  Fixed Charge Coverage Ratio                           $_____________
            (Ratio of II.A.1.h. to II.A.2.f.)
<PAGE>
        4.  Minimum Fixed Charge Coverage Ratio
            (See Section 6.20.1)

                  (3. must be equal to or greater than 4.)

    B.  Leverage Ratio

        1.  Consolidated Funded Indebtedness                      $_____________

        2.  Consolidated EBITDA                                   $_____________
            (line II.A.1.h.)

        3.  Leverage Ratio                                        ______________
            (Ratio of II.B.1. to II.B.2.)

        4.  Maximum Leverage Ratio                                ______________
            (See Section 6.20.2)

            (3. must be equal to or less than 4.)

    C.  Consolidated Tangible Net Worth

        1.                                                        $15,000,000.00

        2.  plus 90% of Consolidated Net Income for
            each fiscal year, beginning with fiscal year
            ending on or about 8/31/02                            $_____________

        3.  Minimum Consolidated Tangible Net Worth               $_____________
            (Sum of II.C.1. and II.C.2.)

        4.  Consolidated Tangible Net Worth                       $_____________

            (4. must be equal to or greater than 3.)
<PAGE>
                     SCHEDULE II TO COMPLIANCE CERTIFICATE

                    Borrower's Applicable Margin Calculation

The Borrower's Leverage Ratio is _________________________ (Schedule I, Line
II.B.3.) and the Borrower's Status is Level __________ Status.

         Applicable Margin
         (Eurodollar Rate)                 ____________%

         Applicable Margin
         (Floating Rate)                   ____________%

         Applicable Fee Rate               ____________%

         Applicable LC Fee                 ____________%
<PAGE>
                     SCHEDULE III TO COMPLIANCE CERTIFICATE

                      Reports and Deliveries Currently Due
<PAGE>
                                   EXHIBIT C

                      ASSIGNMENT AND ASSUMPTION AGREEMENT

         This Assignment and Assumption (the "Assignment and Assumption") is
dated as of the Effective Date set forth below and is entered into by and
between [Insert name of Assignor] (the "Assignor") and [Insert name of Assignee]
(the "Assignee"). Capitalized terms used but not defined herein shall have the
meanings given to them in the Second Amended and Restated Credit Agreement
identified below (as amended, the "Credit Agreement"), receipt of a copy of
which is hereby acknowledged by the Assignee. The Terms and Conditions set forth
in Annex 1 attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment and Assumption as if set forth
herein in full.

         For an agreed consideration, the Assignor hereby irrevocably sells and
assigns to the Assignee, and the Assignee hereby irrevocably purchases and
assumes from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
the Agent as contemplated below, the interest in and to all of the Assignor's
rights and obligations in its capacity as a Lender under the Credit Agreement
and the other Loan Documents the amount and percentage interest identified below
of all of the Assignor's outstanding rights and obligations under the respective
facilities identified below (including without limitation any letters of credit,
guaranties and swingline loans included in such facilities and, to the extent
permitted to be assigned under applicable law, all claims (including without
limitation contract claims, tort claims, malpractice claims, statutory claims
and all other claims at law or in equity), suits, causes of action and any other
right of the Assignor against any Person whether known or unknown arising under
or in connection with the Credit Agreement, any other documents or instruments
delivered pursuant thereto or the loan transactions governed thereby) (the
"Assigned Interest"). Such sale and assignment is without recourse to the
Assignor and, except as expressly provided in this Assignment and Assumption,
without representation or warranty by the Assignor.

1.  Assignor:  _________________________________________________________

2.  Assignee:  _________________________________________________________ [and is
               an Affiliate/Approved Fund of [identify Lender]

3.  Borrower:  DMI Furniture, Inc.

4.  Agent:     Bank One, NA as the agent under the Credit Agreement.

5.  Credit Agreement:  The Second Amended and Restated Credit Agreement dated as
                       of November 22, 2002 among Borrower, the Lenders party
                       thereto, and Bank One, NA, as Agent, and the other agents
                       party thereto.
<PAGE>
6.  Assigned Interest:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
                              Aggregate Amount of                Amount of
                            Commitment/Loans for all          Commitment/Loans
Facility Assigned                  Lenders                       Assigned
--------------------------------------------------------------------------------
<S>                         <C>                               <C>
Revolving Loan              $                                 $
--------------------------------------------------------------------------------
Facility LCs                $                                 $
--------------------------------------------------------------------------------
Term Loan                   $                                 $
--------------------------------------------------------------------------------
</TABLE>

The Assigned Interest includes Assignee's Pro Rata Share (_______%) of all LC
Obligations.

Effective Date: ____________________, 20__ [TO BE INSERTED BY AGENT AND WHICH
SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER BY THE AGENT.]

         The terms set forth in this Assignment and Assumption are hereby agreed
to:

                                            ASSIGNOR
                                            [NAME OF ASSIGNOR]

                                            By:________________________________
                                                     Title:

                                            ASSIGNEE
                                            [NAME OF ASSIGNEE]

                                            By:________________________________
                                                     Title:

[Consented to and]*Accepted:

[NAME OF AGENT], as Agent

By:______________________________
Title:

[Consented to:]**

*  To be added only if the consent of the Agent is required by the terms of the
Credit Agreement.

** To be added only if the consent of the Borrower and/or other parties is
required by the terms of the Credit Agreement.
<PAGE>
[NAME OF RELEVANT PARTY]

By:_____________________________
Title:
<PAGE>
                                     ANNEX 1
                            TERMS AND CONDITIONS FOR
                            ASSIGNMENT AND ASSUMPTION

                  1. Representations and Warranties.

                  1.1      Assignor. The Assignor represents and warrants that
(i) it is the legal and beneficial owner of the Assigned Interest, (ii) the
Assigned Interest is free and clear of any lien, encumbrance or other adverse
claim and (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby. Neither the Assignor nor any of
its officers, directors, employees, agents or attorneys shall be responsible for
(i) any statements, warranties or representations made in or in connection with
the Credit Agreement or any other Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency, perfection, priority,
collectibility, or value of the Loan Documents or any collateral thereunder,
(iii) the financial condition of the Borrower, any of its Subsidiaries or
Affiliates or any other Person obligated in respect of any Loan Document, (iv)
the performance or observance by the Borrower, any of its Subsidiaries or
Affiliates or any other Person of any of their respective obligations under any
Loan Documents, (v) inspecting any of the property, books or records of the
Borrower, or any guarantor, or (vi) any mistake, error of judgment, or action
taken or omitted to be taken in connection with the Loans or the Loan Documents.

                  1.2.     Assignee. The Assignee (a) represents and warrants
that (i) it has full power and authority, and has taken all action necessary, to
execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) from and after the Effective Date, it shall be bound by the
provisions of the Credit Agreement as a Lender thereunder and, to the extent of
the Assigned Interest, shall have the obligations of a Lender thereunder, (iii)
agrees that its payment instructions and notice instructions are as set forth in
Schedule 1 to this Assignment and Assumption, (iv) confirms that none of the
funds, monies, assets or other consideration being used to make the purchase and
assumption hereunder are "plan assets" as defined under ERISA and that its
rights, benefits and interests in and under the Loan Documents will not be "plan
assets" under ERISA, (v) agrees to indemnify and hold the Assignor harmless
against all losses, costs and expenses (including, without limitation,
reasonable attorneys' fees) and liabilities incurred by the Assignor in
connection with or arising in any manner from the Assignee's non-performance of
the obligations assumed under this Assignment and Assumption, (vi) it has
received a copy of the Credit Agreement, together with copies of financial
statements and such other documents and information as it has deemed appropriate
to make its own credit analysis and decision to enter into this Assignment and
Assumption and to purchase the Assigned Interest on the basis of which it has
made such analysis and decision independently and without reliance on the Agent
or any other Lender, and (vii) attached as Schedule 1 to this Assignment and
Assumption is any documentation required to be delivered by the Assignee with
respect to its tax status pursuant to the terms of the Credit Agreement, duly
completed and executed by the Assignee and (b) agrees that (i) it will,
independently and without reliance on the Agent, the Assignor 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 the Loan Documents, and (ii) it will perform in accordance with
their terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

                  2. Payments. The Assignee shall pay the Assignor, on the
Effective Date, the amount
<PAGE>
agreed to by the Assignor and the Assignee. From and after the Effective Date,
the Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for
amounts which have accrued to but excluding the Effective Date and to the
Assignee for amounts which have accrued from and after the Effective Date.

                  3. General Provisions. This Assignment and Assumption shall be
binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns. This Assignment and Assumption may be
executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a
manually executed counterpart of this Assignment and Assumption. This Assignment
and Assumption shall be governed by, and construed in accordance with, the law
of the State of Indiana.
<PAGE>
                          ADMINISTRATIVE QUESTIONNAIRE

    (Schedule to be supplied by Closing Unit or Trading Documentation Unit)

   (For Forms for Primary Syndication call Peterine Svoboda at 312-732-8844)
      (For Forms after Primary Syndication call Jim Bartz at 312-732-1242)
<PAGE>
              US AND NON-US TAX INFORMATION REPORTING REQUIREMENTS

    (Schedule to be supplied by Closing Unit or Trading Documentation Unit)

   (For Forms for Primary Syndication call Peterine Svoboda at 312-732-8844)
      (For Forms after Primary Syndication call Jim Bartz at 312-732-1242)
<PAGE>
                                   EXHIBIT D
                 LOAN/CREDIT RELATED MONEY TRANSFER INSTRUCTION

To Bank One, NA,
as Agent (the "Agent") under the Credit Agreement
Described Below.

Re:      Second Amended and Restated Credit Agreement, dated November 22, 2002
         (as the same may be amended or modified, the "Credit Agreement"), among
         DMI Furniture, Inc. (the "Borrower"), the Lenders named therein, the LC
         Issuer, the Enhancement Issuer and the Agent. Capitalized terms used
         herein and not otherwise defined herein shall have the meanings
         assigned thereto in the Credit Agreement.

         The Agent is specifically authorized and directed to act upon the
following standing money transfer instructions with respect to the proceeds of
Advances or other extensions of credit from time to time until receipt by the
Agent of a specific written revocation of such instructions by the Borrower,
provided, however, that the Agent may otherwise transfer funds as hereafter
directed in writing by the Borrower in accordance with Section 13.1 of the
Credit Agreement or based on any telephonic notice made in accordance with
Section 2.14 of the Credit Agreement.

Facility Identification Number(s)   5324911101

Customer/Account Name               DMI Furniture, Inc.

Transfer Funds To                   Bank One, NA

                 ______________________________________________________________

For Account No.  ______________________________________________________________

Reference/Attention To              Jason Broyles/Controller

Authorized Officer (Customer Representative)    Date____________________________

____________________________________________    ________________________________
(Please Print)                                  Signature

Bank Officer Name                               Date____________________________

____________________________________________    ________________________________
(Please Print)                                  Signature

   (Deliver Completed Form to Credit Support Staff For Immediate Processing)
<PAGE>
                                   EXHIBIT E
                                 REVOLVING NOTE
                                   [TO COME]
<PAGE>
                                   EXHIBIT F
                                   TERM NOTE
                                   [TO COME]
<PAGE>
                                   SCHEDULE 1

                       SUBSIDIARIES AND OTHER INVESTMENTS
                           (SEE SECTIONS 5.8 AND 6.14)

<TABLE>
<CAPTION>
Investment      Jurisdiction of      Owned        Amount of           Percent
   In            Organization         By         Investment          Ownership
--------------------------------------------------------------------------------
<S>             <C>                  <C>         <C>                 <C>
</TABLE>
<PAGE>
                                   SCHEDULE 2

                             INDEBTEDNESS AND LIENS
                       (SEE SECTIONS 5.14, 6.11 AND 6.15)

<TABLE>
<CAPTION>
                                                                   Maturity
Indebtedness       Indebtedness          Property                 and Amount
Incurred By           Owed To        Encumbered (If Any)        of Indebtedness
--------------------------------------------------------------------------------
<S>                <C>               <C>                        <C>
</TABLE>
<PAGE>
                                   SCHEDULE 3

                     LITIGATION AND CONTINGENT OBLIGATIONS

                               (SEE SECTION 5.7)

                                      NONE
<PAGE>
                                CREDIT AGREEMENT

                        DATED AS OF ____________________

                                      AMONG

                              DMI FURNITURE, INC.,

                                  THE LENDERS,

                                  BANK ONE, NA
                                  AS LC ISSUER,

                                  BANK ONE, NA
                             AS ENHANCEMENT ISSUER,

                                  BANK ONE, NA
                                    AS AGENT

                                       AND

                         BANC ONE CAPITAL MARKETS, INC.
                      AS LEAD ARRANGER AND SOLE BOOK RUNNER
<PAGE>
                               TABLE OF CONTENTS

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

ARTICLE II.   THE CREDITS............................................................................  20
     2.1.       Commitments, Term Loan Commitments, and Participations...............................  20
     2.2.       Revolving Loan Facility and Term Loan Facility.......................................  21
     2.3.       Ratable Loans........................................................................  22
     2.4.       Types of Advances....................................................................  22
     2.5.       Commitment Fee; Reductions in Aggregate Commitment...................................  22
     2.6.       Minimum Amount of Each Advance.......................................................  22
     2.7.       Principal Payments...................................................................  22
     2.8.       Method of Selecting Types and Interest Periods for New Advances......................  23
     2.9.       Conversion and Continuation of Outstanding Advances..................................  23
     2.10.      Changes in Interest Rate, etc........................................................  24
     2.11.      Rates Applicable After Default.......................................................  24
     2.12.      Method of Payment....................................................................  24
     2.13.      Evidence of Indebtedness.............................................................  25
     2.14.      Telephonic Notices...................................................................  25
     2.15.      Interest Payment Dates; Interest and Fee Basis.......................................  26
     2.16.      Notification of Advances, Interest Rates, Prepayments and Commitment
                Reductions...........................................................................  26
     2.17.      Lending Installations................................................................  26
     2.18.      Non-Receipt of Funds by the Agent....................................................  26
     2.19.      Facility LCs.........................................................................  27
            2.19.1.  Issuance........................................................................  27
            2.19.2.  Participations..................................................................  27
            2.22.3.  Notice..........................................................................  27
            2.19.4.  LC Fees.........................................................................  27
            2.19.5.  Administration; Reimbursement by Lenders........................................  28
            2.19.6.  Reimbursement by Borrower.......................................................  28
            2.19.7.  Obligations Absolute............................................................  29
            2.19.8.  Actions of LC Issuer............................................................  29
            2.19.9.  Indemnification.................................................................  29
            2.19.10. Lenders' Indemnification........................................................  30
            2.19.11. Facility LC Collateral Account..................................................  30
            2.19.12. Rights as a Lender..............................................................  31
     2.20.      Extension of Facility Termination Date...............................................  31
     2.21.      The 1993 Direct-Pay Letter of Credit.................................................  31
            2.21.1   Reimbursement...................................................................  31
            2.21.2   Commission and Transaction Fees.................................................  32
            2.21.3   Remarketing Reimbursement Loan-1993 Bonds.......................................  33
     2.22       The 1994 Refunding Direct-Pay Letter of Credit.......................................  34
            2.22.1   Reimbursement...................................................................  35
            2.22.2   Commission and Transaction Fees.................................................  36
            2.22.3   Remarketing Reimbursement Loan-1994 Refunding Bonds.............................  37
     2.23       Provisions Applicable to All Credit Enhancement Letters of Credit....................  38
</TABLE>
<PAGE>
<TABLE>
<S>                                                                                                    <C>
            2.23.1   Participations..................................................................  38
            2.23.2   Place and Application of Payments -- Calculation of Interest and Fees...........  38
            2.23.3   Administration; Funding of Participations by Lenders............................  38
            2.23.4   Presentment and Collection......................................................  39
            2.23.5   Change in Interest Rate Modes...................................................  39
            2.23.6   Monies in the Designated Account................................................  40
            2.23.7   Annual Administrative Fees and Other Fees.......................................  40
            2.23.8   Rights as a Lender..............................................................  40
     2.24.      Replacement of Lender................................................................  40
     2.25       Pledged Bonds........................................................................  40

ARTICLE III.  YIELD PROTECTION; TAXES................................................................  41
     3.1.       Yield Protection.....................................................................  41
     3.2.       Changes in Capital Adequacy Regulations..............................................  42
     3.3.       Availability of Types of Advances....................................................  42
     3.4.       Funding Indemnification..............................................................  42
     3.5.       Taxes................................................................................  42
     3.6.       Lender Statements; Survival of Indemnity.............................................  44

ARTICLE IV.   CONDITIONS PRECEDENT...................................................................  44
     4.1.       Initial Credit Extension.............................................................  44
     4.2.       Each Credit Extension................................................................  46

ARTICLE V.    REPRESENTATIONS AND WARRANTIES.........................................................  46
     5.1.       Existence and Standing...............................................................  46
     5.2.       Authorization and Validity...........................................................  46
     5.3.       No Conflict; Government Consent......................................................  47
     5.4.       Financial Statements.................................................................  47
     5.5.       Material Adverse Change..............................................................  47
     5.6.       Taxes................................................................................  47
     5.7.       Litigation and Contingent Obligations................................................  47
     5.8.       Subsidiaries.........................................................................  48
     5.9.       ERISA................................................................................  48
     5.10.      Accuracy of Information..............................................................  48
     5.11.      Regulation U.........................................................................  48
     5.12.      Material Agreements..................................................................  48
     5.13.      Compliance With Laws.................................................................  48
     5.14.      Ownership of Properties..............................................................  48
     5.15.      Plan Assets; Prohibited Transactions.................................................  49
     5.16.      Environmental Matters................................................................  49
     5.17       Hazardous Substances.................................................................  49
     5.18.      Investment Company Act...............................................................  49
     5.19.      Public Utility Holding Company Act...................................................  49

ARTICLE VI.   COVENANTS..............................................................................  49
</TABLE>

                                      -ii-
<PAGE>
<TABLE>
<S>                                                                                                    <C>
     6.1.       Financial Reporting..................................................................  49
     6.2.       Use of Proceeds......................................................................  51
     6.3.       Notice of Default....................................................................  51
     6.4.       Conduct of Business..................................................................  51
     6.5.       Taxes................................................................................  51
     6.6.       Insurance............................................................................  51
     6.7.       Compliance with Laws.................................................................  51
     6.8.       Maintenance of Properties............................................................  52
     6.9.       Inspection...........................................................................  52
     6.10.      Dividends............................................................................  52
     6.11.      Indebtedness.........................................................................  52
     6.12.      Merger...............................................................................  52
     6.13.      Sale of Assets.......................................................................  52
     6.14.      Investments and Acquisitions.........................................................  53
     6.15.      Liens................................................................................  53
     6.16.      Capital Expenditures.................................................................  54
     6.17.      Primary Banking Relationship.........................................................  54
     6.18.      Affiliates...........................................................................  54
     6.19.      Bond Documents.......................................................................  54
     6.20.      Financial Covenants..................................................................  54
            6.20.1.  Fixed Charge Coverage Ratio.....................................................  54
            6.20.2.  Leverage Ratio..................................................................  54
            6.20.3.  Minimum Consolidated Tangible Net Worth.........................................  55
     6.21       Employee Benefit Plans...............................................................  55
     6.22       Hazardous Substances.................................................................  55
     6.23       Other Agreements.....................................................................  56
     6.24       Judgments............................................................................  56
     6.25       Principal Office.....................................................................  56
     6.26       Lease Obligations....................................................................  56

ARTICLE VII.  DEFAULTS...............................................................................  56

ARTICLE VIII. ACCELERATION, WAIVERS, AMENDMENTS AND REMEDIES.........................................  59
     8.1.       Acceleration; Facility LC Collateral Account.........................................  59
     8.2.       Amendments...........................................................................  61
     8.3.       Preservation of Rights...............................................................  61

ARTICLE IX.   GENERAL PROVISIONS.....................................................................  62
     9.1.       Survival of Representations..........................................................  62
     9.2.       Governmental Regulation..............................................................  62
     9.3.       Headings.............................................................................  62
     9.4.       Entire Agreement.....................................................................  62
     9.5.       Several Obligations; Benefits of this Agreement......................................  62
     9.6.       Expenses; Indemnification............................................................  62
     9.7.       Numbers of Documents.................................................................  63
     9.8.       Accounting...........................................................................  63
</TABLE>

                                      -iii-
<PAGE>
<TABLE>
<S>                                                                                                    <C>
     9.9.       Severability of Provisions...........................................................  63
     9.10.      Nonliability of Lenders..............................................................  63
     9.11.      Confidentiality......................................................................  64
     9.12.      Nonreliance..........................................................................  64
     9.13.      Disclosure...........................................................................  64

ARTICLE X.    THE AGENT..............................................................................  64
     10.1.      Appointment; Nature of Relationship..................................................  64
     10.2.      Powers...............................................................................  65
     10.3.      General Immunity.....................................................................  65
     10.4.      No Responsibility for Loans, Recitals, etc...........................................  65
     10.5.      Action on Instructions of Lenders....................................................  65
     10.6.      Employment of Agents and Counsel.....................................................  65
     10.7.      Reliance on Documents; Counsel.......................................................  66
     10.8.      Agent's Reimbursement and Indemnification............................................  66
     10.9.      Notice of Default....................................................................  66
     10.10.     Rights as a Lender...................................................................  66
     10.11.     Lender Credit Decision...............................................................  67
     10.12.     Successor Agent......................................................................  67
     10.13.     Delegation to Affiliates.............................................................  67
     10.14.     Execution of Collateral Documents....................................................  67
     10.15.     Collateral Releases..................................................................  68

ARTICLE XI.   SETOFF; RATABLE PAYMENTS...............................................................  68
     11.1.      Setoff...............................................................................  68
     11.2.      Ratable Payments.....................................................................  68

ARTICLE XII.  BENEFIT OF AGREEMENT; ASSIGNMENTS; PARTICIPATIONS......................................  68
     12.1.      Successors and Assigns...............................................................  68
     12.2.      Participations.......................................................................  69
            12.2.1.  Permitted Participants; Effect..................................................  69
            12.2.2.  Voting Rights...................................................................  69
            12.2.3.  Benefit of Certain Provisions...................................................  69
     12.3.      Assignments..........................................................................  70
            12.3.1.  Permitted Assignments...........................................................  70
            12.3.2.  Effect; Effective Date..........................................................  70
            12.3.3.  Register........................................................................  70
     12.4.      Dissemination of Information.........................................................  71
     12.5.      Tax Treatment........................................................................  71

ARTICLE XIII. NOTICES  ..............................................................................  71
     13.1.      Notices..............................................................................  71
     13.2.      Change of Address....................................................................  71
</TABLE>

                                      -iv-
<PAGE>
<TABLE>
<S>                                                                                                    <C>
ARTICLE XIV.  COUNTERPARTS...........................................................................  72

ARTICLE XV.   CHOICE OF LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL...........................  72
     15.1.      CHOICE OF LAW........................................................................  72
     15.2.      CONSENT TO JURISDICTION..............................................................  72
     15.3.      WAIVER OF JURY TRIAL.................................................................  72

PRICING SCHEDULE    .................................................................................  74

EXHIBIT A.  FORM OF OPINION..........................................................................  76

EXHIBIT B.  COMPLIANCE CERTIFICATE...................................................................  78

EXHIBIT C           .................................................................................  84

EXHIBIT C - ASSIGNMENT AND ASSUMPTION AGREEMENT......................................................  84

EXHIBIT D.  LOAN/CREDIT RELATED MONEY TRANSFER INSTRUCTION...........................................  91

EXHIBIT E.  NOTE    .................................................................................  92

SCHEDULE 1.  SUBSIDIARIES AND OTHER INVESTMENTS......................................................  94

SCHEDULE 2.  INDEBTEDNESS AND LIENS..................................................................  95
</TABLE>

                                      -v-<PAGE>
                                                                    Exhibit 4(d)

                        SYNCOR INTERNATIONAL CORPORATION
                             EMPLOYEES' SAVINGS AND
                              STOCK OWNERSHIP PLAN

                             AS AMENDED AND RESTATED
                            EFFECTIVE JANUARY 1, 1997
<PAGE>
                                  INTRODUCTION

Syncor International Corporation, a Delaware corporation (the "Company"),
previously established the Syncor International Corporation Employees' Savings
and Stock Ownership Plan (the "Plan") effective as of July 31, 1986 for the
benefit of eligible employees of the Company and its participating affiliates.
The Plan is intended to constitute a qualified profit-sharing stock bonus plan,
as described in Section 401(a) of the Internal Revenue Code of 1986, as amended
(the "Code"), which includes an employee stock ownership plan, as described in
Section 4975(e)(7) of the Code, such portion of which is designed to invest
primarily in the common stock of the Company, and also a qualified cash or
deferred arrangement, as described in Section 401(k) of the Code.

In order to consolidate all prior amendments to the Plan since its restatement
as of July 1, 1994, and in order to enable the Plan to comply with various
amendments to the Code effective since such restatement (including without
limitation those amendments made by the Small Business Job Protection Act of
1996 and the Taxpayer Relief Act of 1997) as well as the regulations and rulings
of the Internal Revenue Service under the Code, the Company hereby amends and
restates the Plan, in the form set forth in Exhibit A hereto, effective as of
January 1, 1997 (except as otherwise provided in Exhibit A).

Date:  February 25, 2002                  SYNCOR INTERNATIONAL CORPORATION

                                          By: /s/ Sheila H. Coop
                                             -----------------------------------
                                          Sheila H. Coop
                                          Senior Vice President, Human Resources
                                            and Communications
<PAGE>
                                    EXHIBIT A

                        SYNCOR INTERNATIONAL CORPORATION
              EMPLOYEES' SAVINGS AND STOCK OWNERSHIP PLAN AND TRUST

                AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 1997

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
<S>                                                                               <C>
1   DEFINITIONS............................................................        1

    1.1   "Account"........................................................        1
    1.2   "ACP" or "Average Contribution Percentage".......................        2
    1.3   "Administrator"..................................................        2
    1.4   "ADP" or "Average Deferral Percentage"...........................        2
    1.5   "Acquisition Loan"...............................................        2
    1.6   "Beneficiary"....................................................        2
    1.7   "Board of Directors".............................................        2
    1.8   "Break in Service"...............................................        2
    1.8A  "Cash Forfeiture Account"........................................        2
    1.9   "Code"...........................................................        2
    1.10  "Committee"......................................................        3
    1.11  "Company"........................................................        3
    1.12  "Company Stock"..................................................        3
    1.13  "Compensation"...................................................        3
    1.14  "Contribution"...................................................        3
    1.15  "Contribution Dollar Limit"......................................        4
    1.16  "Conversion Period"..............................................        4
    1.17  "Direct Rollover"................................................        4
    1.18  "Directed Investment Accounts"...................................        4
    1.19  "Disability".....................................................        5
    1.20  "Distributee"....................................................        5
    1.21  "Effective Date".................................................        5
    1.22  "Eligible Employee"..............................................        5
    1.23  "Eligible Retirement Plan".......................................        6
    1.24  "Eligible Rollover Distribution".................................        6
    1.25  "Employee".......................................................        6
    1.26  "Employer".......................................................        6
    1.27  "ERISA"..........................................................        6
    1.28  "Fair Market Value"..............................................        7
    1.29  "Financed Shares"................................................        7
    1.29A "Foreign Employee"...............................................        7
    1.30  "Forfeiture Account".............................................        7
    1.31  "HCE" or "Highly Compensated Employee"...........................        7
    1.32  "Hour of Service"................................................        7
    1.33  "Ineligible".....................................................        8
    1.34  "Investment Fund" or "Fund"......................................        8
</TABLE>
<PAGE>
<TABLE>
<S>                                                                               <C>
    1.34A "Lafayette Plan".................................................        8
    1.34B "Lafayette Plan Merger Date".....................................        8
    1.35C "Lafayette Plan Participant".....................................        8
    1.35  "Leased Employee"................................................        8
    1.36  "Leave of Absence"...............................................        8
    1.37  "Loan Suspense Account"..........................................        9
    1.38  "NHCE" or "Non-Highly Compensated Employee"......................        9
    1.39  "Normal Retirement Date".........................................        9
    1.39A "North Star Trust Agreement".....................................        9
    1.40  "Owner"..........................................................        9
    1.41  "Parental Leave".................................................        9
    1.42  "Participant"....................................................        9
    1.43  "Pay"............................................................        9
    1.44  "Plan"..........................................................        10
    1.45  "Plan Year".....................................................        10
    1.46  "Qualified Election Period".....................................        10
    1.47  "Qualified Participant".........................................        10
    1.48  "QDRO"..........................................................        10
    1.49  "Related Company"...............................................        10
    1.50  "Settlement Date"...............................................        10
    1.51  "Spousal Consent"...............................................        10
    1.52  "Stock Investment Company Accounts".............................        11
    1.53  "Stock Investment Participant Account"..........................        11
    1.54  "Subsidiary"....................................................        11
    1.55  "Sweep Account".................................................        11
    1.56  "Sweep Date"....................................................        11
    1.57  "Taxable Income"................................................        11
    1.58  "Trade Date"....................................................        11
    1.58A  "T. Rowe Price Trust Agreement"................................        12
    1.59  "Trust".........................................................        12
    1.60  "Trustee".......................................................        12
    1.61  "Year of Participation".........................................        12
    1.62  "Year of Vesting Service".......................................        12

2   ELIGIBILITY...........................................................        13

    2.1   Eligibility.....................................................        13
    2.2   Ineligible Employees............................................        14
    2.3   Ineligible or Former Participants...............................        14
    2.4   Inapplicability of Certain Provisions to Participants Who are Foreign
            Employees.....................................................        14

3   PARTICIPANT CONTRIBUTIONS.............................................        15

    3.1   Pre-Tax Contribution Election...................................        15
    3.2   Changing a Contribution Election................................        15
    3.3   Revoking and Resuming a Contribution Election...................        15
</TABLE>

                                      -ii-
<PAGE>
<TABLE>
<S>                                                                               <C>
    3.4   Contribution Percentage Limits..................................        16
    3.5   Refunds When Contribution Dollar Limit Exceeded.................        16
    3.6   Timing, Posting and Tax Considerations..........................        17

4   ROLLOVERS AND TRUST-TO-TRUST TRANSFERS................................        18

    4.1   Rollovers.......................................................        18
    4.2   Transfers from Other Qualified Plans............................        18

5   EMPLOYER CONTRIBUTIONS................................................        20

    5.1   Order of Employer Contributions.................................        20
    5.2   Syncor Match Contributions......................................        20
    5.3   Syncor Stock Bonus Contributions................................        21
    5.4   Syncor Booster Contributions....................................        22
    5.5   Syncor Cash Bonus Contributions.................................        23

6   ACCOUNTING............................................................        24

    6.1   Individual Participant Accounting...............................        24
    6.2   Sweep Account is Transaction Account............................        24
    6.3   Trade Date Accounting and Investment Cycle......................        24
    6.4   Accounting for Investment Funds.................................        25
    6.5   Payment of Fees and Expenses....................................        25
    6.6   Accounting for Participant Loans................................        26
    6.7   Error Correction................................................        26
    6.8   Participant Statements..........................................        26
    6.9   Special Accounting During Conversion Period.....................        26
    6.10  Accounts for QDRO Beneficiaries.................................        26

7   INVESTMENT OF DIRECTED INVESTMENT ACCOUNTS............................        28

    7.1   Investment Funds................................................        28
    7.2   Investment Fund Elections.......................................        28
    7.3   Responsibility for Investment Choice............................        28
    7.4   Default if No Election..........................................        28
    7.5   Timing..........................................................        29
    7.6   Investment Fund Election Change Fees............................        29

8   INVESTMENT OF STOCK INVESTMENT COMPANY ACCOUNTS AND STOCK
          INVESTMENT PARTICIPANT ACCOUNTS.................................        30

    8.1   Normal Investment...............................................        30
    8.2   Diversification of Stock Investment Company Accounts (Prior to
            January 1, 2002)..............................................        30
    8.3   Diversification of Stock Investment Company Accounts and Stock
            Investment Participant Accounts (Effective January 1, 2002)...        31
</TABLE>

                                      -iii-

<PAGE>
<TABLE>
<S>                                                                               <C>
9   VESTING AND FORFEITURES...............................................        32

    9.1   Fully Vested Contribution Accounts..............................        32
    9.2   Full Vesting upon Certain Events................................        32
    9.3   Vesting Schedule................................................        32
    9.4   Forfeitures.....................................................        33
    9.5   Rehired Employees...............................................        33
    9.6   Forfeitures from Syncor Cash Bonus Accounts ....................        34

10  PARTICIPANT LOANS.....................................................        35

    10.1  Participant Loans Permitted.....................................        35
    10.2  Loan Application, Note and Security.............................        35
    10.3  Spousal Consent.................................................        35
    10.4  Loan Approval...................................................        35
    10.5  Loan Funding Limits.............................................        35
    10.6  Maximum Number of Loans.........................................        36
    10.7  Source and Timing of Loan Funding...............................        36
    10.8  Interest Rate...................................................        36
    10.9  Repayment.......................................................        36
    10.10 Repayment Hierarchy.............................................        37
    10.11 Repayment Suspension............................................        37
    10.12 Loan Default....................................................        37
    10.13 Call Feature....................................................        37

11  IN-SERVICE WITHDRAWALS................................................        38

    11.1  In-Service Withdrawals Permitted................................        38
    11.2  In-Service Withdrawal Application and Notice....................        38
    11.3  Spousal Consent.................................................        38
    11.4  In-Service Withdrawal Approval..................................        38
    11.5  Minimum Amount, Payment Form and Medium.........................        39
    11.6  Source and Timing of In-Service Withdrawal Funding..............        39
    11.7  Hardship Withdrawals............................................        39
    11.8  Rollover Account Withdrawals....................................        41
    11.9  Over Age 59-1/2 Withdrawals.....................................        41

12  DISTRIBUTIONS ONCE EMPLOYMENT ENDS OR AS REQUIRED BY LAW .............        43

    12.1  Benefit Information, Notices and Election.......................        43
    12.2  Spousal Consent.................................................        43
    12.3  Payment Form and Medium.........................................        44
    12.4  Distribution of Small Amounts...................................        44
    12.5  Source and Timing of Distribution Funding.......................        44
    12.6  Deemed Distribution.............................................        45
    12.7  Latest Commencement Permitted...................................        45
</TABLE>

                                      -iv-
<PAGE>
<TABLE>
<S>                                                                               <C>
    12.8  Payment Within Life Expectancy..................................        46
    12.9  Incidental Benefit Rule.........................................        46
    12.10 Payment to Beneficiary..........................................        46
    12.11 Beneficiary Designation.........................................        47
    12.12 Effect of Certain Distributions and Deemed Distributions; Repayment     47
    12.13 Required Distributions on or After January 1, 2002..............        48

13  ADP AND ACP TESTS.....................................................        49

    13.1  Contribution Limitation Definitions.............................        49
    13.2  ADP and ACP Tests...............................................        51
    13.3  Correction of ADP and ACP Tests.................................        51
    13.4  Multiple Use Test...............................................        53
    13.5  Correction of Multiple Use Test.................................        53
    13.6  Adjustment for Investment Gain or Loss..........................        53
    13.7  Testing Responsibilities and Required Records...................        53
    13.8  Separate Testing................................................        53

14  MAXIMUM CONTRIBUTION AND BENEFIT LIMITATIONS..........................        55

    14.1  "Annual Addition" Defined.......................................        55
    14.2  Maximum Annual Addition.........................................        55
    14.3  Avoiding an Excess Annual Addition..............................        55
    14.4  Correcting an Excess Annual Addition............................        55
    14.5  Correcting a Multiple Plan Excess...............................        56
    14.6  "Defined Benefit Fraction" Defined..............................        56
    14.7  "Defined Contribution Fraction" Defined.........................        56
    14.8  Combined Plan Limits and Correction.............................        57

15  TOP-HEAVY RULES.......................................................        58

    15.1  Top-Heavy Definitions...........................................        58
    15.2  Special Contributions...........................................        59
    15.3  Special Vesting.................................................        59
    15.4  Adjustment to Combined Limits for Different Plans...............        60

16  PLAN ADMINISTRATION...................................................        61

    16.1  Plan Delineates Authority and Responsibility....................        61
    16.2  Fiduciary Standards.............................................        61
    16.3  Company is ERISA Plan Administrator.............................        61
    16.4  Administrator's Authority.......................................        62
    16.5  Advisors May be Retained........................................        63
    16.6  Delegation of Administrator's Duties............................        63
    16.7  Committee Operating Rules.......................................        63
    16.8  Multiple Employer Plan Requirements.............................        64
    16.9  Veterans' Rights................................................        65
</TABLE>

                                        -v-
<PAGE>
<TABLE>
<S>                                                                               <C>
17  MANAGEMENT OF INVESTMENTS.............................................        66

    17.1  In General......................................................        66
    17.2  Investment Funds................................................        66
    17.3  Authority to Hold Cash..........................................        67
    17.4  Trustee to Act Upon Instructions................................        67
    17.5  Administrator Has Right to Vote Registered Investment Company Shares    67
    17.6  Custom Fund Investment Management ..............................        67
    17.7  Authority to Segregate Assets...................................        68
    17.8  Investment in Company Stock.....................................        68
    17.9  Voting and Tendering Company Stock..............................        68
    17.10 Registration and Disclosure for Company Stock...................        69
    17.11 Investment of Amounts Credited to Syncor Cash Bonus Accounts....        69

18  LEVERAGED TRANSACTIONS................................................        70

    18.1  Authority to Use Leverage.......................................        70
    18.2  Acquisition Loans...............................................        70
    18.3  Acquisition Loan Payments.......................................        70
    18.4  Employer Contributions..........................................        71
    18.5  Allocation of Financed Shares...................................        71
    18.6  Net Income or Loss and Dividends................................        72
    18.7  Accounting for Transactions.....................................        73
    18.8  Allocation Limitation...........................................        73
    18.9  Forfeitures.....................................................        73
    18.10 Restrictions....................................................        73

19  TRUST ADMINISTRATION..................................................        74

    19.1  Trustee to Construe Trust.......................................        74
    19.2  Trustee To Act As Owner of Trust Assets.........................        74
    19.3  United States Indicia of Ownership..............................        74
    19.4  Tax Withholding and Payment.....................................        75
    19.5  Trust Accounting................................................        75
    19.6  Valuation of Certain Assets.....................................        75
    19.7  Legal Counsel...................................................        76
    19.8  Fees and Expenses...............................................        76
    19.9  Trustee Duties and Limitations..................................        76
    19.10 Applicability of T. Rowe Price Trust Agreement and North Star
               Trust Agreement............................................        76

20  RIGHTS, PROTECTION, CONSTRUCTION AND JURISDICTION.....................        78

    20.1  Plan Does Not Affect Employment Rights..........................        78
    20.2  Limited Return of Contributions.................................        78
    20.3  Assignment and Alienation.......................................        79
</TABLE>

                                        -vi-
<PAGE>
<TABLE>
<S>                                                                               <C>
    20.4  Facility of Payment.............................................        80
    20.5  Reallocation of Lost Participant's Accounts.....................        80
    20.6  Put Options.....................................................        81
    20.7  Claims Procedure................................................        81
    20.8  Construction....................................................        82
    20.9  Jurisdiction and Severability...................................        82
    20.10 Indemnification by Employer.....................................        83

21  AMENDMENT, MERGER, DIVESTITURES AND TERMINATION.......................        84

    21.1  Amendment.......................................................        84
    21.2  Merger..........................................................        84
    21.2A Merger with Lafayette Plan......................................        84
    21.3  Divestitures....................................................        86
    21.4  Plan Termination................................................        87
    21.5  Amendment and Termination Procedures............................        87
    21.6  Termination of Employer's Participation.........................        88
    21.7  Replacement of Trustee..........................................        88
    21.8  Final Settlement and Accounting of Trustee......................        88
</TABLE>

                                      -vii-
<PAGE>
1        DEFINITIONS

         When capitalized, the words and phrases below have the following
         meanings unless different meanings are clearly required by the context:

         1.1      "Account" means the records maintained for purposes of
                  accounting for a Participant's interest in the Plan. "Account"
                  may refer to one or all of the following accounts which have
                  been created on behalf of a Participant to hold specific types
                  of Contributions under the Plan and intra-Plan transfers:

                  (a)      "Fund Deferrals Account": An account created to hold
                           Pre-Tax Contributions designated by the Participant
                           as to be deposited to his or her Fund Deferrals
                           Account.

                  (b)      "Syncor Stock Deferrals Account": An account created
                           to hold Pre-Tax Contributions designated by the
                           Participant as to be deposited to his or her Syncor
                           Stock Deferrals Account.

                  (c)      "Rollover Account": An account created to hold (i)
                           Rollover Contributions and (ii) amounts from a
                           Participant's Stock Investment Company Account
                           diversified in accordance with Subsections 8.2 or
                           8.3.

                  (d)      "Syncor Match/Bonus Account": An account created to
                           hold Syncor Match and Syncor Stock Bonus
                           Contributions.

                  (e)      "Syncor Booster Account": An account created to hold
                           Syncor Booster Contributions.

                  (f)      "Pre-ESSOP Shares Account": An account created to
                           hold Pre-ESSOP Shares Contributions.

                  (g)      "Syncor Cash Bonus Account": An account created to
                           hold Syncor Cash Bonus Contributions. This Subsection
                           1.1(g) is effective January 1, 1999.

                  (h)      "Lafayette Deferrals Account": With respect to a
                           Participant who was a Lafayette Plan Participant
                           immediately prior to the Lafayette Plan Merger Date,
                           an account created to hold the amount which had been
                           credited to such Participant's account in the
                           Lafayette Plan as of the Lafayette Plan Merger Date
                           which was attributable to such Participant's salary
                           deferral contributions under Code Section 401(k).

                  (i)      "Lafayette Matching Account": With respect to a
                           Participant who was a Lafayette Plan Participant
                           immediately prior to the Lafayette Plan Merger Date,
                           an account created to hold the amount which had been
                           credited to such Participant's account in the
                           Lafayette Plan as of the Lafayette Plan Merger Date
                           which was attributable to employer
<PAGE>
                           matching contributions on his or her behalf
                           (including forfeitures allocated on the same basis as
                           matching contributions).

                  (j)      "Lafayette Rollover Account": With respect to a
                           Participant who was a Lafayette Plan Participant
                           immediately prior to the Lafayette Plan Merger Date,
                           an account created to hold the amount which had been
                           credited to such Participant's account in the
                           Lafayette Plan as of the Lafayette Plan Merger Date
                           and which was attributable to rollover contributions
                           on his or her behalf.

         1.2      "ACP" or "Average Contribution Percentage" means the
                  percentage calculated in accordance with Subsection 13.1.

         1.3      "Administrator" means the Company, which has delegated all or
                  a portion of the duties of the Administrator under the Plan to
                  a Committee in accordance with Subsection 16.6.

         1.4      "ADP" or "Average Deferral Percentage" means the percentage
                  calculated in accordance with Subsection 13.1.

         1.5      "Acquisition Loan" means a loan or other extension of credit
                  which is made to the Plan or guaranteed by a "disqualified
                  person" [as defined in Code Section 4975(e)(2)] to finance the
                  acquisition of Company Stock or to repay an existing
                  Acquisition Loan.

         1.6      "Beneficiary" means the person or persons who is to receive
                  benefits after the death of the Participant pursuant to
                  Subsection 12.11 or as a result of a QDRO.

         1.7      "Board of Directors" means the Board of Directors of the
                  Company.

         1.8      "Break in Service" means the end of five consecutive Plan
                  Years (or six consecutive Plan Years if absence from
                  employment was due to a Parental Leave) for which a
                  Participant is credited with less than 501 Hours of Service in
                  each year, except that for the short Plan Year commencing June
                  1, 1993 and ending December 31, 1993, "292" shall be
                  substituted for the preceding reference to "501."

         1.8A     "Cash Forfeiture Account" means an account holding amounts
                  previously allocated as Syncor Cash Bonus Contributions and
                  forfeited by Participants who have left the Employer, invested
                  in interest-bearing deposits of the Trustee, pending
                  disposition as provided in this Plan and Trust and as directed
                  by the Administrator. This Subsection 1.8A is effective
                  January 1, 1999.

         1.9      "Code" means the Internal Revenue Code of 1986, as amended.
                  Reference to any specific Code section shall include such
                  section, any valid regulation

                                      -2-
<PAGE>
                  promulgated thereunder and any comparable provision of any
                  future legislation amending, supplementing or superseding such
                  section.

         1.10     "Committee" means the Committee which has been appointed by
                  the Board of Directors to administer the Plan in accordance
                  with Subsection 16.6.

         1.11     "Company" means Syncor International Corporation, a Delaware
                  corporation, or any successor by merger, purchase or
                  otherwise.

         1.12     "Company Stock" means common stock of the Company, its
                  predecessor(s), or its successors or assigns, or any
                  corporation with or into which said corporation may be merged,
                  consolidated or reorganized, or to which a majority of its
                  assets may be sold.

         1.13     "Compensation" means the sum of a Participant's Taxable Income
                  and (a) any "elective deferral" [as defined in Section
                  402(g)(3) of the Code] and (b) any amount which is contributed
                  or deferred by an Employer at the election of such Participant
                  and which is not included in his or her gross income by reason
                  of Sections 125 or 132(f)(4) of the Code. Effective January 1,
                  1998, the term "Compensation" shall mean Taxable Income. For
                  purposes of determining benefits under this Plan, Compensation
                  is limited to $160,000 [as adjusted for the cost of living
                  pursuant to Code Section 401(a)(17)] per Plan Year. For the
                  purpose of determining HCEs and Key Employees [as defined in
                  Section 15.1(c)], Compensation for the entire Plan Year shall
                  be used. For the purpose of determining ADP and ACP,
                  Compensation shall be limited to amounts paid to an Eligible
                  Employee while a Participant. Effective January 1, 1999, and
                  notwithstanding the preceding provisions of this Subsection
                  1.13, "Compensation" with respect to a Participant who is a
                  Foreign Employee shall mean wages within the meaning of Code
                  Section 3401(a) (for purposes of income tax withholding at the
                  source) but determined without regard to any rules that limit
                  the remuneration included in wages based on the nature or
                  location of employment or the services performed [such as the
                  exception for agricultural labor in Section 3401(a)(2) of the
                  Code].

         1.14     "Contribution" means an amount contributed to the Plan by the
                  Employer or an Eligible Employee, and allocated by
                  contribution type to Participants' Accounts, as described in
                  Subsection 1.1. Specific types of Contributions include:

                  (a)      "Pre-Tax Contribution": An amount contributed by the
                           Employer on an eligible Participant's behalf in
                           conjunction with a Participant's Code Section 401(k)
                           salary deferral election. References to Pre-Tax
                           Contribution shall include Pre-Tax Contributions
                           designated to be deposited to a Participant's Fund
                           Deferrals Account or Syncor Stock Deferrals Account.

                                      -3-
<PAGE>
                  (b)      "Rollover Contribution": An amount contributed by an
                           Eligible Employee which originated from another
                           employer's or an Employer's qualified plan.

                  (c)      "Syncor Match Contribution": An amount contributed by
                           the Employer on an eligible Participant's behalf
                           based upon the amount contributed by the eligible
                           Participant.

                  (d)      "Syncor Stock Bonus Contribution": An amount
                           contributed by the Employer on an eligible
                           Participant's behalf and allocated on a pay based
                           formula to the Participant.

                  (e)      "Syncor Booster Contribution": An amount contributed
                           by the Employer on an eligible Participant's behalf
                           and allocated in an equal amount to qualifying
                           Participants.

                  (f)      "Pre-ESSOP Shares Contribution": An amount previously
                           contributed by the Employer on an eligible
                           Participant's behalf and allocated on a pay based
                           formula to the Participant.

                  (g)      "Syncor Cash Bonus Contribution": An amount
                           contributed by the Employer on an eligible
                           Participant's behalf and allocated on a pay-based
                           formula to the Participant. This Subsection 1.14(g)
                           is effective January 1, 1999.

         1.15     "Contribution Dollar Limit" means the annual limit placed on
                  each Participant's Pre-Tax Contributions, which shall be
                  $9,500 per calendar year [as adjusted for the cost of living
                  pursuant to Code Section 402(g)(5)]. For purposes of this
                  Subsection 1.15, a Participant's Pre-Tax Contributions shall
                  consist of any employer contribution made under any qualified
                  cash or deferred arrangement as defined in Code Section 401(k)
                  to the extent not includible in gross income for the taxable
                  year under Code Section 402(e)(3), determined without regard
                  to Code Section 402(g).

         1.16     "Conversion Period" means the period of converting the prior
                  accounting system of the Plan and Trust, if such Plan and
                  Trust were in existence prior to July 1, 1994, or the prior
                  accounting system of any plan and trust which is merged into
                  this Plan and Trust subsequent to July 1, 1994, to the
                  accounting system described in Section 6.

         1.17     "Direct Rollover" means an Eligible Rollover Distribution that
                  is paid directly to an Eligible Retirement Plan for the
                  benefit of a Distributee.

         1.18     "Directed Investment Accounts" means a Participant's Fund
                  Deferrals and Rollover Accounts.

                                      -4-
<PAGE>
         1.19     "Disability" means a Participant's physical or mental
                  condition presumed to be total and permanent which, in the
                  judgment of the Administrator based upon medical evidence
                  satisfactory to the Administrator, prevents a Participant from
                  performing his or her regular occupation with the Employer.

         1.20     "Distributee" means an Employee or former Employee, the
                  surviving spouse of an Employee or former Employee and a
                  spouse or former spouse of an Employee or former Employee
                  determined to be an alternate payee under a QDRO.

         1.21     "Effective Date" means January 1, 1997, unless stated
                  otherwise herein. The date upon which the provisions of this
                  document become effective. In general, the provisions of this
                  document only apply to Participants who are Employees on or
                  after the Effective Date. However, investment and distribution
                  provisions apply to all Participants with Account balances to
                  be invested or distributed after the Effective Date.

         1.22     "Eligible Employee" means an Employee of an Employer, except
                  any Employee:

                  (a)      Whose compensation and conditions of employment are
                           covered by a collective bargaining agreement to which
                           an Employer is a party unless the agreement calls for
                           the Employee's participation in the Plan.

                  (b)      Who is treated as an Employee because he or she is a
                           Leased Employee; or

                  (c)      Who is a nonresident alien who (i) either receives no
                           earned income (within the meaning of Code Section
                           911(d)(2)), from sources within the United States
                           under Code Section 861(a)(3); or (ii) receives such
                           earned income from such sources within the United
                           States but such income is exempt from United States
                           income tax under an applicable income tax convention.

                  Effective January 1, 1999, the term "Eligible Employee" shall
                  mean an Employee of an Employer, except any Employee:

                  (a)      Whose compensation and conditions of employment are
                           covered by a collective bargaining agreement to which
                           an Employer is a party unless the agreement calls for
                           the Employee's participation in the Plan; or

                  (b)      Who is treated as an Employee because he or she is a
                           Leased Employee.

                                      -5-
<PAGE>
                  Notwithstanding the preceding sentence, effective January 1,
                  1999, a Foreign Employee shall be an Eligible Employee only
                  with respect to sharing in allocations of Syncor Cash Bonus
                  Contributions under Subsection 5.5 and forfeitures from Syncor
                  Cash Bonus Accounts under Subsection 9.6, provided he or she
                  otherwise satisfies the requirements of Section 2.

         1.23     "Eligible Retirement Plan" means an individual retirement
                  account described in Code Section 408(a), an individual
                  retirement annuity described in Code Section 408(b), or a
                  qualified trust described in Code Section 401(a), that accepts
                  a Distributee's Eligible Rollover Distribution, except that
                  with regard to an Eligible Rollover Distribution to a
                  surviving spouse, an Eligible Retirement Plan is an individual
                  retirement account or an individual retirement annuity.

         1.24     "Eligible Rollover Distribution" means a distribution of all
                  or any portion of the balance to the credit of a Distributee,
                  excluding a distribution that is one of a series of
                  substantially equal periodic payments (not less frequently
                  than annually) made for the life (or life expectancy) of a
                  Distributee or the joint lives (or joint life expectancies) of
                  a Distributee and the Distributee's designated Beneficiary, or
                  for a specified period of ten years or more; a distribution to
                  the extent such distribution is required under Code Section
                  401(a)(9); and the portion of a distribution that is not
                  includible in gross income (determined without regard to the
                  exclusion for net unrealized appreciation with respect to
                  Employer securities). Effective as to distributions made after
                  December 31, 1998, the term "Eligible Rollover Distribution"
                  shall not include any hardship distribution described in
                  Section 402(k)(2)(B)(i)(IV) of the Code.

         1.25     "Employee" means an individual who is:

                  (a)      Directly employed by the Employer or any Related
                           Company and for whom any income for such employment
                           is subject to withholding of income or social
                           security taxes; or

                  (b)      A Leased Employee.

                  Effective January 1, 1999, the term "Employee" shall include a
                  Foreign Employee.

         1.26     "Employer" means the Company, and any Subsidiary or Related
                  Company of the Company which adopts this Plan with the
                  approval of the Company.

         1.27     "ERISA" means the Employee Retirement Income Security Act of
                  1974, as amended. Reference to any specific section shall
                  include such section, any valid regulation promulgated
                  thereunder and any comparable provision of any future
                  legislation amending, supplementing or superseding such
                  section.

                                      -6-
<PAGE>
         1.28     "Fair Market Value" means, respect to Company Stock traded on
                  a national exchange, the closing sales price of a share of
                  Company Stock as reported on a national exchange. With respect
                  to Company Stock for which no public market exists, the value
                  of a share of Company Stock as determined by the Administrator
                  based upon a valuation by an independent appraiser.

         1.29     "Financed Shares" means shares of Company Stock acquired with
                  the proceeds of an Acquisition Loan.

         1.29A    "Foreign Employee" means a person who is directly employed by
                  a Subsidiary or a Related Company which is organized under the
                  laws of a jurisdiction other than (1) the United States or (2)
                  the states and territories of the United States; provided,
                  however, that an employee of a Subsidiary or Related Company
                  organized under the laws of the Commonwealth of Puerto Rico
                  shall be treated as a Foreign Employee. This Subsection 1.29A
                  is effective January 1, 1999.

         1.30     "Forfeiture Account" means an account holding amounts
                  forfeited by Participants who have left the Employer, invested
                  in shares of Company Stock and interest bearing deposits of
                  the Trustee, pending disposition as provided in this Plan and
                  Trust and as directed by the Administrator.

         1.31     "HCE" or "Highly Compensated Employee" means an Employee
                  described as a Highly Compensated Employee in Section 13.

         1.32     "Hour of Service" means each hour for which an Employee is
                  entitled to:

                  (a)      Payment for the performance of duties for any Related
                           Company;

                  (b)      Payment from any Related Company for any period
                           during which no duties are performed (irrespective of
                           whether the employment relationship has terminated)
                           due to vacation, holiday, sickness, incapacity
                           (including disability), layoff, leave of absence,
                           jury duty or military service;

                  (c)      Back pay, irrespective of mitigation of damages, by
                           award or agreement with any Related Company (and
                           these hours shall be credited to the period to which
                           the agreement pertains); or

                  (d)      No payment, but is on a Leave of Absence (and these
                           hours shall be based upon his or her normally
                           scheduled hours per week or a 40-hour week if there
                           is no regular schedule).

                  The crediting of hours for which no duties are performed shall
                  be in accordance with Department of Labor regulation Sections
                  2530.200b-2(b) and (c). Actual hours shall be used whenever an
                  accurate record of hours is maintained for an Employee.
                  Otherwise, an equivalent number of hours shall

                                      -7-
<PAGE>
                  be credited for each payroll period in which the Employee
                  would be credited with at least one hour. The payroll period
                  equivalencies are 45 hours weekly, 90 hours biweekly, 95 hours
                  semimonthly and 190 hours monthly. An Employee's service with
                  a predecessor or acquired company shall only be counted in the
                  determination of his or her Hours of Service for eligibility
                  and/or vesting purposes if (1) the Company directs that credit
                  for such service be granted, or (2) a qualified plan of the
                  predecessor or acquired company is subsequently maintained by
                  any Employer or Related Company. In the event a person was
                  employed by an entity at the time such entity's assets were
                  acquired by the Company or a Related Company and at the time
                  of acquisition such person became an employee of the Company
                  or a Related Company, his or her service with such entity
                  shall be treated as service for the Company unless the
                  Administrator decides otherwise; provided, however, that the
                  decision by the Administrator shall be uniform as to all
                  similarly-situated persons as to such entity.

         1.33     "Ineligible" means the Plan status of an individual during the
                  period in which he or she is (a) an Employee of a Related
                  Company which is not then an Employer, (B) an Employee, but
                  not an Eligible Employee, or (c) not an Employee.

         1.34     "Investment Fund" or "Fund" means an investment fund as
                  described in Subsection 17.2.

         1.34A    "Lafayette Plan" means the Lafayette Pharmaceuticals
                  Incorporated 401(k) Profit-Sharing Plan.

         1.34B    "Lafayette Plan Merger Date" means the date as of which the
                  Lafayette Plan was merged into this Plan, which date is
                  December 31, 2001.

         1.34C    "Lafayette Plan Participant" means a Participant who was a
                  Participant in the Lafayette Plan as of the Lafayette Plan
                  Merger Date.

         1.35     "Leased Employee" means any person (other than an employee of
                  the Company or a Related Company) who pursuant to an agreement
                  between the Company and any other person has performed
                  services for the Company [or for the Company and related
                  persons determined in accordance with Section 414(n)(6) of the
                  Code] on a substantially full-time basis for a period of at
                  least one year, and such services are performed under primary
                  direction or control by the Company or a Related Company.

         1.36     "Leave of Absence" means a period during which an individual
                  is deemed to be an Employee, but is absent from active
                  employment, provided that the absence:

                  (a)      Was authorized by a Related Company; or

                                      -8-
<PAGE>
                  (b)      Was due to military service in the United States
                           armed forces and the individual returns to active
                           employment within the period during which he or she
                           retains employment rights under federal law.

         1.37     "Loan Suspense Account" means an account created to hold
                  unallocated Financed Shares.

         1.38     "NHCE" or "Non-Highly Compensated Employee" means an Employee
                  described as a Non-Highly Compensated Employee in Section 13.

         1.39     "Normal Retirement Date" means the date of a Participant's
                  65th birthday.

         1.39A    "North Star Trust Agreement" means the agreement between the
                  Company and North Star ESOP & Fiduciary Services, LLC, as
                  amended from time to time, establishing a trust forming a part
                  of the Plan with respect to assets of the Plan to be used to
                  fund the benefits provided under the employee stock ownership
                  portion of the Plan and to be used to fund benefits provided
                  under the non-employee stock ownership portion of the Plan
                  which are invested in Company Stock. This Subsection 1.39A is
                  effective May 1, 2000.

         1.40     "Owner" means a person with an ownership interest in the
                  capital, profits, outstanding stock or voting power of a
                  Related Company within the meaning of Code Sections 318 or 416
                  (which exclude indirect ownership through a qualified plan).

         1.41     "Parental Leave" means the period of absence from work by
                  reason of pregnancy, the birth of an Employee's child, the
                  placement of a child with the Employee in connection with the
                  child's adoption, or caring for such child immediately after
                  birth or placement as described in Code Section 410(a)(5)(E).

         1.42     "Participant" means an Eligible Employee who begins to
                  participate in the Plan after completing the eligibility
                  requirements as described in Subsection 2.1. An Eligible
                  Employee who makes a Rollover Contribution prior to completing
                  the eligibility requirements as described in Subsection 2.1
                  shall also be considered a Participant except for purposes of
                  provisions related to Contributions (other than a Rollover
                  Contribution). A Participant's participation continues until
                  his or her employment with all Related Companies ends and his
                  or her Account is distributed or forfeited. Effective January
                  1, 1999, the preceding sentence shall read as follows: "A
                  Participant's participation continues until his or her
                  employment with the Employer, all Related Companies and any
                  Subsidiary ends and his or her Account is distributed or
                  forfeited."

         1.43     "Pay" means the base pay and overtime paid to an Eligible
                  Employee by an Employer while a Participant during the current
                  period. Pay shall include any "elective deferral" [as defined
                  in Section 402(g)(3) of the Code] and any

                                      -9-
<PAGE>
                  amount which is contributed or deferred by an Employer at the
                  election of a Participant and which is not included in his or
                  her gross income by reason of Section 125 of the Code. Pay
                  shall also include any amount which is contributed or deferred
                  by an Employer on or after January 1, 1998 at the election of
                  a Participant and which is not included in his or her gross
                  income by reason of Section 132(f) of the Code. Pay shall be
                  limited to $160,000 [as adjusted for the cost of living
                  pursuant to Code Section 401(a)(17)] per Plan Year.

         1.44     "Plan" means the Syncor International Corporation Employees'
                  Savings and Stock Ownership Plan set forth in this document,
                  as from time to time amended.

         1.45     "Plan Year" means the annual accounting period of the Plan and
                  Trust which ends on each December 31.

         1.46     "Qualified Election Period" means the period of six Plan Years
                  commencing with the Plan Year an Employee first becomes a
                  Qualified Participant. Effective January 1, 2002, the term
                  "Qualified Election Period" shall mean, with respect to a
                  Participant, the period beginning with the first Plan Year in
                  which he or she becomes a Qualified Participant and ending
                  with the last Plan Year in which he or she is a Participant.

         1.47     "Qualified Participant" means an Employee who has completed at
                  least ten Years of Participation in the Plan and has attained
                  age 55. Effective January 1, 2002, the term "Qualified
                  Participant" shall mean an Employee who has completed at least
                  ten Years of Participation in the Plan.

         1.48     "QDRO" means a domestic relations order which the
                  Administrator has determined to be a qualified domestic
                  relations order within the meaning of Code Section 414(p).

         1.49     "Related Company" means, with respect to the Company, and any
                  corporation, trade or business which is, together with the
                  Company, a member of the same controlled group of
                  corporations, a trade or business under common control, or an
                  affiliated service group within the meaning of Code Sections
                  414(b), (c), (m) or (o) and except that for purposes of
                  Section 14, "within the meaning of Code Sections 414(b), (c),
                  (m) or (o), as modified by Code Section 415(h)" shall be
                  substituted for the preceding reference to "within the meaning
                  of Code Sections 414(b), (c), (m) or (o)."

         1.50     "Settlement Date" means, for each Trade Date, the Trustee's
                  next business day.

         1.51     "Spousal Consent" means the written consent given by a spouse
                  to a Participant's election or waiver of a specified form of
                  benefit, including a loan or in-service withdrawal, or
                  Beneficiary designation. The spouse's

                                      -10-
<PAGE>
                  consent must acknowledge the effect on the spouse of the
                  Participant's election, waiver or designation and be duly
                  witnessed by a Plan representative or notary public. Spousal
                  Consent shall be valid only with respect to the spouse who
                  signs the Spousal Consent and only for the particular choice
                  made by the Participant which requires Spousal Consent. A
                  Participant may revoke (without Spousal Consent) a prior
                  election, waiver or designation that required Spousal Consent
                  at any time before payments begin. Spousal Consent also means
                  a determination by the Administrator that there is no spouse,
                  the spouse cannot be located or such other circumstances as
                  may be established by applicable law.

         1.52     "Stock Investment Company Accounts" means a Participant's
                  Syncor Match/Bonus, Syncor Booster and Pre-ESSOP Shares
                  Accounts.

         1.53     "Stock Investment Participant Account" means a Participant's
                  Syncor Stock Deferrals Account.

         1.54     "Subsidiary" means an entity which is 50% or more owned,
                  directly or indirectly, by the Company.

         1.55     "Sweep Account" means the subsidiary Account for each
                  Participant through which all transactions are processed,
                  which is invested in interest bearing deposits of the Trustee.

         1.56     "Sweep Date" means the cut off date and time for receiving
                  instructions for transactions to be processed on the next
                  Trade Date.

         1.57     "Taxable Income" means wages within the meaning of Code
                  Section 3401(a) and all other payments of compensation to a
                  participant by the Employer (in the course of the Employer's
                  trade or business) for which the Employer is required to
                  furnish such Participant a written statement under Code
                  Sections 6041(d), 6051(a)(3) and 6052, determined without
                  regard to any rules under Code Section 3401(a) which limit
                  remuneration included in wages based on the nature or location
                  of the employment or the services performed [such as the
                  exception for agricultural labor in Code Section 3401(a)(2)].
                  Notwithstanding the preceding sentence, the Taxable Income of
                  a Participant who is a Foreign Employee shall mean his or her
                  Compensation as defined in Subsection 1.13. Effective for Plan
                  Years beginning after December 31, 1997 as to all
                  Participants, "Taxable Income" shall include (a) any "elective
                  deferral" of a Participant [as defined in Section 402(g)(3)]
                  and (b) any amount which is contributed or deferred by the
                  Employer at the election of a Participant and which is not
                  includable in the gross income of such Participant by reason
                  of Code Sections 125 or 132(f)(4).

         1.58     "Trade Date" Means each day the Investment Funds are valued,
                  which is normally every day the assets of such Funds are
                  traded.

                                      -11-
<PAGE>

      1.58A "T. Rowe Price Trust Agreement" means the agreement between the
            Company and T. Rowe Price Trust Company, as amended from time to
            time, establishing a trust forming a part of the Plan with respect
            to assets of the Plan to be used to fund the benefits provided under
            the non-employee stock ownership portion of the Plan which are not
            invested in Company Stock. This Subsection 1.58A is effective May 1,
            2000.

      1.59  "Trust" means the legal entity created by those provisions of this
            document which relate to the Trustee. The Trust is part of the Plan
            and holds the Plan assets which are comprised of the aggregate of
            Participants' Accounts, any unallocated funds invested in deposit or
            money market type assets pending allocation to Participants'
            Accounts or disbursement to pay Plan fees and expenses and the
            Forfeiture Account. Effective May 1, 2000, the term "Trust" shall
            mean, with respect to the assets of the Plan held pursuant to the
            North Star Trust Agreement, the trust created pursuant to said
            agreement. Effective May 1, 2000, the term "Trust" shall mean, with
            respect to the assets of the Plan held pursuant to the T. Rowe Price
            Trust Agreement, the trust created pursuant to said agreement.

      1.60  "Trustee" means Wells Fargo Bank, National Association. Effective
            January 1, 1998, the term "Trustee" shall mean Merrill Lynch Trust
            Company, FSB, a federal savings bank, chartered under the laws of
            the United States. Effective May 1, 2000, with respect to the assets
            of the Plan held pursuant to the North Star Trust Agreement, the
            term "Trustee" shall mean North Star ESOP & Fiduciary Services, LLC,
            and with respect to the assets of the Plan held pursuant to the T.
            Rowe Price Agreement, the term "Trustee" shall mean T. Rowe Price
            Trust Company.

      1.61  "Year of Participation" means a 12-month period during which an
            Employee, after completing the eligibility requirements and
            beginning participation in the Plan, is a Participant in the Plan.

      1.62  "Year of Vesting Service" means a 12-consecutive-month period ending
            on the last day of a Plan Year in which an Employee is credited with
            at least 1,000 Hours of Service. To provide for the change in the
            Plan Year effective in 1993 from June 1 to May 31 to January 1 to
            December 31, a Participant was credited with a Year of Vesting
            Service for the period June 1, 1993 to May 31, 1994 if he or she was
            credited with at least 1,000 Hours of Service in such period and a
            Year of Vesting Service for the period January 1, 1993 to December
            31, 1993 if he or she was credited with at least 1,000 Hours of
            Service in such period. Years of Vesting Service shall include
            service credited prior to July 31, 1986, except service credited
            prior to the date the Company was incorporated.

                                     - 12 -
<PAGE>
2     ELIGIBILITY

      2.1   Eligibility

            (a)   All Eligible Employees who are Participants as of December 31,
                  1996 shall continue their eligibility to participate as of the
                  Effective Date if they remain Eligible Employees on the
                  Effective Date. Each other Eligible Employee shall become a
                  Participant on the first January 1, April 1, July 1 or October
                  1 after the date he or she attains age 21, and completes a
                  12-month eligibility period in which he or she is credited
                  with at least 1,000 Hours of Service. This Subsection 2.1(a)
                  shall no longer apply effective May 1, 2000.

            (b)   The initial eligibility period begins on the date an Employee
                  first performs an Hour of Service. Subsequent eligibility
                  periods begin with the start of each Plan Year beginning after
                  the first Hour of Service is performed.

            (c)   Effective January 1, 1999, in the case of any Subsidiary or
                  Related Company which adopts the Plan effective on or after
                  January 1, 1999, any Eligible Employee of such Subsidiary or
                  Related Company who had satisfied the requirements of
                  Subsection 2.1 as of the date such Subsidiary or Related
                  Company adopted the Plan shall become a Participant in the
                  Plan as of that date.

            (d)   Effective May 1, 2000, each Eligible Employee who is not then
                  a Participant shall become a Participant on the first day of
                  the month after the date he or she attains age 18, and
                  completes a 12-month eligibility period in which he or she is
                  credited with at least 1,000 Hours of Service. This Subsection
                  2.1(d) shall no longer apply effective August 1, 2001.

            (e)   Effective August 1, 2001:

                  (1)   Each Eligible Employee who is not a Participant on July
                        31, 2001 but who, as of August 1, 2001, has attained age
                        18 and has completed three months of employment as an
                        Employee, shall become a Participant on August 1, 2001.

                  (2)   Each Eligible Employee who is not a Participant on
                        August 1, 2001 and who is not described in Subsection
                        2.1(e)(1) shall become a Participant on the first day of
                        the calendar month following the later of (i) the month
                        in which he or she attains 18 or (ii) his or her
                        completion of three months of employment as an Employee.

                                     - 13 -
<PAGE>
      2.2   Ineligible Employees

            If an Employee completes the above eligibility requirements, but is
            Ineligible at the time participation would otherwise begin (if he or
            she were not Ineligible), he or she shall become a Participant on
            the first subsequent date on which he or she is an Eligible
            Employee.

      2.3   Ineligible or Former Participants

            A Participant may not make or share in Plan Contributions, nor
            generally be eligible for a new Plan loan, during the period he or
            she is Ineligible, but he or she shall continue to participate for
            all other purposes. An Ineligible Participant or former Participant
            shall automatically become an active Participant on the date he or
            she again becomes an Eligible Employee.

      2.4   Inapplicability of Certain Provisions to Participants Who Are
            Foreign Employees

            Sections 3 and 4 and Subsections 5.2, 5.3 and 5.4 shall not apply to
            Participants who are Foreign Employees. This Subsection 2.4 is
            effective January 1, 1999.

                                     - 14 -
<PAGE>
3     PARTICIPANT CONTRIBUTIONS

      3.1   Pre-Tax Contribution Election

            Upon becoming a Participant, an Eligible Employee may elect to
            reduce his or her Pay by an amount which does not exceed the
            Contribution Dollar Limit, within the limits described in Subsection
            3.4, and have such amount contributed to the Plan by the Employer as
            a Pre-Tax Contribution. The election shall include a designation
            regarding the percentage to be deposited to his or her Fund
            Deferrals Account and the percentage to be deposited to his or her
            Syncor Stock Deferrals Account. The election shall be made as a
            whole percentage of Pay in such manner and with such advance notice
            as prescribed by the Administrator. In no event shall an Employee's
            Pre-Tax Contributions under the Plan and comparable contributions to
            all other plans, contracts or arrangements of all Related Companies
            exceed the Contribution Dollar Limit for the Employee's taxable year
            beginning in the Plan Year.

      3.2   Changing a Contribution Election

            (a)   A Participant who is an Eligible Employee may change his or
                  her Pre-Tax Contribution election, including his or her
                  designation regarding the percentage to be deposited to his or
                  her Fund Deferrals Account and the percentage to be deposited
                  to his or her Syncor Stock Deferrals Account, as of any
                  January 1, April 1, July 1 or October 1, in such manner and
                  with such advance notice as prescribed by the Administrator,
                  and such election shall be effective with the first payroll
                  paid after such date. This Subsection 3.2(a) shall no longer
                  apply effective May 1, 2000.

            (b)   Effective May 1, 2000, a Participant who is an Eligible
                  Employee may change his or her Pre-Tax Contribution election,
                  including his or her designation regarding the percentage to
                  be deposited to his or her Fund Deferrals Account and the
                  percentage to be deposited to his or her Syncor Stock
                  Deferrals Account, on any date in the Plan Year, in such
                  manner and with such advance notice as prescribed by the
                  Administrator, and such election shall be effective with the
                  first payroll paid after such date.

            (c)   Participants' Contribution election percentages shall
                  automatically apply to Pay increases or decreases.

      3.3   Revoking and Resuming a Contribution Election

            (a)   A Participant may revoke his or her Contribution election at
                  any time in such manner and with such advance notice as
                  prescribed by the Administrator, and such election shall be
                  effective with the first payroll paid after such date.

                                     - 15 -
<PAGE>
            (b)   A Participant may resume Contributions by making a new
                  Contribution election at the same time in which a Participant
                  may change his or her election in such manner and with such
                  advance notice as prescribed by the Administrator, and such
                  election shall be effective with the first payroll paid after
                  such date.

      3.4   Contribution Percentage Limits

            (a)   The Administrator may establish and change from time to time,
                  in writing, without the necessity of amending the Plan, the
                  minimum, if applicable, and maximum Pre-Tax Contribution
                  percentages, prospectively or retrospectively (for the current
                  Plan Year), for all Participants. In addition, the
                  Administrator may establish any lower percentage limits for
                  Highly Compensated Employees as it deems necessary. As of the
                  Effective Date, the Pre-Tax Contribution maximum percentage is
                  16%.

            (b)   The Administrator may establish and change from time to time,
                  in writing, without the necessity of amending the Plan, the
                  minimum, if applicable, and maximum percentage of a
                  Participant's Pre-Tax Contribution percentage election that a
                  Participant may designate to be deposited to his or her Fund
                  Deferrals and Syncor Stock Deferrals Accounts. As of the
                  Effective Date, the maximum of a Participant's Pre-Tax
                  Contribution percentage election that may be designated to be
                  deposited to his or her Fund Deferrals Account is 14% and the
                  maximum of a Participant's Pre-Tax Contribution percentage
                  election that may be designated to be deposited to his or her
                  Syncor Stock Deferrals Account is 2%.

            (c)   Irrespective of the limits that may be established by the
                  Administrator in accordance with this Subsection 3.4, in no
                  event shall the contributions made by or on behalf of a
                  Participant for a Plan Year exceed the maximum allowable under
                  Code Section 415.

      3.5   Refunds When Contribution Dollar Limit Exceeded

            A Participant who makes Pre-Tax Contributions for a calendar year to
            this Plan and comparable contributions to any other qualified
            defined contribution plan in excess of the Contribution Dollar Limit
            may notify the Administrator in writing by the following March 1 (or
            as late as April 14 if allowed by the Administrator) that an excess
            has occurred. In this event, the amount of the excess specified by
            the Participant, adjusted for investment gain or loss, shall be
            refunded to him or her by April 15 and shall not be included as an
            Annual Addition under Code Section 415 for the year contributed.
            Refunds shall not include investment gain or loss for the period
            between the end of the applicable Plan Year and the date of
            distribution. Excess amounts shall first be taken from unmatched
            Pre-Tax Contributions and then from matched

                                     - 16 -
<PAGE>
            Pre-Tax Contributions, first from matched Pre-Tax Contributions
            deposited to the Participant's Fund Deferrals Account and then from
            matched Pre-Tax Contributions deposited to the Participant's Syncor
            Stock Deferrals Account. Any Syncor Match Contributions attributable
            to refunded excess Pre-Tax Contributions as described in this
            Subsection 3.5 shall be forfeited and used as described in
            Subsection 9.4.

      3.6   Timing, Posting and Tax Considerations

            Participants' Contributions, other than Rollover Contributions, may
            only be made through payroll deduction. Such amounts shall be paid
            to the Trustee in cash and posted to each Participant's Account(s)
            as soon as such amounts can reasonably be separated from the
            Employer's general assets and balanced against the specific amount
            made on behalf of each Participant. In no event, however, shall such
            amounts be paid to the Trustee more than 15 business following the
            end of the calendar month in which such amounts are deducted from a
            Participant's Pay. Pre-Tax Contributions shall be treated as
            Employer Contributions in determining tax deductions under Code
            Section 404(a).

                                     - 17 -
<PAGE>
4     ROLLOVERS AND TRUST-TO-TRUST TRANSFERS

      4.1   Rollovers

            (a)   The Administrator may authorize the Trustee to accept a
                  rollover contribution in accordance with Code Sections 402(c)
                  or 408(d)(3)(A)(ii), in cash, directly from an Eligible
                  Employee or as a Direct Rollover from another qualified plan
                  on behalf of the Eligible Employee, even if he or she is not
                  yet a Participant. The Employee shall be responsible for
                  furnishing satisfactory evidence, in such manner as prescribed
                  by the Administrator, that the amount is eligible for rollover
                  treatment. A rollover contribution received directly from an
                  Eligible Employee must be paid to the Trustee in cash within
                  60 days after the date received by the Eligible Employee from
                  a qualified plan or conduit individual retirement account.
                  Contributions described in this paragraph shall be posted to
                  the applicable Employee's Rollover Account as of the date
                  received by the Trustee.

            (b)   If it is later determined that an amount contributed pursuant
                  to Subsection 4.1(a) did not in fact qualify as a rollover
                  contribution under Code Sections 402(c) or 408(d)(3)(A)(ii),
                  the balance credited to the Employee's Rollover Account shall
                  immediately be (1) segregated from all other Plan assets, (2)
                  treated as a nonqualified trust established by and for the
                  benefit of the Employee, and (3) distributed to the Employee.
                  Any such nonqualifying rollover shall be deemed never to have
                  been a part of the Plan.

      4.2   Transfers from Other Qualified Plans

            (a)   The Administrator may instruct the Trustee to receive assets
                  in cash or in kind directly from another qualified plan;
                  provided that a transfer should not be directed if:

                  (1)   Any amounts are not exempted by Code Section
                        401(a)(11)(B) from the annuity requirements of Code
                        Section 417 unless the Plan complies with such
                        requirements; or

                  (2)   Any amounts include benefits protected by Code Section
                        411(d)(6) which would not be preserved under applicable
                        Plan provisions.

                  Such amounts shall be posted to the appropriate Accounts of
                  Participants as of the date received by the Trustee.

            (b)   The Trustee may refuse the receipt of any transfer if:

                  (1)   The Trustee finds the in-kind assets unacceptable; or

                                     - 18 -
<PAGE>
                  (2)   Instructions for posting amounts to Participants'
                        Accounts are incomplete.

                                     - 19 -
<PAGE>
5     EMPLOYER CONTRIBUTIONS

      5.1   Order of Employer Contributions

            The order of funding for Employer Contributions described in this
            Section 5 is as follows: Syncor Match Contributions, then Syncor
            Booster Contributions and then Syncor Stock Bonus Contributions.
            Effective January 1, 1999, Employer Contributions which are Syncor
            Cash Bonus Contributions are not subject to the preceding sentence
            and are governed by Subsection 5.5.

      5.2   Syncor Match Contributions

            (a)   Frequency and Eligibility. For each quarter of the Plan Year,
                  the Employer shall make Syncor Match Contributions, as
                  described in Subsection 5.2(b), on behalf of each Participant
                  who contributed during the quarter of the Plan Year and was an
                  Eligible Employee on the last day of the quarter of the Plan
                  Year. Notwithstanding the preceding sentence, effective as to
                  Eligible Employees who become Participants on or after August
                  1, 2001, the Employer shall not make Syncor Matching
                  Contributions on behalf of a Participant as to his or her
                  Pre-Tax Contributions, if any, with respect to his or her Pay
                  until he or she has been a Participant for 12 calendar months.

            (b)   Allocation Method.

                  (1)   With regard to a Participant's Pre-Tax Contributions to
                        be deposited to his or her Fund Deferrals Account, the
                        Syncor Match Contributions (including any Forfeiture
                        Account amounts applied as Syncor Match Contributions in
                        accordance with Subsection 9.4) for each quarter of the
                        Plan Year shall be the number of shares of Company Stock
                        having a Fair Market Value as of the end of such period
                        equal to 50% of each eligible Participant's Pre-Tax
                        Contributions for such period, provided that no Syncor
                        Match Contributions shall be made based upon a
                        Participant's Contributions designated as such in excess
                        of 4% of his or her Pay.

                  (2)   With regard to a Participant's Pre-Tax Contributions
                        deposited to his or her Syncor Stock Deferrals Account,
                        the Syncor Match Contributions (including any Forfeiture
                        Account amounts applied as Syncor Match Contributions in
                        accordance with Subsection 9.4) for each quarter of the
                        Plan Year shall be equal to the number of shares of
                        Company Stock purchased with each eligible Participant's
                        Pre-Tax Contributions for such period designated as
                        such.

                                     - 20 -
<PAGE>
                  Irrespective of the allocation method as set forth in the
                  preceding subsections, in no event shall the contributions
                  made by or on behalf of a Participant for a Plan Year exceed
                  the maximum allowable under Code Section 415.

            (c)   Medium, Timing and Posting.

                  (1)   The Employer shall make each half of the Plan Year's
                        Syncor Match Contributions through the allocation of
                        Financed Shares from the Loan Suspense Account as set
                        forth in Section 18 or if there is no Acquisition Loan
                        outstanding, in shares of Company Stock.

                  (2)   The Employer shall make each half of the Plan Year's
                        Syncor Match Contributions as soon as feasible, and not
                        later than the Employer's federal tax filing date,
                        including extensions, for deducting such Contribution.
                        The Trustee shall post such amount to each Participant's
                        Syncor Match/Bonus Account once the total number of
                        Financed Shares to be allocated or the shares of Company
                        Stock received has been balanced against the specific
                        amount to be credited to each Participant's Syncor
                        Match/Bonus Account.

      5.3   Syncor Stock Bonus Contributions

            (a)   Frequency and Eligibility. For each Plan Year, the Employer
                  may make Syncor Stock Bonus Contributions on behalf of each
                  Participant who was an Eligible Employee on the last day of
                  the Plan Year.

            (b)   Allocation Method.

                  (1)   The Syncor Stock Bonus Contributions (including any
                        Forfeiture Account amounts applied as Syncor Stock Bonus
                        Contributions in accordance with Subsection 9.4) for
                        each Plan Year shall be in an amount determined by the
                        Employer and allocated among eligible Participants in
                        direct proportion to their Pay.

                  (2)   Irrespective of the allocation method as set forth in
                        the preceding subsection, in no event shall the
                        contributions made by or on behalf of a Participant for
                        a Plan Year exceed the maximum allowable under Code
                        Section 415.

            (c)   Medium, Timing and Posting.

                  (1)   The Employer shall make each Plan Year's Syncor Stock
                        Bonus Contributions through the allocation of Financed
                        Shares from

                                     - 21 -
<PAGE>
                        the Loan Suspense Account as set forth in Section 18 or
                        if there is no Acquisition Loan outstanding, in shares
                        of Company Stock.

                  (2)   The Employer shall make each Plan Year's Syncor Stock
                        Bonus Contributions as soon as feasible, and not later
                        than the Employer's federal tax filing date, including
                        extensions, for deducting such Contribution. The Trustee
                        shall post such amount to each Participant's Syncor
                        Match/Bonus Account once the total number of Financed
                        Shares to be allocated or shares of Company Stock
                        received has been balanced against the specific amount
                        to be credited to each Participant's Syncor Match/Bonus
                        Account.

      5.4   Syncor Booster Contributions

            (a)   Frequency and Eligibility. For each Plan Year, the Employer
                  may make Syncor Booster Contributions on behalf of each
                  Non-Highly Compensated Employee Participant who was an
                  Eligible Employee on the last day of the Plan Year.

            (b)   Allocation Method.

                  (1)   The Syncor Booster Contributions (including any
                        Forfeiture Account amounts applied as Syncor Booster
                        Contributions in accordance with Subsection 9.4) for
                        each Plan Year shall be in an amount of shares of
                        Company Stock determined by the Employer as necessary
                        for purposes of satisfying the tests described in
                        Subsections 13.2 and 13.4 and allocated among eligible
                        Participants equally.

                  (2)   Irrespective of the allocation method as set forth in
                        the preceding subsection, in no event shall the
                        contributions made by or on behalf of a Participant for
                        a Plan Year exceed the maximum allowable under Code
                        Section 415.

            (c)   Medium, Timing and Posting.

                  (1)   The Employer shall make each Plan Year's Syncor Booster
                        Contributions through the allocation of Financed Shares
                        from the Loan Suspense Account as set forth in Section
                        18 or if there is no Acquisition Loan outstanding, in
                        shares of Company Stock.

                  (2)   The Employer shall make each Plan Year's Syncor Booster
                        Contributions as soon as is feasible, and not later than
                        the Employer's federal tax filing date, including
                        extensions, for

                                     - 22 -
<PAGE>
                        deducting such Contribution. Notwithstanding the
                        preceding sentence, for purposes of satisfying the tests
                        described in Subsections 13.2 and 13.4, Syncor Booster
                        Contributions must be made before the end of the Plan
                        Year following the Plan Year being tested. The Trustee
                        shall post such amount to each Participant's Syncor
                        Booster Account once the total number of Financed Shares
                        to be allocated or shares of Company Stock received has
                        been balanced against the specific amount to be credited
                        to each Participant's Syncor Booster Account.

      5.5   Syncor Cash Bonus Contributions

            (a)   Frequency and Eligibility. For each Plan Year, the Employer at
                  its discretion may make Syncor Cash Bonus Contributions on
                  behalf of each Participant who was an Eligible Employee on the
                  last day of the Plan Year, provided that such Participant was
                  a Foreign Employee during all of such Plan Year.

            (b)   Allocation Method. The Syncor Cash Bonus Contributions
                  (including any Cash Forfeiture Account amounts applied as
                  Syncor Cash Bonus Contributions in accordance with Subsection
                  9.6) for each Plan Year, shall be in an amount determined by
                  the Employer and allocated among eligible participants [as
                  specified in Subsection 5.5(a)] in direct proportion to their
                  Pay.

            (c)   Change of Status. If a Participant who is a Foreign Employee
                  changes his or her status so that he is no longer a Foreign
                  Employee, but he continues to be an Employee, he shall not be
                  entitled to any further allocations of Syncor Cash Bonus
                  Contributions (or Cash Forfeiture Account amounts applied as
                  Syncor Cash Bonus Contributions in accordance with Subsection
                  9.6).

            (d)   This Subsection 5.5 is effective January 1, 1999.

                                     - 23 -
<PAGE>
6     ACCOUNTING

      6.1   Individual Participant Accounting

            (a)   The Administrator shall maintain an individual set of Accounts
                  for each Participant in order to reflect transactions both by
                  type of Contribution and investment medium. Financial
                  transactions shall be accounted for at the individual Account
                  level by posting each transaction to the appropriate Account
                  of each affected Participant. Participant Account values shall
                  be maintained as follows:

                  (1)   In shares of the Investment Funds and in dollars for a
                        Participant's Directed Investment Accounts; and

                  (2)   In whole and fractional shares of Company Stock and in
                        dollars for any portion not invested in Company Stock,
                        for a Participant's Stock Investment Company Accounts
                        and Stock Investment Participant Account.

            (b)   At any point in time, the Account value shall be determined
                  using the most recent Trade Date values provided by the
                  Trustee.

            (c)   The Trustee shall be responsible for maintaining adequate
                  records to account for such, including the aggregate cost
                  basis of Company Stock held in a Participant's Stock
                  Investment Company Accounts and Stock Investment Participant
                  Account.

      6.2   Sweep Account is Transaction Account

            All transactions related to amounts being contributed to or
            distributed from the Trust shall be posted to each affected
            Participant's Sweep Account. Any amount held in the Sweep Account
            will be credited with interest up until the date on which it is
            removed from the Sweep Account.

      6.3   Trade Date Accounting and Investment Cycle

            Participant Account values shall be determined as of each Trade
            Date. For any transaction to be processed as of a Trade Date, the
            Trustee must receive instructions for the transaction by the Sweep
            Date. Such instructions shall apply to amounts held in the Account
            on that Sweep Date. Financial transactions of the Investment Funds
            shall be posted to Participants' Accounts as of the Trade Date,
            based upon the Trade Date values provided by the Trustee, and
            settled on the Settlement Date.

                                     - 24 -
<PAGE>
      6.4   Accounting for Investment Funds

            Investments in each Investment Fund shall be maintained in shares.
            The Trustee is responsible for determining the share values of each
            Investment Fund as of each Trade Date. To the extent an Investment
            Fund is comprised of collective investment funds of the Trustee, or
            any other fiduciary to the Plan, the share values shall be
            determined in accordance with the rules governing such collective
            investment funds, which are incorporated herein by reference. All
            other share values shall be determined by the Trustee. The share
            value of each Investment Fund shall be based on the fair market
            value of its underlying assets.

      6.5   Payment of Fees and Expenses

            (a)   Except to the extent Plan fees and expenses related to Account
                  maintenance, transaction and Investment Fund management and
                  maintenance, as set forth below, are paid by the Employer
                  directly, or indirectly, through the Forfeiture Account as
                  directed by the Administrator, such fees and expenses shall be
                  paid as set forth below. The Employer may pay a lower portion
                  of the fees and expenses allocable to the Accounts of
                  Participants who are no longer Employees or who are not
                  Beneficiaries, unless doing so would result in discrimination.

            (b)   Account Maintenance: Account maintenance fees and expenses,
                  may include but are not limited to, administrative, Trustee,
                  government annual report preparation, audit, legal,
                  nondiscrimination testing, and fees for any other special
                  services. Account maintenance fees shall be charged to
                  Participants on a per Participant basis provided that no fee
                  shall reduce a Participant's Account balance below zero.

            (c)   Transaction: Transaction fees and expenses, may include but
                  are not limited to, recurring payment, Investment Fund
                  election change and loan fees. Transaction fees shall be
                  charged to the Participant's Account involved in the
                  transaction provided that no fee shall reduce a Participant's
                  Account balance below zero.

            (d)   Investment Fund Management and Maintenance: Management and
                  maintenance fees and expenses related to the Investment Funds
                  shall be charged at the Investment Fund level and reflected in
                  the net gain or loss of each Fund.

            (e)   The Administrator shall determine from time to time which Plan
                  fees and expenses shall generally be borne by the Trust (and
                  charged to individual Participants' Accounts) and which such
                  fees and expenses shall be paid by the Employer, directly or
                  indirectly, without the necessity of amending the Plan.

                                     - 25 -
<PAGE>
            (f)   The Trustee shall have the authority to pay from the Trust any
                  such fees and expenses which remain unpaid by the Employer for
                  60 days, except to the extent of any such fees and expenses in
                  dispute.

      6.6   Accounting for Participant Loans

            Participant loans shall be held in a separate Account of the
            Participant and accounted for in dollars as an earmarked asset of
            the borrowing Participant's Account.

      6.7   Error Correction

            The Administrator may correct any errors or omissions in the
            administration of the Plan by restoring any Participant's Account
            balance with the amount that would be credited to the Account had no
            error or omission been made. Funds necessary for any such
            restoration shall be provided through payment made by the Employer,
            or by the Trustee to the extent the error or omission is
            attributable to actions or inactions of the Trustee, or if the
            restoration involves an Employer Contribution Account, the
            Administrator may direct the Trustee to use amounts from the
            Forfeiture Account.

      6.8   Participant Statements

            The Administrator shall provide Participants with statements of
            their Accounts as soon after the end of each quarter of the Plan
            Year as is administratively feasible.

      6.9   Special Accounting During Conversion Period

            The Administrator and Trustee may use any reasonable accounting
            methods in performing their respective duties during any Conversion
            Period. This includes, but is not limited to, the method for
            allocating net investment gains or losses and the extent, if any, to
            which contributions received by and distributions paid from the
            Trust during this period share in such allocation.

      6.10  Accounts for QDRO Beneficiaries

            (a)   A separate Account shall be established for an alternate payee
                  entitled to any portion of a Participant's Account under a
                  QDRO as of the date and in accordance with the directions
                  specified in the QDRO. In addition, a separate Account may be
                  established during the period of time the Administrator, a
                  court of competent jurisdiction or other appropriate person is
                  determining whether a domestic relations order qualifies as a
                  QDRO. Such a separate Account shall be valued and accounted
                  for in the same manner as any other Account.

                                     - 26 -
<PAGE>
            (b)   Distributions Pursuant to QDROs. If a QDRO so provides, the
                  portion of a Participant's Account payable to an alternate
                  payee may be distributed, in a form as permissible under
                  Section 12, to such alternate payee at the time specified in
                  such QDRO, regardless of whether the Participant is entitled
                  to a distribution from the Plan at such time.

            (c)   Participant Loans. Except to the extent required by law, an
                  alternate payee, on whose behalf a separate Account has been
                  established, shall not be entitled to borrow from such
                  Account. If a QDRO specifies that the alternate payee is
                  entitled to any portion of the Account of a Participant who
                  has an outstanding loan balance, all outstanding loans shall
                  generally continue to be held in the Participant's Account and
                  shall not be divided between the Participant's and alternate
                  payee's Accounts.

            (d)   Investment Direction. Where a separate Account has been
                  established on behalf of an alternate payee and has not yet
                  been distributed, the alternate payee may direct the
                  investment of such Account in the same manner as if he or she
                  were a Participant.

                                     - 27 -
<PAGE>
7     INVESTMENT OF DIRECTED INVESTMENT ACCOUNTS

      7.1   Investment Funds

            Each Participant's Directed Investment Accounts shall be invested in
            various Investment Funds. The Administrator shall select the
            Investment Funds offered to Participants and may change the number
            or composition of the Investment Funds, subject to the terms and
            conditions agreed to with the Trustee. The Administrator may change
            the Investment Funds offered to Participants from time to time, in
            writing, without the necessity of amending the Plan.

      7.2   Investment Fund Elections

            (a)   Each Participant shall direct the investment of his or her
                  Directed Investment Accounts.

            (b)   A Participant shall make his or her investment election in any
                  combination of one or any number of the Investment Funds
                  offered in accordance with the procedures established by the
                  Administrator and Trustee. However, during any Conversion
                  Period, Trust assets of Directed Investment Accounts may be
                  held in any investment vehicle permitted by the Plan, as
                  directed by the Administrator, irrespective of Participant
                  investment elections.

            (c)   The Administrator may set, in writing, a maximum percentage of
                  the total election that a Participant may direct into any
                  specific Investment Fund may change such maximum percentage in
                  writing from time to time without the necessity of amending
                  the Plan.

      7.3   Responsibility for Investment Choice

            Each Participant shall be solely responsible for the selection of
            his or her Investment Fund choices for his or her Directed
            Investment Accounts. No fiduciary with respect to the Plan is
            empowered to advise a Participant as to the manner in which his or
            her Directed Investment Accounts are to be invested, and the fact
            that an Investment Fund is offered shall not be construed to be a
            recommendation for investment.

      7.4   Default if No Election

            The Administrator shall specify an Investment Fund for the
            investment of that portion of a Participant's Directed Investment
            Accounts which is not yet held in an Investment Fund and for which
            no valid investment election is on file and may change such
            Investment Fund from time to time without the necessity of amending
            the Plan.

                                     - 28 -
<PAGE>
      7.5   Timing

            A Participant shall make his or her initial investment election upon
            becoming a Participant and may change his or her election at any
            time in accordance with the procedures established by the
            Administrator and Trustee. Investment elections received by the
            Trustee by the Sweep Date will be effective on the following Trade
            Date.

      7.6   Investment Fund Election Change Fees

      A     reasonable processing fee may be charged directly to a Participant's
            Account for Investment Fund election changes in excess of a
            specified number per year as determined by the Administrator.

                                     - 29 -
<PAGE>
8     INVESTMENT OF STOCK INVESTMENT COMPANY ACCOUNTS AND STOCK INVESTMENT
      PARTICIPANT ACCOUNTS

      8.1   Normal Investment

            Each Participant's Stock Investment Company Accounts and Stock
            Investment Participant Account shall be invested entirely in shares
            of Company Stock, except for any deposit or money market type assets
            pending investment in shares of Company Stock.

      8.2   Diversification of Stock Investment Company Accounts (Prior to
            January 1, 2002)

            (a)   A Qualified Participant shall have the right to elect to
                  diversify a portion of his or her Stock Investment Company
                  Accounts during the Qualified Election Period pursuant to Code
                  Section 401(a)(28)(B). The election shall be made within the
                  90-day period after the close of each Plan Year in the
                  Qualified Election Period.

            (b)   The Administrator shall be responsible for notifying a
                  Qualified Participant of his or her right to elect to
                  diversify. An election to diversify shall be made in such
                  manner as may be prescribed by the Administrator. Within 90
                  days after the end of the 90-day period specified in
                  Subsection 8.2(a), (i) the shares of Company Stock which a
                  Qualified Participant elects to diversify shall be sold from
                  his or her Stock Investment Company Accounts and (ii) the
                  proceeds shall be invested in his or her Rollover Account.

            (c)   For each of the first five Plan Years in the Qualified
                  Election Period the Participant may elect to diversify 25% of
                  the number of shares of Company Stock allocated to his or her
                  Stock Investment Company Accounts since the establishment of
                  such Accounts on his or her behalf, less the number of shares
                  of Company Stock previously diversified in accordance with an
                  election under this Subsection 8.2. For the final Plan Year in
                  the Qualified Election Period, "50%" shall be substituted for
                  "25%" in the preceding sentence.

            (d)   Notwithstanding the preceding provisions of this Subsection
                  8.2, the Administrator may permit diversification of Stock
                  Investment Company Accounts in amounts in excess of that
                  required by Code Section 401(a)(28) and at times other than,
                  but no less than the times required by Code Section
                  401(a)(28).

            (e)   Effective January 1, 2002, this Subsection 8.2 shall no longer
                  be in effect.

                                     - 30 -
<PAGE>
      8.3   Diversification of Stock Investment Company Accounts and Stock
            Investment Participant Accounts (Effective January 1, 2002)

            (a)   This Subsection 8.3 shall take effect as of January 1, 2002.

            (b)   A Qualified Participant shall have the right to elect to
                  diversify a portion of his or her Stock Investment Company
                  Accounts and Stock Investment Participant Account as specified
                  in Subsection 8.3(c). An election to diversify may be made
                  during the 90-day period at the beginning of each Plan Year
                  within the Qualified Election Period.

            (c)   Each Qualified Participant shall be permitted to diversify 10%
                  of the number of shares of Company Stock allocated to his or
                  her Stock Investment Company Accounts and Stock Investment
                  Participant Account during each Plan Year of the Qualified
                  Election Period, except that:

                  (1)   During the five Plan Years of the Qualified Election
                        Period beginning with the Plan Year in which he or she
                        attained age 55, he or she shall be permitted to
                        diversify 25% of the number of shares of Company Stock
                        allocated to his or her Stock Investment Company
                        Accounts and Stock Investment Participant Account; and

                  (2)   During the Plan Year of the Qualified Election Period
                        which is the fifth Plan Year after the Plan Year in
                        which he or she attained age 55, he or she shall be
                        permitted to diversify 50% of the number of shares of
                        Company Stock allocated to his or her Stock Investment
                        Company Accounts and Stock Investment Participant
                        Account.

            (d)   The Administrator shall be responsible for notifying a
                  Qualified Participant of his or her right to elect to
                  diversify. An election to diversify shall be made in such
                  manner as may be prescribed by the Administrator. Within 90
                  days after the end of the 90-day period specified in
                  Subsection 8.3(b), (i) the shares of Company Stock which a
                  Qualified Participant elects to diversify shall be sold from
                  his or her Stock Investment Company Accounts and Stock
                  Investment Participant Account and (ii) the proceeds shall be
                  invested in his or her Rollover Account.

            (e)   In the event any Qualified Participant's diversification
                  rights during any Plan Year are less than what he or she is
                  entitled under Section 401(a)(28)(B) of the Code, the terms of
                  said under Section 401(a)(28)(B) shall control.

                                     - 31 -
<PAGE>

9     VESTING AND FORFEITURES

      9.1   Fully Vested Contribution Accounts

            A Participant shall be fully vested in these Accounts at all times:

            (a)   Fund Deferrals Account

            (b)   Syncor Stock Deferrals Account

            (c)   Rollover Account

            (d)   Syncor Booster Account

            (e)   Pre-ESSOP Shares Account

      9.2   Full Vesting upon Certain Events

            A Participant's entire Account shall become fully vested once he or
            she has attained his or her Normal Retirement Date as an Employee or
            upon his or her leaving the Employer due to his or her Disability or
            death.

      9.3   Vesting Schedule

            (a)   In addition to the vesting provisions provided in Subsections
                  9.1 and 9.2, a Participant's Syncor Match/Bonus Account shall
                  become vested in accordance with the following schedule:

<TABLE>
<CAPTION>
                  Years of Vesting                   Vested
                  Service.                           Percentage

<S>                                                  <C>
                  Less than 3                                 0%

                  3 but less than 4                          40%

                  4 but less than 5                          70%

                  5 or more                                 100%
</TABLE>

            (b)   If the Plan is amended to change the above schedule, the
                  vested percentage for each Participant shall not be less than
                  his or her vested percentage determined as of the last day
                  prior to this change, and for any Participant with at least
                  three Years of Vesting Service when the schedule is changed,
                  vesting shall be determined using the more favorable vesting
                  schedule.

                                     - 32 -
<PAGE>
                  (c)   Effective January 1, 1999, this Subsection 9.3 shall
                        also apply to a Participant's Syncor Cash Bonus Account.

      9.4   Forfeitures

                  (a)   A Participant's non-vested Account balance shall be
                        forfeited as of the Settlement Date following the Sweep
                        Date on which the Administrator has reported to the
                        Trustee that the Participant's employment has terminated
                        with all Related Companies. Effective January 1, 1999,
                        the preceding sentence shall read as follows: "A
                        Participant's non-vested Account balance shall be
                        forfeited as of the Settlement Date following the Sweep
                        Date on which the Administrator has reported to the
                        Trustee that the Participant's employment has terminated
                        with the Employer and all Related Companies."
                        Forfeitures from all Employer Contribution Accounts
                        shall be transferred to and maintained in a single
                        Forfeiture Account, which shall be invested in shares of
                        Company Stock and interest bearing deposits of the
                        Trustee. Forfeiture Account amounts shall be allocated
                        as Contributions as described in Section 5, utilized to
                        restore Accounts and to pay Plan fees and expenses as
                        directed by the Administrator.

                  (b)   Effective January 1, 1999, and notwithstanding
                        Subsection 9.4(a), forfeitures from Syncor Cash Bonus
                        Accounts shall be disposed of pursuant to Subsection 9.6
                        rather than this Subsection 9.4.

      9.5   Rehired Employees

                  (a)   Service. If a former Employee is rehired, all Years of
                        Vesting Service credited prior to his or her termination
                        of employment shall be counted in determining his or her
                        vested interest.

                  (b)   Account Restoration. If a former Employee is rehired
                        before he or she has a Break in Service, the number of
                        shares of Company Stock and the amount of cash forfeited
                        when his or her employment last terminated shall be
                        restored to his or her Account. The amount shall come
                        from the Forfeiture Account to the extent possible, and
                        any additional amount needed shall be contributed by the
                        Employer. The vested interest in his or her restored
                        Account shall then be equal to:

                                     - 33 -
<PAGE>
                                            V% times (AB + D) minus D

                                where:

                                            V% = current vested percentage;

                                            AB = current account balance; and

                                            D =  amount previously distributed.

      9.6   Forfeitures from Syncor Cash Bonus Accounts.

            A Participant's non-vested Syncor Cash Bonus Account balance shall
            be forfeited as of the Settlement Date following the Sweep Date on
            which the Administrator has reported to the Trustee that the
            Participant's employment has terminated with the Employer and all
            Related Companies. Forfeitures from all Syncor Cash Bonus Accounts
            shall be transferred to and maintained in a single Cash Forfeiture
            Account, which shall be invested in interest-bearing deposits of the
            Trustee. Cash Forfeiture Account amounts shall be allocated as
            Contributions as described in Subsection 5.5(b), utilized to restore
            Syncor Cash Bonus Accounts and to pay Plan fees and expenses as
            directed by the Administrator. This Subsection 9.6 is effective
            January 1, 1999.

                                     - 34 -
<PAGE>
10    PARTICIPANT LOANS

      10.1  Participant Loans Permitted

            Loans to Participants are permitted pursuant to the terms and
            conditions set forth in this Section 10.

      10.2  Loan Application, Note and Security

            A Participant shall apply for any loan in such manner and with such
            advance notice as prescribed by the Administrator. All loans shall
            be evidenced by a promissory note, secured only by 50% of the
            Participant's Account(s) from which the loan is made, and the Plan
            shall have a lien on this portion of his or her Account(s).

      10.3  Spousal Consent

            A Participant is not required to obtain Spousal Consent in order to
            take out a loan under the Plan.

      10.4  Loan Approval

            The Administrator, or the Trustee if otherwise authorized by the
            Administrator and agreed to by the Trustee, is responsible for
            determining that a loan request conforms to the requirements
            described in this Section 10 and granting such request.

      10.5  Loan Funding Limits

            The loan amount must meet all of the following limits as determined
            as of the Sweep Date the loan is processed:

            (a)   Plan Minimum Limit. The minimum amount for any loan is $500.

            (b)   Plan Maximum Limit. Subject to the legal limit described in
                  Subsection 10.5(c), the maximum a Participant may borrow,
                  including the outstanding balance of existing Plan loans, is
                  100% of the following Accounts which are fully vested:

                  (1)   Fund Deferrals Account;

                  (2)   Syncor Stock Deferrals Account; and

                  (3)   Rollover Account.

            (c)   Legal Maximum Limit. The maximum a Participant may borrow,
                  including the outstanding balance of existing Plan loans, as
                  well as

                                     - 35 -
<PAGE>
                  loans from any other qualified plan sponsored by the Employer
                  or a Related Employer, is 50% of his or her vested Account
                  balance, not to exceed $50,000. However, the $50,000 maximum
                  shall be reduced by the Participant's highest outstanding loan
                  balance during the 12-month period ending on the day before
                  the Sweep Date as of which the loan is made. For purposes of
                  this Subsection 10.5(c), the qualified plans of all Related
                  Companies shall be treated as though they are part of this
                  Plan to the extent it would decrease the maximum loan amount.

      10.6  Maximum Number of Loans

            A Participant may have only one loan outstanding at any given time.

      10.7  Source and Timing of Loan Funding

            (a) A loan to a Participant shall be made solely from the assets of
            his or her own Accounts. The available assets shall be determined
            first by Account type and then by investment type within each type
            of Account. The hierarchy for loan funding by type of Account shall
            be the order listed in the preceding Plan Maximum Limit paragraph.
            Within each Account used for funding a loan, amounts shall first be
            taken from the Sweep Account and then taken by type of investment in
            direct proportion to the market value of the Participant's interest
            in each Investment Fund as of the Trade Date on which the loan is
            processed.

            (b) Loans will be funded on the Settlement Date following the Trade
                Date as of which the loan is processed. The Trustee shall make
                payment to the Participant as soon thereafter as
                administratively feasible.

      10.8  Interest Rate

            The interest rate charged on Participant loans shall be a fixed
            reasonable rate of interest, determined from time to time by the
            Administrator, which provides the Plan with a return commensurate
            with the prevailing interest rate charged by persons in the business
            of lending money for loans which would be made under similar
            circumstances.

      10.9  Repayment

            Substantially level amortization shall be required of each loan with
            payments made at least monthly, generally through payroll deduction.
            Loans may be prepaid in full or in part at any time. The Participant
            may choose the loan repayment period, not to exceed 5 years.
            However, the term may be for any period not to exceed 15 years if
            the purpose of the loan is to acquire the Participant's principal
            residence.

                                     - 36 -
<PAGE>
      10.10 Repayment Hierarchy

            Loan principal repayments shall be credited to the Participant's
            Accounts in the inverse of the order used to fund the loan. Loan
            interest shall be credited to the Participant's Accounts in direct
            proportion to the principal payment. Loan payments are credited by
            investment type based upon the Participant's current investment
            election for new Contributions.

      10.11 Repayment Suspension

            The Administrator may agree to a suspension of loan payments for up
            to 6 months for a Participant who is on a Leave of Absence without
            pay. During the suspension period interest shall continue to accrue
            on the outstanding loan balance. At the expiration of the suspension
            period all outstanding loan payments and accrued interest thereon
            shall be due unless otherwise agreed upon by the Administrator.

      10.12 Loan Default

            (a)   A loan is treated as a default if scheduled loan payments are
                  more than 90 days late. A Participant shall then have 30 days
                  from the time he or she receives written notice of the default
                  and a demand for past due amounts to cure the default before
                  it becomes final.

            (b)   In the event of default, the Administrator may direct the
                  Trustee to report the default as a taxable distribution. As
                  soon as a Plan withdrawal or distribution to such Participant
                  would otherwise be permitted, the Administrator may instruct
                  the Trustee to execute upon its security interest in the
                  Participant's Account by distributing the note to the
                  Participant.

      10.13 Call Feature

            The Administrator shall have the right to call any Participant loan
            once a Participant's employment with all Related Companies has
            terminated or if the Plan is terminated. Effective January 1, 1999,
            the preceding sentence shall read as follows: "The Administrator
            shall have the right to call any Participant loan once a
            Participant's employment with the Employer and all Related Companies
            has terminated or if the Plan is terminated."

                                     - 37 -
<PAGE>
11    IN-SERVICE WITHDRAWALS

      11.1  In-Service Withdrawals Permitted

            In-service withdrawals to a Participant who is an Employee are
            permitted pursuant to the terms and conditions set forth in this
            Section 11 and as required by law as set forth in Section 12.

      11.2  In-Service Withdrawal Application and Notice

            (a)   A Participant shall apply for any in-service withdrawal in
                  such manner and with such advance notice as prescribed by the
                  Administrator. The Participant shall be provided the notice
                  prescribed by Code Section 402(f).

            (b)   If an in-service withdrawal is one to which Code Sections
                  401(a)(11) and 417 do not apply, such in-service withdrawal
                  may commence less than 30 days after the aforementioned notice
                  is provided, if:

                  (1)   The Participant is clearly informed that he or she has
                        the right to a period of at least 30 days after receipt
                        of such notice to consider his or her option to elect or
                        not elect a Direct Rollover for all or a portion, if
                        any, of his or her in-service withdrawal which will
                        constitute an Eligible Rollover Distribution; and

                  (2)   The Participant after receiving such notice,
                        affirmatively elects a Direct Rollover for all or
                        portion, if any, of his or her in-service withdrawal
                        which will constitute an Eligible Rollover Distribution
                        or alternatively elects to have all or a portion made
                        payable directly to him or her, thereby not electing a
                        Direct Rollover for all or a portion thereof.

      11.3  Spousal Consent

            A Participant is required to obtain Spousal Consent in order to make
            an in-service withdrawal under the Plan.

      11.4  In-Service Withdrawal Approval

            The Administrator, or the Trustee if otherwise authorized by the
            Administrator and agreed to by the Trustee, is responsible for
            determining that an in-service withdrawal request conforms to the
            requirements described in this Section 11 and granting such request.

                                     - 38 -
<PAGE>
      11.5  Minimum Amount, Payment Form and Medium

            (a)   There shall be no minimum amount for any type of in-service
                  withdrawal.

            (b)   With regard to the portion of an in-service withdrawal
                  representing an Eligible Rollover Distribution, a Participant
                  may elect a Direct Rollover for all or a portion of such
                  amount. The form of payment for an in-service withdrawal shall
                  be a single lump sum and payment shall be made in cash.

      11.6  Source and Timing of In-Service Withdrawal Funding

            (a)   An in-service withdrawal to a Participant shall be made solely
                  from the assets of his or her own Accounts and will be based
                  on the Account values as of the Trade Date the in-service
                  withdrawal is processed. The available assets shall be
                  determined first by Account type and then by investment type
                  within each type of Account. Within each Account used for
                  funding an in-service withdrawal, amounts shall first be taken
                  from the Sweep Account and then taken by type of investment in
                  direct proportion to the market value of the Participant's
                  interest in each Investment Fund (which excludes Participant
                  loans) as of the Trade Date on which the in-service withdrawal
                  is processed.

            (b)   In-Service withdrawals shall be funded on the Settlement Date
                  following the Trade Date as of which the in-service withdrawal
                  is processed. The Trustee shall make payment as soon
                  thereafter as administratively feasible.

      11.7  Hardship Withdrawals

            (a)   Requirements. A Participant who is an Employee may request the
                  withdrawal of up to the amount necessary to satisfy a
                  financial need including amounts necessary to pay any federal,
                  state or local income taxes or penalties reasonably
                  anticipated to result from the withdrawal. Only requests for
                  withdrawals (1) on account of a Participant's "Deemed
                  Financial Need" or "Demonstrated Financial Need," and (2)
                  which are "Deemed Necessary" to satisfy the financial need
                  will be approved.

            (b)   "Deemed Financial Need" means financial commitments of a
                  Participant relating to:

                  (1)   Expenses for "medical care" [as defined in Code Section
                        213(d)] previously incurred by the Participant his or
                        her spouse or any of the Participant's dependents (as
                        defined in Code

                                     - 39 -
<PAGE>
                        Section 152) or necessary for these persons to obtain
                        medical care

                  (2)   The purchase (excluding mortgage payments) of the
                        Employee's principal residence;

                  (3)   The payment of unreimbursable tuition and related
                        educational fees and room and board expenses for up to
                        the next 12 months of post-secondary education for the
                        Participant, his or her spouse or dependents (as defined
                        in Code Section 152);

                  (4)   The payment of funeral expenses of a Participant's
                        family member;

                  (5)   The payment of amounts necessary for the Participant to
                        the eviction of the Participant from his or her
                        principal residence or foreclosure on the mortgage on
                        said residence; or

                  (6)   Any other circumstance specifically permitted pursuant
                        to regulations under Code Section 401(k)(2)(B)(i)(IV).

            (c)   "Demonstrated Financial Need" means a determination by the
                  Administrator that a severe financial hardship to the
                  Participant has resulted from:

                  (1)   A sudden and unexpected illness or accident to the
                        Employee or his or her spouse or dependents;

                  (2)   The loss, due to casualty, of the Employee's property
                        other than nonessential property (such as a boat or a
                        television); or

                  (3)   Some other similar extraordinary and unforeseeable
                        circumstances arising as a result of events beyond the
                        control of the Employee.

            (d)   "Deemed Necessary." A withdrawal shall be "Deemed Necessary"
                  to satisfy the financial need only if the withdrawal amount
                  does not exceed the financial need and all of these conditions
                  are met:

                  (1)   The Participant has obtained all other possible
                        withdrawals and nontaxable loans available from all
                        plans maintained by Related Companies;

                  (2)   The Participant is prohibited, under the terms of the
                        plan or an otherwise legally-enforceable agreement, from
                        making any contributions, pre-tax as well as after-tax,
                        to all plans maintained by Related Companies for 12
                        months from the date the withdrawal payment is made; and

                                     - 40 -
<PAGE>
                  (3)   For the taxable year next following the taxable year of
                        the withdrawal, the Participant's maximum "elective
                        deferrals" [as defined in Code Section 402(g)(3)] under
                        all plans maintained by Related Companies are reduced by
                        the amount of the Participant's elective deferrals for
                        the calendar year of the withdrawal.

                  For purposes of this Subsection 11.7(d), the term "all plans
                  maintained by Related Companies" means all qualified and
                  nonqualified plans of deferred compensation maintained by
                  related Companies, including stock option, stock purchase or
                  similar plans and "cash-or-deferred" arrangements which are
                  part of "cafeteria plans" described in Code Section 125, but
                  excluding (i) mandatory contributions to a defined benefit
                  plan and (ii) a health or welfare benefit plan, including one
                  that is part of a cafeteria plan. The prohibition referred to
                  in Subsection 11.7(d)(2) and the reduction referred to in
                  Subsection 11.7(d)(3) are hereby made a part of this Plan.

            (e)   Account Sources for Withdrawal. The withdrawal amount shall
                  come from the following of the Participant's fully vested
                  Accounts, in the priority order as follows:

                  (1)   Rollover Account;

                  (2)   Syncor Stock Deferrals Account; and

                  (3)   Fund Deferrals Account

                  The amount that may be withdrawn from a Participant's Fund
                  Deferrals and Syncor Stock Deferrals Accounts shall not
                  include any earnings credited to his or her Pre-Tax Account
                  after December 31, 1988.

            (f)   Permitted Frequency. There is no restriction on the number of
                  Hardship withdrawals permitted to a Participant.

      11.8  Rollover Account Withdrawals

            No in-service withdrawals are permitted from a Participant's
            Rollover Account except as provided elsewhere in this Section 11.

      11.9  Over Age 59-1/2 Withdrawals

            (a)   Requirements. A Participant who is an Employee and over age
                  59-1/2 may withdraw from the Accounts listed in paragraph (b)
                  below.

                                     - 41 -
<PAGE>
            (b)   Account Sources for Withdrawal. The withdrawal amount shall
                  come from the following of the Participant's fully vested
                  Accounts, in the priority order as follows:

                  (1)   Rollover Account; and

                  (2)   Fund Deferrals Account

            (c)   Permitted Frequency. The maximum number of withdrawals
                  permitted to a Participant under this Subsection 11.9 is one.

            (d)   Suspension from Further Contributions. A withdrawal pursuant
                  to this Subsection 11.9 shall not affect a Participant's
                  ability to make or be eligible to receive further
                  Contributions.

                                     - 42 -
<PAGE>
12    DISTRIBUTIONS ONCE EMPLOYMENT ENDS OR AS REQUIRED BY LAW

      12.1  Benefit Information, Notices and Election

            (a)   A Participant, or his or her Beneficiary in the case of his or
                  her death, shall be provided with information regarding all
                  optional times and forms of distribution available, to include
                  the notices prescribed by Code Section 402(f) and Code Section
                  411(a)(11). Subject to the other requirements of this Section
                  12, a Participant, or his or her Beneficiary in the case of
                  his or her death, may elect, in such manner and with such
                  advance notice as prescribed by the Administrator, to have his
                  or her vested Account balance paid to him or her beginning
                  upon any Settlement Date following the Participant's
                  termination of employment with all Related Companies or, if
                  earlier, at the time required by law as set forth in
                  Subsection 12.7. Effective January 1, 1999, the preceding
                  sentence shall read as follows: "Subject to the other
                  requirements of this Section 12, a Participant, or his or her
                  Beneficiary in the case of his or her death, may elect, in
                  such manner and with such advance notice as prescribed by the
                  Administrator, to have his or her vested Account balance paid
                  to him or her beginning upon any Settlement Date following the
                  Participant's termination of employment with the Employer and
                  all Related Companies or, if earlier, at the time required by
                  law as set forth in Subsection 12.7."

            (b)   If a distribution is one to which Code Sections 401(a)(11) and
                  417 do not apply, such distribution may commence less than 30
                  days after the aforementioned notices are provided, if:

                  (1)   The Participant is clearly informed that he or she has
                        the right to a period days after receipt of such notices
                        to consider the decision as to whether to elect a
                        distribution and if so to elect a particular form of
                        distribution and to elect or not elect a Direct Rollover
                        for all or a portion, if any, of his or her distribution
                        which will constitute an Eligible Rollover Distribution;
                        and

                  (2)   The Participant after receiving such notices,
                        affirmatively elects a distribution and a Direct
                        Rollover for all or a portion, if any, of his or her
                        distribution which will constitute an Eligible Rollover
                        Distribution or alternatively elects to have all or a
                        portion made payable directly to him or her, thereby not
                        electing a Direct Rollover for all or a portion thereof.

      12.2  Spousal Consent

            A Participant shall be required to obtain Spousal Consent in order
            to receive a distribution under the Plan, except with regard to a
            distribution that may be

                                     - 43 -
<PAGE>
            made to a Participant without his or her consent in accordance with
            Subsection 12.4. This Subsection 12.2 shall not apply to
            distributions made after February 28, 2002.

      12.3  Payment Form and Medium

            (a)   A Participant shall be paid in the form of a single lump sum.
                  Notwithstanding the preceding sentence, a Participant who is
                  an Employee at the time he or she is required by law to
                  commence distribution, or anytime thereafter, may instead
                  elect to be paid annually in a lump sum an amount sufficient
                  to comply with Code Section 401(a)(9).

            (b)   Distributions shall be made in cash except to the extent a
                  distribution consists of an offset amount as described in
                  Subsection 10.13 and to the extent a Participant elects that
                  payment be made in a combination of cash for his or her
                  Directed Investment Accounts and any portion of his or her
                  Stock Investment Company Accounts and Stock Investment
                  Participant Account not held in whole shares of Company Stock
                  and in shares of Company Stock for the number of whole shares
                  of Company Stock held in his or her Stock Investment Company
                  Accounts and Stock Investment Participant Account.

            (c)   With regard to the portion of a distribution representing an
                  Eligible Rollover Distribution, a Distributee may elect a
                  Direct Rollover for all or a portion of such amount.

      12.4  Distribution of Small Amounts

            If, after a Participant's employment with all Related Companies
            ends, the Participant's vested Account balance is $3,500 or less,
            and if at the time of any prior in-service withdrawal or
            distribution the Participant's vested Account balance did not exceed
            $3,500, the Participant's benefit shall be paid as a single lump sum
            as soon as is administratively feasible in accordance with
            procedures prescribed by the Administrator. Effective January 1,
            1998, "$5,000" shall be substituted for "$3,500" in the preceding
            sentence. Effective January 1, 1999, the second preceding sentence
            shall read as follows: "If, after a Participant's employment with
            all Related Companies ends, and the Participant's vested Account
            balance is $5,000 or less, the Participant's benefit shall be paid
            as a single lump sum as soon as is administratively feasible in
            accordance with procedures prescribed by the Administrator."

      12.5  Source and Timing of Distribution Funding

            (a)   A distribution to a Participant shall be made solely from the
                  assets of his or her own Accounts and will be based on the
                  Account values as

                                     - 44 -
<PAGE>
                  of the Trade Date the distribution is processed. The available
                  assets shall be determined first by Account type and then by
                  investment type within each type of Account.

            (b)   Within each Account used for funding a distribution, amounts
                  shall first be taken from the Sweep Account and then taken by
                  type of investment in direct proportion to the market value of
                  the Participant's interest in each Investment Fund as of the
                  Trade Date on which the distribution is processed.

            (c)   Distributions will be funded on the Settlement Date following
                  the Trade Date as of which the distribution is processed. The
                  Trustee shall make payment as soon thereafter as
                  administratively feasible.

      12.6  Deemed Distribution

            For purposes of Subsection 9.4, if at the time a Participant's
            employment with all Related Companies has terminated, the
            Participant's vested Account balance attributable to Accounts
            subject to vesting as described in Section 9, is zero, his or her
            vested Account balance shall be deemed distributed as of the
            Settlement Date following the Sweep Date on which the Administrator
            has reported to the Trustee that the Participant's employment with
            all Related Companies has terminated.

      12.7  Latest Commencement Permitted

            (a)   In addition to any other Plan requirements and unless a
                  Participant elects otherwise, his or her benefit payments will
                  begin not later than 60 days after the end of the Plan Year in
                  which he or she attains his or her Normal Retirement Date or
                  retires, whichever is later. However, if the amount of the
                  payment or the location of the Participant (after a reasonable
                  search) cannot be ascertained by that deadline, payment shall
                  be made no later than 60 days after the earliest date on which
                  such amount or location is ascertained but in no event later
                  than as described below. A Participant's failure to elect in
                  such manner as prescribed by the Administrator to have his or
                  her vested Account balance paid to him or her, shall be deemed
                  an election by the Participant to defer his or her
                  distribution.

            (b)   Benefit payments shall begin by the April 1 immediately
                  following the end of the calendar year in which the
                  Participant attains age 70-1/2 (whether or not he or she is an
                  Employee), except that distribution for an Employee who was
                  born before July 1, 1917 does not need to begin until his or
                  her employment with all Related Companies ends. Effective
                  January 1, 1999, the preceding sentence shall read as follows:
                  "Benefit payments shall begin by the April 1 immediately
                  following the end of the calendar year in which the
                  Participant attains

                                     - 45 -
<PAGE>
                  age 70-1/2 (whether or not he or she is an Employee), except
                  that distribution for an Employee who was born before July 1,
                  1917 does not need to begin until his or her employment with
                  the Employer and all Related Companies ends."

            (c)   Effective January 1, 2000, notwithstanding the preceding
                  paragraph, a Participant who is an Employee and who has
                  attained age 70-1/2, other than a "5-percent owner" [as
                  defined in Code Section 416(i)(1)(B)(i) of the Code], may
                  elect to defer the beginning of benefit payments until April 1
                  of the calendar year following the calendar year in which he
                  or she terminates his or her employment with the Employer and
                  all Related Companies.

      12.8  Payment Within Life Expectancy

            The Participant's payment election must be consistent with the
            requirement of Code Section 401(a)(9) that all payments are to be
            completed within a period not to exceed the lives or the joint and
            last survivor life expectancy of the Participant and his or her
            Beneficiary. The life expectancies of a Participant and his or her
            Beneficiary may not be recomputed annually.

      12.9  Incidental Benefit Rule

            The Participant's payment election must be consistent with the
            requirement that, if the Participant's spouse is not his or her sole
            primary Beneficiary, the minimum annual distribution for each
            calendar year, beginning with the year in which he or she attains
            age 70-1/2 (or such later date as provided otherwise in Section 12),
            shall not be less than the quotient obtained by dividing (a) the
            Participant's vested Account balance as of the last Trade Date of
            the preceding year by (b) the applicable divisor as determined under
            the incidental benefit requirements of Code Section 401(a)(9).

      12.10 Payment to Beneficiary

            Payment to a Beneficiary must be completed by the end of the
            calendar year that contains the fifth anniversary of the
            Participant's death, except that:

            (a)   If the Participant dies after the April 1 immediately
                  following the end of the calendar year in which he or she
                  attains age 70-1/2, payment to his or her Beneficiary must be
                  made at least as rapidly as provided in the Participant's
                  distribution election;

            (b)   If the surviving spouse is the Beneficiary, payments need not
                  begin until the end of the calendar year in which the
                  Participant would have attained age 70-1/2 and must be
                  completed within the spouse's life or life expectancy; and

                                     - 46 -
<PAGE>
            (c)   If the Participant and the surviving spouse who is the
                  Beneficiary die (1) before the April 1 immediately following
                  the end of the calendar year in which the Participant would
                  have attained age 70-1/2 and (2) before payments have begun to
                  the spouse, the spouse will be treated as the Participant in
                  applying these rules.

      12.11 Beneficiary Designation

            (a)   Each Participant may complete a beneficiary designation form
                  indicating the Beneficiary who is to receive the Participant's
                  remaining Plan interest at the time of his or her death. The
                  designation may be changed at any time.

            (b)   Notwithstanding Subsection 12.11(a), a Participant's spouse
                  shall be the sole primary Beneficiary unless the designation
                  includes Spousal Consent for another Beneficiary. If no proper
                  designation is in effect at the time of a Participant's death
                  or if the Beneficiary is not in existence at the time of such
                  Participant's death, the Beneficiary shall be, in the order
                  listed:

                  (1)   The Participant's surviving spouse,

                  (2)   The Participant's children, in equal shares, per stirpes
                        (by right of representation), or

                  (3)   The Participant's estate.

      12.12 Effect of Certain Distributions and Deemed Distributions; Repayment

            (a)   If, following termination of employment with the Employer and
                  all Related Companies, a Participant receives a single lump
                  sum distribution of his or her entire vested Account balance,
                  in accordance with Subsections 12.1 and 12.3, or Subsection
                  12.4, the non-vested balance in his or her Account shall
                  thereupon be forfeited and disposed of in accordance with
                  Subsection 9.4. If such Participant should return to the
                  employ of the Employer and repay the full amount of the
                  distribution prior to the earlier of (i) 5 years after the
                  first date on which he or she is subsequently re-employed by
                  the Employer or (ii) the close of the first Break in Service
                  commencing after such distribution, the previously-forfeited
                  portion, unadjusted by any subsequent gains or losses, shall
                  be reinstated by use of amounts in the Forfeiture Account, or
                  if there are none, by means of an additional contribution by
                  the Administrator to the Plan for this purpose. It shall be
                  the duty of the Employer to give timely notice to any rehired
                  Participant, if such Participant is eligible to make a
                  repayment of the distribution to him, of the consequences of
                  not making such repayment.

                                     - 47 -
<PAGE>
            (b)   If, following termination of employment with the Employer and
                  all Related Companies, a Participant is deemed to have
                  received a distribution of his entire vested Account balance,
                  in accordance with Subsection 12.6, the non-vested balance in
                  his Account shall thereupon be forfeited and disposed of in
                  accordance with Subsection 9.4. If such Participant should
                  return to the employ of the Employer prior to the earlier of
                  (i) 5 years after the first date on which he is subsequently
                  re-employed by the Employer or (ii) the close of the first
                  Break in Service commencing after the date of such deemed
                  distribution, the previously-forfeited portion, unadjusted by
                  any subsequent gains or losses, shall be reinstated by use of
                  amounts in the Forfeiture Account, or if there are none, by
                  means of an additional contribution by the Employer to the
                  Plan for this purpose.

            (c)   Years of Service attributable to a distribution or a deemed
                  distribution in accordance with Subsections 12.1 and 12.3,
                  12.4 or 12.6 shall not be disregarded for purposes of
                  eligibility or vesting under the Plan.

            (d)   This Subsection 12.12 is effective January 1, 1999.

      12.13 Required Distributions on or After January 1, 2002

            With respect to distributions under the Plan made in calendar years
            beginning on or after January 1, 2002, the Plan shall apply the
            minimum distribution requirements of Section 401(a)(9) of the Code
            in accordance with the regulations under said Section 401(a)(9)
            which were proposed in January 2001, notwithstanding any provision
            of the Plan to the contrary. This Subsection 12.13 shall continue in
            effect until the end of the last calendar year beginning before the
            effective date of final regulations under said Section 401(a)(9) or
            such other date specified in guidance published by the Internal
            Revenue Service.

                                     - 48 -
<PAGE>
13    ADP AND ACP TESTS

      13.1  Contribution Limitation Definitions

            The following definitions are applicable to this Section 13 (where a
            definition is contained in both Sections 1 and 13, for purposes of
            Section 13 the Section 13 definition shall be controlling):

            (a)   "ACP" or "Average Contribution Percentage" means the Average
                  Percentage calculated using Contributions allocated to
                  Participants as of a date within a Plan Year.

            (b)   "ACP Test" means the determination of whether the ACP is in
                  compliance with the Basic or Alternative Limitation for a Plan
                  Year (as defined in Subsection 13.2).

            (c)   "ADP" or "Average Deferral Percentage" means the Average
                  Percentage calculated using Deferrals allocated to
                  Participants as of a date within a Plan Year.

            (d)   "ADP Test" means the determination of whether the ADP is in
                  compliance with the Basic or Alternative Limitation for a Plan
                  Year (as defined in Subsection 13.2).

            (e)   "Average Percentage" means the average of the calculated
                  percentages for Participants within the specified group. The
                  calculated percentage refers to either the "Deferrals" or
                  "Contributions" (as defined in this Subsection 13.1) made on
                  each Participant's behalf for a Plan Year, divided by his or
                  her Compensation for the portion of such Plan Year in which he
                  or she was an Eligible Employee while a Participant. (Pre-Tax
                  Contributions to this Plan or comparable contributions to
                  plans of Related Companies which will be refunded solely
                  because they exceed the Contribution Dollar Limit are included
                  in the percentage for the HCE Group but not for the NHCE
                  Group.)

            (f)   "Contributions" means Syncor Match Contributions. In addition,
                  Contributions may include Pre-Tax and Syncor Booster
                  Contributions, but only to the extent that (1) the Employer
                  elects to use them, (2) they are not used or counted in the
                  ADP Test, (3) Syncor Booster Contributions are fully vested
                  when made and not withdrawable by an Employee before he or she
                  attains age 59-1/2 and (4) they otherwise satisfy the
                  requirements as prescribed under Code Section 401(m)
                  permitting treatment as Contributions for purposes of the ACP
                  Test, including with regard to Syncor Booster Contributions
                  satisfaction of the requirements of Code Section 401(a) in the
                  manner prescribed under Code Section 401(m).

                                     - 49 -
<PAGE>
            (g)   "Deferrals" means Pre-Tax Contributions. In addition,
                  Deferrals may include Syncor Booster Contributions, but only
                  to the extent that (1) the Employer elects to use them, (2)
                  they are not used or counted in the ACP Test, (3) they are
                  fully vested when made, not withdrawable by an Employee before
                  he or she attains age 59-1/2 and (4) they otherwise satisfy
                  the requirements as prescribed under Code Section 401(k)
                  permitting treatment as Deferrals for purposes of the ADP
                  Test, including satisfaction of the requirements of Code
                  Section 401(a) in the manner prescribed under Code Section
                  401(k).

            (h)   "HCE" or "Highly Compensated Employee" means, with respect to
                  a Plan Year, any Employee who:

                  (1)   During such Plan Year or the preceding Plan Year was or
                        at any time a "5-percent owner" within the meaning of
                        Section 416(i)(B)(i) of the Code; or

                  (2)   During such preceding Plan Year received Compensation
                        from the Employer in excess of $80,000 and was in the
                        group of Employees of the Employer consisting of the top
                        20% of such Employees when ranked on the basis of
                        Compensation paid during such preceding Plan Year.

                  The $80,000 amount in Subsection 13.1(h)(2) shall be adjusted
                  in the same time and in the same manner as provided in Code
                  Section 415(d), except that the base period shall be the
                  calendar quarter ended September 30, 1996.

            (i)   "HCE Group" and "NHCE Group" Means with respect to each
                  Employer and its Related Companies, the respective group of
                  HCEs and NHCEs who are eligible to have amounts contributed on
                  their behalf for the Plan Year, including Employees who would
                  be eligible but for their election not to participate or to
                  contribute, or because their Pay is greater than zero but does
                  not exceed a stated minimum.

                  (1)   If the Related Companies maintain two or more plans
                        which are subject to the ADP or ACP Test and are
                        considered as one plan for purposes of Code Sections
                        401(a)(4) or 410(b), all such plans shall be aggregated
                        and treated as one plan for purposes of meeting the ADP
                        and ACP Tests, provided that, for Plan Years beginning
                        after December 31, 1989, plans may only be aggregated if
                        they have the same Plan Year.

                  (2)   If an HCE is covered by more than one cash or deferred
                        arrangement, or more than one arrangement permitting
                        employee or matching contributions, maintained by the
                        Related Companies, all such plans shall be aggregated
                        and treated as

                                     - 50 -
<PAGE>
                        one plan for purposes of calculating the separate
                        percentage for the HCE which is used in the
                        determination of the Average Percentage.

            (j)   "Multiple Use Test" means the test described in Subsection
                  13.4 which a Plan must meet where the Alternative Limitation
                  [described in Subsection 13.2(b)] is used to meet both the ADP
                  and ACP Tests.

            (k)   "NHCE" or "Non-Highly Compensated Employee" means an Employee
                  who is not an HCE.

      13.2  ADP and ACP Tests

            For each Plan Year, the ADP and ACP for the HCE Group must meet
            either the Basic or Alternative Limitation when compared to the
            respective ADP and ACP for the NHCE Group, defined as follows:

            (a)   Basic Limitation. The HCE Group Average Percentage for each
                  Plan Year may not exceed 1.25 times the NHCE Group Average
                  Percentage for the preceding Plan Year.

            (b)   Alternative Limitation. The HCE Group Average Percentage for
                  each Plan Year is limited by reference to the NHCE Group
                  Average Percentage for the preceding Plan Year as follows:

<TABLE>
<CAPTION>
        If the NHCE Group                  Then the Maximum HCE
        Average Percentage is:             Group Average Percentage is:
        ----------------------             ----------------------------
<S>                                        <C>
        Less than 2%                       2 times NHCE Group Average %

        2% to 8%                           NHCE Group Average % plus 2%

        More than 8%                       NA - Basic Limitation applies
</TABLE>

      13.3  Correction of ADP and ACP Tests

            (a)   ADP Correction. In the event that the initial allocation of
                  Deferrals for a Plan Year does not satisfy one of the tests
                  set forth in Subsection 13.2 (after taking into account any
                  distributions to NHCEs, but not to HCEs, pursuant to
                  Subsection 3.5), the Administrator shall adjust such Deferrals
                  as follows: On or before the 15th day of the third month
                  following the end of each Plan Year, but in no event later
                  than the close of the following Plan Year, the amount
                  necessary to reduce the Deferrals of HCEs to the point where
                  one of such tests is satisfied, determined by reducing
                  Deferrals on behalf of HCEs in the order of their ADPs,
                  beginning with the highest of such percentages (the "Excess
                  Deferrals"), shall be distributed among such HCEs with

                                     - 51 -
<PAGE>
                  the largest amount of Deferrals taken into account in
                  calculating the ADP tests for the Plan Year in which such
                  Excess Deferrals arose, beginning with the HCE with the
                  largest amount of such Deferrals and continuing in descending
                  order until all such Excess Deferrals have been allocated.
                  Income or loss shall be allocated to such Excess Deferrals in
                  accordance with Regulation Section 1.401(k)-1(f)(4)(ii),
                  excluding income or loss for the period between the end of the
                  Plan Year in which such Excess Deferrals arose and the date of
                  distribution. Excess Deferrals shall first be taken from
                  unmatched Pre-Tax Contributions and then from matched Pre-Tax
                  Contributions, first from matched Pre-Tax Contributions
                  deposited to the Participant's Fund Deferrals Account and then
                  from matched Pre-Tax Contributions deposited to the
                  Participant's Syncor Stock Deferrals Account. Any Syncor Match
                  Contributions attributable to refunded excess Pre-Tax
                  Contributions as described in this Section 13 shall be
                  forfeited and used as described in Subsection 9.4.

            (b)   ACP Correction. In the event that the initial allocation of
                  Contributions for a Plan Year does not satisfy one of the
                  tests set forth in Subsection 13.2, the Administrator shall
                  adjust such Contributions as follows: On or before the 15th
                  day of the third month following the end of each Plan Year,
                  but in no event later than the close of the following Plan
                  Year, the amount necessary to reduce the Contributions of HCEs
                  to the point where one of such tests is satisfied, determined
                  by reducing Contributions on behalf of HCEs in the order of
                  their ACPs, beginning with the highest of such percentages
                  (the "Excess Contributions"), shall be forfeited (or if not
                  forfeitable, distributed) among such HCEs with the largest
                  amount of Contributions taken into account in calculating the
                  ACP tests for the Plan Year in which such Excess Contributions
                  arose, beginning with the HCE with the largest amount of such
                  Contributions and continuing in descending order until all
                  such Excess Contributions have been allocated. Income or loss
                  shall be allocated to such Excess Contributions in accordance
                  with Regulation Section 1.401(m)-1(e)(3)(ii), excluding income
                  or loss for the period between the end of the Plan Year in
                  which such Excess Contributions arose and the date of
                  distribution.

            (c)   Investment Fund Sources. Once the amount of excess Deferrals
                  and/or Contributions is determined amounts shall then be taken
                  by type of investment in direct proportion to the market value
                  of the Participant's interest in each Investment Fund (which
                  excludes Participant loans) at the time the correction is
                  made.

                                     - 52 -
<PAGE>
      13.4  Multiple Use Test

            If the Alternative Limitation (defined in Subsection 13.2) is used
            to meet both the ADP and ACP Tests, the ADP and ACP for the HCE
            Group must also comply with the requirements of Code Section
            401(m)(9), which requires that the sum of the ADP and ACP for the
            HCE Group (as determined after any corrections needed to meet the
            ADP and ACP Tests have been made) not exceed the sum (which produces
            the most favorable result) of:

            (a)   The Basic Limitation [as defined in Subsection 13.2(a)]
                  applied to either the ADP or ACP for the NHCE Group, and

            (b)   The Alternative Limitation [as defined in Subsection 13.2(b)]
                  applied to the other NHCE Group percentage.

      13.5  Correction of Multiple Use Test

            If the multiple use limit is exceeded, the Administrator shall
            determine a maximum percentage to be used in place of the calculated
            percentage for all HCEs that would reduce either or both the ADP or
            ACP for the HCE Group by a sufficient amount to meet the multiple
            use limit. Any excess shall be handled in the same manner that the
            distribution of Excess Deferrals or Excess Contributions is handled.

      13.6  Adjustment for Investment Gain or Loss

            Any excess Deferrals or Contributions to be refunded to a
            Participant or forfeited in accordance with Subsections 13.3 or 13.5
            shall be adjusted for investment gain or loss. Refunds or
            forfeitures shall not include investment gain or loss for the period
            between the end of the applicable Plan Year and the date of
            distribution.

      13.7  Testing Responsibilities and Required Records

            The Administrator shall be responsible for ensuring that the Plan
            meets the ADP Test, the ACP Test and the Multiple Use Test, and that
            the Contribution Dollar Limit is not exceeded. In carrying out its
            responsibilities, the Administrator shall have sole discretion to
            limit or reduce Deferrals or Contributions at any time. The
            Administrator shall maintain records which are sufficient to
            demonstrate that the ADP Test, the ACP Test and the Multiple Use
            Test, have been met for each Plan Year for at least as long as the
            Employer's corresponding tax year is open to audit.

      13.8  Separate Testing

            (a)   Multiple Employers: The determination of HCEs, NHCEs, and the
                  performance of the testing and any corrective action resulting

                                     - 53 -
<PAGE>
                  therefrom shall be made separately with regard to the
                  Employees of each Employer (and its Related Companies) that is
                  not a Related Company with the other Employer(s).

            (b)   Collective Bargaining Units: The performance of the ADP Test,
                  and if applicable, the ACP Test and Multiple Use Test, and any
                  corrective action resulting therefrom shall be applied
                  separately to Employees who are eligible to participate in the
                  Plan as a result of a collective bargaining agreement.

            In addition, separate testing may be applied, at the discretion of
            the Administrator and to the extent permitted under Treasury
            regulations, to any group of Employees for whom separate testing is
            permissible.

                                     - 54 -
<PAGE>
14    MAXIMUM CONTRIBUTION AND BENEFIT LIMITATIONS

      14.1  "Annual Addition" Defined

            The sum of all amounts allocated to the Participant's Account for a
            Plan Year. Amounts include contributions (except for rollovers or
            transfers from another qualified plan), forfeitures and, if the
            Participant is a Key Employee (pursuant to Section 15) for the
            applicable or any prior Plan Year, medical benefits provided
            pursuant to Code Section 419A(d)(1). For purposes of this Subsection
            14.1, "Account" also includes a Participant's account in all other
            defined contribution plans currently or previously maintained by any
            Related Company. The Plan Year refers to the year to which the
            allocation pertains, regardless of when it was allocated. The Plan
            Year shall be the Code Section 415 "limitation year."

      14.2  Maximum Annual Addition

            The Annual Addition to a Participant's accounts under this Plan and
            any other defined contribution plan maintained by any Related
            Company for any Plan Year shall not exceed the lesser of (a) 25% of
            his or her Taxable Income or (b) $30,000 [as adjusted pursuant to
            Code Section 415(d)].

      14.3  Avoiding an Excess Annual Addition

            If, at any time during a Plan Year, the allocation of any additional
            Contributions would produce an excess Annual Addition for such year,
            Contributions to be made for the remainder of the Plan Year shall be
            limited to the amount needed for each affected Participant to
            achieve the maximum Annual Addition.

      14.4  Correcting an Excess Annual Addition

            (a)   Upon the discovery of an excess Annual Addition to a
                  Participant's Account (resulting from forfeitures,
                  allocations, reasonable error in determining Participant
                  compensation or the amount of elective contributions, or other
                  facts and circumstances acceptable to the Internal Revenue
                  Service) the excess amount (adjusted to reflect investment
                  gains) shall first be returned to the Participant to the
                  extent of his or her Pre-Tax Contributions (however, to the
                  extent Pre-Tax Contributions were matched, the applicable
                  Syncor Match Contributions shall be forfeited in proportion to
                  the returned matched Pre-Tax Contributions) and the remaining
                  excess, if any, shall be forfeited by the Participant and
                  together with forfeited Syncor Match Contributions allocated
                  as Contributions as described in Section 5 as soon as is
                  administratively feasible.

                                     - 55 -
<PAGE>
            (b)   To the extent Pre-Tax Contributions are refunded, excess
                  amounts shall first be taken from unmatched Pre-Tax
                  Contributions and then from matched Pre-Tax Contributions,
                  first from matched Pre-Tax Contributions deposited to the
                  Participant's Fund Deferrals Account and then from matched
                  Pre-Tax Contributions deposited to the Participant's Syncor
                  Stock Deferrals Account.

      14.5  Correcting a Multiple Plan Excess

            If a Participant, whose Account is credited with an excess Annual
            Addition, received allocations to more than one defined contribution
            plan, the excess shall be corrected by reducing the Annual Addition
            to this Plan only after all possible reductions have been made to
            the other defined contribution plans.

      14.6  "Defined Benefit Fraction" Defined

            The fraction, for any Plan Year, where the numerator is the
            "projected annual benefit" and the denominator is the greater of
            125% of the "protected current accrued benefit" or the normal limit
            which is the lesser of (1) 125% of the maximum dollar limitation
            provided under Code Section 415(b)(1)(A) for the Plan Year or (2)
            140% of the amount which may be taken into account under Code
            Section 415(b)(1)(B) for the Plan Year, where a Participant's:

            (a)   "Projected annual benefit" is the annual benefit provided by
                  the Plan determined pursuant to Code Section 415(e)(2)(A); and

            (b)   "Protected current accrued benefit" in a defined benefit plan
                  in existence (1) on July 1, 1982, shall be the accrued annual
                  benefit provided for under Public Law 97-248, Section
                  235(g)(4), as amended, or (2) on May 6, 1986, shall be the
                  accrued annual benefit provided for under Public Law 99-514,
                  Section 1106(i)(3).

      14.7  "Defined Contribution Fraction" Defined

            The fraction where the numerator is the sum of the Participant's
            Annual Addition for each Plan Year to date and the denominator is
            the sum of the "annual amounts" for each year in which the
            Participant has performed service with a Related Company. The
            "annual amount" for any Plan Year is the lesser of (1) 125% of the
            Code Section 415(c)(1)(A) dollar limitation [determined without
            regard to Subsection (c)(6)] in effect for the Plan Year and (2)
            140% of the Code Section 415(c)(1)(B) amount in effect for the Plan
            Year, where:

            (a)   Each Annual Addition is determined pursuant to the Code
                  Section 415(c) rules in effect for such Plan Year; and

                                     - 56 -
<PAGE>
            (b)   The numerator is adjusted pursuant to Public Law 97-248,
                  Section 235(g)(3), as amended, or Public Law 99-514, Section
                  1106(i)(4).

      14.8  Combined Plan Limits and Correction

            (a)   If a Participant has also participated in a defined benefit
                  plan maintained by a Related Company, the sum of the Defined
                  Benefit Fraction and the Defined Contribution Fraction for any
                  Plan Year may not exceed 1.0. If the combined fraction exceeds
                  1.0 for any Plan Year, the Participant's benefit under any
                  defined benefit plan (to the extent it has not been
                  distributed or used to purchase an annuity contract) shall be
                  limited so that the combined fraction does not exceed 1.0
                  before any defined contribution limits will be enforced.

            (b)   This Subsection 14.8 shall not apply to Plan Years beginning
                  after December 31, 1999.

                                     - 57 -
<PAGE>
15    TOP-HEAVY RULES

      15.1  Top-Heavy Definitions

            When capitalized, the following words and phrases have the following
            meanings when used in this Section 15:

            (a)   "Aggregation Group" means the group consisting of each
                  qualified plan of an Employer (and its Related Companies) (1)
                  in which a Key Employee is a participant or was a participant
                  during the determination period (regardless of whether such
                  plan has terminated), or (2) which enables another plan in the
                  group to meet the requirements of Code Sections 401(a)(4) or
                  410(b). The Employer may also treat any other qualified plan
                  as part of the group if the group would continue to meet the
                  requirements of Code Sections 401(a)(4) and 410(b) with such
                  plan being taken into account.

            (b)   "Determination Date" means the last Trade Date of the
                  preceding Plan Year or, in the case of the Plan's first year,
                  the last Trade Date of the first Plan Year.

            (c)   "Key Employee" means a current or former Employee (or his or
                  her Beneficiary) who at any time during the five-year period
                  ending on the Determination Date was:

                  (1)   An officer of a the Employer or Related Company whose
                        Compensation exceeds 50% of the amount in effect under
                        Code Section 415(b)(1)(A);

                  (2)   A more-than-5% Owner;

                  (3)   A more-than-1% Owner whose Compensation exceeds
                        $150,000; or

                  (4)   One of the 10 Employees having annual Compensation from
                        the Employer of more than the limitation in effect under
                        Code Section 415(c)(1)(A) and owning (or considered as
                        owning within the meaning of Code Section 318) the
                        largest interests in the Employer.

            (d)   "Plan Benefit" means the sum as of the Determination Date of
                  (1) an Employee's Account, (2) the present value of his or her
                  other accrued benefits provided by all qualified plans within
                  the Aggregation Group, and (3) the aggregate distributions
                  made within the five-year period ending on such date. Plan
                  Benefits shall exclude rollover contributions and plan to plan
                  transfers made after December 31,

                                     - 58 -
<PAGE>
                  1983 which are both employee initiated and from a plan
                  maintained by a non-related employer.

            (e)   "Top-Heavy" means the Plan's status when the Plan Benefits of
                  Key Employees account for more than 60% of the Plan Benefits
                  of all Employees who have performed services at any time
                  during the five year period ending on the Determination Date.
                  The Plan Benefits of Employees who were, but are no longer,
                  Key Employees (because they have not been an officer or Owner
                  during the five year period), are excluded in the
                  determination.

      15.2  Special Contributions

            (a)   Minimum Contribution Requirement. For each Plan Year in which
                  the Plan is Top-Heavy, the Employer shall not allow any
                  contributions (other than a Rollover Contribution) to be made
                  by or on behalf of any Key Employee unless the Employer makes
                  a contribution (other than Pre-Tax and Syncor Match
                  Contributions) on behalf of all Participants who were Eligible
                  Employees as of the last day of the Plan Year in an amount
                  equal to at least 3% of each such Participant's Taxable
                  Income.

            (b)   Overriding Minimum Benefit. Notwithstanding, contributions
                  shall be permitted on behalf of Key Employees if the Employer
                  also maintains a defined benefit plan which automatically
                  provides a benefit which satisfies the Code Section 416(c)(1)
                  minimum benefit requirements, including the adjustment
                  provided in Code Section 416(h)(2)(A), if applicable. If this
                  Plan is part of an aggregation group in which a Key Employee
                  is receiving a benefit and no minimum is provided in any other
                  plan, a minimum contribution of at least 3% of Taxable Income
                  shall be provided to the Participants specified in Subsection
                  15.2(a). In addition, the Employer may offset a defined
                  benefit minimum by contributions (other than Pre-Tax and
                  Syncor Match Contributions) made to this Plan.

      15.3  Special Vesting

            If the Plan becomes Top-Heavy after the Effective Date, vesting for
            all Employees shall thereafter be accelerated to the extent the
            following vesting schedule produces a greater vested percentage for
            the Employee than the normal vesting schedule at any relevant time:

                                     - 59 -
<PAGE>
<TABLE>
<CAPTION>
             Years of Vesting                   Vested
             Service                            Percentage
             -------                            ----------
<S>                                             <C>
             Less than 2                        0%

             2 but less than 3                  20%

             3 but less than 4                  40%

             4 but less than 5                  70%

             5 or more                          100%
</TABLE>

      15.4  Adjustment to Combined Limits for Different Plans

            For each Plan Year in which the Plan is Top-Heavy, "100%" shall be
            substituted for "125%" in determining the Defined Benefit Fraction
            and the Defined Contribution Fraction. This Subsection 15.4 shall
            not apply to Plan Years beginning after December 31, 1999.

                                     - 60 -
<PAGE>
16    PLAN ADMINISTRATION

      16.1  Plan Delineates Authority and Responsibility

            Plan fiduciaries include the Company, the Administrator, the
            Committee and/or the Trustee, as applicable, whose specific duties
            are delineated in this Plan and Trust. In addition, Plan fiduciaries
            also include any other person to whom fiduciary duties or
            responsibility is delegated with respect to the Plan. Any person or
            group may serve in more than one fiduciary capacity with respect to
            the Plan. To the extent permitted under ERISA Section 405, no
            fiduciary shall be liable for a breach by another fiduciary.

      16.2  Fiduciary Standards

            Each fiduciary shall:

            (a)   Discharge his or her duties in accordance with this Plan and
                  Trust to the extent they are consistent with ERISA;

            (b)   Use that degree of care, skill, prudence and diligence that a
                  prudent person acting in a like capacity and familiar with
                  such matters would use in the conduct of an enterprise of a
                  like character and with like aims;

            (c)   Act with the exclusive purpose of providing benefits to
                  Participants and their Beneficiaries, and defraying reasonable
                  expenses of administering the Plan;

            (d)   Diversify Plan investments, to the extent such fiduciary is
                  responsible for directing the investment of Plan assets, so as
                  to minimize the risk of large losses, unless under the
                  circumstances it is clearly prudent not to do so; and

            (e)   Treat similarly situated Participants and Beneficiaries in a
                  uniform and nondiscriminatory manner.

      16.3  Company is ERISA Plan Administrator

            The Company is the "plan administrator," within the meaning of ERISA
            Section 3(16), which is responsible for compliance with all
            reporting and disclosure requirements, except those that are
            explicitly the responsibility of the Trustee under applicable law.
            The Administrator and/or Committee shall have any necessary
            authority to carry out such functions through the actions of the
            Administrator and/or the Committee.

                                     - 61 -
<PAGE>
      16.4  Administrator's Authority

            The Administrator shall have the discretionary authority to construe
            this Plan and Trust, other than the provisions which relate to the
            Trustee, and to do all things necessary or convenient to effect the
            intent and purposes thereof, whether or not such powers are
            specifically set forth in this Plan and Trust. Actions taken in good
            faith by the Administrator shall be conclusive and binding on all
            interested parties, and shall be given the maximum possible
            deference allowed by law. In addition to the duties listed elsewhere
            in this Plan and Trust, the Administrator's authority shall include,
            but not be limited to, the discretionary authority to:

            (a)   Determine who is eligible to participate, if a contribution
                  qualifies as a rollover contribution, the allocation of
                  Contributions, and the eligibility for loans, in-service
                  withdrawals and distributions;

            (b)   Recognize for eligibility and vesting purposes an Eligible
                  Employee's prior service with an entity whose assets are
                  acquired by the Company, a Subsidiary or a Related Company;

            (c)   Provide each Participant with a summary plan description no
                  later than 90 days after he or she has become a Participant
                  [or such other period permitted under ERISA Section
                  104(b)(1)], as well as informing each Participant of any
                  material modification to the Plan in a timely manner;

            (d)   Make a copy of the following documents available to
                  Participants during normal work hours: this Plan and any
                  separate trust agreement as to the Trust (including subsequent
                  amendments), all annual and interim reports of the Trustee
                  related to the entire Plan, the latest annual report and the
                  summary plan description;

            (e)   Determine the fact of a Participant's death and of any
                  Beneficiary's right to receive the deceased Participant's
                  interest based upon such proof and evidence as it deems
                  necessary;

            (f)   Establish and review at least annually a funding policy
                  bearing in mind both the short-run and long-run needs and
                  goals of the Plan. To the extent Participants may direct their
                  own investments, the funding policy shall focus on which
                  Investment Funds are available for Participants to use; and

            (g)   Adjudicate claims pursuant to the claims procedure described
                  in Section 20.

                                     - 62 -
<PAGE>
      16.5  Advisors May be Retained

            The Administrator may retain such agents and advisors (including
            attorneys, accountants, actuaries, consultants, record keepers,
            investment counsel and administrative assistants) as it considers
            necessary to assist it in the performance of its duties. The
            Administrator shall also comply with the bonding requirements of
            ERISA Section 412.

      16.6  Delegation of Administrator's Duties

            The Company, as Administrator of the Plan, has appointed a Committee
            to administer the Plan on its behalf. The Company shall provide the
            Trustee with the names and specimen signatures of any persons
            authorized to serve as Committee members and act as or on its
            behalf. Any Committee member appointed by the Company shall serve at
            the pleasure of the Company, but may resign by written notice to the
            Company. Committee members shall serve without compensation from the
            Plan for such services. Except to the extent that the Company
            otherwise provides, any delegation of duties to a Committee shall
            carry with it the full discretionary authority of the Administrator
            to complete such duties.

      16.7  Committee Operating Rules

            (a)   Actions of Majority. Any act delegated by the Company to the
                  Committee may be done by a majority of its members. The
                  majority may be expressed by a vote at a meeting or in writing
                  without a meeting, and a majority action shall be equivalent
                  to an action of all Committee members.

            (b)   Meetings. The Committee shall hold meetings upon such notice,
                  place and times as it determines necessary to conduct its
                  functions properly.

            (c)   Reliance by Trustee. The Committee may authorize one or more
                  of its members to execute documents on its behalf and may
                  authorize one or more of its members or other individuals who
                  are not members to give written direction to the Trustee in
                  the performance of its duties. The Committee shall provide
                  such authorization in writing to the Trustee with the name and
                  specimen signatures of any person authorized to act on its
                  behalf. The Trustee shall accept such direction and rely upon
                  it until notified in writing that the Committee has revoked
                  the authorization to give such direction. The Trustee shall
                  not be deemed to be on notice of any change in the membership
                  of the Committee, the parties authorized to direct the Trustee
                  in the performance of its duties, or the duties delegated to
                  and by the Committee until notified in writing.

                                     - 63 -
<PAGE>
      16.8  Multiple Employer Plan Requirements

            (a)   If two or more Employers who are not aggregated pursuant to
                  Section 414 of the Code contribute to the Plan, and the Plan
                  therefore becomes subject to Section 413(c) of the Code, the
                  following requirements shall apply notwithstanding any other
                  provision of the Plan:

                  (1)   The annual Compensation limit in Subsection 1.13 shall
                        be applied as if each Contributing Employer had
                        maintained a separate plan.

                  (2)   The amount of each Contributing Employer's Syncor Match
                        Contributions, Syncor Stock Bonus Contributions, Syncor
                        Cash Bonus Contributions and Syncor Booster
                        Contributions, and the allocation of such contributions,
                        shall be determined as if each Contributing Employer had
                        maintained a separate plan.

                  (3)   Forfeitures shall be accounted for separately for each
                        Contributing Employer. To the extent expenses are
                        charged against forfeitures pursuant to Subsections 6.5,
                        9.4 and 9.6, the forfeitures attributable to each
                        Contributing Employer's Participants shall bear such
                        expenses on a pro rata basis, determined as of the time
                        each such expense is charged. Where forfeitures are
                        allocated rather than being used to pay expenses, such
                        allocation shall be determined as if each Contributing
                        Employer had maintained a separate plan.

                  (4)   The ACP Test and the ADP Test in Subsection 13.2 shall
                        be applied as if each Contributing Employer maintained a
                        separate plan.

                  (5)   Eligibility under Section 2 and vesting under Section 9
                        shall be determined as if all Contributing Employers
                        were a single entity.

                  (6)   The Annual Addition limits of Subsection 14.2 with
                        respect to each Participant shall be determined by
                        taking into account Annual Additions for the benefit of
                        such Participant which are attributable to all
                        Contributing Employers, and for this purpose
                        Compensation paid to such Participant from all
                        Contributing Employers shall be aggregated.

                  (7)   For purposes of the exclusive benefit requirements of
                        Section 401(a) of the Code, all Participants shall be
                        treated as employees of each Contributing Employer.

                                     - 64 -
<PAGE>
                  (8)   The Top-heavy Plan requirements in Section 15 shall be
                        determined separately for each Contributing Employer.

            (b)   For purposes of this Subsection 16.8, the term "Contributing
                  Employer" means (1) collectively, each group of Employers
                  which is aggregated pursuant to Section 414 of the Code and
                  (2) each Employer which is not so aggregated with any other
                  Employer.

      16.9  Veterans' Rights

            Notwithstanding any provision of this Plan to the contrary,
            effective December 12, 1994, contributions, benefits and service
            credit with respect to qualified military service shall be provided
            in accordance with Section 414(u) of the Code.

                                     - 65 -
<PAGE>
17    MANAGEMENT OF INVESTMENTS

      17.1  In General

            All Plan assets shall be held by the Trustee in trust, in accordance
            with those provisions of this Plan and Trust which relate to the
            Trustee, and subject to Subsection 19.10, for use in providing Plan
            benefits and paying Plan expenses not paid directly by the Employer.
            Plan benefits will be drawn solely from the Trust and paid by the
            Trustee as directed by the Administrator. Notwithstanding the
            preceding sentence, the Administrator may appoint, with the approval
            of the Trustee, another trustee to hold and administer Plan assets
            which do not meet the requirements of Subsection 17.2.

      17.2  Investment Funds

            (a)   The Administrator is hereby granted authority to direct the
                  Trustee to invest Trust assets in one or more Investment Funds
                  or in Company Stock. The number and composition of Investment
                  Funds may be changed from time to time, in writing, without
                  the necessity of amending this Plan and Trust document. The
                  Trustee may establish reasonable limits on the number of
                  Investment Funds as well as the acceptable assets for any such
                  Investment Fund. Each of the Investment Funds may be comprised
                  of any of the following:

                  (1)   Shares of a registered investment company, whether or
                        not the Trustee or any of its affiliates is an advisor
                        to, or other service provider to, such company;

                  (2)   Collective investment funds maintained by the Trustee,
                        or any other fiduciary to the Plan, which are available
                        for investment by trusts which are qualified under Code
                        Sections 401(a) and 501(a);

                  (3)   Individual equity and fixed income securities which are
                        readily tradeable on the open market;

                  (4)   Guaranteed investment contracts issued by a bank or
                        insurance company; and

                  (5)   Interest-bearing deposits of the Trustee.

            (b)   Any Investment Fund assets invested in a collective investment
                  fund, shall be subject to all the provisions of the
                  instruments establishing and governing such fund. These
                  instruments, including any subsequent amendments, are
                  incorporated herein by reference.

                                     - 66 -
<PAGE>
      17.3  Authority to Hold Cash

            The Trustee shall have the authority to cause the investment manager
            of each Investment Fund to maintain sufficient deposit or money
            market type assets in each Investment Fund to handle the Fund's
            liquidity and disbursement needs. Each Participant's and
            Beneficiary's Sweep Account, which is used to hold assets pending
            investment or disbursement, shall consist of interest bearing
            deposits of the Trustee.

      17.4  Trustee to Act Upon Instructions

            The Trustee shall carry out instructions to invest assets in the
            Investment Funds or Company Stock as soon as practicable after such
            instructions are received from the Administrator, Participants, or
            Beneficiaries. Such instructions shall remain in effect until
            changed by the Administrator, Participants or Beneficiaries.

      17.5  Administrator Has Right to Vote Registered Investment Company Shares

            The Administrator shall be entitled to vote proxies or exercise any
            shareholder rights relating to shares held on behalf of the Plan in
            a registered investment company. Notwithstanding, the authority to
            vote proxies and exercise shareholder rights related to such shares
            held in a Custom Fund is vested as provided otherwise in Section 17.

      17.6  Custom Fund Investment Management

            (a)   The Administrator may designate, with the consent of the
                  Trustee, an investment manager for any Investment Fund
                  established by the Trustee solely for Participants of this
                  Plan (a "Custom Fund"). The investment manager may be the
                  Administrator, Trustee or an investment manager pursuant to
                  ERISA Section 3(38). The Administrator shall advise the
                  Trustee in writing of the appointment of an investment manager
                  and shall cause the investment manager to acknowledge to the
                  Trustee in writing that the investment manager is a fiduciary
                  to the Plan.

            (b)   A Custom Fund shall be subject to the following:

                  (1)   Guidelines. Written guidelines, acceptable to the
                        Trustee, shall be established for a Custom Fund. If a
                        Custom Fund consists solely of collective investment
                        funds or shares of a registered investment company (and
                        sufficient deposit or money market type assets to handle
                        the Fund's liquidity and disbursement needs), its
                        underlying instruments shall constitute the guidelines.

                                     - 67 -
<PAGE>
                  (2)   Authority of Investment Manager. The investment manager
                        of a Custom Fund shall have the authority to vote or
                        execute proxies, exercise shareholder rights, manage,
                        acquire and dispose of Trust assets.

                  (3)   Custody and Trade Settlement. Unless otherwise agreed to
                        by the Trustee, the Trustee shall maintain custody of
                        all Custom Fund assets and be responsible for the
                        settlement of all Custom Fund trades. For purposes of
                        this Subsection 17.6, shares of a collective investment
                        fund, shares of a registered investment company and
                        guaranteed investment contracts issued by a bank or
                        insurance company, shall be regarded as the Custom Fund
                        assets instead of the underlying assets of such
                        instruments.

                  (4)   Limited Liability of Co-Fiduciaries. Neither the
                        Administrator nor the Trustee shall be obligated to
                        invest or otherwise manage any Custom Fund assets for
                        which the Trustee or Administrator is not the investment
                        manager nor shall the Administrator or Trustee be liable
                        for acts or omissions with regard to the investment of
                        such assets except to the extent required by ERISA.

      17.7  Authority to Segregate Assets

            The Committee may direct the Trustee to split an Investment Fund
            into two or more funds in the event any assets in the Fund are
            illiquid or the value is not readily determinable. In the event of
            such segregation, the Committee shall give instructions to the
            Trustee on what value to use for the split-off assets, and the
            Trustee shall not be responsible for confirming such value.

      17.8  Investment in Company Stock

            A Participant's Stock Investment Company Accounts and Stock
            Investment Participant Account shall be entirely invested in shares
            of Company Stock except to the extent of any deposit or money market
            type assets pending investment in shares of Company Stock.

      17.9  Voting and Tendering Company Stock

            (a)   Allocated Shares. Each Participant or Beneficiary shall be
                  entitled to instruct the Trustee as to the voting or tendering
                  of any full or partial shares of Company Stock held on his or
                  her behalf. Prior to such voting or tendering of Company
                  Stock, each Participant or Beneficiary shall receive a copy of
                  the proxy solicitation or other material relating to such vote
                  or tender decision and a blank form for the Participant or
                  Beneficiary to complete which confidentially instructs the
                  Trustee to

                                     - 68 -
<PAGE>
                  vote or tender such shares in the manner indicated by the
                  Participant or Beneficiary. A Participant's or Beneficiary's
                  failure to instruct the Trustee with respect to a tender offer
                  shall be regarded as an instruction not to tender his or her
                  shares of Company Stock. The Administrator shall instruct the
                  Trustee with respect to how to vote any shares for which
                  instructions are not received from Participants or
                  Beneficiaries. The Trustee shall act with respect to such
                  shares as instructed.

            (b)   Unallocated Shares. The Administrator shall instruct the
                  Trustee with respect to how to vote or tender any full or
                  partial shares of Company Stock held in the Forfeiture Account
                  and the Loan Suspense Account.

      17.10 Registration and Disclosure for Company Stock

            The Administrator shall be responsible for determining the
            applicability (and, if applicable, complying with) the requirements
            of the Securities Act of 1933, as amended, the California Corporate
            Securities Law of 1968, as amended, and any other applicable
            securities laws. The Administrator shall also specify what
            restrictive legend or transfer restriction, if any, is required to
            be set forth on the certificates for the securities and the
            procedure to be followed by the Trustee to effectuate a resale of
            such securities.

      17.11 Investment of Amounts Credited to Syncor Cash Bonus Accounts

            Notwithstanding Subsections 17.1 to 17.10, the Trustee shall have
            the sole authority to invest amounts credited to Syncor Cash Bonus
            Accounts and Participants for whom such accounts have been
            established shall not give investment instructions as to such
            accounts to the Trustee. The Trustee shall, in its discretion,
            invest and reinvest such portion of the Trust as is attributable to
            the amounts credited to Syncor Cash Bonus Accounts, without
            distinction between principal and income, in common and preferred
            stocks, bonds, notes, debentures, securities convertible into common
            stock, interest-bearing accounts, insurance contracts, certificates
            of deposit (including if the Trustee is a bank, those within its own
            banking department), or in such other property, real or personal,
            situated within the United States, as the Trustee shall deem
            advisable, subject to the other provisions of the Plan. The Trustee
            in its discretion may hold in cash such portion of the Trust
            attributable to the amounts credited to Syncor Cash Bonus Accounts
            as shall be reasonable under the circumstances, pending investment,
            payment of expenses or distribution of benefits from such accounts.
            This Subsection 17.11 is effective January 1, 1999.

                                     - 69 -

<PAGE>
18    LEVERAGED TRANSACTIONS

      18.1  Authority to Use Leverage

            The Plan may be used to provide a method of corporate finance to the
            Company. The provisions of this Section 18 shall be effective if an
            Acquisition Loan is made and shall continue in effect for the
            duration of the period an Acquisition Loan is outstanding.

      18.2  Acquisition Loans

            (a)   The Administrator, with the approval of the Company's board of
                  directors, may direct the Trustee to incur an Acquisition
                  Loan. An installment obligation incurred in connection with
                  the purchase of Company Stock shall be treated as an
                  Acquisition Loan, and all indebtedness incurred to acquire
                  Company Stock in a single transaction shall be treated as one
                  Acquisition Loan.

            (b)   An Acquisition Loan shall be for a specific term, shall bear a
                  reasonable rate of interest and shall not be payable on demand
                  except in the event of default. An Acquisition Loan may be
                  secured by a pledge of the Company Stock so acquired or
                  acquired with the proceeds of a prior Acquisition Loan which
                  is being refinanced. No other Trust assets may be pledged as
                  collateral for an Acquisition Loan, and no lender shall have
                  recourse against Trust assets other than any Financed Shares
                  remaining subject to pledge. The Acquisition Loan must provide
                  for a transfer of Trust assets to the lender on default only
                  upon and to the extent of the failure of the Trust to meet the
                  payment schedule of the Acquisition Loan.

            (c)   Any pledge of Financed Shares must provide for the release of
                  the shares so pledged as payments on the Acquisition Loan are
                  made by the Trustee and such Financed Shares are allocated to
                  Participants' Accounts under Subsection 18.5.

      18.3  Acquisition Loan Payments

            (a)   Payments of principal and/or interest on any Acquisition Loan
                  shall be made by the Trustee, as directed by the
                  Administrator, from Employer Contributions as described in
                  Section 5 paid in cash to enable the trust to repay such
                  Acquisition Loan, from earnings attributable to such while
                  held in the Loan Suspense Account and from any cash dividends
                  received by the Trust on unallocated Financed Shares
                  attributable to such Acquisition Loan. The payments made with
                  respect to an Acquisition Loan for a Plan Year must not exceed
                  the sum of the Employer Contributions, earnings and dividends
                  described

                                     - 70 -
<PAGE>
                  in the preceding sentence, for that Plan Year and prior Plan
                  Years, less the amount of such payments for prior Plan Years.

            (b)   If the Company (or an Employer) is the lender with respect to
                  an Acquisition Loan, Employer Contributions as described in
                  Section 5 may be paid in the form of cancellation of
                  indebtedness under the Acquisition Loan. If the Company (or an
                  Employer) is not the lender with respect to an Acquisition
                  Loan, the Company (or an Employer) may elect to make payments
                  on the Acquisition Loan directly to the lender and to treat
                  such payments as Employer Contributions as described in
                  Section 5.

            (c)   If the Trustee is unable to make payments of principal and/or
                  interest on an Acquisition Loan when due from the sources of
                  funds described in the preceding paragraphs, the
                  Administrator, with the approval of the Company's board of
                  directors, may direct the Trustee either to sell any
                  unallocated Financed Shares or to obtain a new Acquisition
                  Loan in an amount sufficient to make such payments.

            (d)   Notwithstanding the other provisions of this Subsection 18.3,
                  the Administrator may direct the Trustee to apply the proceeds
                  from the sale of unallocated Financed Shares to repay the
                  Acquisition Loan incurred to finance the purchase of such
                  Financed Shares in the event of the sale of the Company or the
                  termination of the Plan or if the Plan ceases to be an
                  employee stock ownership plan under Code Section 4975(e)(7).

      18.4  Employer Contributions

            Employer Contributions shall be paid by the Employer in such amounts
            no less than sufficient to make all payments of principal and
            interest which are required during the Plan Year in accordance with
            the terms of the Acquisition Loan, net of earnings attributable to
            Employer Contributions while held in the Loan Suspense Account and
            from any cash dividends received by the Trust on unallocated
            Financed Shares attributable to such Acquisition Loan and used to
            repay such Acquisition Loan. Employer Contributions shall be paid by
            the Employer no later than at such times and in such amounts
            necessary to make all payments of principal and interest which are
            required during the Plan Year in accordance with the terms of the
            Acquisition Loan.

      18.5  Allocation of Financed Shares

            Financed Shares shall initially be credited to the Loan Suspense
            Account. The Financed Shares will be allocated to the Accounts of
            Participants as Employer Contributions described in Section 5 only
            as payments on the Acquisition Loan are made by the Trustee and as
            soon as practicable thereafter in accordance with the frequency
            described for such Employer

                                     - 71 -
<PAGE>
            Contributions. The number of Financed Shares to be released from the
            Loan Suspense Account for allocation to Participants' Accounts shall
            be determined by the Administrator or the Trustee, if authorized by
            the Administrator and agreed to by the Trustee, each time a payment
            is made as follows:

            (a)   Principal/Interest Method. The number of Financed Shares held
                  in the Loan Suspense Account immediately before the release
                  for the current payment shall be multiplied by a fraction. The
                  numerator of the fraction shall be the amount of principal
                  and/or interest paid on the Acquisition Loan for the current
                  payment. The denominator of the fraction shall be the sum of
                  the numerator plus the total payments of principal and
                  interest on that Acquisition Loan to be paid for all future
                  payments. The number of future payments must be definitely
                  ascertainable and must be determined without taking into
                  account any possible extension or renewal period. For this
                  purpose, the interest to be paid in future payments is to be
                  computed by using the interest rate in effect for the current
                  payment.

            (b)   Principal-Only Method. The number of Financed Shares held in
                  the Loan Suspense Account immediately before the release for
                  the current payment shall be multiplied by a fraction. The
                  numerator of the fraction shall be the amount of principal
                  paid on the Acquisition Loan for the current payment. The
                  denominator of the fraction shall be the sum of the numerator
                  plus the total payments of principal on that Acquisition Loan
                  to be paid for all future payments. The number of future
                  payments must be definitely ascertainable and must be
                  determined without taking into account any possible extension
                  or renewal period. This method may be used only to the extent
                  that:

                  (1)   The Acquisition Loan provides for annual payments of
                        principal and interest at a cumulative rate that is not
                        less rapid at any time than level annual payments of
                        such amounts for ten years;

                  (2)   Interest included in any payment on the Acquisition Loan
                        is determined to be interest under standard loan
                        amortization tables; and

                  (3)   The entire duration of the Acquisition Loan repayment
                        period does not exceed ten years, even in the event of a
                        renewal, extension or refinancing of the Acquisition
                        Loan.

      18.6  Net Income or Loss and Dividends

            The determination of the net income or loss of the Trust shall not
            take into account any interest paid by the Trust under an
            Acquisition Loan. Any cash

                                     - 72 -
<PAGE>
            dividends received on any Financed Shares credited to the Loan
            Suspense Account shall be included in the computation of the net
            income or loss of the Trust. Any stock dividends received on
            Financed Shares in the Loan Suspense Account shall be credited to
            the Loan Suspense Account.

      18.7  Accounting for Transactions

            With regard to an Acquisition Loan, the Administrator or the
            Trustee, if authorized by the Administrator and agreed to by the
            Trustee, shall establish accounting procedures to account for (1)
            Financed Shares attributable to such Acquisition Loan, (2) Employer
            Contributions as described in Section 5 paid in cash or in the form
            of cancellation of indebtedness to enable the trust to repay such
            Acquisition Loan, (3) earnings attributable to Employer
            Contributions described in (2) and used to repay such Acquisition
            Loan and (4) any cash dividends received by the Trust on unallocated
            Financed Shares attributable to such Acquisition Loan and used to
            repay such Acquisition Loan.

      18.8  Allocation Limitation

            Any Employer Contributions described in Section 5 which are used by
            the Trust (not later than the Employer's federal tax filing date,
            including extensions, for deducting such Contribution) to pay
            interest on an Acquisition Loan and any Financed Shares which are
            allocated as forfeitures shall not be included as Annual Additions
            under Subsection 14.1; provided, however, that the provisions of
            this Subsection 18.8 shall be applicable for any Plan Year only if
            not more than one-third of the Employer Contributions described in
            Section 5 applied to pay principal and/or interest on an Acquisition
            Loan are allocated to Participants who are Highly Compensated
            Employees.

      18.9  Forfeitures

            If an Employer Contribution Account subject to vesting consists of
            Company Stock representing Financed Shares, the Company Stock
            representing Financed Shares shall be forfeited under Subsection 9.4
            only after all other Company Stock held in such Account has been
            forfeited.

      18.10 Restrictions

            Except as provided in Subsection 20.6, Financed Shares held or
            distributed by the Trust may be subject to a put, call or other
            option, or buy-sell or similar arrangement even if the Plan is not
            then an employee stock ownership plan under Section 4975(e)(7) of
            the Code.

                                     - 73 -
<PAGE>
19    TRUST ADMINISTRATION

      19.1  Trustee to Construe Trust

            The Trustee shall have the discretionary authority to construe
            reasonably those provisions of this Plan and Trust which relate to
            the Trustee and to do all things necessary or convenient to the
            administration of the Trust, whether or not such powers are
            specifically set forth in this Plan and Trust. Actions taken in good
            faith by the Trustee shall be conclusive and binding on all
            interested parties, and shall be given the maximum possible
            deference allowed by law.

      19.2  Trustee To Act As Owner of Trust Assets

            Subject to the specific conditions and limitations set forth in this
            Plan and Trust, the Trustee shall have all the power, authority,
            rights and privileges of an absolute owner of the Trust assets and,
            not in limitation but in amplification of the foregoing, may:

            (a)   Receive, hold, manage, invest and reinvest, sell, tender,
                  exchange, dispose of, encumber, hypothecate, pledge, mortgage,
                  lease, grant options respecting, repair, alter, insure, or
                  distribute any and all property in the Trust;

            (b)   Borrow money, participate in reorganizations, pay calls and
                  assessments, vote or execute proxies, exercise subscription or
                  conversion privileges, exercise options and register any
                  securities in the Trust in the name of the nominee, in federal
                  book entry form or in any other form as will permit title
                  thereto to pass by delivery;

            (c)   Renew, extend the due date, compromise, arbitrate, adjust,
                  settle, enforce or foreclose, by judicial proceedings or
                  otherwise, or defend against the same, any obligations or
                  claims in favor of or against the Trust; and

            (d)   Lend, through a collective investment fund, any securities
                  held in such collective investment fund to brokers, dealers or
                  other borrowers and to permit such securities to be
                  transferred into the name and custody and be voted by the
                  borrower or others.

      19.3  United States Indicia of Ownership

            The Trustee shall not maintain the indicia of ownership of any Trust
            assets outside the jurisdiction of the United States, except as
            authorized by ERISA Section 404(b).

                                     - 74 -
<PAGE>
      19.4  Tax Withholding and Payment

            (a)   Withholding. The Trustee shall calculate and withhold federal
                  (and, if applicable, state) income taxes with regard to any
                  Eligible Rollover Distribution that is not paid as a Direct
                  Rollover in accordance with the Participant's withholding
                  election or as required by law if no election is made or the
                  election is less than the amount required by law. With regard
                  to any taxable distribution that is not an Eligible Rollover
                  Distribution, the Trustee shall calculate and withhold federal
                  (and, if applicable, state) income taxes in accordance with
                  the Participant's withholding election or as required by law
                  if no election is made.

            (b)   Taxes Due From Investment Funds. The Trustee shall pay from
                  the Investment Fund any taxes or assessments imposed !,by any
                  taxing or governmental authority on such Fund or its income,
                  including related interest and penalties.

      19.5  Trust Accounting

            (a)   Annual Report. Within 60 days (or other reasonable period)
                  following the close of the Plan Year, the Trustee shall
                  provide the Administrator with an annual accounting of Trust
                  assets and information to assist the Administrator in meeting
                  ERISA's annual reporting and audit requirements.

            (b)   Periodic Reports. The Trustee shall maintain records and
                  provide sufficient reporting to allow the Administrator to
                  properly monitor the Trust's assets and activity.

            (c)   Administrator Approval. Approval of any Trustee accounting
                  will automatically occur 90 days after such accounting has
                  been received by the Administrator, unless the Administrator
                  files a written objection with the Trustee within such time
                  period. Such approval shall be final as to all matters and
                  transactions stated or shown therein and binding upon the
                  Administrator.

      19.6  Valuation of Certain Assets

            If the Trustee determines the Trust holds any asset which is not
            readily tradable and listed on a national securities exchange
            registered under the Securities Exchange Act of 1934, as amended,
            the Trustee may engage a qualified independent appraiser to
            determine the fair market value of such property, and the appraisal
            fees shall be paid from the Investment Fund containing the asset.

                                     - 75 -
<PAGE>
      19.7  Legal Counsel

            The Trustee may consult with legal counsel of its choice, including
            counsel for the Employer or counsel of the Trustee, upon any
            question or matter arising under this Plan and Trust. When relied
            upon by the Trustee, the opinion of such counsel shall be evidence
            that the Trustee has acted in good faith.

      19.8  Fees and Expenses

            The Trustee's fees for its services as Trustee shall be such as may
            be mutually agreed upon by the Company and the Trustee. Trustee fees
            and all reasonable expenses of counsel and advisors retained by the
            Trustee shall be paid in accordance with Section 6.

      19.9  Trustee Duties and Limitations

            (a)   In addition to the duties described in this Section 19, unless
                  otherwise agreed to by the Trustee, the Trustee's duties shall
                  be confined to construing the terms of the Plan and Trust as
                  they relate to the Trustee, receiving funds on behalf of and
                  making payments from the Trust, safeguarding and valuing Trust
                  assets, and investing and reinvesting Trust assets in the
                  Investment Funds and shares Company Stock as directed by the
                  Administrator or Participants.

            (b)   The Trustee shall have no duty or authority to ascertain
                  whether Contributions are in compliance with the Plan, to
                  enforce collection or to compute or verify the accuracy or
                  adequacy of any amount to be paid to it by the Employer. The
                  Trustee shall not be liable for the proper application of any
                  part of the Trust with respect to any disbursement made at the
                  direction of the Administrator.

      19.10 Applicability of T. Rowe Price Trust Agreement and North Star Trust
            Agreement

            Effective May 1, 2000 the assets of the Plan held pursuant to the
            North Star Trust Agreement shall be subject to the provisions of
            said agreement in addition to the provisions of the Plan, and in the
            event of any conflict between the provisions of the Plan and the
            provisions of the North Star Trust Agreement as to such assets, the
            provisions of the North Star Trust Agreement shall be controlling.
            Effective May 1, 2000 the assets of the Plan held pursuant to the T.
            Rowe Price Trust Agreement shall be subject to the provisions of
            said agreement in addition to the provisions of the Plan, and in the
            event of any conflict between the provisions of the Plan and the
            provisions of the T. Rowe Price Trust Agreement as to such assets,
            the provisions of the T. Rowe Price Trust Agreement shall be
            controlling; provided, further, that with respect to T. Rowe Price
            Trust Company, no

                                     - 76 -
<PAGE>
            provision of the Plan shall be construed so as to provide in T. Rowe
            Price Trust Company any discretionary power, function or
            responsibility, nor shall any provision of the Plan be construed in
            a manner which would deem T. Rowe Price Trust Company to be other
            than a directed trustee pursuant to the provisions of Section
            403(a)(1) of ERISA.

                                     - 77 -
<PAGE>
20    RIGHTS, PROTECTION, CONSTRUCTION AND JURISDICTION

      20.1  Plan Does Not Affect Employment Rights

            The Plan does not provide any employment rights to any Employee. The
            Employer expressly reserves the right to discharge an Employee at
            any time, with or without cause, without regard to the effect such
            discharge would have upon the Employee's interest in the Plan.

      20.2  Limited Return of Contributions

            (a)   Except as otherwise provided in this Subsection 20.2, (1) Plan
                  assets shall not revert to the Employer nor be diverted for
                  any purpose other than the exclusive benefit of Participants
                  or their Beneficiaries; and (2) a Participant's vested
                  interest shall not be subject to divestment. As provided in
                  ERISA Section 403(c)(2), the actual amount of a Contribution,
                  or a portion thereof, made by the Employer (or the current
                  value of the Contribution, or a portion thereof, if a net loss
                  has occurred) may revert to the Employer if:

                  (1)   Such Contribution is made by reason of a mistake of
                        fact; or

                  (2)   Such Contribution is not deductible under Code Section
                        404 (such Contributions being hereby conditioned upon
                        such deductibility) in the taxable year of the Employer
                        for which the Contribution is made.

            (b)   The maximum amount that may revert to the Employer in the case
                  of Subsections 20.2(a)(1) or (2) is the excess of the amount
                  contributed, over as relevant, the amount that would have been
                  contributed had no mistake of fact occurred or the amount that
                  would have been contributed had the Contribution been limited
                  to the amount that is determined to be deductible. Earnings
                  attributable to such amount may not be returned to the
                  Employer, but losses attributable to such amount must reduce
                  the amount to be returned to the Employer. Furthermore, if the
                  withdrawal of the amount attributable to the mistaken or
                  nondeductible Contribution would cause a Participant's Account
                  balance to be reduced to less than what his or her Account
                  balance would have been had the mistaken or nondeductible
                  amount not been contributed, then the amount to be returned to
                  the Employer must be limited so as to avoid such reduction.

            (c)   The maximum amount that may revert to the Employer in the case
                  of Subsection 20.2(a)(2) is all Plan assets attributable to
                  Contributions made by the Employer.

                                     - 78 -
<PAGE>
            (d)   The reversion to the Employer must be made (if at all) within
                  one year of the mistaken payment of the Contribution, the date
                  of denial of qualification, or the date of disallowance of
                  deduction, as the case may be. A Participant shall have no
                  rights under the Plan with respect to any such reversion.

      20.3  Assignment and Alienation

            (a)   As provided by Code Section 401(a)(13) and to the extent not
                  otherwise required by law, no benefit provided by the Plan may
                  be anticipated, assigned or alienated, except:

                  (1)   To create, assign or recognize a right to any benefit
                        with respect to a Participant pursuant to a QDRO; or

                  (2)   To use a Participant's vested Account balance as
                        security for a loan from the Plan which is permitted
                        pursuant to Code Section 4975.

            (b)   The prohibition on anticipation, assignment and alienation in
                  Subsection 20.3(a) shall not apply to any offset of a
                  Participant's benefits provided under the Plan against an
                  amount that he is ordered or required to pay to the Plan if:

                  (1)   The order or requirement to pay arises (i) under a
                        judgment of conviction for a crime involving the Plan;
                        (ii) under a civil judgment (including a consent order
                        or decree) entered by a court in an action brought in
                        connection with a violation (or alleged violation) of
                        Part 4 of Subtitle B of Title I of ERISA; or (iii)
                        pursuant to a settlement agreement between the Secretary
                        of Labor and such Participant, or a settlement agreement
                        between the Pension Benefit Guaranty Corporation and
                        such Participant, in connection with a violation (or
                        alleged violation) of Part 4 of such subtitle by a
                        fiduciary or any other person;

                  (2)   Such judgment, order, decree, or settlement agreement
                        expressly provides for the offset of all or part of the
                        amount ordered or required to be paid to the Plan
                        against such Participant's benefits provided under the
                        Plan; and

                  (3)   In a case in which the survivor annuity requirements of
                        Code Section 401(a)(11) apply with respect to
                        distributions from the Plan to such Participant, if such
                        Participant has a spouse at the time at which such
                        offset is to be made, (i) either such spouse has
                        consented in writing to such offset and such consent is
                        witnessed by a notary public or representative of the
                        Plan [or it is established to the satisfaction of a Plan
                        representative that

                                     - 79 -
<PAGE>
                        such consent may not be obtained by reason of
                        circumstances described in Code Section 417(a)(2)(B)],
                        or an election to waive the right of such spouse to
                        either a "qualified joint and survivor annuity" [within
                        the meaning of Code Section 417(b)] or a "qualified
                        preretirement survivor annuity" [within the meaning of
                        Code Section 417(c)] is in effect in accordance with the
                        requirements of Code Section 417(a); (ii) such spouse is
                        ordered or required in such judgment, order, decree or
                        settlement to pay an amount to the Plan in connection
                        with a violation of Part 4 of such subtitle; or (iii) in
                        such judgment, order, decree, or settlement, such spouse
                        retains the right to receive the survivor annuity under
                        such a qualified joint and survivor annuity provided
                        pursuant to Code Section 401(a)(11)(A)(i) and under such
                        a qualified preretirement survivor annuity provided
                        pursuant to Code Section 401(a)(11)(A)(ii), determined
                        in accordance with Code Section 401(a)(13)(D).

                  This Subsection 20.3(b) shall apply to judgments, orders and
                  decrees issued, and settlement agreements entered into, on or
                  after August 5, 1997.

      20.4  Facility of Payment

            If a Plan benefit is due to be paid to a minor or if the
            Administrator reasonably believes that any payee is legally
            incapable of giving a valid receipt and discharge for any payment
            due him or her, the Administrator shall have the payment of the
            benefit, or any part thereof, made to the person (or persons or
            institution) whom it reasonably believes is caring for or supporting
            the payee, unless it has received due notice of claim therefor from
            a duly appointed guardian or conservator of the payee. Any payment
            shall to the extent thereof, be a complete discharge of any
            liability under the Plan to the payee.

      20.5  Reallocation of Lost Participant's Accounts

            If the Administrator cannot locate a person entitled to payment of a
            Plan benefit after a reasonable search, the Administrator may at any
            time thereafter treat such person's Account as forfeited and
            allocate such amount as Contributions as described in Section 5 as
            soon as is administratively feasible or as otherwise provided in
            Section 9. If such person subsequently presents the Administrator
            with a valid claim for the benefit, such person shall be paid the
            amount treated as forfeited, plus the interest that would have been
            earned in the Sweep Account to the date of determination. The
            Administrator shall pay the amount through an additional Employer
            Contribution or direct the Trustee to pay the amount from the
            Forfeiture Account.

                                     - 80 -
<PAGE>
      20.6  Put Options

            (a)   In the event that a Participant receives a distribution of
                  Company Stock as provided in Section 12 that is not readily
                  tradeable on an established market at the time of receipt, he
                  or she shall have the option to sell the Company Stock to the
                  Company at any time during two option periods at the then Fair
                  Market Value of the Company Stock by written notice to the
                  Company. The first option period shall commence at the time
                  the Company Stock is distributed and shall extend for 60 days
                  thereafter. The second option period shall commence the later
                  of the date six months after the expiration of the first
                  option period or the first day of the Plan Year following the
                  Plan Year in which the first option period expired and shall
                  extend for 60 days thereafter.

            (b)   Payment for Company Stock distributed as all or part of a
                  single lump sum distribution shall commence no later than 30
                  days after the exercise of the put option and at the option of
                  the Company may be made in a single lump sum or in
                  substantially equal annual installments over a period not to
                  exceed 5 years. The Company shall provide adequate security
                  and pay reasonable interest on any unpaid amounts as
                  determined by the Administrator. Payment for Company Stock
                  distributed as all or part of an installment distribution
                  shall be made in a single lump sum no later than 30 days after
                  the exercise of the put option for each installment
                  distribution.

      20.7  Claims Procedure

            (a)   Right to Make Claim. An interested party who disagrees with
                  the Administrator's determination of his or her right to Plan
                  benefits must submit a written claim and exhaust this claim
                  procedure before legal recourse of any type is sought. The
                  claim must include the important issues the interested party
                  believes support the claim. The Administrator, pursuant to the
                  authority provided in this Plan, shall either approve or deny
                  the claim.

            (b)   Process for Denying a Claim. The Administrator's partial or
                  complete denial of an initial claim must include an
                  understandable, written response covering (1) the specific
                  reasons why the claim is being denied (with reference to the
                  pertinent Plan provisions) and (2) the steps necessary to
                  perfect the claim and obtain a final review.

            (c)   Appeal of Denial and Final Review. The interested party may
                  make a written appeal of the Administrator's initial decision,
                  and the Administrator shall respond in the same manner and
                  form as prescribed for denying a claim initially.

                                     - 81 -
<PAGE>
            (d)   Time Frame. The initial claim, its review, appeal and final
                  review shall be made in a timely fashion, subject to the
                  following timetable:

<TABLE>
<CAPTION>
                                                                 Days to Respond
                        Action                                   From Last Action
<S>                                                              <C>

                  Administrator determines benefit                     NA

                  Interested party files initial request               60 days

                  Administrator's initial decision                     90 days

                  Interested party requests final review               60 days

                  Administrator's final decision                       60 days
</TABLE>

                  However, the Administrator may take up to twice the maximum
                  response time for its initial and final review if it provides
                  an explanation within the normal period of why an extension is
                  needed and when its decision will be forthcoming.

      20.8  Construction

            Headings are included for reading convenience. The text shall
            control if any ambiguity or inconsistency exists between the
            headings and the text. The singular and plural shall be interchanged
            wherever appropriate. References to Participant shall include
            Beneficiary when appropriate and even if not otherwise already
            expressly stated.

      20.9  Jurisdiction and Severability

            The Plan and Trust shall be construed, regulated and administered
            under ERISA and other applicable federal laws and, where not
            otherwise preempted, by the laws of the State of California.
            Effective January 1, 1998, the preceding sentence shall read as
            follows: "The Plan and Trust shall be construed, regulated and
            administered under ERISA and other applicable federal laws and,
            where not otherwise preempted, by the laws of the State of New
            Jersey." Effective May 1, 2000, the Plan and Trust shall be
            construed, regulated and administered under ERISA and other
            applicable federal laws and, where not otherwise preempted, by the
            laws of the State of California. If any provision of this Plan and
            Trust shall become invalid or unenforceable, that fact shall not
            affect the validity or enforceability of any other provision of this
            Plan and Trust. All provisions of this Plan and Trust shall be so
            construed as to render them valid and enforceable in accordance with
            their intent.

                                     - 82 -
<PAGE>
      20.10 Indemnification by Employer

            The Employers hereby agree to indemnify all Plan fiduciaries against
            any and all liabilities resulting from any action or inaction,
            (including a Plan termination in which the Company fails to apply
            for a favorable determination from the Internal Revenue Service with
            respect to the qualification of the Plan upon its termination), in
            relation to the Plan or Trust (1) including (without limitation)
            expenses reasonably incurred in the defense of any claim relating to
            the Plan or its assets, and amounts paid in any settlement relating
            to the Plan or its assets, but (2) excluding liability resulting
            from actions or inactions made in bad faith, or resulting from the
            negligence or willful misconduct of the Trustee. The Company shall
            have the right, but not the obligation, to conduct the defense of
            any action to which this Subsection 20.10 applies. The Plan
            fiduciaries are not entitled to indemnity from the Plan assets
            relating to any such action.

                                     - 83 -
<PAGE>
21    AMENDMENT, MERGER, DIVESTITURES AND TERMINATION

      21.1  Amendment

            The Company reserves the right to amend this Plan and Trust at any
            time, to any extent and in any manner it may deem necessary or
            appropriate. The Company (and not the Trustee) shall be responsible
            for adopting any amendments necessary to maintain the qualified
            status of this Plan and Trust under Code Sections 401(a) and 501(a).
            The Committee, acting in accordance with Subsection 16.6, shall have
            the authority to adopt Plan and Trust amendments which have no
            substantial adverse financial impact upon any Employer or the Plan.
            All interested parties shall be bound by any amendment, provided
            that no amendment shall:

            (a)   Become effective unless it has been adopted in accordance with
                  the procedures set forth in Subsection 21.5;

            (b)   Except to the extent permissible under ERISA and the Code,
                  make it possible for any portion of the Trust assets to revert
                  to an Employer or to be used for, or diverted to, any purpose
                  other than for the exclusive benefit of Participants and
                  Beneficiaries entitled to Plan benefits and to defray
                  reasonable expenses of administering the Plan;

            (c)   Decrease the rights of any Employee to benefits accrued
                  (including the elimination of optional forms of benefits) to
                  the date on which the amendment is adopted, or if later, the
                  date upon which the amendment becomes effective, except to the
                  extent permitted under ERISA and the Code; nor

            (d)   Permit an Employee to be paid the balance of his or her Fund
                  Deferrals Account and Syncor Stock Deferrals Account unless
                  the payment would otherwise be permitted under Code Section
                  401(k).

      21.2  Merger

            This Plan and Trust may not be merged or consolidated with, nor may
            its assets or liabilities be transferred to, another plan unless
            each Participant and Beneficiary would, if the resulting plan were
            then terminated, receive a benefit just after the merger,
            consolidation or transfer which is at least equal to the benefit
            which would be received if either plan had terminated just before
            such event.

      21.2A Merger with Lafayette Plan

            The Lafayette Plan shall be merged into this Plan as of the
            Lafayette Plan Merger Date. In connection with such merger, and
            effective as of the Lafayette Plan Merger Date:

                                     - 84 -
<PAGE>
            (a)   All of the assets and liabilities of the Lafayette Plan shall
                  be deemed to be assets and liabilities of this Plan.

            (b)   Each Lafayette Plan Participant's benefits in the Lafayette
                  Plan shall be credited to his Lafayette Deferrals Account,
                  Lafayette Matching Account and Lafayette Rollover Account, as
                  the case may be.

            (c)   A Lafayette Plan Participant shall always be 100% vested in
                  his Lafayette Deferrals Account and Lafayette Rollover
                  Account, and shall be vested in his Lafayette Matching Account
                  in accordance with Subsection 9.2 as if such account was a
                  Syncor Match/Bonus Account.

            (d)   A Lafayette Plan Participant's Lafayette Deferrals Account,
                  Lafayette Matching Account and Lafayette Rollover Account
                  shall be considered Directed Investment Accounts subject to
                  the provisions of Section 7.

            (e)   Loans made to a Lafayette Plan Participant from the Lafayette
                  Plan shall be repaid to this Plan in accordance with their
                  respective terms and payments on such loans shall be credited
                  as follows:

                  (1)   To such Participant's Lafayette Deferrals Account to the
                        extent such loans were made from his or her account in
                        the Lafayette Plan attributable to his or her salary
                        reduction contributions under Code Section 401(k);

                  (2)   To such Participant's Lafayette Matching Account to the
                        extent such loans were made from his or her account in
                        the Lafayette Plan attributable to employer matching
                        contributions on his or her behalf.

                  (3)   To such Participant's Lafayette Rollover Account to the
                        extent such loans were made from his or her account in
                        the Lafayette Plan attributable to rollover
                        contributions on his or her behalf.

            (f)   At such time as a Lafayette Plan Participant shall have
                  attained age 59-1/2, the Committee shall, at the election of
                  such Lafayette Plan Participant, direct the Trustee to
                  distribute all or a portion of the amounts credited to his or
                  her Lafayette Deferrals Account, Lafayette Matching Account
                  and Lafayette Rollover Account, but no such distribution shall
                  be made from any such Account prior to the time he or she is
                  100% vested in such Account.

            (g)   In the event a Lafayette Plan Participant is entitled to a
                  distribution of his or her Lafayette Deferrals Account,
                  Lafayette Matching Account or Lafayette Rollover Account,
                  payment may be made in accordance with Subsection 12.3 or in
                  monthly, quarterly, semiannual or annual

                                     - 85 -
<PAGE>
                  cash installments over a period certain (with no life
                  contingencies) not extending beyond the life expectancy of
                  such Lafayette Plan Participant (or the life expectancy of
                  such Lafayette Plan Participant and his or her designated
                  Beneficiary). In order to provide such installment payments,
                  the Committee may (1) segregate the aggregate amount thereof
                  in a separate, federally insured savings account, certificate
                  of deposit in a bank or savings and loan association, money
                  market certificate or other liquid short-term security; or (2)
                  purchase a nontransferable annuity contract for a term certain
                  (with no life contingencies) providing for such payment. This
                  Subsection 21.2A(g) shall not apply as to distributions to a
                  Lafayette Plan Participant beginning on or after the 90th day
                  after the Committee has furnished such Lafayette Plan
                  Participant with a summary reflecting this Subsection 21.2A
                  and which satisfies the requirements of 29 C.F.R. Section
                  2520.104b-3. As of the date this Subsection 21.2A(g) shall not
                  apply as to distributions to a Lafayette Plan Participant, the
                  balance in his or her Lafayette Deferrals Account shall be
                  transferred to his or her Fund Deferrals Account and the
                  balance in his or her Lafayette Rollover Account shall be
                  transferred to his or her Rollover Account.

            (h)   A Lafayette Plan Participant's Lafayette Deferrals Account and
                  Lafayette Rollover Account shall be considered as if they were
                  a Fund Deferrals Account and a Rollover Account, respectively,
                  for purposes of Subsections 10.5 and 11.7.

            (i)   Any Beneficiary designation made by a Lafayette Plan
                  Participant prior to the Lafayette Plan Merger Date shall be
                  honored under this Plan, as to all benefits payable on account
                  of his or her death, provided that:

                  (1)   Such designation satisfies the Spousal Consent
                        requirements of this Plan if the primary designated
                        Beneficiary is other than such Lafayette Plan
                        Participant's spouse; and

                  (2)   Such designation has been delivered to the Committee
                        prior to such Participant's death.

                  Subsection 12.11 shall apply to all benefits payable on
                  account of the death of a Lafayette Plan Participant if no
                  proper Beneficiary designation is inn effect at the time of
                  his or her death, or if any Beneficiary designated by such
                  Lafayette Plan Participant is not in existence at the time of
                  his or her death.

      21.3  Divestitures

            (a)   In the event of a sale by an Employer which is a corporation
                  of: (1) substantially all of the Employer's assets used in a
                  trade or business

                                     - 86 -
<PAGE>
                  to an unrelated corporation, or (2) a sale of such Employer's
                  interest in a subsidiary to an unrelated entity or individual,
                  lump sum distributions shall be permitted from the Plan,
                  except as provided below, to Participants with respect to
                  Employees who continue employment with the corporation
                  acquiring such assets or who continue employment with such
                  subsidiary, as applicable.

            (b)   Notwithstanding Subsection 21.3(a), distributions shall not be
                  permitted if the purchaser agrees, in connection with the
                  sale, to be substituted as the Company as the sponsor of the
                  Plan or to accept a transfer of the assets and liabilities
                  representing the Participants' benefits into a plan of the
                  purchaser or a plan to be established by the purchaser.

      21.4  Plan Termination

            The Company may, at any time and for any reason, terminate the Plan
            in accordance with the procedures set forth in Subsection 21.5, or
            completely discontinue contributions. Upon either of these events,
            or in the event of a partial termination of the Plan within the
            meaning of Code Section 411 (d)(3), the Accounts of each affected
            Employee who has not yet incurred a Break in Service shall be fully
            vested. If no successor plan is established or maintained, lump sum
            distributions will be made in accordance with the terms of the Plan
            as in effect at the time of the Plan's termination or as thereafter
            amended provided that a post-termination amendment will not be
            effective to the extent that it violates Subsection 21.1 unless it
            is required in order to maintain the qualified status of the Plan
            upon its termination. The Trustee's and Employer's authority shall
            continue beyond the Plan's termination date until all Trust assets
            have been liquidated and distributed.

      21.5  Amendment and Termination Procedures

            The following procedural requirements shall govern the adoption of
            any amendment or termination (a "Change") of the Plan:

            (a)   The Company may adopt any Change by action of its board of
                  directors in accordance with its normal procedures.

            (b)   The Committee, acting as Administrator in accordance with
                  Subsection 16.6, may adopt any amendment within the scope of
                  its authority provided under Subsection 21.1 and in the manner
                  specified in Subsection 16.7(a).

            (c)   Any Change must be (1) set forth in writing, and (2) signed
                  and dated by an executive officer of the Company or, in the
                  case of an amendment adopted by the Committee, at least one of
                  its members.

                                     - 87 -
<PAGE>
            (d)   If the effective date of any Change is not specified in the
                  document setting forth the Change, it shall be effective as of
                  the date it is signed by the last person whose signature is
                  required under Subsection 21.5(c)(2), except to the extent
                  that another effective date is necessary to maintain the
                  qualified status of the Plan under Code Sections 401(a) and
                  501(a).

            (e)   No Change which affects the duties or responsibilities of the
                  Trustee shall become effective until it is accepted and signed
                  by the Trustee (which acceptance shall not unreasonably be
                  withheld).

      21.6  Termination of Employer's Participation

            Any Employer may, at any time and for any reason, terminate its Plan
            participation by action of its board of directors in accordance with
            its normal procedures. Written notice of such action shall be signed
            and dated by an executive officer of the Employer and delivered to
            the Committee. If the effective date of such action is not
            specified, it shall be effective on, or as soon as reasonably
            practicable, after the date of delivery. Upon the Employer's
            request, the Committee may instruct the Trustee to spin off all
            affected Accounts and underlying assets into a separate qualified
            plan under which the Employer shall assume the powers and duties of
            the Company. Alternatively, the Company may treat the event as a
            partial termination for purposes of Subsection 21.4 or it may
            continue to maintain the Accounts under the Plan.

      21.7  Replacement of Trustee

            The Trustee may resign as Trustee under this Plan and Trust or may
            be removed by the Company at any time upon at least 90 days' written
            notice (or a lesser period, if agreed to by both parties). In such
            event, the Company shall appoint a successor trustee by the end of
            the notice period. The successor trustee shall then succeed to all
            the powers and duties of the Trustee under this Plan and Trust. If
            no successor trustee has been named by the end of the notice period,
            the Company's chief executive officer shall become the trustee, or
            if he or she declines, the Trustee may petition the court for the
            appointment of a successor trustee.

      21.8  Final Settlement and Accounting of Trustee

            (a)   Final Settlement. As soon as is administratively feasible
                  after its resignation or removal as Trustee, the Trustee shall
                  transfer to the successor trustee all property currently held
                  by the Trust. However, the Trustee is authorized to reserve
                  such sum of money as it may deem advisable for payment of its
                  accounts and expenses in connection with the settlement of its
                  accounts or other fees or expenses payable by the Trust upon
                  presentation of written estimates

                                     - 88 -
<PAGE>
                  of such fees and expenses to the Administrator. Any balance
                  remaining after payment of such fees and expenses shall then
                  be paid to the successor trustee as soon as is
                  administratively feasible.

            (b)   Final Accounting. The Trustee shall provide a final accounting
                  to the Administrator within 90 days of the date Trust assets
                  are transferred to the successor trustee.

            (c)   Administrator Approval. Approval of the final accounting will
                  automatically occur 90 days after such accounting has been
                  received by the Administrator, unless the Administrator files
                  a written objection with the Trustee within such time period.
                  Such approval shall be final as to all matters and
                  transactions stated or shown therein and binding upon the
                  Administrator.

                                     - 89 -
<PAGE>
                             AMENDMENT NO. 1 TO THE
            2002 RESTATEMENT OF THE SYNCOR INTERNATIONAL CORPORATION
                   EMPLOYEES' SAVINGS AND STOCK OWNERSHIP PLAN

      WHEREAS, Syncor International Corporation (the "Company") approved and
adopted the Syncor International Corporation Employees' Savings and Stock
Ownership Plan, originally effective July 31, 1986 and most recently restated on
February 25, 2002 effective January 1, 1997 (the "Plan"); and

      WHEREAS, Subsections 21.1 and 21.5(b) of the Plan provide that the
Committee under the Plan may adopt amendments to the Plan which have no
substantial adverse financial impact on any employer thereunder or on the Plan;
and

      WHEREAS, the Committee has determined that the amendment set forth below
does not have any substantial adverse financial impact on any employer under the
Plan or on the Plan.

      NOW, THEREFORE, the Plan is hereby amended effective as of January 1, 2002
by deleting Subsection 5.2(c)(1) thereof and substituting the following in its
place:

            (1)   If there is an Acquisition Loan outstanding, the Employer
                  shall make each half of the Plan Year's Syncor Match
                  Contributions through the allocation of Financed Shares from
                  the Loan Suspense Account as set forth in Section 18. If there
                  is no Acquisition Loan outstanding, the Employer shall make
                  each half of the Plan Year's Syncor Match Contributions by
                  contributing shares of Company Stock directly to the Plan or
                  by contributing cash to the Plan to enable it to purchase
                  shares of Company Stock on the open market.

      Dated as of this 30th day of October, 2002.

                                          COMMITTEE UNDER SYNCOR
                                            INTERNATIONAL CORPORATION
                                            EMPLOYEES' SAVINGS AND
                                            STOCK OWNERSHIP PLAN

                                          By /s/ Sheila H. Coop
                                             ---------------------------------
                                                 Sheila H. Coop, Member
<PAGE>
                             AMENDMENT NO. 2 TO THE
            2002 RESTATEMENT OF THE SYNCOR INTERNATIONAL CORPORATION
                   EMPLOYEES' SAVINGS AND STOCK OWNERSHIP PLAN

      WHEREAS, Syncor International Corporation (the "Company") approved and
adopted the Syncor International Corporation Employees' Savings and Stock
Ownership Plan, originally effective July 31, 1986 and most recently restated on
February 25, 2002 effective January 1, 1997 and thereafter amended by Amendment
No. 1 (the "Plan"); and

      WHEREAS, Subsections 21.1 and 21.5(b) of the Plan provide that the
Committee under the Plan may adopt amendments to the Plan which have no
substantial adverse financial impact on any employer thereunder or on the Plan;
and

      WHEREAS, the Committee has determined that the amendment set forth below
does not have any substantial adverse financial impact on any employer under the
Plan or on the Plan.

      NOW, THEREFORE, the Plan is hereby further amended as effective January 1,
2002 except as otherwise indicated:

1. The following sentence is added to Subsection 1.13 of the Plan:

      Effective for Plan Years beginning after December 31, 2001, the third
      sentence of this Subsection 1.13 shall read as follows: "For purposes of
      determining benefits under this Plan, Compensation is limited to $200,000
      [as adjusted for the cost of living pursuant to Code Section
      401(a)(17)(B)] per Plan Year."

2. Section 1.14(h) is added to the Plan to read as follows:

      (h)   "Syncor Corrective Contribution": An amount contributed by the
            Employer on an eligible Participant's behalf in accordance with
            Section 5.6.

3. The following sentences are added to Subsection 1.15 of the Plan:

      Notwithstanding the first sentence of this Subsection 1.15, effective for
      taxable years beginning after December 31, 2001, the Contribution Dollar
      Limit shall be as follows:

<TABLE>
<CAPTION>
             For Taxable Years                      Contribution Dollar
                Beginning in                                Limit
              Calendar Year
<S>                                                 <C>

                   2002                                   $11,000
                   2002                                    12,000
                   2004                                    13,000
                   2005                                    14,000
            2006 and thereafter                            15,000
</TABLE>

      For taxable years beginning in calendar years after 2006, the $15,000
      Contribution Dollar Limit shall be adjusted in accordance with Code
      Section 402(g)(4).
<PAGE>
4. The following sentences are added to Subsection 1.23 of the Plan:

      Effective for distributions made after December 31, 2001, the term
      "Eligible Retirement Plan" shall also include (i) an annuity contract
      described in Section 403(a) of the Code and (ii) an eligible plan which is
      maintained under Section 457(b) of the Code and which is maintained by a
      state or political subdivision of a state or instrumentality of a state
      and which agrees to separately account for amounts transferred to such
      plan from this Plan. Also effective for distributions made after December
      31, 2001, the definition of "Eligible Retirement Plan" shall apply in the
      case of a distribution to a surviving spouse of a Participant or to a
      spouse or former spouse of a Participant who is an alternate payee under a
      QDRO.

      5. The following sentence is added to Subsection 1.24 of the Plan:

      Effective as to distributions made after December 31, 2001, the term
      "Eligible Rollover Distribution" shall not include any amount which is
      distributed on account of hardship.

6. The last sentence of Subsection 5.2(a) of the Plan is deleted and the
   following is substituted in its place effective as to Eligible Employees who
   become Participants on or after August 1, 2001:

      Notwithstanding the preceding sentence, effective as to Eligible Employees
      who become Participants on or after August 1, 2001, the Employer shall not
      make Syncor Matching Contributions on behalf of a Participant as to his or
      her Pre-Tax Contributions, if any, with respect to his or her Pay during
      his or her first 9 calendar months as a Participant.

      7. Section 5.6 is added to the Plan to read as follows:

      5.6 Syncor Corrective Contributions

            (a)   Frequency and Eligibility. For each Plan Year, the Employer
                  may make Syncor Corrective Contributions on behalf of each
                  Participant as to whom there has been an "Operational Failure"
                  as to the Plan under the Internal Revenue Service's Employee
                  Plans Compliance Resolution System (as set forth in Revenue
                  Procedure 2002-47 or any successor thereto) ("EPCRS").

            (b)   Allocation Method. The Syncor Corrective Contribution for each
                  Plan Year the shall be allocated to the Fund Deferrals Account
                  of the Participant on whose behalf such contribution is being
                  made, with the amount of such contribution being equal to the
                  amount necessary to cure the Plan's "Operational Failure" as
                  to such Participant.

            (c)   Medium, Timing and Posting. Syncor Corrective Contributions
                  for a Plan Year shall be made in cash within the time, if any,
                  prescribed under EPCRS and shall be posted to the Fund

                                      - 2 -
<PAGE>
                  Deferrals Accounts of the Participants described in Section
                  5.6(a).

      8. The following sentence is added to Subsection 9.3(a) of the Plan:

      Notwithstanding the preceding schedule, the following schedule shall
      govern the vesting of a Participant's Syncor Match/Bonus Account effective
      as to Syncor Match Contributions for Plan Years beginning after December
      31, 2001:

<TABLE>
<CAPTION>
       Years of Vesting Service                Vested Percentage
<S>                                            <C>

             Less than 2                               0%
          2 but less than 3                           20%
          3 but less than 4                           40%
          4 but less than 5                           70%
              5 or more                              100%
</TABLE>

      9. The following sentence is added to Subsection 11.7(d) of the Plan:

      Effective as to Participants making withdrawals after December 31, 2001,
      "6 months" shall be substituted for "12 months" in Subsection 11.7(d)(2)
      and Subsection 11.7(d)(3) shall not apply.

      10. The last sentence of Subsection 11.7(e) of the Plan is deleted and the
following sentence is substituted in its place effective January 1, 1997:

      The amount that may be withdrawn from a Participant's Fund Deferrals and
      Syncor Stock Deferrals Accounts shall not include any earnings credited to
      said accounts after December 31, 1988.

      11. Subsection 12.1(c) is added to the Plan to read as follows:

      (c)   If and when an entity ceases to be a Related Company, the employees
            of such entity who are Participants shall thereupon be considered to
            have severed and terminated their employment with the Employer for
            purposes of Section 401(k)(2)(B)(i)(I) of the Code and Subsection
            12.1(a) of the Plan.

      12. The following sentence is added to Subsection 12.4 of the Plan:

      Effective January 1, 2002, for purposes of determining whether a
      Participant's vested Account balance is $5,000 or less, the balance in his
      or her Rollover Account shall not be taken into account.

      13. The following sentence is added to Subsection 13.4 of the Plan:

                                      - 3 -
<PAGE>
      Effective for Plan Years beginning after December 31, 2001, this
      Subsection 13.4 shall no longer apply.

      14. The following sentence is added to Subsection 14.2 of the Plan:

      Effective as to Limitation Years beginning after December 31, 2001, the
      preceding sentence shall read as follows: "The Annual Addition to a
      Participant's accounts under this Plan and any other defined contribution
      plan maintained by any Related Company for any Plan Year shall not exceed
      the lesser of (a) 100% of his or her Taxable Income or (b) $40,000 [as
      adjusted pursuant to Code Section 415(d)]."

      15. Subsection 15.1(c) of the Plan is deleted and the following is
substituted in its place:

      (c)   "Key Employee" means a current or former Employee (or his or her
            Beneficiary) who at any time during a plan year containing the
            Determination Date was: (1) an officer of the Employer having an
            annual Compensation greater than $130,000 [subject to cost-of-living
            adjustments pursuant to Code Section 416(i)(1)(A)]; (2) a
            more-than-5% Owner; or (3) a more-than-1% Owner whose Compensation
            exceeds $150,000.

      16. Subsections 15.1(d) and 15.1(e) of the Plan are deleted and the
following are substituted in their place:

            (d) "Plan Benefit" means the sum as of the Determination Date of (1)
            an Employee's Account, (2) the present value of his or her other
            accrued benefits provided by all qualified plans within the
            Aggregation Group, and (3) the aggregate distributions made within
            the one-year period ending on such date. In the case of a
            distribution made for a reason other than severance from employment,
            death or disability, "5-year period" shall be substituted for
            "one-year period" in the preceding sentence. Plan Benefits shall
            exclude rollover contributions and plan-to-plan transfers made after
            December 31, 1983 which are both employee-initiated and from a plan
            maintained by a non-related employer.

            (e) "Top-Heavy" means the Plan's status when the Plan Benefits of
            Key Employees account for more than 60% of the Plan Benefits of all
            Employees who have performed services at any time during the
            one-year period ending on the Determination Date. The Plan Benefits
            of Employees who were, but are no longer, Key Employees (because
            they have not been an officer or Owner during such one-year period),
            are excluded in the determination.

      17. Subsection 21.3(c) is added to the Plan to read as follows:

      (c)   This Subsection 21.3 shall not apply effective January 1, 2002.

                                      - 4 -
<PAGE>
      Dated as of this 31st day of December, 2002.

                                          COMMITTEE UNDER SYNCOR
                                             INTERNATIONAL CORPORATION
                                             EMPLOYEES' SAVINGS AND
                                             STOCK OWNERSHIP PLAN

                                          By: /s/ Sheila H. Coop
                                              --------------------------
                                                  Sheila H. Coop, Member

                                      - 5 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}]]