Document:

FIRST AMENDMENT TO AGREEMENT AND PLAN OF MERGER AND
                            EQUITYHOLDER AGREEMENTS

         THIS FIRST AMENDMENT TO AGREEMENT AND PLAN OF MERGER AND EQUITYHOLDER
AGREEMENTS, dated as of September 19, 2002 (this First Amendment), among
Headwaters Incorporated, a Delaware corporation (Parent), Headwaters Olysub
Corporation, a Delaware corporation and a wholly-owned subsidiary of Parent (the
Sub), Industrial Services Group, Inc., a Delaware corporation (the Company), ISG
Resources, Inc., a Utah corporation and a wholly-owned subsidiary of the Company
(the Public Sub), and each of the equityholders listed on the signature pages
hereto (the Equityholders or the Holders),

                              W I T N E S S E T H:

         WHEREAS, Parent, Company, Sub and the Public Sub entered into that
certain Agreement and Plan of Merger dated as of July 15, 2002 (the Merger
Agreement);

         WHEREAS, the Parent entered into Equityholder Agreements dated as of
July 15, 2002, with each of the Equityholders (the Equityholder Agreements); and

         WHEREAS, the Company, the Public Sub, Parent and the Sub desire to
amend the Merger Agreement and Parent and each of the Equityholders wish to
amend the Equityholder Agreements in each case to reflect new Merger
Consideration and allocation thereof:

         NOW, THEREFORE, in consideration of the foregoing, and of the
representations, warranties, covenants and agreements contained herein, the
parties hereto agree as follows:

                                   ARTICLE I.
                                  DEFINITIONS

         SECTION 1.1 Definitions.(a) Capitalized terms used but not otherwise
defined in this Amendment shall have the meanings given them in the Merger
Agreement.

         (b) The definition of Aggregate Cash Consideration Value contained in
Section 1.1 of the Merger Agreement is hereby amended and restated in its
entirety as follows:

         Aggregate Cash Consideration Value means an amount equal to (i)
$22,700,000 minus (ii) the sum of (A) the amount, if any, by which the Other
Indebtedness as of the Closing Date exceeds $800,000 and (B) the amount, if any,
by which the Transaction Expenses exceed $1.7 million, as such amounts and
differences become final and binding on the Adjustment Determination Date.

         (c) The following definitions contained in Section 1.1 of the Merger
Agreement are hereby deleted therefrom: Aggregate Common Cash Merger
Consideration, Aggregate Common Equity Merger Consideration, Aggregate Preferred
Merger Consideration, Aggregate Residual Cash Consideration, Common Per Share
Cash Consideration, Common Per Share Equity Consideration, CVC Warrant Cash
Consideration, CVC Warrant Equity Consideration and Preferred Per Share
Consideration.

<PAGE>

         (d) Section 1.1 of the Merger Agreement is hereby amended to include
the following additional definition therein:

                  Amendment Exhibit B means the Exhibit B attached to the First
         Amendment to Agreement and Plan of Merger and Equityholder Agreements,
         dated as of September 19, 2002 among, inter alia, the parties hereto.

                                  ARTICLE II.
           AMENDMENTS TO MERGER AGREEMENT AND EQUITYHOLDER AGREEMENTS

         SECTION 2.1 Merger Consideration.Notwithstanding any provision of the
Merger Agreement or the Equityholder Agreements, the Merger Consideration shall
be defined as and comprised of the following:

         (a) The Aggregate Cash Consideration Value;

         (b) $10,000,000 in aggregate principal amount of Participation
Interests (as defined in the Participation Agreement entered into simultaneously
herewith, the form of which is attached as Exhibit A hereto (the Participation
Interests); and

         (c) 2,100,000 shares of Parent Stock.

         SECTION 2.2 Allocation of Merger Consideration.The Equityholders and
the other parties to this Amendment each agree that notwithstanding any
provision of the Merger Agreement or the Equityholder Agreements, including
without limitation the rights of any Equityholder under the Articles of
Incorporation of the Company to receive Preferred Liquidation Value, the Merger
Consideration shall be allocated among the respective holders of shares of the
Series A Preferred, Series B Preferred, the Class A Common Shares, the Class B
Common Shares, the CVC Warrants and the Phantom Stock Right as set forth on
Amendment Exhibit B, and to that end:

         (a) Section 3.1(a) of the Merger Agreement is hereby amended and
restated in its entirety as follows:

                  Company Stock. Except for Excluded Company Shares and
         Dissenting Shares, and except as provided in the following sentence,
         the shares of (i) Series A Preferred Stock, Stock, par value $0.01 per
         share of the Company (the Series A Preferred), (ii) Series B Preferred
         Stock, par value $0.01 per share, of the Company (the Series B
         Preferred and, together with the Series A Preferred, the Preferred
         Stock), (iii) Class A Common Stock, par value $0.01 per share of the
         Company (each a Class A Common Share), and (iv) Class B Common Stock,
         par value $0.01, of the Company (each a Class B Common Share and,
         together with the Class A Common Shares, the Common Shares), in each
         case issued and outstanding immediately prior to the Effective Time,

<PAGE>

         shall be converted into the right to receive the Merger Consideration
         set forth in Amendment Exhibit B with respect to such shares. At the
         Effective Time, all shares of Preferred Stock and all Common Shares
         shall cease to be outstanding, shall be canceled and retired and shall
         cease to exist, and each certificate formerly representing a share of
         Preferred Stock or a Common Share shall thereafter cease to have any
         rights with respect to the shares of Preferred Stock or to Common
         Shares, except as provided herein or by law. The shares of Parent Stock
         issued as Merger Consideration pursuant to this Section 3.1(a) and 3.2
         shall be referred to as Merger Shares.

         (b) Section 3.1(b) of the Merger Agreement is hereby amended and
restated in its entirety to read as follows: [Intentionally Omitted].

         (c) Section 3.1(c) of the Merger Agreement is hereby amended to delete
the phrase An aggregate of Five Hundred Thousand Dollars ($500,000) in cash at
the beginning of the first sentence thereof and replace it with the following
word: None.

         (d) Clause (i) of Section 3.2 (b) is hereby amended and restated in its
entirety as follows:

                  (i) the CVC Warrants and the holders thereof shall be entitled
         to receive in the aggregate the Merger Consideration set forth on
         Amendment Exhibit B with respect thereto payable in the manner provided
         in Section 3.4(a) with respect to Common Shares surrendered at the
         Closing and allocated among such holders as set forth on Amendment
         Exhibit B and.

         (e) The last sentence of Section 6.18 of the Merger Agreement is hereby
amended to delete the phrase in the aggregate for the CVC Warrant Cash
Consideration and the CVC Warrant Equity Consideration.

         (f) Each of Sections 7.1(d), 7.2(h) and 7.3(f) of the Merger Agreement
is hereby amended and restated in its entirety to read as follows:
[Intentionally Omitted].

         (g) Section 2.2(a) of the Merger Agreement is hereby amended to (i)
delete the phrase at 10:00 a.m. on a date to be specified by the parties hereto,
which date shall be no later than the fifth business day after and substituting
in its stead the word on or before 9:00 a.m. on September 19, 2002, assuming,
and (ii) inserting a comma immediately prior to the phrase at the offices of.

         (h) The first sentence of Section 8.2 of the Merger Agreement is hereby
amended to delete the phrase and pro rata basis based on the percentage of
Merger Consideration received by such stockholder or holder of a CVC Warrant and
insert in its stead the following: basis based on the percentages set forth next
to their respective names on Schedule 8.2 to the First Amendment.

         SECTION 2.3 Post-Closing Adjustment. The Equityholders and the other
parties to this Amendment each agree that Section 3.3 (c) of the Merger
Agreement is hereby amended and restated in its entirety as follows:

<PAGE>

         (c) Within ten (10) days following the later of (i) the date the Parent
Financial Data Schedule is accepted by the Holders Representatives, and (ii) the
final, binding and conclusive determination of all disputes with respect to the
Parent Financial Data Schedule as provided in paragraph (d) of this Section 3.3
(such later date, the Adjustment Determination Date), (A) in the event the
Estimated Aggregate Cash Consideration Value is less than the Aggregate Cash
Consideration Value, the Parent shall deliver to former holders of Common Shares
and of the CVC Warrants receiving Merger Consideration, on a pro rata basis
pursuant to Amendment Exhibit B, and (B), in the event the Estimated Aggregate
Cash Consideration Value is greater than the Aggregate Cash Consideration Value,
the former holders of Common Shares and of the CVC Warrants receiving Merger
Consideration shall deliver to Parent, on a pro rata basis pursuant to Amendment
Exhibit B, in each case an aggregate amount in cash equal to the difference
(provided that the aggregate amount to be delivered pursuant to clause (B) shall
not exceed $500,000).

         SECTION 2.4 Appropriate Changes to Documentation.All provisions of the
Merger Agreement and Equityholder Agreements and related documents which are
exhibits thereto relating to the authorization, issuance, delivery and receipt
of the Merger Consideration and the components thereto shall be deemed to apply
to the components of the Merger Consideration as described in this Agreement,
including the Participation Interests and the additional shares of Parent Stock.
Notwithstanding the generality of the foregoing, the forms of legal opinions to
be rendered at Closing shall be appropriately modified to reflect the change in
Merger Consideration.

         SECTION 2.5 Equityholder Representations and Agreements. Each of the
Equityholders receiving Participation Interests agrees that:

         (a) The Participation Interests to be issued to Holder is being
acquired for investment for Holders own account, not as a nominee or agent, and
not with a view to the sale or distribution of any part thereof in violation of
the Securities Act of 1933, and Holder has no present intention of selling,
granting any participation in, or otherwise distributing the same in a manner
that would jeopardize the availability to Parent of the registration exemption
described in Section 2.5(b) below. Holder represents that the entire legal and
beneficial interest of the Participation Interests to be received pursuant to
the Merger Agreement as amended will be held for its account only, and neither
in whole or in part for any other person. By executing this Amendment, Holder
further represents that Holder has no present contract, undertaking, agreement
or arrangement with any person to sell, transfer or grant participation to any
third person, with respect to any of the Participation Interests to be received
by Holder pursuant to the Merger Agreement as amended.

         (b) Holder understands and acknowledges that the sale and issuance of
the Participation Interests pursuant to the Merger Agreement as amended is being
effected on the basis that the issuance of such securities is exempt from
registration pursuant to Section 4(2) of the Securities Act of 1933 and Rule 506
under Regulation D promulgated thereunder and that Parents reliance upon such
exemptions is predicated in part upon Holders representations made in this
Amendment, the Equityholder Agreement signed by Holder and the representation
and warranties of Holder and the information contained in Holder Certificate
attached as Exhibit A to the Equityholder Agreement (the Holder Certificate). In
furtherance of the foregoing, Holder represents and warrants to Parent that the

<PAGE>

information set forth in Holder Certificate executed and delivered by Holder to
Parent in connection with the execution of the Equityholder Agreement continues
to be true and correct. The Holder Certificate is expressly incorporated by
reference into this Amendment.

         (c) Holder further represents that Holder, either acting alone or after
consultation with his or her purchaser representative, legal advisor and tax
advisor: (i) has such knowledge and experience in financial and business matters
as to be capable of evaluating the merits and risks of Holders investment in the
Participation Interests to be received by Holder pursuant to the Merger
Agreement as amended; (ii) has received or otherwise reviewed copies of Parents
Annual Report on Form 10-K filed with the SEC for the year ending September 30,
2001, Parents quarterly reports on Form 10-Q filed with the SEC for the periods
ending December 31, 2001 and March 31, 2002, Parents definitive proxy statement
for its 2002 Annual Meeting of Stockholders, and Parents current reports filed
on Form 8-Ks dated December 27, 2001 and March 10, 2002 and those public reports
filed by Parent and Public Sub after the date of the Merger Agreement; and (iii)
has received or otherwise reviewed all the information such Holder has requested
from Parent and the Company that such Holder considers necessary or appropriate
in making the investment decision in connection with the Merger, including
having the opportunity to ask questions of and receive answers from, Parent, its
employees, and representatives, concerning financial affairs of Parent, and all
questions which have been asked have been answered and; and (iv) has the ability
to bear the economic risks of Holders investment. Holder acknowledges and agrees
that Holder has conducted its, his or her own independent review and analysis of
Parent. Holder is relying solely on that investigation and on the
representations and warranties of Parent set forth in this Amendment and the
Equityholder Agreement, and Parent shall not be deemed to have made any
representations or warranties to Holder other than as set forth herein.

         (d) Holder has had an opportunity to review with its own tax advisors
the tax consequences to Holder of the Merger and the Transactions, including the
change in the Merger Consideration and the issuance of the Participation
Interests. Holder understands that it must rely solely on its advisors and not
on any statements or representations by Parent, the Company or any of their
respective attorneys, investment advisors, accountants or other agents with
respect to tax matters. Holder agrees and acknowledges that Parent is delivering
to the Company the tax opinion referred to in Section 7.2(g) of the Merger
Agreement for the Companys review purposes only and under no circumstances will
Holder or any other Person, other than the addressee of such opinion, rely on
such opinion or the matters contained therein.

<PAGE>

                                  ARTICLE III.
                               GENERAL PROVISIONS

         SECTION 3.1 Counterparts.This Amendment may be executed in
counterparts, all of which shall be considered one and the same agreement, and
shall only become effective when one or more counterparts have been signed by
each of the parties and delivered to the other parties.

         SECTION 3.2 Entire Agreement; No Third-Party Beneficiaries.Except for
the Confidentiality Letter, the Merger Agreement, the Equityholder Agreements
and the agreements that are exhibits thereto, this Amendment (including the
Exhibits thereto) constitutes the entire agreement and supersedes all prior
agreements and understandings, both written and oral, among the parties with
respect to the subject matter hereof; provided, however, that it is expressly
agreed that the Transactions do not violate any provision of the Confidentiality
Letter. This Amendment is not intended to confer upon any person other than the
parties hereto any rights or remedies hereunder; provided that it is intended
that the Charter Indemnified Parties and the Company Indemnitees are third-party
beneficiaries with respect to the provisions of Section 6.6 and Article VIII of
the Merger Agreement, respectively. Except as expressly amended or modified by
this First Amendment, the provisions of the Merger Agreement and each
Equityholder Agreement remain in full force and effect.

         SECTION 3.3 Governing Law.This Amendment shall be governed by, and
construed in accordance with, the laws of the State of Utah, regardless of the
laws that might otherwise govern under applicable principles of conflicts of
laws thereof; provided that any questions regarding interpretation of provisions
of the DGCL, including with respect to Articles II and III of the Merger
Agreement as amended hereby, shall be governed by the laws of the State of
Delaware.

         SECTION 3.4 Assignment.Neither this Amendment nor any of the rights,
interests or obligations hereunder shall be assigned by any of the parties
hereto without the prior written consent of the other parties, except that the
Sub may assign, in its sole discretion, any of or all its rights, interests and
obligations under this Amendment to Parent or to any direct or indirect wholly
owned Subsidiary of Parent, but no such assignment shall relieve Parent of any
of its obligations hereunder. Subject to the preceding sentence, this Amendment
shall be binding upon, inure to the benefit of, and be enforceable by, the
parties and their respective successors and assigns.

         SECTION 3.5 Severability.If any term or other provision of this
Amendment is invalid, illegal or incapable of being enforced by any rule of law,
or public policy, all other conditions and provisions of this Amendment shall
nevertheless remain in full force and effect so long as the economic and legal
substance of the Transactions are not affected in any manner materially adverse
to any party. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties shall negotiate in
good faith to modify this Amendment so as to effect the original intent of the
parties as closely as possible in a mutually acceptable manner in order that the
Transactions may be consummated as originally contemplated to the fullest extent
possible.

         SECTION 3.6 Enforcement of This Amendment.The parties hereto agree that
irreparable damage would occur in the event that any of the provisions of this
Amendment were not performed in accordance with their specific terms or were
otherwise breached. It is accordingly agreed that the parties shall be entitled
to an injunction or injunctions to prevent breaches of this Amendment and to
enforce specifically the terms and provisions hereof in any court of the United
States or any state having jurisdiction, such remedy being in addition to any
other remedy to which any party is entitled at law or in equity. Nothing in this
Amendment shall impair the right of any party to compel specific performance by
another party of its obligations under this Amendment.

         SECTION 3.7 Obligations of Subsidiaries.Whenever this Amendment
requires any Subsidiary of Parent (including the Sub) or of the Company to take
any action, such requirement shall be deemed to include an undertaking on the
part of Parent or the Company, as the case may be, to cause such Subsidiary to
take such action.

         SECTION 3.8 Waiver of Right to Jury Trial.COMPANY, PUBLIC SUB, PARENT,
THE SUB AND THE EQUITYHOLDERS HEREBY WAIVE, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, TRIAL BY JURY IN ANY LITIGATION IN ANY COURT WITH RESPECT TO, IN
CONNECTION WITH, OR ARISING OUT OF THIS AMENDMENT, ANY OTHER AGREEMENT
CONTEMPLATED HEREBY OR THE VALIDITY, PROTECTION, INTERPRETATION, COLLECTION OR
ENFORCEMENT THEREOF.

<PAGE>

         IN WITNESS WHEREOF, Parent, Sub, Company, Public Sub and the
Equityholders have caused this Amendment to be signed by their respective
officers thereunto duly authorized all as of the date first written above.

                                   HEADWATERS INCORPORATED

                                   By     /s/ Kirk A. Benson
                                      ---------------------------------------
                                   Name:   Kirk A. Benson
                                   Title:  Chief Executive Officer

                                   HEADWATERS OLYSUB INCORPORATED

                                   By     /s/ Kirk A. Benson
                                      ---------------------------------------
                                   Name:   Kirk A. Benson
                                   Title:  President

                                   INDUSTRIAL SERVICES GROUP, INC.

                                   By     /s/ R. Steve Creamer
                                      ---------------------------------------
                                   Name:   R. Steve Creamer
                                   Title:  Chief Executive Officer

                                   ISG RESOURCES, INC.

                                   By     /s/ R. Steve Creamer
                                      ---------------------------------------
                                   Name:   R. Steve Creamer
                                   Title:  Chief Executive Officer

                                   EQUITYHOLDERS CITICORP VENTURE CAPITAL, LTD.

                                   By     /s/ Joseph M. Silvestri
                                      ---------------------------------------
                                   Name:   Joseph M. Silvestri
                                   Title:  Vice President

<PAGE>

                                   CCT PARTNERS IV, L.P.

                                   By     /s/ Anthony P. Mirra
                                      ---------------------------------------
                                   Name:   Anthony P. Mirra
                                   Title:  Secretary CCT IV Corporation, G.P.

                                   NATASHA PARTNERSHIP

                                   By     /s/ William T. Comfort
                                      ---------------------------------------
                                   Name:   William T. Comfort
                                   Title:  General Partner

                                          /s/ Richard M. Cashin, Jr.
                                      ---------------------------------------
                                      Richard M. Cashin, Jr.

                                          /s/ David F. Thomas
                                      ---------------------------------------
                                      David F. Thomas

                                          /s/ Joseph M. Silvestri
                                      ---------------------------------------
                                      Joseph M. Silvestri

                                         /s/ R. Steve Creamer
                                      ---------------------------------------
                                      R Steve Creamer

                                         /s/ Raul A. Deju
                                      ---------------------------------------
                                      Raul A. Deju

                                        /s/ Brett A. Hickman
                                      ---------------------------------------
                                      Brett A. Hickman

<PAGE>

                                     CREAMER INVESTMENTS, INC.

                                     By     /s/ R. Steve Creamer
                                      ---------------------------------------
                                      Name:   R. Steve Creamer
                                      Title:  President and CEO

                                         /s/ J. I. Everest, II
                                      ---------------------------------------
                                      J.I. Everest, II

<PAGE>

                                  Schedule 8.2

        Holders                                   Indemnification Percentages
        -------                                   ---------------------------
Citicorp Venture Capital, Ltd                                38.25%
CCT Partners IV, L.P.                                         6.75%
Natasha Partnership                                           1.6%
Richard M. Cashin, Jr.                                        1.6%
David F. Thomas                                               1.6%
Joseph M. Silvestri                                           0.2%
Brett Hickman                                                 1.0%
Chip Everest                                                  2.45%
Raul A. Deju                                                  7.55%
Steve Creamer                                                 1.6%
RACT                                                         37.4%

<PAGE>

                                   EXHIBIT B

                       Allocation of Merger Consideration

I.       AGGREGATE CASH CONSIDERATION VALUE

         $22,700,000

II.      PHANTOM STOCK RIGHT MERGER CONSIDERATION

         Phantom Stock Right Holder                           Consideration

         Michael Adams                                        $452,000

III.     PREFERRED STOCK MERGER CONSIDERATION
<TABLE>
<CAPTION>
---------------------------------- ------------------------------- ------------------------------- -------------------------------
Preferred Stock Shareholder        Number of Outstanding Shares    Total Preferred Stock Merger    Total Preferred Stock Merger
                                   of Preferred Stock Held         Consideration (Cash)            Consideration (Parent Stock
                                                                                                   Shares)
---------------------------------- ------------------------------- ------------------------------- -------------------------------
<S>                                                     <C>                         <C>                                   <C>
CVC (Series A Preferred)
----------------------------------------------------------------------------------------------------------------------------------
Citicorp Venture Capital, Ltd.                          41,813.25                   $3,271,320.00                         282,739
---------------------------------- ------------------------------- ------------------------------- -------------------------------
CCT Partners IV                                          4,731.75                     $288,773.60                          49,895
---------------------------------- ------------------------------- ------------------------------- -------------------------------
Natasha Partnership                                      1,121.60                      $68,450.00                          11,827
---------------------------------- ------------------------------- ------------------------------- -------------------------------
Richard M. Cashin, Jr.                                   1,121.60                      $68,450.00                          11,827
---------------------------------- ------------------------------- ------------------------------- -------------------------------
David F. Thomas                                          1,121.60                      $68,450.00                          11,827
---------------------------------- ------------------------------- ------------------------------- -------------------------------
Joseph M. Silvestri                                        140.20                       $8,556.30                           1,478
---------------------------------- ------------------------------- ------------------------------- -------------------------------
Subtotal (Series A)                                        50,050                   $3,773,999.90                         369,593
================================== =============================== =============================== ===============================

                                                                 2
<PAGE>
<CAPTION>
---------------------------------- ------------------------------- ------------------------------- -------------------------------
Preferred Stock Shareholder        Number of Outstanding Shares    Total Preferred Stock Merger    Total Preferred Stock Merger
                                   of Preferred Stock Held         Consideration (Cash)            Consideration (Parent Stock
                                                                                                   Shares)
---------------------------------- ------------------------------- ------------------------------- -------------------------------
<S>                                                     <C>                         <C>                                   <C>
Management (Series B Preferred)
----------------------------------------------------------------------------------------------------------------------------------
Brett Hickman                                             1,000.5                     $169,259.24                               0
---------------------------------- ------------------------------- ------------------------------- -------------------------------
J. I. Everest, II                                           3,587                     $441,421.21                               0
---------------------------------- ------------------------------- ------------------------------- -------------------------------
Raul A. Deju                                                5,023                     $721,365.40                               0
---------------------------------- ------------------------------- ------------------------------- -------------------------------
R Steve Creamer                                             8,700                     $948,262.88                               0
---------------------------------- ------------------------------- ------------------------------- -------------------------------
Creamer Investments, Inc. (f/k/a                         31,689.5                   $6,177,779.58                               0
 Ract, Inc.)
---------------------------------- ------------------------------- ------------------------------- -------------------------------
Subtotal (Series B)                                        50,000                   $8,458,088.31                               0
---------------------------------- ------------------------------- ------------------------------- -------------------------------
TOTAL (Series A & B)                                   100,050.00                  $12,232,088.21                         369,593
================================== =============================== =============================== ===============================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IV.      CLASS A COMMON STOCK MERGER CONSIDERATION

---------------------------------- ---------------------- ----------------------- --------------------------- ----------------------
Class A Common Stock Shareholder   Number of Outstanding   Total Class A Common   Total Class A Common Stock   Total Class A Common
                                     Shares of Class A          Stock Merger         Merger Consideration          Stock Merger
                                     Common Stock Held      Consideration (Cash)     (Principal Amount of      Consideration (Parent
                                                                                    Participation Interests)      Stock Shares)
---------------------------------- ---------------------- ----------------------- --------------------------- ----------------------
<S>                                      <C>                 <C>                          <C>                      <C>
Brett Hickman                              4,950                $198,315.05               $223,740.00
---------------------------------- ---------------------- ----------------------- --------------------------- ----------------------
J. I. Everest, II                         11,900                $476,757.40               $537,880.00
---------------------------------- ---------------------- ----------------------- --------------------------- ----------------------
Raul A. Deju                              45,317              $1,815,564.28               $748,328.40                100,000
---------------------------------- ---------------------- ----------------------- --------------------------- ----------------------
Creamer Investments, Inc. (f/k/a         187,833              $7,525,274.96             $8,490,051.60
  Ract, Inc.)
---------------------------------- ---------------------- ----------------------- --------------------------- ----------------------
Citicorp Venture Capital, Ltd.           187,425                                                                   1,222,317
---------------------------------- ---------------------- ----------------------- --------------------------- ----------------------
CCT Partners IV                           33,075                                                                     215,703
---------------------------------- ---------------------- ----------------------- --------------------------- ----------------------
Natasha Partnership                        7,840                                                                      51,130
---------------------------------- ---------------------- ----------------------- --------------------------- ----------------------
Richard M. Cashin, Jr.                     7,840                                                                      51,130
---------------------------------- ---------------------- ----------------------- --------------------------- ----------------------
David F. Thomas                            7,840                                                                      51,130
---------------------------------- ---------------------- ----------------------- --------------------------- ----------------------
Joseph M. Silvestri                          980                                                                       6,391
================================== ====================== ======================= =========================== ======================
TOTAL                                    495,000             $10,015,911.69               $10,000,000              1,697,801
================================== ====================== ======================= =========================== ======================

                                                                      3
</TABLE>
<PAGE>

V.       CLASS B COMMON STOCK MERGER CONSIDERATION

         None.

VI.      CVC WARRANT MERGER CONSIDERATION
<TABLE>
<CAPTION>
---------------------------------- ------------------------------- ------------------------------- -------------------------------
CVC Warrantholder                  Underlying Shares of Class A    Aggregate Exercise Price1       Total CVC Warrant Merger
                                   Common Stock                                                    Consideration (Parent Stock
                                                                                                   Shares)
---------------------------------- ------------------------------- ------------------------------- -------------------------------
<S>                                                         <C>                            <C>                             <C>
Citicorp Venture Capital, Ltd.                              3,825                          $38.25                          24,945
---------------------------------- ------------------------------- ------------------------------- -------------------------------
CCT Partners IV                                               675                           $6.75                           4,402
---------------------------------- ------------------------------- ------------------------------- -------------------------------
Natasha Partnership                                           160                           $1.60                           1,043
---------------------------------- ------------------------------- ------------------------------- -------------------------------
Richard M. Cashin, Jr.                                        160                           $1.60                           1,043
---------------------------------- ------------------------------- ------------------------------- -------------------------------
David F. Thomas                                               160                           $1.60                           1,043
---------------------------------- ------------------------------- ------------------------------- -------------------------------
Joseph M. Silvestri                                            20                           $0.20                             130
================================== =============================== =============================== ===============================
TOTAL                                                       5,000                          $50.00                          32,606
================================== =============================== =============================== ===============================

Note:   Above Class A Common Stock Merger Consideration and CVC Warrants Consideration is subject to adjustment pursuant to
        Section 3.3 of the Merger Agreement. Payments to or from holders of Class A Common shares and CVC Warrants shall be
        apportioned based on the number of Class A Common shares held (or, in the case of the CVC Warrants, underlying CVC
        Warrants held) thereby.
</TABLE>
----------------------
1 To be paid separately by the respective holders.

                                                                          4Exhibit 10.76

                                CREDIT AGREEMENT

         CREDIT  AGREEMENT  dated as of  September  19, 2002 (as  amended,  this
"Agreement")  among  Headwaters   Incorporated,   a  Delaware  corporation  (the
"Borrower"),  each of the parties  listed on  Schedule  II hereto as  Subsidiary
Guarantors (the "Subsidiary  Guarantors") the banks,  financial institutions and
other institutional  lenders listed on the signature pages hereof as the Initial
Lenders  (the  "Initial  Lenders"),  General  Electric  Capital  Corporation,  a
Delaware  corporation,  as the Initial Issuing Bank (the "Initial Issuing Bank")
and  Morgan  Stanley  Senior  Funding,  Inc.,  a Delaware  corporation  ("Morgan
Stanley"),  as the Initial Swing Line Bank (the  "Initial  Swing Line Bank" and,
together with the Initial  Lenders and the Initial  Issuing  Bank,  the "Initial
Lender Parties"),  General Electric Capital Corporation, a Delaware corporation,
as collateral  agent  (together with any successor  collateral  agent  appointed
pursuant to Article VIII, the  "Collateral  Agent") for the Secured  Parties (as
hereinafter  defined)  and  General  Electric  Capital  Corporation,  a Delaware
corporation, as administrative agent (together with any successor administrative
agent  appointed  pursuant  to Article  VIII,  the  "Administrative  Agent" and,
together with the  Collateral  Agent,  the "Agents") for the Lender  Parties (as
hereinafter defined) and Morgan Stanley, as Lead Arranger and Sole Book-Runner.

PRELIMINARY STATEMENTS:

         (1)  Pursuant  to the Merger  Agreement  dated as of July 15,  2002 (as
amended (as defined in Section  1.02),  to the extent  permitted  under the Loan
Documents (as hereinafter defined), the "Merger Agreement"),  as the date hereof
and as otherwise amended, among the Borrower,  Headwaters Olysub Corporation,  a
Delaware  corporation (the "Sub"),  Industrial  Services Group, Inc., a Delaware
corporation  (the "Company"),  and ISG Resources,  Inc., a Utah corporation (the
"Public Sub"),  the Company will merge with and into the Sub and the Sub will be
the surviving corporation (the "Merger").

         (2)  The  Borrower  has  requested   that,   simultaneously   with  the
consummation  of the  Merger,  the Lender  Parties  lend to the  Borrower  up to
$175,000,000 to pay to the holders of the Company Stock (as hereinafter defined)
the cash  consideration for their shares in the Merger, pay transaction fees and
expenses,  refinance  certain  Existing  Debt (as  hereinafter  defined)  of the
Company and that,  from time to time, the Lender Parties lend to the Borrower to
provide working capital and finance general corporate  purposes for the Borrower
and its  Subsidiaries.  The Lender Parties have indicated  their  willingness to
agree to lend such amounts on the terms and conditions of this Agreement.

         NOW,  THEREFORE,  in  consideration  of the  premises and of the mutual
covenants and agreements  contained  herein,  the parties hereto hereby agree as
follows:

                                   ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

         SECTION 1.01 Certain  Defined  Terms.  As used in this  Agreement,  the
following  terms shall have the following  meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

<PAGE>

                  "Administrative  Agent"  has  the  meaning  specified  in  the
         recital of parties to this Agreement.

                  "Administrative  Agent's  Account"  means the  account  of the
         Administrative  Agent  maintained  by the  Administrative  Agent as the
         Administrative Agent shall specify in writing to the Lender Parties.

                  "Advance" means a Term B Advance,  a Revolving Credit Advance,
         a Swing Line Advance or a Letter of Credit Advance.

                  "Affiliate"  means,  as to any Person,  any other Person that,
         directly or indirectly,  controls,  is controlled by or is under common
         control  with such Person or is a director  or officer of such  Person.
         For purposes of this  definition,  the term  "control"  (including  the
         terms  "controlling",  "controlled by" and "under common control with")
         of a Person means the possession,  direct or indirect,  of the power to
         vote 10% or more of the Voting Interests of such Person or to direct or
         cause the  direction  of the  management  and  policies of such Person,
         whether  through  the  ownership  of Voting  Interests,  by contract or
         otherwise;  provided,  however,  that none of the  Agents or the Lender
         Parties  shall be or be deemed an  affiliate of any of the Loan Parties
         or any of their  Affiliates  solely  as a  result  of being an Agent or
         Lender Party hereunder.

                  "Agents"  has the meaning  specified in the recital of parties
         to this Agreement.

                  "Agreement" has the meaning  specified in the preamble to this
         Agreement.

                  "Agreement Value" means, for each Hedge Agreement, on any date
         of  determination,  an amount  determined by the  Administrative  Agent
         equal to: (a) in the case of a Hedge Agreement  documented  pursuant to
         the Master  Agreement  (Multicurrency-Cross  Border)  published  by the
         International  Swap and  Derivatives  Association,  Inc.  (the  "Master
         Agreement"),  the  amount,  if any,  that  would be payable by any Loan
         Party or any of its  Subsidiaries  to its  counterparty  to such  Hedge
         Agreement, as if (i) such Hedge Agreement was being terminated early on
         such date of determination,  (ii) such Loan Party or Subsidiary was the
         sole "Affected Party", and (iii) the Administrative  Agent was the sole
         party  determining such payment amount (with the  Administrative  Agent
         making such  determination  pursuant to the  provisions  of the form of
         Master  Agreement);  (b) in the case of a Hedge Agreement  traded on an
         exchange, the mark-to-market value of such Hedge Agreement,  which will
         be the  unrealized  loss on such Hedge  Agreement  to the Loan Party or
         Subsidiary  of a Loan Party to such Hedge  Agreement  determined by the
         Administrative  Agent  based  on the  settlement  price  of such  Hedge
         Agreement on such date of determination; or (c) in all other cases, the
         mark-to-market  value  of  such  Hedge  Agreement,  which  will  be the
         unrealized loss on such Hedge Agreement to the Loan Party or Subsidiary
         of  a  Loan  Party  to  such   Hedge   Agreement   determined   by  the
         Administrative  Agent as the  amount,  if any, by which (i) the present
         value  of the  future  cash  flows  to be paid by such  Loan  Party  or
         Subsidiary  exceeds (ii) the present  value of the future cash flows to
         be  received  by such Loan Party or  Subsidiary  pursuant to such Hedge
         Agreement;  capitalized  terms used and not  otherwise  defined in this
         Agreement  shall have the  respective  meanings  set forth in the above
         described Master Agreement.

                                       2
<PAGE>

                  "Applicable Lending Office" means, with respect to each Lender
         Party,  such Lender  Party's  Domestic  Lending Office in the case of a
         Base Rate Advance and such Lender Party's  Eurodollar Lending Office in
         the case of a Eurodollar Rate Advance.

                  "Applicable  Margin"  means (a) in  respect  of the  Revolving
         Credit  Facility,  (a) for the first six months  following  the Closing
         Date,  3.25% per annum for Base Rate  Advances  and 4.25% per annum for
         Eurodollar Rate Advances and (b) thereafter,  the applicable percentage
         determined in accordance with the pricing grid set forth below:

<PAGE>
<TABLE>
<CAPTION>
         ======================================== ======================= ==========================
                                                      Base Rate                 Eurodollar
              Total Leverage Ratio                    Applicable Margin         Applicable Margin
         ======================================== ======================= ==========================
         <S>                                                <C>                     <C>
         Less than 2.0                                      2.50%                   3.50%
         ---------------------------------------- ----------------------- --------------------------
         Less than 2.5 but =or greater than 2.0             3.00%                   4.00%
         ---------------------------------------- ----------------------- --------------------------
         Greater than 2.5                                   3.25%                    4.25%
         ======================================== ======================= ==========================
</TABLE>

         and (b) in  respect  of the Term B  Facility,  3.25% per annum for Base
         Rate Advances and 4.25% annum for Eurodollar Rate Advances.

         The Applicable  Margin in respect of the Revolving  Credit Facility for
         each Base Rate Advance  shall  (except as otherwise  provided in clause
         (a) of the  immediately  preceding  sentence  of  this  definition)  be
         determined by reference to the Total Leverage Ratio in effect from time
         to time and the  Applicable  Margin for each  Eurodollar  Rate  Advance
         shall be determined by reference to the Total  Leverage Ratio in effect
         on the first day of each Interest  Period for such  Advance;  provided,
         however,  that no change in the  Applicable  Margin  shall be effective
         until three  Business  Days after the date on which the  Administrative
         Agent  receives  the  financial  statements  required  to be  delivered
         pursuant  to  Section  5.03(b)  or  (c),  as the  case  may  be,  and a
         certificate   of  the  Chief   Financial   Officer   of  the   Borrower
         demonstrating such Total Leverage Ratio.

                  "Appropriate  Lender" means,  at any time, with respect to (a)
         either of the Term B  Facility  or the  Revolving  Credit  Facility,  a
         Lender  that has a  Commitment  with  respect to such  Facility at such
         time, (b) the Letter of Credit Facility,  (i) the Issuing Bank and (ii)
         if the  other  Revolving  Credit  Lenders  have  made  Letter of Credit
         Advances pursuant to Section 2.16(c) that are outstanding at such time,
         each such other Revolving  Credit Advance Lender and (c) the Swing Line
         Facility,  (i) the  Swing  Line  Bank and (ii) if the  other  Revolving
         Credit  Lenders  have made  Swing  Line  Advances  pursuant  to Section
         2.02(b) that are  outstanding at such time,  each such other  Revolving
         Credit Lender.

                  "Approved Fund" means any Fund that is administered or managed
         by (i) a Lender Party,  (ii) an Affiliate of a Lender Party or (iii) an
         entity or an  Affiliate  of an entity  that  administers  or  manages a
         Lender Party.

                                       3
<PAGE>

                  "Assignment and Acceptance" means an assignment and acceptance
         entered into by a Lender Party and an Eligible  Assignee,  and accepted
         by the Administrative  Agent and the Borrower (to the extent required),
         in  accordance  with  Section  9.07  and in  substantially  the form of
         Exhibit C hereto.

                  "Available Amount" of any Letter of Credit means, at any time,
         the maximum amount available to be drawn under such Letter of Credit at
         such time  (assuming  compliance  at such time with all  conditions  to
         drawing).

                  "Bankruptcy  Law" means any proceeding of the type referred to
         in Section  6.01(f) or Title II, U.S.  Code,  or any  similar  foreign,
         federal or state law for the relief of debtors.

                  "Base Rate"  means a  fluctuating  interest  rate per annum in
         effect  from time to time,  which rate per annum  shall at all times be
         equal to the higher of:

                           (a)  the   rate   of   interest   announced   by  the
                  Administrative Agent, from time to time, as its base rate; and

                           (b) 1/2 of 1% per annum above the Federal Funds Rate.

                  "Base Rate  Advance"  means an Advance that bears  interest as
         provided in Section 2.06(a)(i).

                  "Borrower" has the meaning specified in the recital of parties
         to this Agreement.

                  "Borrower's   Account"  means  the  account  of  the  Borrower
         maintained by the Borrower as the Borrower  shall specify in writing to
         the Administrative Agent.

                  "Borrowing"  means  a Term B  Borrowing,  a  Revolving  Credit
         Borrowing or a Swing Line Borrowing.

                  "Business  Day" means a day of the year on which banks are not
         required  or  authorized  by law to close in New York City and,  if the
         applicable  Business Day relates to any Eurodollar  Rate  Advances,  on
         which  dealings  in  dollar  deposits  are  carried  on in  the  London
         interbank market.

                  "Capital  Expenditures"  means, for any Person for any period,
         the sum of, without duplication, (a) all expenditures made, directly or
         indirectly,  by such  Person  or any of its  Subsidiaries  during  such
         period for equipment,  fixed assets, real property or improvements,  or
         for replacements or substitutions  therefor or additions thereto,  that
         have been or should be, in accordance with GAAP, reflected as additions
         to property, plant or equipment on a Consolidated balance sheet of such
         Person  or have a  useful  life of more  than  one  year  plus  (b) the
         aggregate  principal  amount of all Debt (including  Obligations  under
         Capitalized  Leases)  assumed or incurred in  connection  with any such
         expenditures.  For purposes of this  definition,  the purchase price of
         equipment  that  is  purchased  simultaneously  with  the  trade  in of
         existing  equipment  or with  insurance  proceeds  shall be included in
         Capital  Expenditures only to the extent of the excess of (i) the gross
         amount of such  purchase  price  over (ii) the  credit  granted  by the
         seller of such equipment for the equipment being traded in at such time
         or the amount of such proceeds, as the case may be.

                                       4
<PAGE>

                  "Capitalized Leases" means all leases that have been or should
         be, in accordance with GAAP, recorded as capitalized leases.

                  "Cash Equivalents"  means any of the following,  to the extent
         owned by the Borrower or any of its Subsidiaries  free and clear of all
         Liens  other than Liens  created  under the  Collateral  Documents  and
         having  a  maturity  of not  greater  than  360  days  from the date of
         acquisition  thereof:  (a) readily marketable direct obligations of the
         Government  of the  United  States  or any  agency  or  instrumentality
         thereof or obligations unconditionally guaranteed by the full faith and
         credit of the Government of the United States, (b) insured certificates
         of  deposit  of or time  deposits  with any  commercial  bank that is a
         Lender Party or a member of the Federal Reserve System which issues (or
         the parent of which  issues)  commercial  paper rated as  described  in
         clause (c) below,  is organized  under the laws of the United States or
         any State  thereof and has combined  capital and surplus of at least $1
         billion or (c) commercial  paper in an aggregate amount of no more than
         $1,000,000  per  issuer   outstanding  at  any  time,   issued  by  any
         corporation  organized under the laws of any State of the United States
         and rated at least "Prime-2" (or the then equivalent  grade) by Moody's
         Investors  Service,  Inc.  or "A-2" (or the then  equivalent  grade) by
         Standard & Poor's, a division of The McGraw-Hill Companies, Inc. or (d)
         Investments,  classified in accordance  with GAAP as Current  Assets of
         the Borrower or any of its  Subsidiaries,  in money  market  investment
         programs  registered  under  the  Investment  Company  Act of 1940,  as
         amended, which are administered by financial institutions that have the
         highest  rating   obtainable  from  either  Moody's  or  S&P,  and  the
         portfolios of which are limited solely to Investments of the character,
         quality and  maturity  described  in clauses  (a),  (b) and (c) of this
         definition.

                  "CERCLA"  means  the  Comprehensive   Environmental  Response,
         Compensation  and  Liability  Act of 1980, as amended from time to time
         (42 U.S.C. ss. 9601 et seq.).

                  "CERCLIS"  means  the  Comprehensive  Environmental  Response,
         Compensation and Liability  Information  System  maintained by the U.S.
         Environmental Protection Agency.

                  "CFC" means an entity that is a controlled foreign corporation
         under Section 957 of the Internal Revenue Code.

                  "Change  of  Control"  means  the  occurrence  of  any  of the
         following:  (a) any  Person or two or more  Persons  acting in  concert
         shall have acquired  beneficial  ownership  (within the meaning of Rule
         13d-3 of the  Securities and Exchange  Commission  under the Securities
         Exchange Act of 1934),  directly or indirectly,  of Voting Interests of
         the  Borrower  (or  other  securities   convertible  into  such  Voting
         Interests) representing 35% or more of the combined voting power of all
         Voting Interests of the Borrower;  or (b) during any period of up to 24
         consecutive  months,  commencing  after  the  date of  this  Agreement,
         individuals   who  at  the  beginning  of  such  24-month  period  were
         Continuing  Directors  of the  Borrower  shall  cease for any reason to
         constitute a majority of the board of directors of the Borrower; or (c)
         any Person or two or more Persons acting in concert shall have acquired

                                       5
<PAGE>

         by  contract or  otherwise,  or shall have  entered  into a contract or
         arrangement  that,  upon  consummation,  will  result  in its or  their
         acquisition  of the  power  to  exercise,  directly  or  indirectly,  a
         controlling  influence over the management or policies of the Borrower;
         or (d)  any  "Change  of  Control"  or  comparable  event  under  or in
         connection with any Subordinated Debt.

                  "Collateral"  means  all  "Collateral"   referred  to  in  the
         Collateral  Documents and all other  property that is or is intended to
         be subject to any Lien in favor of the Collateral Agent for the benefit
         of the Secured Parties.

                  "Collateral Account" has the meaning specified in the Security
         Agreement.

                  "Collateral Agent" has the meaning specified in the recital of
         parties to this Agreement.

                  "Collateral  Documents"  means  the  Security  Agreement,  the
         Mortgages,  the Control Agreements,  each of the collateral  documents,
         instruments and agreements  delivered pursuant to Section 5.01(j),  and
         each other agreement that creates or purports to create a Lien in favor
         of the Collateral Agent for the benefit of the Secured Parties, in each
         case, as amended.

                  "Commitment"  means a Term B  Commitment,  a Revolving  Credit
         Commitment, a Swing Line Commitment or a Letter of Credit Commitment.

                  "Company"  has  the  meaning   specified  in  the  Preliminary
         Statements.

                  "Company  Stock" means each share of the Class A Common Stock,
         par value $0.01 per share, of the Company and each share of the Class B
         Common Stock,  par value $0.01 per share, of the Company,  in each case
         issued and outstanding immediately prior to the Effective Date.

                  "Confidential  Information"  means  information  that any Loan
         Party  furnishes  to any Agent or any  Lender  Party on a  confidential
         basis,  but does not  include any such  information  that is or becomes
         generally available to the public other than as a result of a breach by
         such Agent or any Lender Party of its obligations  hereunder or that is
         or becomes  available  to such Agent or such Lender Party from a source
         other than the Loan Parties (or any of their advisors, representatives,
         employees or agents).

                  "Consolidated"  refers to the  consolidation  of  accounts  in
         accordance with GAAP.

                  "Contingent Obligation" means, with respect to any Person, any
         Obligation  or  arrangement  of such Person to guarantee or intended to
         guarantee  any Debt,  leases,  dividends or other  payment  Obligations
         ("primary  obligations") of any other Person (the "primary obligor") in
         any  manner,  whether  directly  or  indirectly,   including,   without
         limitation,  (a) the direct or indirect  guarantee,  endorsement (other
         than for  collection  or deposit in the ordinary  course of  business),

                                       6
<PAGE>

         co-making,  discounting  with  recourse  or sale with  recourse by such
         Person of the  Obligation of a primary  obligor,  (b) the Obligation to
         make  take-or-pay  or similar  payments,  if  required,  regardless  of
         nonperformance by any other party or parties to an agreement or (c) any
         Obligation of such Person,  whether or not contingent,  (i) to purchase
         any such  primary  obligation  or any property  constituting  direct or
         indirect security therefor, (ii) to advance or supply funds (A) for the
         purchase or payment of any such primary  obligation  or (B) to maintain
         working  capital or equity capital of the primary  obligor or otherwise
         to maintain the net worth or solvency of the primary obligor,  (iii) to
         purchase  property,  assets,  securities or services  primarily for the
         purpose of assuring  the owner of any such  primary  obligation  of the
         ability  of the  primary  obligor  to  make  payment  of  such  primary
         obligation  or (iv)  otherwise to assure or hold harmless the holder of
         such primary obligation  against loss in respect thereof.  It is agreed
         that  Contingent  Obligations  of any Loan Party  shall not include any
         Obligation  or  arrangement  of such Person to guarantee or intended to
         guarantee  any leases,  dividends or other payment  obligations  of any
         other Loan  Party.  The amount of any  Contingent  Obligation  shall be
         deemed to be an amount  equal to the stated or  determinable  amount of
         the primary  obligation in respect of which such Contingent  Obligation
         is made (or, if less, the maximum amount of such primary obligation for
         which such Person may be liable pursuant to the terms of the instrument
         evidencing   such   Contingent   Obligation)   or,  if  not  stated  or
         determinable,  the maximum reasonably  anticipated liability in respect
         thereof  (assuming such Person is required to perform  thereunder),  as
         determined by such Person in good faith.

                  "Continuing  Directors"  means  (i)  members  of the  board of
         directors of the  Borrower on the Closing  Date and (ii) other  persons
         nominated or elected to the board of directors of the Borrower with the
         approval of a majority of the  directors  who were members of the board
         of directors at the time of such election or nomination.

                  "Conversion",  "Convert"  and  "Converted"  each  refer  to  a
         conversion  of  Advances  of one Type into  Advances  of the other Type
         pursuant to Section 2.08 or 2.09.

                  "Current Assets" of any Person means all assets of such Person
         that would, in accordance with GAAP, be classified as current assets of
         a company  conducting a business the same as or similar to that of such
         Person,  after  deducting  adequate  reserves  in each  case in which a
         reserve is proper in accordance with GAAP.

                  "Current Liabilities" of any Person means (a) all Debt of such
         Person  that by its terms is payable  on demand or  matures  within one
         year after the date of  determination  (excluding any Debt renewable or
         extendible,  at the option of such Person, to a date more than one year
         from such date or arising under a revolving credit or similar agreement
         that  obligates  the lender or lenders to extend credit during a period
         of more than one year from such  date),  (b) all amounts of Funded Debt
         of such  Person  required  to be paid or prepaid  within one year after
         such  date  and  (c)  all  other  items  (including  taxes  accrued  as
         estimated)  that in accordance with GAAP would be classified as current
         liabilities of such Person.

                  "Debt" of any Person means,  without  duplication for purposes
         of calculating  financial  ratios,  (a) all indebtedness of such Person
         for borrowed money, (b) all Obligations of such Person for the deferred
         purchase price of property or services other than trade  payables,  not

                                       7
<PAGE>

         overdue by more than 120 days  incurred in the ordinary  course of such
         person's  business),  (c) all  Obligations of such Person  evidenced by
         notes,  bonds,  debentures  or  other  similar  instruments  (excluding
         intercompany indebtedness between Loan Parties), (d) all Obligations of
         such  Person  created or arising  under any  conditional  sale or other
         title  retention  agreement  with respect to property  acquired by such
         Person  (even  though the rights and  remedies  of the seller or lender
         under  such   agreement   in  the  event  of  default  are  limited  to
         repossession  or sale of such  property),  (e) all  Obligations of such
         Person as lessee under Capitalized  Leases, (f) all Obligations of such
         Person under acceptance,  letter of credit or similar  facilities,  (g)
         all Obligations of such Person to purchase,  redeem, retire, defease or
         otherwise  make any payment in respect of any Equity  Interests in such
         Person  or any other  Person or any  warrants,  rights  or  options  to
         acquire  such  Equity  Interests,  valued,  in the  case of  Redeemable
         Preferred  Interests,  at the greater of its  voluntary or  involuntary
         liquidation  preference  plus  accrued  and unpaid  dividends,  (h) all
         Obligations  of such Person in respect of Hedge  Agreements,  valued at
         the  Agreement  Value  thereof,  (i)  all  Contingent  Obligations  and
         Off-Balance  Sheet  Obligations of such Person and (j) all indebtedness
         and other  payment  Obligations  referred to in clauses (a) through (i)
         above of  another  Person  secured  by (or for which the holder of such
         Debt has an existing right,  contingent or otherwise, to be secured by)
         any Lien on  property  (including,  without  limitation,  accounts  and
         contract rights) owned by such Person,  even though such Person has not
         assumed or become liable for the payment of such  indebtedness or other
         payment  Obligations.  "Debt" shall not include (x)  liabilities  under
         deferred   compensation  plans,  (y)  liabilities  that  may  arise  in
         connection  with  indemnification  provisions  contained in  agreements
         entered  into in the  ordinary  course  of  business  or  contained  in
         agreements   entered  into  in  connection   with  the  acquisition  or
         disposition  of assets,  stock or other  property,  in each case to the
         extent  permitted  in the Loan  Documents,  and (z)  liabilities  under
         operating leases.

                  "Debt for Borrowed  Money" of any Person means, at any date of
         determination,  all items  that,  in  accordance  with  GAAP,  would be
         classified  as  indebtedness  on a  Consolidated  balance sheet of such
         Person at such date.

                  "Default"  means any Event of  Default or any event that would
         constitute  an  Event of  Default  but for the  passage  of time or the
         requirement that notice be given or both.

                  "Default  Interest"  has the  meaning  set  forth  in  Section
         2.06(b).

                  "Defaulted Advance" means, with respect to any Lender Party at
         any time, the portion of any Advance required to be made by such Lender
         Party to the  Borrower  pursuant to Section 2.01 or 2.02 at or prior to
         such  time  that  has not  been  made by such  Lender  Party  or by the
         Administrative  Agent for the account of such Lender Party  pursuant to
         Section  2.02(e)  as of such  time.  In the event  that a portion  of a
         Defaulted Advance shall be deemed made pursuant to Section 2.14(a), the
         remaining  portion of such  Defaulted  Advance  shall be  considered  a
         Defaulted  Advance  originally  required to be made pursuant to Section
         2.01 on the same date as the Defaulted Advance so deemed made in part.

                                       8
<PAGE>

                  "Defaulted  Amount" means, with respect to any Lender Party at
         any time,  any amount  required to be paid by such Lender  Party to any
         Agent or any other  Lender  Party  hereunder  or under  any other  Loan
         Document  at or prior to such time that has not been so paid as of such
         time, including,  without limitation, any amount required to be paid by
         such  Lender  Party to (a) the Swing  Line  Bank  pursuant  to  Section
         2.02(b) to purchase a portion of a Swing Line Advance made by the Swing
         Line Bank, (b) the Issuing Bank pursuant to Section 2.16(c) to purchase
         a portion of a Letter of Credit  Advance made by the Issuing Bank,  (c)
         the  Administrative  Agent pursuant to Section 2.02(e) to reimburse the
         Administrative  Agent  for  the  amount  of  any  Advance  made  by the
         Administrative  Agent for the  account of such  Lender  Party,  (d) any
         other   Lender   Party   pursuant  to  Section  2.12  to  purchase  any
         participation  in Advances owing to such other Lender Party and (e) any
         Agent or the Issuing Bank  pursuant to Section  8.05 to reimburse  such
         Agent or the Issuing Bank for such Lender Party's  ratable share of any
         amount  required to be paid by the Lender  Parties to such Agent or the
         Issuing  Bank as  provided  therein.  In the event  that a portion of a
         Defaulted Amount shall be deemed paid pursuant to Section 2.14(b),  the
         remaining  portion  of such  Defaulted  Amount  shall be  considered  a
         Defaulted Amount originally  required to be paid hereunder or under any
         other Loan Document on the same date as the Defaulted  Amount so deemed
         paid in part.

                  "Depositary"  has  the  meaning  specified  in  the  Offer  to
         Purchase and Consent Solicitation Statement.

                  "Defaulting Lender" means, at any time, any Lender Party that,
         at such time, (a) owes a Defaulted Advance or a Defaulted Amount or (b)
         shall take any action or be the subject of any action or  proceeding of
         a type described in Section 6.01(f).

                  "Domestic  Lending  Office" means,  with respect to any Lender
         Party,  the office of such  Lender  Party  specified  as its  "Domestic
         Lending  Office"  opposite  its name on  Schedule  I  hereto  or in the
         Assignment and  Acceptance  pursuant to which it became a Lender Party,
         as the case may be, or such other  office of such Lender  Party as such
         Lender  Party may from time to time  specify  to the  Borrower  and the
         Administrative Agent.

                  "EBITDA"  means,  at  any  date  of  determination,  the  sum,
         determined in accordance with GAAP on a Consolidated  basis and without
         duplication, of (a) net income (or net loss), (b) interest expense, (c)
         income tax  expense,  (d)  depreciation  expense  and (e)  amortization
         expense, in each case of the Borrower and its Restricted  Subsidiaries,
         determined  in  accordance  with GAAP for the most  recently  completed
         Measurement Period.

                  For  purposes  of  calculating  EBITDA  with  respect  to  any
         Measurement  Period,  (A)  acquisitions  that  have  been  made  by the
         Borrower or its Restricted  Subsidiaries,  including through mergers or
         consolidations and including any related financing transactions, during
         the reference  period shall be deemed to have occurred on the first day
         of the  reference  period;  provided,  however,  that  only the  actual
         historical  results of operations  of the Persons so acquired,  without
         adjustment for pro forma expense savings or revenue increases, shall be
         used for such calculation;  and (B) for purposes of calculating  Funded

                                       9
<PAGE>

         Leverage  Ratio  only,  the EBITDA of the  Borrower  or its  Restricted
         Subsidiaries  attributable to discontinued operations, as determined in
         accordance with GAAP, and operations or businesses disposed of prior to
         the end of such reference period, shall be excluded.

                  For the  purposes of each of the fiscal  quarters  ended March
         2002 and June  2002,  EBITDA of the  Borrower  shall be as set forth on
         Schedule III hereto.

                  "Effective  Date" means the first date on which the conditions
         set forth in Article III shall have been satisfied.

                  "Eligible  Assignee"  means any  commercial  bank or financial
         institution  (including,  without  limitation,  any fund that regularly
         invests  in loans  similar  to the Term B  Advances)  as  approved  (as
         required by Section 9.07(a)) by the  Administrative  Agent and, so long
         as no Event of Default has  occurred  and is  continuing,  the Borrower
         (which approval shall not be unreasonably withheld); provided, however,
         that  neither any Loan Party nor any  Subsidiary  of a Loan Party shall
         qualify as an Eligible Assignee under this definition.

                  "Environmental  Action" means any action, suit, demand, demand
         letter,  claim,  notice  of  non-compliance  or  violation,  notice  of
         liability or potential liability,  investigation,  proceeding,  consent
         order or consent  agreement  relating  in any way to any  Environmental
         Law, any  Environmental  Permit or  Hazardous  Material or arising from
         alleged  injury  or  threat  to  health,  safety  or  the  environment,
         including,  without  limitation,  (a) by any governmental or regulatory
         authority for  enforcement,  cleanup,  removal,  response,  remedial or
         other  actions or damages  and (b) by any  governmental  or  regulatory
         authority  or third party for damages,  contribution,  indemnification,
         cost recovery, compensation or injunctive relief.

                  "Environmental Law" means any Federal, state, local or foreign
         statute, law, ordinance, rule, regulation, code, order, writ, judgment,
         injunction,  decree or  judicial  or agency  interpretation,  policy or
         guidance  relating  to  pollution  or  protection  of the  environment,
         health,  safety or natural resources,  including,  without  limitation,
         those  relating  to  the  use,  handling,  transportation,   treatment,
         storage, disposal, release or discharge of Hazardous Materials.

                  "Environmental    Permit"   means   any   permit,    approval,
         identification  number,  license or other authorization  required under
         any Environmental Law.

                  "Equity  Interests" means, with respect to any Person,  shares
         of capital  stock of (or other  ownership or profit  interests in) such
         Person,  warrants,  options or other  rights for the  purchase or other
         acquisition  from such  Person of shares of capital  stock of (or other
         ownership or profit interests in) such Person,  securities  convertible
         into or exchangeable for shares of capital stock of (or other ownership
         or profit interests in) such Person or warrants,  rights or options for
         the purchase or other  acquisition  from such Person of such shares (or
         such other interests),  and other ownership or profit interests in such
         Person (including,  without  limitation,  partnership,  member or trust
         interests therein), whether voting or nonvoting.

                                       10
<PAGE>

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

                  "ERISA  Affiliate" means any Person that for purposes of Title
         IV of ERISA is a member of the controlled  group of any Loan Party,  or
         under common control with any Loan Party, within the meaning of Section
         414 of the Internal Revenue Code.

                  "ERISA  Event"  means  (a)(i) the  occurrence  of a reportable
         event, within the meaning of Section 4043 of ERISA, with respect to any
         Plan unless the 30-day  notice  requirement  with respect to such event
         has been waived by the PBGC or (ii) the requirements of Section 4043(b)
         of ERISA apply with respect to a  contributing  sponsor,  as defined in
         Section  4001(a)(13)  of ERISA,  of a Plan,  and an event  described in
         paragraph (9), (10),  (11), (12) or (13) of Section 4043(c) of ERISA is
         reasonably  expected  to occur  with  respect  to such Plan  within the
         following 30 days;  (b) the  application  for a minimum  funding waiver
         with respect to a Plan; (c) the provision by the  administrator  of any
         Plan of a notice of intent to terminate such Plan,  pursuant to Section
         4041(a)(2) of ERISA  (including  any such notice with respect to a plan
         amendment  referred to in Section 4041(e) of ERISA);  (d) the cessation
         of operations at a facility of any Loan Party or any ERISA Affiliate in
         the  circumstances  described  in  Section  4062(e)  of ERISA;  (e) the
         withdrawal  by any Loan  Party or any ERISA  Affiliate  from a Multiple
         Employer  Plan  during  a plan  year  for  which  it was a  substantial
         employer, as defined in Section 4001(a)(2) of ERISA; (f) the conditions
         for  imposition of a lien under Section 302(f) of ERISA shall have been
         met with  respect to any Plan;  (g) the  adoption of an  amendment to a
         Plan  requiring  the  provision  of security  to such Plan  pursuant to
         Section 307 of ERISA; or (h) the institution by the PBGC of proceedings
         to  terminate  a  Plan  pursuant  to  Section  4042  of  ERISA,  or the
         occurrence of any event or condition described in Section 4042 of ERISA
         that constitutes  grounds for the termination of, or the appointment of
         a trustee to administer, such Plan.

                  "Escrow Bank" has the meaning specified in Section 2.15(c).

                  "Eurocurrency   Liabilities"  has  the  meaning  specified  in
         Regulation D of the Board of Governors of the Federal  Reserve  System,
         as in effect from time to time.

                  "Eurodollar  Lending Office" means, with respect to any Lender
         Party,  the office of such Lender Party  specified  as its  "Eurodollar
         Lending  Office"  opposite  its name on  Schedule  I  hereto  or in the
         Assignment  and  Acceptance  pursuant to which it became a Lender Party
         (or, if no such office is specified,  its Domestic Lending Office),  or
         such other  office of such Lender  Party as such Lender  Party may from
         time to time specify to the Borrower and the Administrative Agent.

                  "Eurodollar  Rate"  means,  for any  Interest  Period  for all
         Eurodollar  Rate Advances  comprising  part of the same  Borrowing,  an
         interest  rate  per  annum  equal to the rate  per  annum  obtained  by
         dividing (a) the rate per annum (rounded upwards, if necessary,  to the
         nearest  1/100 of 1%) appearing on Telerate Page 3750 (or any successor

                                       11
<PAGE>

         page) as the London interbank offered rate for deposits in U.S. dollars
         at 11:00 A.M.  (London  time) two Business Days before the first day of
         such  Interest  Period  for a  period  equal  to such  Interest  Period
         (provided that, if for any reason such rate is not available,  the term
         "Eurodollar   Rate"  shall  mean,  for  any  Interest  Period  for  all
         Eurodollar Rate Advances  comprising  part of the same  Borrowing,  the
         rate per annum (rounded upwards, if necessary,  to the nearest 1/100 of
         1%)  appearing  on Reuters  Screen  LIBO Page as the  London  interbank
         offered  rate for  deposits  in  Dollars  at  approximately  11:00 A.M.
         (London time) two Business Days prior to the first day of such Interest
         Period  for a term  comparable  to  such  Interest  Period);  provided,
         however,  if more than one rate is  specified  on Reuters  Screen  LIBO
         Page,  the  applicable  rate shall be the  arithmetic  mean of all such
         rates) by (b) a  percentage  equal to 100%  minus the  Eurodollar  Rate
         Reserve Percentage for such Interest Period.

                  "Eurodollar Rate Advance" means an Advance that bears interest
         as provided in Section 2.06(a)(ii).

                  "Eurodollar  Rate Reserve  Percentage" for any Interest Period
         for all Eurodollar Rate Advances  comprising part of the same Borrowing
         means the reserve  percentage  applicable  two Business Days before the
         first day of such Interest Period under regulations issued from time to
         time by the Board of  Governors of the Federal  Reserve  System (or any
         successor) for determining the maximum reserve requirement  (including,
         without  limitation,  any  emergency,  supplemental  or other  marginal
         reserve requirement) for a member bank of the Federal Reserve System in
         New York City with respect to  liabilities  or assets  consisting of or
         including  Eurocurrency  Liabilities  (or  with  respect  to any  other
         category of  liabilities  that includes  deposits by reference to which
         the interest rate on Eurodollar  Rate Advances is determined)  having a
         term equal to such Interest Period.

                  "Events of Default" has the meaning specified in Section 6.01.

                  "Excess Cash Flow" means, for any Measurement Period,

                           (a) the sum of:

                                    (i) Consolidated net income (or loss) of the
                           Borrower  and its  Restricted  Subsidiaries  for such
                           Measurement Period plus

                                    (ii) the  aggregate  amount of all  non-cash
                           charges deducted in arriving at such Consolidated net
                           income (or loss) plus

                                    (iii)  if  there  was  a  net   increase  in
                           Consolidated  Current Liabilities of the Borrower and
                           its Restricted  Subsidiaries  during such Measurement
                           Period, the amount of such net increase plus

                                    (iv)  if  there  was  a  net   decrease   in
                           Consolidated  Current Assets (excluding cash and Cash
                           Equivalents)  of  the  Borrower  and  its  Restricted
                           Subsidiaries  during  such  Measurement  Period,  the
                           amount of such net decrease;

                                       12
<PAGE>

                           (b) less the sum of:

                                    (i) the  aggregate  amount  of all  non-cash
                           credits included in arriving at such Consolidated net
                           income (or loss) plus

                                    (ii)  if  there  was  a  net   decrease   in
                           Consolidated  Current Liabilities of the Borrower and
                           its Restricted  Subsidiaries  during such Measurement
                           Period, the amount of such net decrease plus

                                    (iii)  if  there  was  a  net   increase  in
                           Consolidated  Current Assets (excluding cash and Cash
                           Equivalents)  of  the  Borrower  and  its  Restricted
                           Subsidiaries  during  such  Measurement  Period,  the
                           amount of such net increase plus

                                    (iv) the aggregate  principal  amount of all
                           scheduled repayments and mandatory prepayments (other
                           than a mandatory  prepayment arising Excess Cash Flow
                           for  a  prior  Measurement  Period)  of  the  Term  B
                           Facility made during such  Measurement  Period to the
                           extent that, in the case of any mandatory prepayment,
                           the  applicable  Net Cash  Proceeds  were  taken into
                           account in calculating  such  Consolidated net income
                           (or loss) plus

                                    (v)  the   aggregate   amount   of   Capital
                           Expenditures of the Borrower paid in cash during such
                           Measurement  Period to the extent  permitted  by this
                           Agreement plus

                                    (vi) the aggregate  principal  amount of all
                           optional  prepayments of the  Facilities  made during
                           such Measurement  Period pursuant to Section 2.05 (so
                           long  as,  in  the  case  of  the  Revolving   Credit
                           Facility,   such   prepayment  is  accompanied  by  a
                           permanent   reduction   in   the   Revolving   Credit
                           Commitments) plus

                                    (vii) to the extent  not taken into  account
                           in  paragraphs  (iv) and (v)  above,  Net  Litigation
                           Proceeds.

                  "Existing  Debt"  means  Debt  of  each  Loan  Party  and  its
         Subsidiaries  outstanding  immediately  before  the  occurrence  of the
         Effective Date.

                  "Extraordinary  Receipt" means any cash received by or paid to
         or for  the  account  of any  Person  not in  the  ordinary  course  of
         business,  including,  without  limitation,  tax  refunds  in excess of
         $5,000,000, pension plan reversions,  proceeds of insurance (including,
         without  limitation,  any key man life insurance but excluding proceeds
         of  business  interruption   insurance  to  the  extent  such  proceeds
         constitute  compensation for lost earnings),  condemnation  awards (and
         payments in lieu  thereof),  indemnity  payments and any purchase price

                                       13
<PAGE>

         adjustment   received  in  connection  with  any  purchase   agreement;
         provided,  however, that an Extraordinary Receipt shall not include (i)
         proceeds from  litigation or (ii) cash receipts  received from proceeds
         of  insurance,  condemnation  awards (or  payments in lieu  thereof) or
         indemnity payments to the extent that such proceeds, awards or payments
         (A) in respect  of loss or damage to  equipment,  fixed  assets or real
         property  are  applied  (or  in  respect  of  which  expenditures  were
         previously  incurred) to replace or repair the equipment,  fixed assets
         or real  property in respect of which such  proceeds  were  received in
         accordance  with  the  terms  of the  Loan  Documents,  so long as such
         application  is  made  within  12  months  after  the  receipt  of such
         proceeds,  awards or  payments  or (B) are  received  by any  Person in
         respect of any third party claim against such Person and applied to pay
         (or to reimburse  such Person for its prior  payment of) such claim and
         the costs  and  expenses  of such  Person  with  respect  thereto.  The
         determination  of  whether  proceeds  in  respect  of loss or damage to
         equipment, fixed assets or real property are "received" for purposes of
         Section 2.05(b)(ii) shall be made at first anniversary of the date such
         proceeds are actually received by the Borrower.

                  "Facility"  means the Term B Facility,  the  Revolving  Credit
         Facility, the Swing Line Facility or the Letter of Credit Facility.

                  "Fair Market Rent" shall mean, for any property, the base rent
         for the  property,  based upon the rental  rate per square foot that an
         unaffiliated landlord and non-expansion, non-renewal, non-equity tenant
         would agree to in an arm's length bona fide negotiation for a lease for
         comparable property of the same size located in the geographic vicinity
         of the such lease taking into account all  relevant  factors  including
         the creditworthiness of the tenant and the terms of the lease.

                  "Federal  Funds Rate"  means,  for any period,  a  fluctuating
         interest  rate per annum  equal for each day during  such period to the
         weighted average of the rates on overnight  Federal funds  transactions
         with members of the Federal  Reserve  System  arranged by Federal funds
         brokers,  as published  for such day (or, if such day is not a Business
         Day, for the next preceding  Business Day) by the Federal  Reserve Bank
         of New York, or, if such rate is not so published for any day that is a
         Business  Day,  the  average  of the  quotations  for such day for such
         transactions  received by the  Administrative  Agent from three Federal
         funds brokers of recognized standing selected by it.

                  "Fiscal  Year"  means a fiscal  year of the  Borrower  and its
         Consolidated Subsidiaries ending on September 30 in any calendar year.

                  "Fund" means any Person (other than an individual)  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.

                  "Funded  Debt" of any Person means Debt of such Person that by
         its terms matures more than one year after the date of determination or
         matures  within one year from such date but is renewable or extendible,
         at the option of such  Person,  to a date more than one year after such
         date or arises  under a  revolving  credit or  similar  agreement  that
         obligates  the lender or lenders  to extend  credit  during a period of
         more than one year after such date, including,  without limitation, all
         amounts of Funded  Debt of such  Person  required to be paid or prepaid
         within one year after the date of determination.

                                       14
<PAGE>

                  "GAAP" has the meaning specified in Section 1.03.

                  "Governmental  Authority" means any nation or government,  any
         state, province,  city, municipal entity or other political subdivision
         thereof,  and  any  governmental,   executive,  legislative,  judicial,
         administrative   or   regulatory   agency,    department,    authority,
         instrumentality,  commission,  board,  bureau or similar body,  whether
         federal, state, provincial, territorial, local or foreign.

                  "Governmental    Authorization"   means   any   authorization,
         approval, consent, franchise, license, covenant, order, ruling, permit,
         certification,   exemption,   notice,  declaration  or  similar  right,
         undertaking or other action of, to or by, or any filing,  qualification
         or registration with, any Governmental Authority.

                  "Guaranteed  Obligations" has the meaning specified in Section
         7.01(a).

                  "Guarantor" has the meaning specified in Section 7.07(b).

                  "Guaranties" means the Subsidiary Guaranty.

                  "Guaranty  Supplement"  has the meaning  specified  in Section
         7.07.

                  "Hazardous   Materials"   means  (a)  petroleum  or  petroleum
         products,  by-products or breakdown  products,  radioactive  materials,
         asbestos-containing materials,  polychlorinated biphenyls and radon gas
         and  (b) any  other  chemicals,  materials  or  substances  designated,
         classified  or  regulated  as  hazardous  or toxic or as a pollutant or
         contaminant under any Environmental Law.

                  "Hedge  Agreements"  means  interest rate swap,  cap or collar
         agreements,  interest  rate future or option  contracts,  currency swap
         agreements,  currency  future or  option  contracts  and other  hedging
         agreements.

                  "Hedge  Bank"  means any  Lender  Party or an  Affiliate  of a
         Lender Party in its capacity as a party to a Secured Hedge Agreement.

                  "Indemnified  Party"  has the  meaning  specified  in  Section
         9.04(b).

                  "Information  Memorandum"  means  the  information  memorandum
         dated July 2002 used by the Administrative Agent in connection with the
         syndication of the Commitments.

                  "Initial  Extension  of Credit"  means the earlier to occur of
         the initial  borrowing  and the initial  issuance of a Letter of Credit
         hereunder.

                  "Initial   Issuing  Bank"  means  General   Electric   Capital
         Corporation or any agent acting on its behalf.

                                       15
<PAGE>

                  "Initial Lender Parties", "Initial Lenders" and "Initial Swing
         Line Bank" each has the meaning  specified in the recital of parties to
         this Agreement.

                  "Insufficiency"  means,  with respect to any Plan, the amount,
         if any,  of its  unfunded  benefit  liabilities,  as defined in Section
         4001(a)(18) of ERISA.

                  "Intellectual  Property Security  Agreement" is defined in the
         Security Agreement.

                  "Interest Coverage Ratio" means, at any date of determination,
         the ratio of (a)  Consolidated  EBITDA to (b) cash interest  payable on
         all Debt for Borrowed  Money,  in each case,  of or by the Borrower and
         its Restricted Subsidiaries for the most recently completed Measurement
         Period.

                  "Interest  Period"  means,  for each  Eurodollar  Rate Advance
         comprising  part of the same  Borrowing,  the period  commencing on the
         date of such  Eurodollar  Rate Advance or the date of the Conversion of
         any Base Rate Advance into such Eurodollar Rate Advance,  and ending on
         the last day of the period  selected  by the  Borrower  pursuant to the
         provisions below and, thereafter,  each subsequent period commencing on
         the last day of the immediately preceding Interest Period and ending on
         the last day of the period  selected  by the  Borrower  pursuant to the
         provisions  below.  The duration of each such Interest  Period shall be
         one,  two,  three or six  months,  as the  Borrower  may,  upon  notice
         received by the Administrative Agent not later than 1:00 P.M. (New York
         City  time) on the  third  Business  Day prior to the first day of such
         Interest Period, select; provided, however, that:

                           (a) the Borrower  may not select any Interest  Period
                  with respect to any  Eurodollar  Rate Advance under a Facility
                  that ends after any principal  repayment  installment date for
                  such Facility  unless,  after giving effect to such selection,
                  the  aggregate  principal  amount of Base Rate Advances and of
                  Eurodollar Rate Advances  having Interest  Periods that end on
                  or prior to such principal repayment installment date for such
                  Facility  shall be at least equal to the  aggregate  principal
                  amount of Advances  under such  Facility due and payable on or
                  prior to such date;

                           (b) Interest Periods  commencing on the same date for
                  Eurodollar Rate Advances comprising part of the same Borrowing
                  shall be of the same duration;

                           (c)  whenever  the  last day of any  Interest  Period
                  would  otherwise occur on a day other than a Business Day, the
                  last day of such Interest Period shall be extended to occur on
                  the next succeeding Business Day, provided,  however, that, if
                  such  extension  would  cause  the last  day of such  Interest
                  Period to occur in the next following calendar month, the last
                  day of such Interest  Period shall occur on the next preceding
                  Business Day; and

                           (d)  whenever  the first day of any  Interest  Period
                  occurs on a day of an initial  calendar  month for which there
                  is no numerically corresponding day in the calendar month that
                  succeeds such initial  calendar  month by the number of months
                  equal to the number of months in such  Interest  Period,  such
                  Interest  Period  shall end on the last  Business  Day of such
                  succeeding calendar month.

                                       16
<PAGE>

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

                  "Inventory" means all Inventory referred to in Section 1(b) of
         the Security Agreement.

                  "Investment"  in any Person  means any loan or advance to such
         Person,  any purchase or other  acquisition of any Equity  Interests or
         Debt  or the  assets  comprising  a  division  or  business  unit  or a
         substantial  part or all of the  business of such  Person,  any capital
         contribution to such Person or any other direct or indirect  investment
         in such Person, including,  without limitation,  any acquisition by way
         of  a  merger  or  consolidation  (or  similar   transaction)  and  any
         arrangement  pursuant  to which the  investor  incurs Debt of the types
         referred to in clause (h) or (i) of the definition of "Debt" in respect
         of such Person.

                  "Issuing Bank" means the Initial Issuing Bank and any Eligible
         Assignee to which the Letter of Credit  Commitment  hereunder  has been
         assigned  pursuant to Section  9.07 so long as such  Eligible  Assignee
         expressly  agrees to perform in accordance  with their terms all of the
         obligations  that by the terms of this  Agreement  are  required  to be
         performed by it as the Issuing  Bank and  notifies  the  Administrative
         Agent of its Applicable  Lending Office and the amount of its Letter of
         Credit  Commitment   (which   information  shall  be  recorded  by  the
         Administrative  Agent  in the  Register),  for so long  as the  Initial
         Issuing  Bank or Eligible  Assignee,  as the case may be,  shall have a
         Letter of Credit Commitment.

                  "Junior Creditor" means Allied Capital Corporation, a Maryland
         corporation, as lender under the Mezzanine Facility.

                  "L/C  Collateral  Account"  has the meaning  specified  in the
         Security Agreement.

                  "L/C  Disbursement"  shall mean a payment or disbursement made
         by the Issuing Bank pursuant to a Letter of Credit.

                  "L/C Related  Documents" has the meaning  specified in Section
         2.03(c)(ii)(A).  "Lender  Party" means any Lender,  the Issuing Bank or
         the Swing Line Bank.

                  "Lenders" means the Initial Lenders and each Person that shall
         become a Lender hereunder  pursuant to Section 9.07 for so long as such
         Initial Lender or Person,  as the case may be, shall be a party to this
         Agreement.

                  "Letter  of  Credit  Advance"  means  an  advance  made by the
         Issuing  Bank  or any  Revolving  Credit  Lender  pursuant  to  Section
         2.16(c).

                  "Letter of Credit  Agreement"  has the  meaning  specified  in
         Section 2.16(a).

                  "Letter  of Credit  Commitment"  means,  with  respect  to the
         Issuing  Bank at any time,  the amount set forth  opposite  the Issuing
         Bank's  name on Schedule I hereto  under the caption  "Letter of Credit

                                       17
<PAGE>

         Commitment"  or, if the Issuing Bank has entered into an Assignment and
         Acceptances,  set forth for the Issuing Bank in the Register maintained
         by the Administrative  Agent pursuant to Section 9.07(d) as the Issuing
         Bank's "Letter of Credit Commitment",  as such amount may be reduced at
         or prior to such time pursuant to Section 2.05.

                  "Letter  of Credit  Facility"  means,  at any time,  an amount
         equal to the amount of the Issuing  Bank's Letter of Credit  Commitment
         at such  time,  as such  amount may be reduced at or prior to such time
         pursuant to Section 2.05.

                  "Letters  of  Credit"  has the  meaning  specified  in Section
         2.01(d).

                  "Lien"  means any lien,  security  interest or other charge or
         encumbrance of any kind, or any other type of preferential arrangement,
         including, without limitation, the lien or retained security title of a
         conditional vendor and any easement,  right of way or other encumbrance
         on title to real property.

                  "Loan  Documents"  means (i) this  Agreement,  (ii) the Notes,
         (iii) the Guaranties, (iv) the Collateral Documents, (v) each Letter of
         Credit Agreement and (vi) each Secured Hedge Agreement, in each case as
         amended.

                  "Loan  Parties"  means  the  Company,  the  Borrower  and  the
         Subsidiary Guarantors.

                  "Margin Stock" has the meaning specified in Regulation U.

                  "Material Adverse Change" means any material adverse change in
         the  business,   condition   (financial  or   otherwise),   operations,
         performance, or properties of the Borrower and its Subsidiaries,  taken
         as a whole, since September 30, 2001.

                  "Material  Adverse Effect" means a material  adverse effect on
         (a) the  business,  condition  (financial  or  otherwise),  operations,
         performance or properties of the Borrower and its  Subsidiaries,  taken
         as a whole,  (b) the  rights  and  remedies  of any Agent or any Lender
         Party  under any  Transaction  Document  or (c) the ability of any Loan
         Party to perform  its  Obligations  under any  Transaction  Document to
         which it is or is to be a party.

                  "Material Contract" means the Dow contract.

                  "Measurement Period" means, at any date of determination,  the
         most  recently  completed  four  consecutive  fiscal  quarters  of  the
         Borrower  ending  on or  prior  to such  date  or,  if less  than  four
         consecutive  fiscal  quarters of the Borrower have been completed since
         the date of the Initial Extension of Credit, the fiscal quarters of the
         Borrower  that  have  been  completed  since  the  date of the  Initial
         Extension  of  Credit,  provided  that  EBITDA  for each of the  fiscal
         quarters ended December 2001,  March 2002 and June 2002,  respectively,
         shall be as set forth on Schedule III hereto, and provided further that
         (a) for purposes of  determining  an amount of any item included in the
         calculation of any financial ratio (other than EBITDA) or any financial

                                       18
<PAGE>

         covenant for the fiscal quarter ended  December  2002,  such amount for
         the Measurement Period then ended shall equal such item for such fiscal
         quarter  multiplied by four;  (b) for purposes of determining an amount
         of any item included in the  calculation of any financial  ratio (other
         than EBITDA) or any  financial  covenant for the fiscal  quarter  ended
         March  2003,  such amount for the  Measurement  Period then ended shall
         equal such item for the two fiscal  quarters  then ended  multiplied by
         two; and (c) for purposes of determining an amount of any item included
         in the  calculation  of any financial  ratio (other than EBITDA) or any
         financial  covenant for the fiscal quarter ended June 2003, such amount
         for the  Measurement  Period  then ended  shall equal such item for the
         three fiscal quarters then ended multiplied by 4/3.

                  "Merger"  has  the  meaning   specified  in  the   Preliminary
         Statements.

                  "Merger   Agreement"   has  the  meaning   specified   in  the
         Preliminary Statements.

                  "Mezzanine  Facility" means the subordinated  facility between
         the Borrower and the Junior Creditor, dated of even date.

                  "Mortgage  Policies"  has the  meaning  specified  in  Section
         5.01(p)(B).

                  "Mortgages" has the meaning specified in Section 5.01(p).

                  "Multiemployer Plan" means a multiemployer plan, as defined in
         Section  4001(a)(3)  of  ERISA,  to which  any Loan  Party or any ERISA
         Affiliate is making or accruing an obligation to make contributions, or
         has  within  any of the  preceding  five plan  years made or accrued an
         obligation to make contributions.

                  "Multiple  Employer  Plan" means a single  employer  plan,  as
         defined in Section  4001(a)(15)  of ERISA,  that (a) is maintained  for
         employees  of any Loan  Party or any ERISA  Affiliate  and at least one
         Person other than the Loan Parties and the ERISA  Affiliates or (b) was
         so  maintained  and in  respect  of which  any Loan  Party or any ERISA
         Affiliate  could have liability  under Section 4064 or 4069 of ERISA in
         the event such plan has been or were to be terminated.

                  "Net  Cash  Proceeds"  means,  with  respect  to (A) any sale,
         lease, transfer or other disposition of any asset or (B) the incurrence
         or  issuance  of any Debt or (C) the  sale or  issuance  of any  Equity
         Interests (including,  without limitation, any capital contribution) by
         any Person, or (D) any Extraordinary  Receipt received by or paid to or
         for the account of any Person,  the  aggregate  amount of cash actually
         received from time to time (whether as initial consideration or through
         payment or  disposition of deferred  consideration)  by or on behalf of
         such  Person  in  connection  with  such  transaction  after  deducting
         therefrom  only  (without   duplication)   (a)   reasonable   brokerage
         commissions,  underwriting  and investment  banking fees and discounts,
         legal fees, finder's fees, accounting fees, professional fees and other
         similar  fees  and  commissions  and  other  reasonable  closing  costs
         actually incurred in connection with such  transaction,  (b) the amount
         of taxes payable in connection with or as a result of such transaction,
         (c) all  payments  made to retire  Debt  where  payment of such Debt is
         required in connection with such  transaction,  (d) liability  reserves
         established in respect of such  transaction in accordance with GAAP, in
         each case  (a)-(d)  to the  extent,  but only to the  extent,  that the

                                       19
<PAGE>

         amounts so deducted are, at the time of receipt of such cash,  actually
         paid or reserved  with  respect to a Person that is not an Affiliate of
         such  Person or any Loan Party or any  Affiliate  of any Loan Party and
         are properly  attributable to such  transaction or to the asset that is
         the subject thereof; provided,  however, that in the case of taxes that
         are  deductible  under  clause (b) above but for the fact that,  at the
         time of receipt of such cash, such taxes have not been actually paid or
         are not then payable,  such Loan Party or such Subsidiary may deduct an
         amount  (the  "Reserved  Amount")  equal  to  the  amount  reserved  in
         accordance  with  GAAP  for  such  Loan  Party's  or such  Subsidiary's
         reasonable estimate of such taxes, other than taxes for which such Loan
         Party or such Subsidiary is  indemnified,  provided  further,  however,
         that,  at the time such taxes are paid,  an amount equal to the amount,
         if any, by which the Reserved  Amount for such taxes exceeds the amount
         of such taxes actually paid shall constitute "Net Cash Proceeds" of the
         type for which such taxes were  reserved  for all  purposes  hereunder;
         provided  further  that Net Cash  Proceeds  shall not  include any cash
         receipts from any  transaction  described in clause (A) or (D) above to
         the extent such cash  receipts  are  reinvested  in the business of the
         Borrower  and its  Subsidiaries  within  12  months  after  the date of
         receipt thereof.

                  "Net  Litigation  Proceeds" means with respect to any proceeds
         received by any Person in  connection  with any  litigation,  through a
         judgment or a settlement  or otherwise,  the  aggregate  amount of cash
         actually  received  from time to time by or on behalf of such Person in
         connection  with  such  transaction  after  deducting   therefrom  only
         (without duplication) (a) all reasonable costs and expenses incurred by
         such  Person  (including,  without  limitation,   attorneys'  fees  and
         expenses)  in  connection  with such  litigation  and (b) all  payments
         required  to be made by  such  Person  under  any  binding  contractual
         arrangement  in  connection  with such  litigation;  provided  that Net
         Litigation  Proceeds  shall not include  any such cash  receipts to the
         extent  such  cash  receipts  are  reinvested  in the  business  of the
         Borrower  and its  Subsidiaries  within  12  months  after  the date of
         receipt  thereof.  The  determination of whether proceeds in connection
         with any litigation are "received" for purposes of Section  2.05(b)(iv)
         shall  be made at  first  anniversary  of the date  such  proceeds  are
         actually received by the Borrower.

                  "Note" means a Term B Note or a Revolving Credit Note.

                  "Notice of  Acceptance"  means the notice of  acceptance to be
         delivered by Public Sub to the Depositary promptly after the Expiration
         Date (as  defined in the Offer to  Purchase  and  Consent  Solicitation
         Statement)  pursuant  to which  Public  Sub  accepts  for  payment  the
         Subordinated Notes tendered into the Offer.

                  "Notice of  Borrowing"  has the meaning  specified  in Section
         2.02(a).

                  "Notice of  Issuance"  has the  meaning  specified  in Section
         2.16(a).

                  "Notice  of  Renewal"  has the  meaning  specified  in Section
         2.01(d).

                  "Notice of Swing Line Borrowing" has the meaning  specified in
         Section 2.02(b).

                  "Notice of Termination"  has the meaning  specified in Section
         2.01(d).

                  "NPL" means the National Priorities List under CERCLA.

                                       20
<PAGE>

                  "Obligation"  means, with respect to any Person,  any payment,
         performance or other obligation of such Person of any kind,  including,
         without limitation,  any liability of such Person on any claim, whether
         or not the right of any creditor to payment in respect of such claim is
         reduced  to  judgment,  liquidated,  unliquidated,  fixed,  contingent,
         matured, disputed,  undisputed, legal, equitable, secured or unsecured,
         and  whether  or not such  claim is  discharged,  stayed  or  otherwise
         affected  by any  proceeding  referred to in Section  6.01(f).  Without
         limiting the generality of the foregoing,  the  Obligations of any Loan
         Party  under  the Loan  Documents  include  (a) the  obligation  to pay
         principal,  interest, Letter of Credit commissions,  charges, expenses,
         fees, attorneys' fees and disbursements,  indemnities and other amounts
         payable  by  such  Loan  Party  under  any  Loan  Document  and (b) the
         obligation of such Loan Party to reimburse any amount in respect of any
         of the foregoing  that any Lender Party,  in its sole  discretion,  may
         elect to pay or advance on behalf of such Loan Party.

                  "Off  Balance  Sheet  Obligation"  means,  with respect to any
         Person,  any  Obligation  of such Person under a synthetic  lease,  tax
         retention   operating   lease,   off-balance   sheet  loan  or  similar
         off-balance  sheet  financing  classified  as  an  operating  lease  in
         accordance with GAAP, if such Obligations  would or will give rise to a
         claim  against  such  Person in a  proceeding  referred  to in  Section
         6.01(f).

                  "Offer"  means the offer by Public Sub to  purchase,  upon the
         terms and subject to the  conditions set forth in the Offer to Purchase
         and  Consent  Solicitation  Statement,  any and all of its  outstanding
         Subordinated Notes.

                  "Offer to  Purchase  and  Consent to  Solicitation  Statement"
         means the Offer to  Purchase  and  Consent to  Solicitation  Statement,
         dated July 25, 2002, of Public Sub in connection with the Offer.

                  "Open Year" has the meaning specified in Section 4.01(r)(iii).

                  "Other Taxes" has the meaning specified in Section 2.11(b).

                  "PBGC" means the Pension Benefit Guaranty  Corporation (or any
         successor).

                  "Permitted  Encumbrances"  has the  meaning  specified  in the
         Mortgages.

                  "Permitted  Liens" means each of the  following as to which no
         enforcement,  collection,  execution,  levy or  foreclosure  proceeding
         shall  have  been  commenced:  (a)  Liens for  taxes,  assessments  and
         governmental  charges or levies to the extent not  required  to be paid
         under Section 5.01(b); (b) Liens imposed by law, such as materialmen's,
         mechanics',   carriers',   workmen's,   repairmen's,   landlords'   and
         warehousemens' Liens and other similar Liens (whether  nonconsensual or
         otherwise)   arising  in  the  ordinary  course  of  business  securing
         obligations  that are not  overdue for a period of more than 60 days or
         are being  contested  in good faith;  (c) pledges or deposits to secure
         obligations under workers' compensation laws, unemployment insurance or
         similar social  security laws,  regulations or legislation or to secure
         public or statutory obligations; (d) Permitted Encumbrances;  (e) Liens
         to  secure  the  performance  of  bids,  trade  contracts,   government
         contracts,  leases,  statutory  obligations,  surety and appeal  bonds,
         performance  bonds and other obligations of a like nature (exclusive of

                                       21
<PAGE>

         obligations  for the  payment of borrowed  money),  in each case in the
         ordinary course of business; (f) judgment liens in respect of judgments
         that do not constitute an Event of Default under Section  6.01(g);  (g)
         any  interest or title of a lessor  under any lease  permitted  by this
         Agreement;  (h)  Liens in  favor of  customs  and  revenue  authorities
         arising  as a matter  of law to secure  payment  of  customs  duties in
         connection  with  the  importation  of  goods;   and  (i)  licenses  of
         intellectual property granted in the ordinary course of business.

                  "Person"   means  an  individual,   partnership,   corporation
         (including a business trust),  limited liability  company,  joint stock
         company,  trust,  unincorporated  association,  joint  venture or other
         entity, or a government or any political subdivision or agency thereof.

                  "Plan"  means a Single  Employer  Plan or a Multiple  Employer
         Plan.

                  "Pledged  Debt"  has the  meaning  specified  in the  Security
         Agreement.

                  "Post Petition  Interest" has the meaning specified in Section
         7.08(b).

                  "Pre-Commitment  Information" means, the information furnished
         to Morgan  Stanley by the Borrower or on behalf of the Borrower,  or by
         the Company or on behalf of the Company prior to July 15, 2002.

                  "Preferred  Interests"  means,  with  respect  to any  Person,
         Equity  Interests  issued  by  such  Person  that  are  entitled  to  a
         preference or priority over any other Equity  Interests  issued by such
         Person upon any  distribution  of such  Person's  property  and assets,
         whether by dividend or upon liquidation.

                  "Prepayment Date" means with respect to any cash receipts from
         a  transaction  described  in  clause  (A),  (B),  (C)  or  (D)  of the
         definition of "Net Cash Proceeds",  the date of the receipt of such Net
         Cash  Proceeds by the  Borrower or any of its  Subsidiaries  or, if any
         cash receipts from a transaction  described in clause (A) or (D) of the
         definition  of "Net  Cash  Proceeds"  are  not  deemed  to be Net  Cash
         Proceeds  pursuant to the last proviso of the  definition  of "Net Cash
         Proceeds"  and are not  reinvested  in the business of the Borrower and
         its  Subsidiaries  within 12 months after the date of receipt  thereof,
         the date which is 12 months  following the date of receipt of such cash
         receipts.

                  "Prepayment  Percentage"  means,  at any time,  the applicable
         percentage determined in accordance with the table set forth below:

         ======================================== ==============================
                  Total Leverage Ratio                    Prepayment Percentage
         ======================================== ==============================
                 Greater than 1.0                                 0%
         ---------------------------------------- ------------------------------
                    Equal to  1.0                                 75%
         ======================================== ==============================

                  The Prepayment  Percentage shall be determined by reference to
         the Total Leverage in effect from time to time; provided, however, that
         no change in the Prepayment  Percentage  shall be effective until three
         Business Days after the date on which the Administrative Agent receives

                                       22
<PAGE>

         the financial  statements  required to be delivered pursuant to Section
         5.03(b)  or(c),  as the case may be,  and a  certificate  of the  Chief
         Financial  Officer of the Borrower  demonstrating  such Total  Leverage
         Ratio.

                  "Properties"  shall mean those  properties  listed on Schedule
         4.01(u) and Schedule 4.01(v).

                  "Pro Rata  Share" of any  amount  means,  with  respect to any
         Revolving Credit Lender at any time, the product of such amount times a
         fraction  the  numerator  of  which  is the  amount  of  such  Lender's
         Revolving Credit  Commitment at such time (or, if the Commitments shall
         have been  terminated  pursuant to Section 2.04 or 6.01,  such Lender's
         Revolving  Credit  Commitment  as in effect  immediately  prior to such
         termination)  and the  denominator  of  which is the  Revolving  Credit
         Facility  at  such  time  (or,  if  the  Commitments  shall  have  been
         terminated  pursuant  to Section  2.04 or 6.01,  the  Revolving  Credit
         Facility as in effect immediately prior to such termination).

                  "Receivables"  means all  Receivables  referred  to in Section
         1(c) of the Security Agreement.

                  "Redeemable"  means, with respect to any Equity Interest,  any
         Debt or any other right or Obligation,  any such Equity Interest, Debt,
         right or Obligation  that (a) the issuer has  undertaken to redeem at a
         fixed or determinable date or dates,  whether by operation of a sinking
         fund or  otherwise,  or upon the  occurrence  of a condition not solely
         within the control of the issuer or (b) is  redeemable at the option of
         the holder.

                  "Reduction  Amount"  has  the  meaning  specified  in  Section
         2.05(b)(iii).

                  "Register" has the meaning specified in Section 9.07(d).

                  "Regulation U" means Regulation U of the Board of Governors of
         the Federal Reserve System, as in effect from time to time.

                  "Related  Documents" means the Merger Agreement,  the Offer to
         Purchase and Consent to Solicitation Statement, the Mezzanine Facility,
         the  Subordination  Agreement and any other  agreements  related to the
         Mezzanine Facility.

                  "Required Lenders" means, at any time, Lenders owed or holding
         at  least a  majority  in  interest  of the  sum of (a)  the  aggregate
         principal  amount of the Advances  outstanding at such time and (b) the
         aggregate Unused Revolving Credit  Commitments at such time;  provided,
         however,  that if any Lender shall be a Defaulting Lender at such time,
         there shall be excluded from the  determination  of Required Lenders at
         such time (A) the aggregate  principal  amount of the Advances owing to
         such Lender (in its capacity as a Lender) and  outstanding at such time
         and (B) the Unused Revolving  Credit  Commitment of such Lender at such
         time. For purposes of this definition,  the aggregate  principal amount
         of Swing  Line  Advances  owing to the Swing Line Bank and of Letter of

                                       23
<PAGE>

         Credit  Advances owing to the Issuing Bank and the Available  Amount of
         each Letter of Credit shall be  considered  to be owed to the Revolving
         Credit Lenders  ratably in accordance with their  respective  Revolving
         Credit Commitments.

                  "Responsible Officer" means the Chief Executive Officer or the
         Chief Financial Officer of the Borrower.

                  "Restricted  Subsidiary" means each of the Subsidiaries of the
         Borrower  in  existence  on the date  hereof  and any other  Subsidiary
         created or  acquired  after the date hereof  except for any  Subsidiary
         which the Borrower designates an Unrestricted Subsidiary at the time of
         its  creation  or  acquisition.  Any  Subsidiary  that is a  Restricted
         Subsidiary   (including  any  Subsidiary  that  is  not  designated  an
         Unrestricted  Subsidiary  at the time of its  creation or  acquisition)
         shall be a Restricted Subsidiary for the term of this Agreement.

                  "Revolving  Credit  Advance"  has  the  meaning  specified  in
         Section 2.01(b).

                  "Revolving Credit  Borrowing" means a borrowing  consisting of
         simultaneous  Revolving  Credit  Advances  of the same Type made by the
         Revolving Credit Lenders.

                  "Revolving  Credit  Commitment"  means,  with  respect  to any
         Revolving Credit Lender at any time, the amount set forth opposite such
         Lender's name on Schedule I hereto under the caption  "Revolving Credit
         Commitment"  or, if such Lender has entered into one or more Assignment
         and Acceptances,  set forth for such Lender in the Register  maintained
         by the  Administrative  Agent  pursuant  to  Section  9.07(d)  as  such
         Lender's "Revolving Credit  Commitment",  as such amount may be reduced
         at or prior to such time pursuant to Section 2.05.

                  "Revolving  Credit Facility" means, at any time, the aggregate
         amount of the Revolving Credit Lenders' Revolving Credit Commitments at
         such time.

                  "Revolving   Credit  Lender"  means  any  Lender  that  has  a
         Revolving Credit Commitment.

                  "Revolving  Credit  Note"  means  a  promissory  note  of  the
         Borrower  payable  to the  order of any  Revolving  Credit  Lender,  in
         substantially the form of Exhibit A-1 hereto,  evidencing the aggregate
         indebtedness  of  the  Borrower  to  such  Lender  resulting  from  the
         Revolving  Credit  Advances,  Letter of Credit  Advances and Swing Line
         Advances made by such Lender, as amended.

                  "Revolving  Credit  Termination  Date"  means the  earlier  of
         September  19,  2005  and  the  date of  termination  in  whole  of the
         Revolving Credit  Commitments,  the Letter of Credit Commitment and the
         Swing Line Commitment pursuant to Sections 2.04 and 6.01.

                  "Secured Hedge Agreement"  means any Hedge Agreement  required
         or  permitted  under  Article V that is entered into by and between the
         Borrower and Hedge Bank.

                  "Secured  Obligations" has the meaning  specified in Section 2
         of the Security Agreement.

                                       24
<PAGE>

                  "Secured Parties" means the Agents, the Lender Parties and the
         Hedge Banks.

                  "Security  Agreement"  has the  meaning  specified  in Section
         3.01(a)(ii).

                  "Senior  Leverage Ratio" means, at any date of  determination,
         the ratio of  Consolidated  Debt for Borrowed Money of the Borrower and
         the  Restricted   Subsidiaries,   other  than  Subordinated   Debt,  to
         Consolidated EBITDA of the Borrower and the Restricted Subsidiaries for
         the most recently completed Measurement Period.

                  "Single  Employer  Plan"  means a  single  employer  plan,  as
         defined in Section  4001(a)(15)  of ERISA,  that (a) is maintained  for
         employees of any Loan Party or any ERISA  Affiliate and no Person other
         than the Loan Parties and the ERISA Affiliates or (b) was so maintained
         and in  respect of which any Loan  Party or any ERISA  Affiliate  could
         have  liability  under Section 4069 of ERISA in the event such plan has
         been or were to be terminated.

                  "Solvent" and "Solvency" mean, with respect to any Person on a
         particular  date,  that on such date (a) the fair value of the property
         of such  Person  is  greater  than the  total  amount  of  liabilities,
         including, without limitation,  contingent liabilities, of such Person,
         (b) the present fair salable  value of the assets of such Person is not
         less  than  the  amount  that  will be  required  to pay  the  probable
         liability  of such  Person on its  debts as they  become  absolute  and
         matured,  (c) such Person does not intend to, and does not believe that
         it will, incur debts or liabilities beyond such Person's ability to pay
         such debts and  liabilities  as they  mature and (d) such Person is not
         engaged in  business  or a  transaction,  and is not about to engage in
         business  or a  transaction,  for which such  Person's  property  would
         constitute  an  unreasonably  small  capital.  The amount of contingent
         liabilities  at any time shall be computed as the amount  that,  in the
         light  of all the  facts  and  circumstances  existing  at  such  time,
         represents  the amount  that can  reasonably  be  expected to become an
         actual or matured liability.

                  "Standby  Letter of Credit"  means any Letter of Credit issued
         under the  Letter  of Credit  Facility,  other  than a Trade  Letter of
         Credit.

                  "Subordinated  Debt" means the Subordinated  Notes, Debt under
         the  Mezzanine  Facility  and any other  Debt of any Loan Party that is
         subordinated  to the  Obligations  of such  Loan  Party  under the Loan
         Documents  on,  and  that  otherwise  contains,  terms  and  conditions
         satisfactory to the Required Lenders.

                  "Subordinated  Notes" means the 10% Senior  Subordinated Notes
         due 2008 issued by the Public Sub.

                  "Subordinated   Obligations"  has  the  meaning  specified  in
         Section 7.08.

                  "Subordination  Agreement" means the  subordination  agreement
         dated of even date, among the Borrower,  the  Administrative  Agent and
         the Junior Creditor.

                  "Subsidiary" of any Person means any corporation, partnership,
         joint venture,  limited liability company, trust or estate of which (or
         in which) more than 50% of (a) the issued and outstanding capital stock

                                       25
<PAGE>

         having  ordinary  voting  power to  elect a  majority  of the  Board of
         Directors  of such  corporation  (irrespective  of  whether at the time
         capital stock of any other class or classes of such  corporation  shall
         or might have voting power upon the occurrence of any contingency), (b)
         the  interest  in the  capital or profits  of such  partnership,  joint
         venture or limited liability company or (c) the beneficial  interest in
         such trust or estate is at the time  directly  or  indirectly  owned or
         controlled by such Person,  by such Person and one or more of its other
         Subsidiaries or by one or more of such Person's other Subsidiaries.

                  "Subsidiary Guarantors" means the Subsidiaries of the Borrower
         (including  the  Company)  listed on  Schedule II hereto and each other
         Restricted Subsidiary of the Borrower that shall be required to execute
         and deliver a guaranty pursuant to Section 5.01(k).

                  "Subsidiary  Guaranty"  means the  guaranty of the  Subsidiary
         Guarantors  set forth in Article VII together with each other  guaranty
         and guaranty supplement  delivered pursuant to Section 5.01(k), in each
         case  as  amended,   amended  and   restated,   modified  or  otherwise
         supplemented.

                  "Surviving  Debt"  means  Debt  of  each  Loan  Party  and its
         Subsidiaries  outstanding immediately before and after giving effect to
         the Initial Extension of Credit.

                  "Swing Line  Advance"  means an advance made by the Swing Line
         Bank pursuant to Section 2.01(c).

                  "Swing Line Bank"  means the  Initial  Swing Line Bank and any
         Eligible Assignee to which the Swing Line Commitment hereunder has been
         assigned  pursuant to Section  9.07 so long as such  Eligible  Assignee
         expressly  agrees  to  perform  in  accordance  with  their  terms  all
         obligations  that by the terms of this  Agreement  are  required  to be
         performed by it as a Swing Line Bank and  notifies  the  Administrative
         Agent of its  Applicable  Lending  Office (which  information  shall be
         recorded by the Administrative Agent in the Register).

                  "Swing Line Borrowing" means a borrowing consisting of a Swing
         Line Advance made by the Swing Line Bank pursuant to Section 2.01(c) or
         the Revolving Credit Lenders pursuant to Section 2.02(b).

                  "Swing Line Commitment"  means, with respect to the Swing Line
         Bank at any time,  the amount set forth  opposite the Swing Line Bank's
         name on Schedule I hereto under the caption "Swing Line Commitment" or,
         if the Swing Line Bank has entered into an Assignment  and  Acceptance,
         set forth for the Swing  Line Bank in the  Register  maintained  by the
         Administrative  Agent  pursuant  to  Section  9.07(d) as the Swing Line
         Bank's  "Swing  Line  Commitment",  as such amount may be reduced at or
         prior to such time pursuant to Section 2.04.

                  "Swing Line Facility"  means,  at any time, an amount equal to
         the amount of the Swing Line Bank's Swing Line  Commitment at such time
         as such  amount  may be reduced  at or prior to such time  pursuant  to
         Section 2.04.

                                       26
<PAGE>

                  "Taxes" has the meaning specified in Section 2.11(a).

                  "Term B Advance" has the meaning specified in Section 2.01(a).

                  "Term  B   Borrowing"   means  a   borrowing   consisting   of
         simultaneous  Term B  Advances  of the  same  Type  made by the  Term B
         Lenders.

                  "Term B Commitment"  means,  with respect to any Term B Lender
         at any time,  the  amount  set forth  opposite  such  Lender's  name on
         Schedule I hereto  under the caption  "Term B  Commitment"  or, if such
         Lender has entered into one or more  Assignment  and  Acceptances,  set
         forth for such Lender in the Register  maintained by the Administrative
         Agent pursuant to Section 9.07(d) as such Lender's "Term B Commitment",
         as such  amount  may be reduced  at or prior to such time  pursuant  to
         Section 2.04.

                  "Term B Facility"  means, at any time, the aggregate amount of
         the Term B Lenders' Term B Commitments at such time.

                  "Term B Lender" means any Lender that has a Term B Commitment.

                  "Term B Note" means a promissory note of the Borrower  payable
         to the order of any Term B Lender, in substantially the form of Exhibit
         A-2 hereto,  evidencing the indebtedness of the Borrower to such Lender
         resulting from the Term B Advance made by such Lender, as amended.

                  "Termination  Date"  means the  earlier of August 30, 2007 and
         the date of termination in whole of the Term B Commitments  pursuant to
         Sections 2.04 or 6.01.

                  "Trade  Letter of Credit"  means any Letter of Credit  that is
         issued  under the  Letter  of  Credit  Facility  for the  benefit  of a
         supplier of  Inventory to the  Borrower or any of its  Subsidiaries  to
         effect payment for such Inventory.

                  "Total Leverage  Ratio" means,  at any date of  determination,
         the ratio of  Consolidated  Debt for Borrowed Money of the Borrower and
         the Restricted  Subsidiaries to Consolidated EBITDA of the Borrower and
         the Restricted Subsidiaries for the most recently completed Measurement
         Period.

                  "Transaction"  means the  Merger,  consummation  of the Tender
         Offer  and  the  other  transactions  contemplated  by the  Transaction
         Documents.

                  "Transaction   Documents"   means,   collectively,   the  Loan
         Documents and the Related Documents.

                  "Type"  refers to the  distinction  between  Advances  bearing
         interest  at  the  Base  Rate  and  Advances  bearing  interest  at the
         Eurodollar Rate.

                  "Unrestricted Subsidiary" means all of the Subsidiaries of the
         Borrower other than  Restricted  Subsidiaries.  Any Subsidiary  that is
         designated  an  Unrestricted  Subsidiary at the time of its creation or

                                       27
<PAGE>

         acquisition  shall be an  Unrestricted  Subsidiary for the term of this
         Agreement. For purposes of this Agreement and the other Loan Documents,
         Flexcrete LLC shall be an Unrestricted Subsidiary.

                  "Unused  Revolving Credit  Commitment"  means, with respect to
         any Revolving  Credit Lender at any time,  (a) such Lender's  Revolving
         Credit  Commitment  at such time minus (b) the sum of (i) the aggregate
         principal  amount of all Revolving Credit Advances and Letter of Credit
         Advances  made by  such  Lender  (in  its  capacity  as a  Lender)  and
         outstanding  at such time plus (ii) such Lender's Pro Rata Share of the
         sum of (A) the  aggregate  Available  Amount of all  Letters  of Credit
         outstanding  at such time,  (B) the aggregate  principal  amount of all
         Letter of Credit  Advances made by the Issuing Bank pursuant to Section
         2.16(c) and  outstanding  at such time and (C) the aggregate  principal
         amount of all Swing Line  Advances made by the Swing Line Bank pursuant
         to Section 2.01(c) and outstanding at such time.

                  "Voting  Interests"  means shares of capital stock issued by a
         corporation,  or equivalent  Equity Interests in any other Person,  the
         holders  of which are  ordinarily,  in the  absence  of  contingencies,
         entitled to vote for the election of directors  (or persons  performing
         similar  functions)  of such  Person,  even if the right so to vote has
         been suspended by the happening of such a contingency.

                  "Welfare  Plan"  means a welfare  plan,  as defined in Section
         3(1) of ERISA, that is maintained for employees of any Loan Party or in
         respect of which any Loan Party could have liability.

                  "Withdrawal  Liability" has the meaning specified in Part I of
         Subtitle E of Title IV of ERISA.

         SECTION  1.02   Computation   of  Time  Periods;   Other   Definitional
Provisions. In this Agreement and the other Loan Documents in the computation of
periods of time from a specified date to a later specified date, the word "from"
means  "from and  including"  and the words "to" and  "until"  each mean "to but
excluding".  References  in the Loan  Documents to any agreement or contract "as
amended" shall mean and be a reference to such agreement or contract as amended,
amended and restated,  supplemented  or otherwise  modified from time to time in
accordance with its terms.

         SECTION 1.03 Accounting  Terms.  All accounting  terms not specifically
defined  herein  shall  be  construed  in  accordance  with  generally  accepted
accounting  principles applicable in the United States of America and consistent
with those applied in the preparation of the financial statements referred to in
Section 4.01(g) ("GAAP").

         SECTION 1.04 Currency  Equivalents  Generally.  Any amount specified in
this Agreement  (other than in Articles II, VII and IX) or any of the other Loan
Documents to be in U.S. dollars shall also include the equivalent of such amount
in any currency other than U.S. dollars, such equivalent amount to be determined
at the rate of exchange quoted by the Administrative Agent in New York, New York
at the close of business on the Business Day  immediately  preceding any date of
determination  thereof,  to  prime  banks  in New  York,  New  York for the spot
purchase in the New York foreign  exchange market of such amount in U.S. dollars
with such other currency.

                                       28
<PAGE>

                                   ARTICLE II

                        AMOUNTS AND TERMS OF THE ADVANCES

         SECTION 2.01 The Advances. (a) The Term B Advances.  Each Term B Lender
severally agrees,  on the terms and conditions  hereinafter set forth, to make a
single  advance (a "Term B Advance") to the Borrower on the Effective Date in an
amount not to exceed such Lender's  Term B Commitment  at such time.  The Term B
Borrowing  shall  consist of Term B Advances made  simultaneously  by the Term B
Lenders ratably  according to their Term B Commitments.  Amounts  borrowed under
this Section  2.01(a) and repaid or prepaid may not be reborrowed.  The Borrower
will receive  proceeds from the Term B Facility in an amount equal to 97% of the
principal amount of the Term B Facility.

         (b)  The  Revolving  Credit  Advances.  Each  Revolving  Credit  Lender
severally  agrees,  on the terms and conditions  hereinafter  set forth, to make
advances (each a "Revolving  Credit  Advance") to the Borrower from time to time
on any  Business  Day  during  the  period  from the  Effective  Date  until the
Revolving  Credit  Termination  Date in an amount for each such  Advance  not to
exceed such Lender's  Unused  Revolving  Credit  Commitment  at such time.  Each
Revolving  Credit  Borrowing shall be in an aggregate amount of $1,000,000 or an
integral  multiple of $500,000 in excess  thereof and shall consist of Revolving
Credit  Advances made  simultaneously  by the Revolving  Credit Lenders  ratably
according  to their  Revolving  Credit  Commitments.  Within  the limits of each
Revolving Credit Lender's Unused Revolving Credit Commitment in effect from time
to time, the Borrower may borrow under this Section 2.01(b),  prepay pursuant to
Section 2.05(a) and reborrow under this Section 2.01(b).

         (c) The Swing Line  Advances.  The Swing Line Bank  agrees on the terms
and  conditions  hereinafter  set  forth,  to make Swing  Line  Advances  to the
Borrower  from time to time on any  Business  Day  during  the  period  from the
Effective Date until the Revolving  Credit  Termination Date (i) in an aggregate
amount  not to exceed at any time  outstanding  the Swing Line  Commitment  (the
"Swing Line  Facility") and (ii) in an amount for each such Swing Line Borrowing
not to exceed the aggregate of the Unused  Revolving  Credit  Commitments of the
Revolving  Credit  Lenders at such time. No Swing Line Advance shall be used for
the purpose of funding the payment of principal of any other Swing Line Advance.
Each Swing Line  Borrowing  shall be in an amount of  $1,000,000  or an integral
multiple of $500,000 in excess thereof and shall be made as a Base Rate Advance.
Within the limits of the Swing Line  Facility and within the limits  referred to
in clause (ii) above, the Borrower may borrow under this Section 2.01(c),  repay
pursuant to Section  2.03(c) or prepay  pursuant to Section 2.05(a) and reborrow
under this Section 2.01(c).

         (d) The Letters of Credit.  The Issuing Bank  agrees,  on the terms and
conditions  hereinafter  set forth,  to issue (or cause its Affiliate  that is a
commercial  bank to issue on its  behalf)  letters of credit  (the  "Letters  of
Credit") in U.S.  Dollars for the account of the  Borrower  from time to time on
any Business Day during the period from the  Effective  Date until July 17, 2005

                                       29
<PAGE>

in an aggregate  Available Amount (i) for all Letters of Credit not to exceed at
any time the  lesser of (x) the Letter of Credit  Facility  at such time and (y)
the Issuing  Bank's  Letter of Credit  Commitment at such time and (ii) for each
such Letter of Credit not to exceed the Unused Revolving  Credit  Commitments of
the Revolving Credit Lenders at such time; provided,  however,  that in no event
shall the aggregate Available Amount for all Letters of Credit exceed $5 million
.. No Letter of Credit shall have an expiration date (including all rights of the
Borrower or the beneficiary to require renewal) later than July 17, 2005 and (A)
in the case of a Standby  Letter of Credit,  one year after the date of issuance
thereof,  but may by its terms be renewable  annually  upon notice (a "Notice of
Renewal") given to the Issuing Bank and the Administrative  Agent on or prior to
any date for  notice of  renewal  set forth in such  Letter of Credit but in any
event at least three Business Days prior to the date of the proposed  renewal of
such Standby Letter of Credit and upon fulfillment of the applicable  conditions
set forth in Article III unless the Issuing Bank has notified the Borrower (with
a copy to the  Administrative  Agent)  on or prior to the  date  for  notice  of
termination  set forth in such  Letter  of  Credit  but in any event at least 30
Business  Days prior to the date of  automatic  renewal of its  election  not to
renew such Standby Letter of Credit (a "Notice of  Termination")  and (B) in the
case of a Trade  Letter of Credit,  60 days after the date of issuance  thereof;
provided that the terms of each Standby  Letter of Credit that is  automatically
renewable  annually  shall (x) require the Issuing Bank that issued such Standby
Letter of Credit to give the beneficiary  named in such Standby Letter of Credit
notice of any Notice of Termination,  (y) permit such beneficiary,  upon receipt
of such notice,  to draw under such  Standby  Letter of Credit prior to the date
such Standby Letter of Credit  otherwise would have been  automatically  renewed
and (z) not permit the  expiration  date (after giving effect to any renewal) of
such  Standby  Letter of Credit in any event to be extended to a date later than
July 17,  2005.  If either a Notice of Renewal is not given by the Borrower or a
Notice of Termination  is given by the Issuing Bank pursuant to the  immediately
preceding  sentence,  such Standby  Letter of Credit shall expire on the date on
which it otherwise would have been  automatically  renewed;  provided,  however,
that even in the absence of receipt of a Notice of Renewal the Issuing  Bank may
in its discretion, unless instructed to the contrary by the Administrative Agent
or the Borrower,  deem that a Notice of Renewal had been timely delivered and in
such case, a Notice of Renewal shall be deemed to have been so delivered for all
purposes  under  this  Agreement.  Within  the  limits  of the  Letter of Credit
Facility,  and subject to the limits referred to above, the Borrower may request
the issuance of Letters of Credit under this Section  2.01(d),  repay any Letter
of Credit  Advances  resulting  from  drawings  thereunder  pursuant  to Section
2.16(c) and request the  issuance  of  additional  Letters of Credit  under this
Section 2.01(d).

         SECTION 2.02 Making the Advances.  (a) Except as otherwise  provided in
Section 2.02(b) or 2.16, each Borrowing shall be made on notice, given not later
than 1:00 P.M. (New York City time) on the third  Business Day prior to the date
of the proposed  Borrowing in the case of a Borrowing  consisting  of Eurodollar
Rate Advances, or 1:00 P.M. (New York City time) on the first Business Day prior
to the date of the proposed  Borrowing in the case of a Borrowing  consisting of
Base Rate Advances,  by the Borrower to the  Administrative  Agent,  which shall
give to each  Appropriate  Lender prompt notice  thereof by telex or telecopier.
Each such notice of a Borrowing (a "Notice of Borrowing") shall be by telephone,
confirmed  immediately in writing, or telex or telecopier,  in substantially the
form of Exhibit B hereto,  specifying  therein  the  requested  (i) date of such
Borrowing, (ii) Facility under which such Borrowing is to be made, (iii) Type of
Advances comprising such Borrowing,  (iv) aggregate amount of such Borrowing and

                                       30
<PAGE>

(v) in the case of a Borrowing  consisting of Eurodollar Rate Advances,  initial
Interest Period for each such Advance.  Each  Appropriate  Lender shall,  before
11:00 A.M. (New York City time) on the date of such  Borrowing,  make  available
for the account of its Applicable Lending Office to the Administrative  Agent at
the  Administrative  Agent's Account,  in same day funds,  such Lender's ratable
portion of such Borrowing in accordance  with the respective  Commitments  under
the applicable Facility of such Lender and the other Appropriate Lenders.  After
the  Administrative  Agent's  receipt of such funds and upon  fulfillment of the
applicable  conditions set forth in Article III, the  Administrative  Agent will
make such funds  available  to the Borrower by wire  transfer to the  Borrower's
Account; provided, however, that, in the case of any Revolving Credit Borrowing,
the  Administrative  Agent shall first make a portion of such funds equal to the
aggregate  principal  amount of any Swing  Line  Advances  and  Letter of Credit
Advances  made by the Swing Line Bank or the Issuing  Bank,  as the case may be,
and by any other  Revolving  Credit Lender and  outstanding  on the date of such
Revolving Credit  Borrowing,  plus interest accrued and unpaid thereon to and as
of such date,  available to the Swing Line Bank or the Issuing Bank, as the case
may be, and such other Revolving Credit Lenders for repayment of such Swing Line
Advances and Letter of Credit Advances. For the avoidance of doubt, the Borrower
may deliver more than one Notice of Borrowing on the same Business Day.

         (b) Each Swing Line Borrowing shall be made on notice,  given not later
than 12:00  P.M.  (New York City  time) on the date of the  proposed  Swing Line
Borrowing,  by the Borrower to the Swing Line Bank and the Administrative  Agent
and the  Administrative  Agent shall give each Appropriate  Lender prompt notice
thereof by telex or  telecopier.  Each such notice of a Swing Line  Borrowing (a
"Notice of Swing Line Borrowing") shall be by telephone,  confirmed  immediately
in writing, or telex or telecopier, specifying therein the requested (i) date of
such Borrowing and (ii) amount of such Borrowing.  The Swing Line Bank will make
the amount of the requested Swing Line Advances  available to the Administrative
Agent at the  Administrative  Agent's  Account,  in same day  funds.  After  the
Administrative  Agent's  receipt  of such  funds  and  upon  fulfillment  of the
applicable  conditions set forth in Article III, the  Administrative  Agent will
make such funds  available  to the Borrower by wire  transfer to the  Borrower's
Account.  Upon  the  Business  Day  following  the  date on  which a Swing  Line
Borrowing is made,  each other  Revolving  Credit Lender shall purchase from the
Swing  Line  Bank,  and the Swing  Line Bank  shall sell and assign to each such
other  Revolving  Credit  Lender,  such  other  Lender's  Pro Rata Share of such
outstanding  Swing Line Advance as of such Business Day, by making available for
the account of its Applicable Lending Office to the Administrative Agent for the
account  of the Swing  Line  Bank,  by  deposit  to the  Administrative  Agent's
Account,  in same day funds,  an amount equal to the portion of the  outstanding
principal amount of such Swing Line Advance to be purchased by such Lender. Each
Revolving  Credit Lender  acknowledges and agrees that its obligation to acquire
participations in Swing Line Advances pursuant to this paragraph is absolute and
unconditional  and  shall  not  be  affected  by  any  circumstance  whatsoever,
including  the  occurrence  and   continuance  of  a  Default  or  reduction  or
termination of the Commitments,  and that each payment shall be made without any
offset, abatement,  withholding or reduction whatsoever.  Each such purchase and
advance by each Revolving  Credit Lender shall  constitute a Revolving  Advance.
The Borrower  hereby  agrees to each such sale and  assignment.  Each  Revolving
Credit Lender agrees to purchase its Pro Rata Share of an outstanding Swing Line
Advance  on (i) such  Business  Day,  provided  that  notice of such  Swing Line
Borrowing  is given not  later  than  11:00  A.M.  (New York City  time) on such
Business Day or (ii) the first Business Day next succeeding such Business Day if
notice of such Swing Line Borrowing is given after such time. Upon any such sale
by the Swing Line Bank to any other  Revolving  Credit  Lender of a portion of a
Swing Line Advance,  the Swing Line Bank  represents  and warrants to such other

                                       31
<PAGE>

Lender  that the  Swing  Line Bank is the  legal  and  beneficial  owner of such
interest  being sold by it, free and clear of any adverse  claims,  but makes no
other  representation or warranty and assumes no responsibility  with respect to
such Swing Line  Advance,  the Loan  Documents or any Loan Party.  If and to the
extent that any  Revolving  Credit  Lender  shall not have so made the amount of
such Swing Line Advance  available to the  Administrative  Agent, such Revolving
Credit Lender agrees to pay to the Administrative Agent forthwith on demand such
amount together with interest  thereon,  for each day from the date of demand by
the Swing  Line Bank  until the date such  amount is paid to the  Administrative
Agent, at the Federal Funds Rate. If such Lender shall pay to the Administrative
Agent such  amount for the account of the Swing Line Bank on any  Business  Day,
such  amount so paid in  respect  of  principal  shall  constitute  a Swing Line
Advance made by such Lender on such Business Day for purposes of this Agreement,
and the outstanding principal amount of the Swing Line Advance made by the Swing
Line Bank shall be reduced by such amount on such Business Day.

         (c) Anything in subsection  (a) above to the contrary  notwithstanding,
(i) the  Borrower  may not  select  Eurodollar  Rate  Advances  for the  initial
Borrowing  hereunder  and for a thirty  (30) day period from the date hereof (or
such  earlier  date  as  shall  be  specified  in  its  sole  discretion  by the
Administrative Agent in a written notice to the Borrower and the Lenders) or for
any Borrowing if the aggregate  amount of such Borrowing is less than $1,000,000
or if the obligation of the Appropriate Lenders to make Eurodollar Rate Advances
shall then be  suspended  pursuant  to Section  2.08 or 2.09 and (ii) the Term B
Advances may not be outstanding  as part of more than eight separate  Borrowings
and the Revolving  Credit  Advances may not be  outstanding as part of more than
six separate Borrowings.

         (d) Each Notice of  Borrowing  and each Notice of Swing Line  Borrowing
shall be irrevocable  and binding on the Borrower.  In the case of any Borrowing
that the related Notice of Borrowing  specifies is to be comprised of Eurodollar
Rate Advances,  the Borrower shall indemnify each Appropriate Lender against any
loss,  cost or expense  incurred  by such  Lender as a result of any  failure to
fulfill on or before the date  specified  in such Notice of  Borrowing  for such
Borrowing the applicable conditions set forth in Article III, including, without
limitation,  any loss (including loss of anticipated  profits),  cost or expense
incurred by reason of the liquidation or reemployment of deposits or other funds
acquired by such Lender to fund the Advance to be made by such Lender as part of
such  Borrowing when such Advance,  as a result of such failure,  is not made on
such date.

         (e) Unless the Administrative  Agent shall have received notice from an
Appropriate  Lender prior to the date of any  Borrowing  under a Facility  under
which such Lender has a Commitment  that such Lender will not make  available to
the  Administrative  Agent such Lender's ratable portion of such Borrowing,  the
Administrative Agent may assume that such Lender has made such portion available
to the  Administrative  Agent on the date of such  Borrowing in accordance  with
subsection  (a) of this  Section  2.02  and the  Administrative  Agent  may,  in
reliance  upon such  assumption,  make  available to the Borrower on such date a
corresponding  amount.  If and to the extent that such Lender  shall not have so
made such ratable portion available to the Administrative Agent, such Lender and

                                       32
<PAGE>

the  Borrower  severally  agree  to  repay  or pay to the  Administrative  Agent
forthwith on demand such corresponding  amount and to pay interest thereon,  for
each day from the date such amount is made  available to the Borrower  until the
date such amount is repaid or paid to the  Administrative  Agent,  at (i) in the
case of the Borrower,  the interest  rate  applicable at such time under Section
2.06 to  Advances  comprising  such  Borrowing,  but not  otherwise  owing under
Section 9.04(c) and (ii) in the case of such Lender,  the Federal Funds Rate. If
such Lender shall pay to the  Administrative  Agent such  corresponding  amount,
such  amount so paid  shall  constitute  such  Lender's  Advance as part of such
Borrowing for all purposes.

         (f) The  failure of any Lender to make the  Advance to be made by it as
part of any Borrowing shall not relieve any other Lender of its  obligation,  if
any, hereunder to make its Advance on the date of such Borrowing,  but no Lender
shall be responsible  for the failure of any other Lender to make the Advance to
be made by such other Lender on the date of any Borrowing.

         SECTION 2.03 Repayment of Advances.  (a) Term B Advances.  The Borrower
shall repay to the  Administrative  Agent for the ratable  account of the Term B
Lenders the aggregate outstanding principal amount of the Term B Advances on the
following  dates in the amounts  indicated  (which amounts shall be reduced as a
result  of the  application  of  prepayments  in  accordance  with the  order of
priority set forth in Section 2.05):

                       Date                                Amount
                       ----                                ------
                  December 31, 2002                      $3,875,000
                  March 31, 2003                         $3,875,000
                  June 30, 2003                          $3,875,000
                  September 30, 2003                     $3,875,000
                  December 31, 2003                      $7,750,000
                  March 31, 2004                         $7,750,000
                  June 30, 2004                          $7,750,000
                  September 30, 2004                     $7,750,000
                  December 31, 2004                      $7,750,000
                  March 31, 2005                         $7,750,000
                  June 30, 2005                          $7,750,000
                  September 30, 2005                     $7,750,000
                  December 31, 2005                      $7,750,000
                  March 31, 2006                         $7,750,000
                  June 30, 2006                          $7,750,000
                  September 30, 2006                     $7,750,000

                                       33
<PAGE>

                       Date                                Amount
                       ----                                ------
                  December 31, 2006                      $11,625,000
                  March 31, 2007                         $11,625,000
                  June 30, 2007                          $11,625,000
                  August 30, 2007                        $11,625,000

provided,  however,  that the final principal installment shall be repaid on the
Termination  Date and in any event shall be in an amount equal to the  aggregate
principal amount of the Term B Advances outstanding on such date.

         (b)  Revolving  Credit  Advances.  The  Borrower  shall  repay  to  the
Administrative  Agent for the ratable account of the Revolving Credit Lenders on
the Revolving  Credit  Termination  Date the aggregate  principal  amount of the
Revolving Credit Advances then outstanding.

         (c) Letter of Credit  Advances.  (i) The  Borrower  shall  repay to the
Administrative  Agent  for the  account  of the  Issuing  Bank  and  each  other
Revolving  Credit  Lender  that has  made a  Letter  of  Credit  Advance  on the
Revolving  Credit  Termination  Date the  outstanding  principal  amount of each
Letter of Credit Advance made by each of them.

                  (ii) The Obligations of the Borrower under this Agreement, any
         Letter  of  Credit  Agreement  and any other  agreement  or  instrument
         relating  to  any  Letter  of  Credit   shall  be   unconditional   and
         irrevocable, and shall be paid strictly in accordance with the terms of
         this  Agreement,  such  Letter  of  Credit  Agreement  and  such  other
         agreement or instrument  under all  circumstances,  including,  without
         limitation,  the following  circumstances (it being understood that any
         such  payment by the  Borrower  is without  prejudice  to, and does not
         constitute  a waiver of, any  rights the  Borrower  might have or might
         acquire as a result of the payment by the Issuing  Bank of any draft or
         the reimbursement by the Borrower thereof):

                           (A) any lack of  validity  or  enforceability  of any
                  Loan Document,  any Letter of Credit Agreement,  any Letter of
                  Credit or any other agreement or instrument  relating  thereto
                  (all of the foregoing  being,  collectively,  the "L/C Related
                  Documents");

                           (B) any  change  in the  time,  manner  or  place  of
                  payment  of,  or in  any  other  term  of,  all  or any of the
                  Obligations  of the  Borrower  in respect  of any L/C  Related
                  Document or any other amendment or waiver of or any consent to
                  departure from all or any of the L/C Related Documents;

                           (C) the existence of any claim,  set-off,  defense or
                  other right that the Borrower may have at any time against any
                  beneficiary  or any  transferee  of a Letter of Credit (or any
                  Persons for which any such  beneficiary or any such transferee
                  may be acting), the Issuing Bank or any other Person,  whether
                  in connection  with the  transactions  contemplated by the L/C
                  Related Documents or any unrelated transaction;

                                       34
<PAGE>

                           (D) any  statement  or any other  document  presented
                  under a Letter of Credit  proving  to be  forged,  fraudulent,
                  invalid  or  insufficient  in any  respect  or  any  statement
                  therein being untrue or inaccurate in any respect;

                           (E)  payment  by the  Issuing  Bank under a Letter of
                  Credit against  presentation of a draft,  certificate or other
                  document that does not strictly  comply with the terms of such
                  Letter of Credit;

                           (F) any exchange,  release or  non-perfection  of any
                  Collateral or other collateral, or any release or amendment or
                  waiver of or consent to departure  from the  Guaranties or any
                  other  guarantee,  for  all or any of the  Obligations  of the
                  Borrower in respect of the L/C Related Documents; or

                           (G)  other  circumstance  or  happening   whatsoever,
                  whether  or not  similar to any of the  foregoing,  including,
                  without   limitation,   any  other   circumstance  that  might
                  otherwise  constitute a defense  available  to, or a discharge
                  of, the Borrower or a guarantor.

         SECTION 2.04 Termination or Reduction of the Commitments. (a) Optional.
The  Borrower   may,  upon  at  least  three   Business   Days'  notice  to  the
Administrative  Agent,  terminate  in whole or  reduce  in part the  Swing  Line
Facility,  the  Letter  of  Credit  Facility  and the  Unused  Revolving  Credit
Commitments;  provided,  however,  that each partial reduction of a Facility (i)
shall be in an  aggregate  amount  of  $1,000,000  or an  integral  multiple  of
$500,000 in excess  thereof  (ii) shall be made  ratably  among the  Appropriate
Lenders in accordance with their Commitments with respect to such Facility.

                  (b)  Mandatory.  (i) From time to time upon each  repayment or
         prepayment of the Term B Advances,  the aggregate Term B Commitments of
         the Term B Lenders shall be automatically and permanently reduced, on a
         pro rata basis, by an amount equal to the amount by which the aggregate
         Term B  Commitments  immediately  prior to such  reduction  exceed  the
         aggregate   unpaid  principal  amount  of  the  Term  B  Advances  then
         outstanding  (after giving  effect to any such  repayment or prepayment
         thereof).

                           (ii) The Swing  Line  Facility  shall be  permanently
                  reduced from time to time on the date of each reduction in the
                  Revolving Credit Facility by the amount,  if any, by which the
                  amount of the Swing Line Facility exceeds the Revolving Credit
                  Facility   after  giving  effect  to  such  reduction  of  the
                  Revolving Credit Facility.

                           (iii)  The  Letter  of  Credit   Facility   shall  be
                  permanently  reduced  from  time to  time on the  date of each
                  reduction in the Revolving  Credit Facility by the amount,  if
                  any,  by which  the  amount of the  Letter of Credit  Facility
                  exceeds the Revolving  Credit  Facility after giving effect to
                  such reduction of the Revolving Credit Facility.

                           (iv)  The   Revolving   Credit   Facility   shall  be
                  automatically and permanently reduced, on a pro rata basis, on
                  each date on which  prepayment  thereof is required to be made
                  pursuant  to  Section  2.05(b)(i),  (ii),  (iii) or (iv) in an
                  amount equal to the applicable Reduction Amount, provided that
                  each such reduction of the Revolving  Credit Facility shall be
                  made ratably among the Revolving  Credit Lenders in accordance
                  with their Revolving Credit Commitments.

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<PAGE>

         SECTION 2.05 Prepayments. (a) Optional. The Borrower may, upon at least
one Business  Day's notice in the case of Base Rate Advances and three  Business
Days'  notice  in the case of  Eurodollar  Rate  Advances,  in each  case to the
Administrative  Agent (which shall give each  Appropriate  Lender  prompt notice
thereof  by  telex or  telecopier)  stating  the  proposed  date  and  aggregate
principal  amount of the  prepayment,  and if such notice is given the  Borrower
shall,  prepay  the  outstanding  aggregate  principal  amount  of the  Advances
comprising part of the same Borrowing in whole or ratably in part, together with
(i) accrued  interest to the date of such prepayment on the aggregate  principal
amount prepaid; provided,  however, that (x) each partial prepayment shall be in
an aggregate  principal amount of $1,000,000 or an integral multiple of $500,000
in excess thereof and (y) if any prepayment of a Eurodollar Rate Advance is made
on a date other than the last day of an Interest  Period for such  Advance,  the
Borrower shall also pay any amounts owing pursuant to Section 9.04(c). Each such
prepayment of any Term B Advances shall be applied pro rata to the  installments
thereof.

                  (b)  Mandatory.  (i)  The  Borrower  shall,  on the  90th  day
         following  the end of each Fiscal Year,  prepay an aggregate  principal
         amount of the Advances in an amount  equal to the  relevant  Prepayment
         Percentage  at such time of the Excess Cash Flow for such Fiscal  Year.
         Each  such  prepayment  shall be  applied  ratably  first to the Term B
         Facility and to the installments thereof on a pro rata basis until paid
         in full and second to the  Revolving  Credit  Facility  as set forth in
         clause (v) below.

                           (ii) The  Borrower  shall,  on the date of receipt or
                  when otherwise  required hereunder of the Net Cash Proceeds by
                  the Borrower or any of its  Restricted  Subsidiaries  from (A)
                  the sale,  lease,  transfer or other disposition of any assets
                  of the Borrower or any of its Restricted  Subsidiaries  (other
                  than any sale, lease,  transfer or other disposition of assets
                  pursuant to clause (i), (ii) or (iii) of Section 5.02(e)), (B)
                  the  incurrence  or  issuance  by the  Borrower  or any of its
                  Restricted  Subsidiaries of any Debt for Borrowed Money (other
                  than   Debt   incurred   or   issued   pursuant   to   Section
                  5.02(b)(i)-(ii)) and (C) any Extraordinary Receipt received by
                  or paid to or for the  account of the  Borrower  or any of its
                  Restricted  Subsidiaries and not otherwise  included in clause
                  (A) or (B) above,  prepay an aggregate principal amount of the
                  Advances  comprising  part of the same Borrowings in an amount
                  equal  to the  amount  of such Net Cash  Proceeds.  Each  such
                  prepayment  shall be applied  ratably first to the Term Loan B
                  Facility and to the  installments  thereof on a pro rata basis
                  until paid in full and second to the Revolving Credit Facility
                  as set forth in clause (v) below.

                           (iii) The Borrower  shall,  on the date of receipt or
                  when otherwise  required hereunder of the Net Cash Proceeds by
                  the Borrower or any of its  Restricted  Subsidiaries  from the
                  sale or  issuance  by the  Borrower  or any of its  Restricted
                  Subsidiaries  of  any  Equity  Interests  (including,  without
                  limitation,  receipt of any capital  contribution  (other than
                  from a Loan Party)),  prepay an aggregate  principal amount of
                  the  Advances  comprising  part of the same  Borrowings  in an
                  amount equal to (A) during the first six months  following the
                  Closing  Date,  100% of such Net  Cash  Proceeds  (or,  to the
                  extent that the Borrower is applying such Net Cash Proceeds to
                  the  repayment  or  prepayment  of  Debt  in  respect  of  the
                  Mezzanine  Facility,  the percentage of such Net Cash Proceeds
                  (not to be less than 50%) not so applied) and (B)  thereafter,
                  (1) at any  time at  which  the  Leverage  Ratio  for the most
                  recently ended fiscal quarter is greater than 1.50:1,  100% of
                  such Net Cash Proceeds and (2) otherwise,  0% of such Net Cash
                  Proceeds.  Each such prepayment shall be applied ratably first
                  to the Term Loan B Facility and to the installments thereof on
                  a pro  rata  basis  until  paid  in  full  and  second  to the
                  Revolving Credit Facility as set forth in clause (v) below.

                                       36
<PAGE>

                           (iv) The  Borrower  shall,  on the date of receipt or
                  when otherwise required  hereunder of Net Litigation  Proceeds
                  by the Borrower or any of its Restricted Subsidiaries,  prepay
                  an  aggregate  principal  amount of the  Advances in an amount
                  equal to the relevant  Prepayment  Percentage  at such time of
                  such Net Litigation  Proceeds.  Each such prepayment  shall be
                  applied  ratably  first  to  the  Term B  Facility  and to the
                  installments  thereof on a pro rata  basis  until paid in full
                  and second to the  Revolving  Credit  Facility as set forth in
                  clause (v) below.

                           (v) Prepayments of the Revolving Credit Facility made
                  pursuant  to clause (i),  (ii),  (iii) and (iv) above shall be
                  first  applied  to  prepay  Letter  of  Credit  Advances  then
                  outstanding  until  such  Advances  are paid in  full,  second
                  applied to prepay Swing Line Advances then  outstanding  until
                  such  Advances  are  paid in full,  third  applied  to  prepay
                  Revolving Credit Advances then outstanding  comprising part of
                  the same  Borrowings  until such Advances are paid in full and
                  fourth  deposited  in  the  L/C  Collateral  Account  to  cash
                  collateralized  100% of the Available Amount of the Letters of
                  Credit then  outstanding;  and, in the case of  prepayments of
                  the Revolving Credit Facility required pursuant to clause (i),
                  (ii), (iii) and (iv)above, the amount remaining (if any) after
                  the  prepayment in full of the Advances then  outstanding  and
                  the 100% cash  collateralization  of the  aggregate  Available
                  Amount of Letters of Credit then  outstanding (the sum of such
                  prepayment  amounts in respect of Revolving  Credit  Advances,
                  the Letter of Credit  Advances and Swing Line  Advances,  cash
                  collateralization  amounts  and  the  remaining  amount  being
                  referred to herein as the "Reduction  Amount") may be retained
                  by the Borrower and the  Revolving  Credit  Facility  shall be
                  permanently reduced as set forth in Section 2.04(b)(iv).  Upon
                  the  drawing of any  Letter of Credit  for which  funds are on
                  deposit in the L/C  Collateral  Account,  such funds  shall be
                  applied to  reimburse  the Issuing  Bank or  Revolving  Credit
                  Lenders, as applicable.

                           (vi) The Borrower shall, on each Business Day, pay to
                  the  Administrative  Agent for  deposit in the L/C  Collateral
                  Account an amount  sufficient to cause the aggregate amount on
                  deposit in the L/C  Collateral  Account to equal the amount by
                  which the aggregate  Available Amount of all Letters of Credit
                  then outstanding exceeds the Letter of Credit Facility on such
                  Business Day.

                           (vii) All prepayments under this subsection (b) shall
                  be made  together  with  accrued  interest to the date of such
                  prepayment on the principal  amount prepaid  together with any
                  amounts owing pursuant to Section 9.04(c).

         SECTION 2.06 Interest.  (a) Scheduled Interest.  The Borrower shall pay
interest on the unpaid  principal  amount of each  Advance  owing to each Lender
from the date of such Advance until such principal amount shall be paid in full,
at the following rates per annum:

                           (i) Base Rate  Advances.  During such periods as such
                  Advance is a Base Rate Advance,  a rate per annum equal at all
                  times to the sum of (A) the Base Rate in  effect  from time to
                  time plus (B) the  Applicable  Margin  in effect  from time to
                  time,  payable  in arrears  quarterly  on the last day of each
                  March, June, September and December during such periods and on
                  the date such Base Rate Advance  shall be Converted or paid in
                  full.

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<PAGE>

                           (ii) Eurodollar Rate Advances. During such periods as
                  such Advance is a Eurodollar  Rate  Advance,  a rate per annum
                  equal  at all  times  during  each  Interest  Period  for such
                  Advance  to the  sum of  (A)  the  Eurodollar  Rate  for  such
                  Interest  Period  for such  Advance  plus  (B) the  Applicable
                  Margin in effect  on the  first day of such  Interest  Period,
                  payable  in arrears  on the last day of such  Interest  Period
                  and, if such Interest Period has a duration of more than three
                  months,  on each day that occurs during such  Interest  Period
                  every three months from the first day of such Interest  Period
                  and  on  the  date  such  Eurodollar  Rate  Advance  shall  be
                  Converted or paid in full.

                  (b)  Default  Interest.  Upon the  occurrence  and  during the
         continuance  of a Default under Section  6.01(a) or 6.01(f) or an Event
         of Default,  the Administrative  Agent may, and upon the request of the
         Required  Lenders  shall,   require  that  the  Borrower  pay  interest
         ("Default Interest") on (i) the unpaid principal amount of each Advance
         owing to each Lender Party, payable in arrears on the dates referred to
         in clause (i) or (ii) of Section 2.06(a), as applicable, and on demand,
         at a rate per annum  equal at all times to 2% per annum  above the rate
         per annum required to be paid on such Advance pursuant to clause (i) or
         (ii) of Section 2.06(a), as applicable,  and (ii) to the fullest extent
         permitted by applicable  law, the amount of any interest,  fee or other
         amount  payable under this  Agreement or any other Loan Document to any
         Agent or any Lender Party that is not paid when due, from the date such
         amount shall be due until such amount shall be paid in full, payable in
         arrears on the date such amount shall be paid in full and on demand, at
         a rate per annum  equal at all times to 2% per annum above the rate per
         annum  required  to be paid,  in the case of  interest,  on the Type of
         Advance on which such  interest  has accrued  pursuant to clause (i) or
         (ii) of Section  2.06(a),  as applicable,  and, in all other cases,  on
         Base Rate Advances pursuant to clause (i) of Section 2.06(a); provided,
         however, that following the acceleration of the Advances, or the giving
         of notice by the Agent to accelerate the Advances,  pursuant to Section
         6.01, Default Interest shall accrue and be payable hereunder whether or
         not previously required by the Administrative Agent.

                  (c) Notice of  Interest  Period and  Interest  Rate.  Promptly
         after receipt of a Notice of Borrowing  pursuant to Section 2.02(a),  a
         notice of Conversion  pursuant to Section 2.09 or a notice of selection
         of an  Interest  Period  pursuant  to the  terms of the  definition  of
         "Interest Period",  the  Administrative  Agent shall give notice to the
         Borrower and each Appropriate Lender of the applicable  Interest Period
         and the applicable interest rate determined by the Administrative Agent
         for purposes of clause (a)(i) or (a)(ii) above.

         SECTION 2.07 Fees.  (a)  Commitment  Fee. The Borrower shall pay to the
Administrative  Agent for the account of the Lenders a commitment  fee, from the
date of the Initial  Extension of Credit in the case of each Initial  Lender and
from the effective date  specified in the Assignment and Acceptance  pursuant to
which it became a Lender in the case of each other  Lender  until the  Revolving
Credit  Termination  Date,  payable  in  arrears  from the  date of the  Initial
Extension of Credit,  thereafter  quarterly on the last day of each March, June,
September  and  December,  commencing  December 31, 2002,  and on the  Revolving
Credit  Termination  Date,  at the rate of 5/8 of 1% per annum on the sum of the

                                       38
<PAGE>

average daily Unused  Revolving Credit  Commitment of such Lender;  plus its Pro
Rata Share of the average  daily  outstanding  Swing Line  Advances  during such
quarter; provided,  however, that any commitment fee accrued with respect to any
of the  Commitments  of a Defaulting  Lender during the period prior to the time
such  Lender  became a  Defaulting  Lender  and unpaid at such time shall not be
payable by the Borrower so long as such Lender shall be Defaulting Lender except
to the extent that such commitment fee shall otherwise have been due and payable
by the Borrower prior to such time; and provided  further that no commitment fee
shall accrue on any of the  Commitments  of a Defaulting  Lender so long as such
Lender shall be a Defaulting Lender.

                  (b) Agents' Fees. The Borrower shall pay to each Agent for its
         own  account  such fees as may from time to time be agreed  between the
         Borrower and such Agent.

                  (c) Letter of Credit Fees,  Etc. (i) The Borrower shall pay to
         the  Administrative  Agent for the  account  of each  Revolving  Credit
         Lender a  commission,  payable in arrears  quarterly on the last day of
         each March, June, September and December, commencing December 31, 2002,
         and  on  the  earliest  to  occur  of  the  full  drawing,  expiration,
         termination  or  cancellation  of  any  Letter  of  Credit  and  on the
         Revolving  Credit  Termination  Date in respect of the Letter of Credit
         Facility,  on  such  Lender's  Pro  Rata  Share  of the  average  daily
         aggregate Available Amount during such quarter of all Letters of Credit
         outstanding  from time to time at the rate of at the Applicable  Margin
         for Eurodollar Rate Advances under the Revolving Credit Facility.  Upon
         the  occurrence  and during the  continuance of a Default under Section
         6.01(a)  or 6.01(f) or an Event of  Default,  the amount of  commission
         payable by the Borrower  under this clause (b)(i) shall be increased by
         2% per annum.

                           (ii) The Borrower  shall pay to the Issuing Bank, for
                  its own account,  such  commissions,  issuance fees,  fronting
                  fees,  transfer  fees and other fees and charges in connection
                  with the issuance or  administration  of each Letter of Credit
                  as the Borrower and the Issuing Bank shall agree.

         SECTION 2.08 Conversion of Advances.  (a) Optional. The Borrower may on
any Business  Day,  upon notice given to the  Administrative  Agent (which shall
give each  Appropriate  Lender prompt notice thereof by telex or telecopier) not
later than 2:00 P.M. (New York City time) on the third Business Day prior to the
date of the proposed  Conversion  and subject to the provisions of Sections 2.09
and 2.10,  Convert all or any portion of the Advances of one Type comprising the
same  Borrowing  into Advances of the other Type;  provided,  however,  that any
Conversion of Base Rate Advances into  Eurodollar  Rate Advances  shall be in an
amount  not less than the  minimum  amount  specified  in Section  2.02(c),  any
Conversion  of  Eurodollar  Rate  Advances  into Base Rate  Advances  during the
Initial  Interest  Period of such  Eurodollar Rate Advance shall only be made if
all amounts due as a result of such Conversion pursuant to Section 9.04(b) shall
be paid at such  time,  no  Conversion  of any  Advances  shall  result  in more
separate  Borrowings than permitted under Section 2.02(c) and each Conversion of
Advances  comprising part of the same Borrowing under any Facility shall be made
ratably among the Appropriate Lenders in accordance with their Commitments under
such Facility.  Each such notice of Conversion  shall,  within the  restrictions
specified above,  specify (i) the date of such Conversion,  (ii) the Advances to
be Converted and (iii) if such Conversion is into Eurodollar Rate Advances,  the
duration  of the  initial  Interest  Period for such  Advances.  Each  notice of
Conversion shall be irrevocable and binding on the Borrower.

                                       39
<PAGE>

                  (b) Mandatory.  (i) On the date on which the aggregate  unpaid
         principal  amount of Eurodollar Rate Advances  comprising any Borrowing
         shall be reduced,  by payment or prepayment or otherwise,  to less than
         $2,000,000,  such Advances shall  automatically  Convert into Base Rate
         Advances.

                           (ii)  If  the  Borrower  shall  fail  to  select  the
                  duration  of any  Interest  Period  for  any  Eurodollar  Rate
                  Advances in accordance  with the  provisions  contained in the
                  definition  of  "Interest   Period"  in  Section   1.01,   the
                  Administrative Agent will forthwith so notify the Borrower and
                  the Appropriate  Lenders,  whereupon each such Eurodollar Rate
                  Advance  will  automatically,  on the  last  day  of the  then
                  existing  Interest Period  therefor,  Convert into a Base Rate
                  Advance.

                           (iii) Upon the occurrence and during the  continuance
                  of  any  Default,   (x)  each  Eurodollar  Rate  Advance  will
                  automatically,  on the last day of the then existing  Interest
                  Period therefor,  Convert into a Base Rate Advance and (y) the
                  obligation  of the  Lenders to make,  or to  Convert  Advances
                  into, Eurodollar Rate Advances shall be suspended.

         SECTION  2.09  Increased  Costs,  Etc..  (a) If,  due to either (i) the
introduction  of or  any  change  in or in  the  interpretation  of  any  law or
regulation  after the date hereof or (ii) the  compliance  with any law from any
central  bank or  other  governmental  authority  not in  effect  as of the date
hereof,  there shall be any increase in the cost to any Lender Party of agreeing
to make or of making,  funding or  maintaining  Eurodollar  Rate  Advances or of
agreeing to issue or of issuing or  maintaining or  participating  in Letters of
Credit  or of  agreeing  to make or of making  or  maintaining  Letter of Credit
Advances (excluding, for purposes of this Section 2.09, any such increased costs
resulting  from (x) Taxes or Other Taxes (as to which Section 2.11 shall govern)
and (y) changes in the basis of taxation of overall net income or overall  gross
income by the United  States or by the foreign  jurisdiction  or state under the
laws of which such  Lender  Party is  organized  or has its  Applicable  Lending
Office or any political subdivision thereof),  then the Borrower shall from time
to time,  within 15 days of receipt of a written  demand from such Lender  Party
(with  a  copy  of  such  demand  to  the  Administrative  Agent),  pay  to  the
Administrative  Agent for the account of such Lender  Party  additional  amounts
sufficient to compensate  such Lender Party for such increased  cost;  provided,
however, that the Borrower shall not be responsible for costs under this Section
2.09(a)  arising  more than 180 days  prior to receipt  by the  Borrower  of the
demand from the affected  Lender Party pursuant to this Section  2.09(a) but, to
the extent that the event or circumstance giving rise to such increased costs is
retroactive,  then the 180 day period  referred  to above  shall be  extended to
include the period of retroactive in effect thereof;  provided,  further, that a
Lender Party claiming  additional  amounts under this Section  2.09(a) agrees to
use  reasonable  efforts  (consistent  with its  internal  policy  and legal and
regulatory  restrictions) to designate a different  Applicable Lending Office if
the making of such a designation  would avoid the need for, or reduce the amount
of,  such  increased  costs that may  thereafter  accrue  and would not,  in the
reasonable  judgment of such Lender Party, be otherwise  disadvantageous to such
Lender Party.  A  certificate  as to the amount of such  increased  cost and the
method of  determination  of such increased  cost,  submitted to the Borrower by
such Lender Party,  shall be prima facie evidence,  absent manifest error.  Such
certificate  shall contain a representation  that any and all calculations  made
therein have been made in a manner  consistent  with the treatment given by such
Lender Party to similar businesses in similar circumstances.

                                       40
<PAGE>

                  (b) If any Lender Party  determines  that  compliance with any
         law or regulation  not in effect as of the date hereof from any central
         bank or other  governmental  authority (whether or not having the force
         of law)  affects or would  affect the  amount of  capital  required  or
         expected  to be  maintained  by such  Lender  Party or any  corporation
         controlling  such Lender  Party and that the amount of such  capital is
         increased  then,  within 15 days of receipt  from such Lender  Party or
         such corporation of a written demand (with a copy of such demand to the
         Administrative  Agent),  the Borrower  shall pay to the  Administrative
         Agent  for the  account  of such  Lender  Party,  from  time to time as
         specified  by such  Lender  Party,  additional  amounts  sufficient  to
         compensate such Lender Party in the light of such circumstances, to the
         extent that such Lender Party  reasonably  determines  such increase in
         capital  to be  allocable  to the  existence  of  such  Lender  Party's
         commitment to lend; provided,  however,  that the Borrower shall not be
         responsible  for costs under this Section 2.09(b) arising more than 180
         days prior to receipt by the  Borrower of the demand from the  affected
         Lender Party  pursuant to this Section  2.09(b) but, to the extent that
         the  event  or  circumstance  giving  rise to such  increased  costs is
         retroactive,  then  the 180 day  period  referred  to  above  shall  be
         extended  to  include  the  period of  retroactive  in effect  thereof;
         provided further that a Lender Party claiming  additional amounts under
         this Section 2.09(b) agrees to use reasonable efforts  (consistent with
         its internal policy and legal and regulatory restrictions) to designate
         a  different  Applicable  Lending  Office  if  the  making  of  such  a
         designation  would  avoid the need for,  or reduce the amount of,  such
         increased  costs  that may  thereafter  accrue  and would  not,  in the
         reasonable judgment of such Lender Party, be otherwise  disadvantageous
         to such Lender Party.  A certificate  as to such amounts and the method
         of  determination  of such  amounts  submitted  to the Borrower by such
         Lender Party shall be prima facie evidence, absent manifest error. Such
         certificate   shall   contain  a   representation   that  any  and  all
         calculations  made therein have been made in a manner  consistent  with
         the  treatment  given by such  Lender  Party to similar  businesses  in
         similar circumstances.

                  (c) If, with respect to any Eurodollar Rate Advances under any
         Facility,  Appropriate  Lenders  owed at least a  majority  of the then
         aggregate  unpaid  principal  amount thereof notify the  Administrative
         Agent  that  the  Eurodollar  Rate  for any  Interest  Period  for such
         Advances  will  not  adequately  reflect  the cost to such  Lenders  of
         making,  funding or maintaining their Eurodollar Rate Advances for such
         Interest Period, the Administrative Agent shall forthwith so notify the
         Borrower  and  the  Appropriate   Lenders,   whereupon  (i)  each  such
         Eurodollar Rate Advance under such Facility will automatically,  on the
         last day of the then existing Interest Period therefor,  Convert into a
         Base Rate Advance and (ii) the obligation of the Appropriate Lenders to
         make, or to Convert  Advances into,  Eurodollar  Rate Advances shall be
         suspended until the Administrative Agent shall notify the Borrower that
         such  Lenders  have  determined  that the  circumstances  causing  such
         suspension no longer exist.

                  (d) Notwithstanding any other provision of this Agreement,  if
         the introduction of or any change in the  interpretation  of any law or
         regulation  shall make it unlawful  for such Lender or any central bank
         or other governmental  authority having regulatory  jurisdiction over a
         Lender  shall assert that it is unlawful,  for its  Eurodollar  Lending
         Office to perform its  obligations  hereunder to make  Eurodollar  Rate
         Advances or to continue to fund or maintain  Eurodollar  Rate  Advances
         hereunder,  then, on notice thereof and demand  therefor by such Lender
         to the Borrower through the  Administrative  Agent, (i) each Eurodollar
         Rate  Advance  under  each  Facility  under  which  such  Lender  has a
         Commitment will  automatically,  upon such demand,  Convert into a Base
         Rate  Advance and (ii) the  obligation  of the  Appropriate  Lenders to
         make, or to Convert  Advances into,  Eurodollar  Rate Advances shall be

                                       41
<PAGE>

         suspended until the Administrative Agent shall notify the Borrower that
         such  Lender  has  determined  that  the  circumstances   causing  such
         suspension no longer exist; provided,  however, that, before making any
         such demand,  such Lender agrees to use reasonable efforts  (consistent
         with its  internal  policy and legal and  regulatory  restrictions)  to
         designate a different Eurodollar Lending Office if the making of such a
         designation would allow such Lender or its Eurodollar Lending Office to
         continue to perform its obligations to make Eurodollar Rate Advances or
         to continue to fund or maintain Eurodollar Rate Advances and would not,
         in the judgment of such Lender,  be otherwise  disadvantageous  to such
         Lender; provided further,  however, that the Borrower shall in no event
         have to pay such Lender  amounts  otherwise  payable under this Section
         2.09 with respect to costs, charges,  interest or other fees payable by
         such Lender  incurred as a result of the prepayment of Eurodollar  Rate
         Advances.

                  (e) In the  event  that  any  Lender  Party  (other  than  the
         Administrative  Agent) demands  payment of costs or additional  amounts
         pursuant  to  Section  2.09 or Section  2.11 or  asserts,  pursuant  to
         Section  2.09(d),  that it is unlawful  for such  Lender  Party to make
         Eurodollar  Rate Advances or becomes a Defaulting  Lender then (subject
         to such Lender Party's right to rescind such demand or assertion within
         10 days  after the  notice  from the  Borrower  referred  to below) the
         Borrower may,  upon 10 days' prior written  notice to such Lender Party
         and the  Administrative  Agent,  elect to cause  such  Lender  Party to
         assign its  Advances  and  Commitments  in full to one or more  Persons
         selected by the Borrower so long as (i) each such Person  satisfies the
         criteria of an Eligible Assignee and is reasonably  satisfactory to the
         Administrative  Agent,  (ii) such Lender Party receives payment in full
         in cash of the outstanding  principal amount of all Advances made by it
         and all accrued and unpaid  interest  thereon and all other amounts due
         and  payable  to such  Lender  Party as of the date of such  assignment
         (including, without limitation, amounts owing pursuant to Section 2.09,
         2.11,  2.14 and 9.04) and (iii) each Lender  Party  assignee  agrees to
         accept such  assignment  and to assume all  obligations  of such Lender
         Party hereunder in accordance with Section 9.07.

         SECTION 2.10  Payments and  Computations.  (a) The Borrower  shall make
each  payment  hereunder  and  under  the  Notes,  irrespective  of any right of
counterclaim  or set-off  (except as otherwise  provided in Section  2.14),  not
later than 1:00 P.M. (New York City time) on the day when due in U.S. dollars to
the  Administrative  Agent at the  Administrative  Agent's  Account  in same day
funds, with payments being received by the Administrative  Agent after such time
being  deemed to have been  received on the next  succeeding  Business  Day. The
Administrative Agent will promptly thereafter cause like funds to be distributed
(i) if such  payment  by the  Borrower  is in respect  of  principal,  interest,
commitment  fees or any other  Obligation  then payable  hereunder and under the
Notes to more than one Lender Party,  to such Lender  Parties for the account of
their  respective  Applicable  Lending  Offices  ratably in accordance  with the
amounts of such respective  Obligations  then payable to such Lender Parties and
(ii) if such  payment  by the  Borrower  is in respect  of any  Obligation  then
payable  hereunder to one Lender Party,  to such Lender Party for the account of
its Applicable Lending Office, in each case to be applied in accordance with the
terms of this Agreement. Upon its acceptance of an Assignment and Acceptance and
recording  of the  information  contained  therein in the  Register  pursuant to
Section  9.07(d),  from and  after the  effective  date of such  Assignment  and
Acceptance, the Administrative Agent shall make all payments hereunder and under
the Notes in  respect of the  interest  assigned  thereby  to the  Lender  Party
assignee  thereunder,  and the parties to such  Assignment and Acceptance  shall
make all  appropriate  adjustments  in such  payments for periods  prior to such
effective date directly between themselves.

                                       42
<PAGE>

                  (b) The Borrower hereby  authorizes each Lender Party and each
         of its  Affiliates,  if and to the extent  payment  owed to such Lender
         Party is not made when due hereunder or, in the case of a Lender, under
         the Note  held by such  Lender,  to charge  from  time to time,  to the
         fullest extent  permitted by law,  against any or all of the Borrower's
         accounts with such Lender Party or such Affiliate any amount so due.

                  (c) All  computations of interest based on the Base Rate shall
         be made by the  Administrative  Agent on the  basis of a year of 365 or
         366 days, as the case may be, and all computations of interest based on
         the Eurodollar Rate or the Federal Funds Rate and of fees and Letter of
         Credit  commissions  shall be made by the  Administrative  Agent on the
         basis of a year of 360 days, in each case for the actual number of days
         (including  the first day but excluding the last day)  occurring in the
         period for which such interest,  fees or commissions are payable.  Each
         determination by the  Administrative  Agent of an interest rate, fee or
         commission  hereunder  shall be prima facie  evidence,  absent manifest
         error.

                  (d) Whenever any payment hereunder or under the Notes shall be
         stated to be due on a day other than a Business Day, such payment shall
         be made on the next succeeding Business Day, and such extension of time
         shall  in such  case be  included  in the  computation  of  payment  of
         interest or  commitment or letter of credit fee or  commission,  as the
         case may be;  provided,  however,  that, if such extension  would cause
         payment of interest on or principal of  Eurodollar  Rate Advances to be
         made in the next following  calendar month,  such payment shall be made
         on the next preceding Business Day.

                  (e) Unless the Administrative Agent shall have received notice
         from the Borrower  prior to the date on which any payment is due to any
         Lender Party  hereunder that the Borrower will not make such payment in
         full,  the  Administrative  Agent may assume that the Borrower has made
         such payment in full to the  Administrative  Agent on such date and the
         Administrative Agent may, in reliance upon such assumption, cause to be
         distributed  to each such Lender Party on such due date an amount equal
         to the  amount  then due such  Lender  Party.  If and to the extent the
         Borrower   shall  not  have  so  made  such  payment  in  full  to  the
         Administrative  Agent,  each  such  Lender  Party  shall  repay  to the
         Administrative  Agent  forthwith on demand such amount  distributed  to
         such Lender Party together with interest thereon, for each day from the
         date such amount is  distributed  to such  Lender  Party until the date
         such Lender Party repays such amount to the  Administrative  Agent,  at
         the Federal Funds Rate.

                  (f) Whenever any payment received by the Administrative  Agent
         under this Agreement or any of the other Loan Documents is insufficient
         to pay in full all amounts due and payable to the Agents and the Lender
         Parties  under or in  respect  of this  Agreement  and the  other  Loan
         Documents  on any  date,  such  payment  shall  be  distributed  by the
         Administrative  Agent and applied by the Agents and the Lender  Parties
         in the following order of priority:

                           (i)  first,  to the  payment  of  all  of  the  fees,
                  indemnification  payments, costs and expenses that are due and
                  payable to the Agents (solely in their  respective  capacities
                  as Agents) under or in respect of this Agreement and the other
                  Loan Documents on such date, ratably based upon the respective
                  aggregate amounts of all such fees,  indemnification payments,
                  costs and expenses owing to the Agents on such date;

                                       43
<PAGE>

                           (ii)  second,  to the  payment  of  all of the  fees,
                  indemnification  payments, costs and expenses that are due and
                  payable to the Issuing Bank and the Swing Line Bank (solely in
                  their  respective  capacities  as such) under or in respect of
                  this  Agreement  and the other  Loan  Documents  on such date,
                  ratably  based upon the  respective  aggregate  amounts of all
                  such fees,  indemnification payments, costs and expenses owing
                  to the Issuing Bank and the Swing Line Bank on such date;

                           (iii)   third,   to  the   payment   of  all  of  the
                  indemnification  payments, costs and expenses that are due and
                  payable to the Lenders under Sections 8.05 hereof,  Section 21
                  of the Security  Agreement  and any similar  section of any of
                  the other Loan Documents on such date,  ratably based upon the
                  respective  aggregate  amounts  of  all  such  indemnification
                  payments,  costs and  expenses  owing to the  Lenders  on such
                  date;

                           (iv)  fourth,  to the  payment of all of the  amounts
                  that are due and payable to the  Administrative  Agent and the
                  Lender  Parties  under  Sections  2.09 and 2.11 hereof on such
                  date,  ratably  based upon the  respective  aggregate  amounts
                  thereof  owing  to the  Administrative  Agent  and the  Lender
                  Parties on such date;

                           (v) fifth, to the payment of all of the fees that are
                  due and payable to the Lenders under  Section  2.07(a) on such
                  date, ratably based upon the respective aggregate  Commitments
                  of the Lenders  under the  Revolving  Credit  Facility on such
                  date;

                           (vi) sixth,  to the payment of all of the accrued and
                  unpaid interest on the Obligations of the Borrower under or in
                  respect of the Loan  Documents  that is due and payable to the
                  Administrative  Agent and the  Lender  Parties  under  Section
                  2.06(b)  on such  date,  ratably  based  upon  the  respective
                  aggregate   amounts  of  all  such   interest   owing  to  the
                  Administrative Agent and the Lender Parties on such date;

                           (vii)  seventh,  to the payment of all of the accrued
                  and unpaid interest on the Advances that is due and payable to
                  the Administrative  Agent and the Lender Parties under Section
                  2.06(a)  on such  date,  ratably  based  upon  the  respective
                  aggregate   amounts  of  all  such   interest   owing  to  the
                  Administrative Agent and the Lender Parties on such date;

                           (viii) eighth, to the payment of the principal amount
                  of all of the outstanding  Advances that is due and payable to
                  the Administrative  Agent and the Lender Parties on such date,
                  ratably  based upon the  respective  aggregate  amounts of all
                  such  principal  owing  to the  Administrative  Agent  and the
                  Lender Parties on such date; and

                           (ix) ninth,  to the payment of all other  Obligations
                  of the Loan  Parties  owing  under or in  respect  of the Loan
                  Documents that are due and payable to the Administrative Agent
                  and the other Secured Parties on such date, ratably based upon
                  the respective aggregate amounts of all such Obligations owing
                  to the  Administrative  Agent and the other Secured Parties on
                  such date.

                                       44
<PAGE>

If the Administrative Agent receives funds for application to the Obligations of
the Loan Parties under or in respect of the Loan Documents  under  circumstances
for which the Loan  Documents  do not  specify the  Advances or the  Facility to
which, or the manner in which, such funds are to be applied,  the Administrative
Agent may, but shall not be obligated to, elect to distribute such funds to each
of the Lender  Parties in accordance  with such Lender Party's Pro Rata Share of
the  aggregate  principal  amount of all Advances  outstanding  at such time, in
repayment or prepayment of such of the outstanding Advances or other Obligations
then owing to such Lender  Party,  and, in the case of the Term B Facility,  for
application pro rata to such principal  repayment  installments  thereof ratably
based on the  respective  aggregate  amount of such Facility owing to the Lender
Parties and, as the Administrative Agent shall direct.

         SECTION  2.11 Taxes.  (a) Any and all  payments by any Loan Party to or
for the account of any Lender Party or any Agent hereunder or under the Notes or
any other Loan Document  shall be made,  in accordance  with Section 2.10 or the
applicable provisions of such other Loan Document, if any, free and clear of and
without  deduction  for any and all present or future  taxes,  levies,  imposts,
deductions,  charges or withholdings,  and all liabilities with respect thereto,
excluding,  in the case of each  Lender  Party and each  Agent,  taxes  that are
imposed  on its  overall  net  income by the  United  States  and taxes that are
imposed on its overall net income (and franchise  taxes imposed in lieu thereof)
by the state or foreign  jurisdiction  under the laws of which such Lender Party
or such Agent,  as the case may be, is  organized or any  political  subdivision
thereof  and,  in the case of each Lender  Party,  taxes that are imposed on its
overall net income (and franchise taxes imposed in lieu thereof) by the state or
foreign  jurisdiction  of such Lender Party's  Applicable  Lending Office or any
political  subdivision  thereof (all such non-excluded taxes,  levies,  imposts,
deductions,  charges,  withholdings  and  liabilities  in  respect  of  payments
hereunder or under the Notes being hereinafter  referred to as "Taxes").  If any
Loan Party  shall be  required  by law to deduct any Taxes from or in respect of
any sum payable  hereunder  or under any Note or any other Loan  Document to any
Lender  Party  or any  Agent,  (i) the sum  payable  by the  Borrower  shall  be
increased   as  may  be  necessary  so  that  after  such  Loan  Party  and  the
Administrative  Agent have made all required  deductions  (including  deductions
applicable to additional sums payable under this Section 2.11) such Lender Party
or such Agent,  as the case may be, receives an amount equal to the sum it would
have received had no such  deductions been made, (ii) such Loan Party shall make
all such deductions and (iii) such Loan Party shall pay the full amount deducted
to the  relevant  taxation  authority  or other  authority  in  accordance  with
applicable law.

                  (b) In addition,  a Loan Party shall pay any present or future
         stamp, documentary,  excise, property, intangible,  mortgage, recording
         or similar taxes, charges or levies that arise from any payment made by
         such  Loan  Party  hereunder  or  under  any  Notes or any  other  Loan
         Documents  or  from  the  execution,   delivery  or  registration   of,
         performance  under, or otherwise with respect to, this  Agreement,  the
         Notes or the other Loan  Documents  (hereinafter  referred to as "Other
         Taxes").

                  (c) The Loan  Parties  shall  indemnify  each Lender Party and
         each Agent for and hold them harmless  against the full amount of Taxes
         and Other  Taxes,  and for the full amount of taxes of any kind imposed
         or asserted by any  jurisdiction  on amounts payable under this Section
         2.11,  imposed  on or paid by such  Lender  Party or such Agent (as the
         case may be) and any liability (including penalties,  additions to tax,
         interest and expenses) arising therefrom or with respect thereto.  This
         indemnification  shall be made within 30 days from the date such Lender
         Party or such Agent (as the case may be) makes written demand therefor.

                                       45
<PAGE>

                  (d) Within 30 days after the date of any payment of Taxes, the
         appropriate  Loan Party shall furnish to the  Administrative  Agent, at
         its address  referred to in Section  9.02,  the original or a certified
         copy of a receipt evidencing such payment, to the extent such a receipt
         is issued  therefor,  or other written proof of payment thereof that is
         reasonably satisfactory to the Administrative Agent. In the case of any
         payment  hereunder or under the Notes or the other Loan Documents by or
         on behalf of a Loan Party  through an  account  or branch  outside  the
         United States or by or on behalf of a Loan Party by a payor that is not
         a United States person, if such Loan Party determines that no Taxes are
         payable in respect  thereof,  such Loan Party shall  furnish,  or shall
         cause such  payor to  furnish,  to the  Administrative  Agent,  at such
         address,  an opinion of counsel acceptable to the Administrative  Agent
         stating  that such  payment  is exempt  from  Taxes.  For  purposes  of
         subsections (d) and (e) of this Section 2.11, the terms "United States"
         and "United States person" shall have the meanings specified in Section
         7701 of the Internal Revenue Code.

                  (e)  Each  Lender  Party   organized   under  the  laws  of  a
         jurisdiction  outside the United States shall,  on or prior to the date
         of its  execution  and  delivery of this  Agreement in the case of each
         Initial  Lender Party and on the date of the  Assignment and Acceptance
         pursuant  to which it becomes a Lender  Party in the case of each other
         Lender Party, and from time to time thereafter as reasonably  requested
         in writing by the Borrower (but only so long  thereafter as such Lender
         Party  remains   lawfully   able  to  do  so),   provide  each  of  the
         Administrative  Agent  and the  Borrower  with  two  original  Internal
         Revenue  Service  Forms  W-8BEN  or  W-8EC1 or (in the case of a Lender
         Party that has certified in writing to the Administrative Agent that it
         is not (i) a "bank" as defined in Section  881(c)(3)(A) of the Internal
         Revenue  Code),  (ii) a 10-percent  shareholder  (within the meaning of
         Section  871(h)(3)(B) of the Internal  Revenue Code) of the Borrower or
         (iii) a controlled foreign  corporation related to the Borrower (within
         the  meaning  of  Section  864(d)(4)  of the  Internal  Revenue  Code),
         Internal Revenue Service Form W-8BEN, as appropriate,  or any successor
         or other form prescribed by the Internal  Revenue  Service,  certifying
         that such Lender  Party is exempt from or entitled to a reduced rate of
         United States withholding tax on payments pursuant to this Agreement or
         the Notes or any other Loan  Document or, in the case of a Lender Party
         that  has  certified  that  it is  not a  "bank"  as  described  above,
         certifying   that  such   Lender   Party  is  a  foreign   corporation,
         partnership,  estate or trust.  If the forms provided by a Lender Party
         at the time such Lender Party first  becomes a party to this  Agreement
         indicate a United  States  interest  withholding  tax rate in excess of
         zero,  withholding  tax at such rate shall be considered  excluded from
         Taxes unless and until such Lender Party provides the appropriate forms
         certifying  that a lesser rate applies,  whereupon  withholding  tax at
         such  lesser  rate only  shall be  considered  excluded  from Taxes for
         periods  governed by such  forms;  provided,  however,  that if, at the
         effective date of the  Assignment  and  Acceptance  pursuant to which a
         Lender  Party  becomes  a party to this  Agreement,  the  Lender  Party
         assignor was entitled to payments under  subsection (a) of this Section
         2.11 in  respect  of United  States  withholding  tax with  respect  to
         interest paid at such date, then, to such extent,  the term Taxes shall
         include (in  addition to  withholding  taxes that may be imposed in the
         future or other  amounts  otherwise  includable in Taxes) United States
         withholding  tax, if any,  applicable  with respect to the Lender Party

                                       46
<PAGE>

         assignee  on such date.  If any form or  document  referred  to in this
         subsection  (e)  requires the  disclosure  of  information,  other than
         information  necessary  to  compute  the tax  payable  and  information
         required on the date hereof by Internal  Revenue Service Form W-8BEN or
         W-8EC1 or the related certificate  described above, that the applicable
         Lender Party reasonably considers to be confidential, such Lender Party
         shall give notice thereof to the Borrower and shall not be obligated to
         include in such form or document such confidential information.

                  (f) For any period  with  respect to which a Lender  Party has
         failed to provide the Borrower with the appropriate  form,  certificate
         or other document described in subsection (e) above (other than if such
         failure  is  due to a  change  in  law,  or in  the  interpretation  or
         application  thereof,  occurring  after  the  date  on  which  a  form,
         certificate or other document originally was required to be provided or
         if such form,  certificate or other document  otherwise is not required
         under subsection (e) above), such Lender Party shall not be entitled to
         indemnification  under  subsection (a) or (c) of this Section 2.11 with
         respect  to Taxes  imposed  by the  United  States  by  reason  of such
         failure;  provided,  however, that should a Lender Party become subject
         to Taxes because of its failure to deliver a form, certificate or other
         document required hereunder,  the Loan Parties shall take such steps as
         such Lender Party shall reasonably  request to assist such Lender Party
         to recover such Taxes.

                  (g) Any Lender Party claiming any additional  amounts  payable
         pursuant  to  this  Section  2.11  agrees  to  use  reasonable  efforts
         (consistent   with  its  internal   policy  and  legal  and  regulatory
         restrictions)  to change the  jurisdiction  of its  Applicable  Lending
         Office if the  making  of such a change  would  avoid the need for,  or
         reduce the amount of, any such  additional  amounts that may thereafter
         accrue and would not, in the reasonable  judgment of such Lender Party,
         be otherwise disadvantageous to such Lender Party.

         SECTION 2.12 Sharing of Payments, Etc. If any Lender Party shall obtain
at any time any payment (whether voluntary, involuntary, through the exercise of
any right of  set-off,  or  otherwise,  other than as a result of an  assignment
pursuant to Section 9.07) (a) on account of Obligations  due and payable to such
Lender Party  hereunder and under the Notes and the other Loan Documents at such
time in excess of its ratable  share  (according  to the  proportion  of (i) the
amount of such  Obligations due and payable to such Lender Party at such time to
(ii) the  aggregate  amount of the  Obligations  due and  payable  to all Lender
Parties hereunder and under the Notes and the other Loan Documents at such time)
of payments on account of the  Obligations due and payable to all Lender Parties
hereunder and under the Notes at such time obtained by all the Lender Parties at
such time or (b) on account of  Obligations  owing (but not due and  payable) to
such Lender Party  hereunder and under the Notes and the other Loan Documents at
such time in excess of its ratable share (according to the proportion of (i) the
amount of such  Obligations  owing to such Lender Party at such time to (ii) the
aggregate  amount of the  Obligations  owing  (but not due and  payable)  to all
Lender  Parties  hereunder  and under the Notes and the other Loan  Documents at
such time) of  payments  on account  of the  Obligations  owing (but not due and
payable)  to all  Lender  Parties  hereunder  and  under  the Notes at such time
obtained  by all of the Lender  Parties at such time,  such  Lender  Party shall
forthwith purchase from the other Lender Parties such interests or participating
interests in the  Obligations  due and payable or owing to them, as the case may
be, as shall be  necessary  to cause such  purchasing  Lender Party to share the
excess payment ratably with each of them; provided,  however, that if all or any
portion of such excess  payment is  thereafter  recovered  from such  purchasing
Lender Party,  such purchase from each other Lender Party shall be rescinded and

                                       47
<PAGE>

such other Lender Party shall repay to the purchasing  Lender Party the purchase
price to the extent of such  Lender  Party's  ratable  share  (according  to the
proportion  of (i) the  purchase  price  paid to such  Lender  Party to (ii) the
aggregate  purchase price paid to all Lender Parties) of such recovery  together
with an amount equal to such Lender  Party's  ratable  share  (according  to the
proportion of (i) the amount of such other Lender Party's required  repayment to
(ii) the total  amount so recovered  from the  purchasing  Lender  Party) of any
interest  or other  amount  paid or payable by the  purchasing  Lender  Party in
respect of the total amount so recovered  provided  further that, so long as the
Obligations under the Loan Documents shall not have been accelerated, any excess
payment  received by any Appropriate  Lender shall be shared on a pro rata basis
only with other Appropriate  Lenders.  The Borrower agrees that any Lender Party
so purchasing an interest or  participating  interest from another  Lender Party
pursuant  to this  Section  2.12 may, to the fullest  extent  permitted  by law,
exercise all its rights of payment (including the right of set-off) with respect
to such interest or participating  interest,  as the case may be, as fully as if
such Lender Party were the direct creditor of the Borrower in the amount of such
interest or participating interest, as the case may be.

         SECTION 2.13 Use of Proceeds.  Proceeds from the Term B Facility  shall
be available (and the Borrower agrees that it shall use such proceeds) solely to
pay to the holders  (other  than the  Borrower)  of the  Company  Stock the cash
consideration for their shares in the Merger,  pay transaction fees and expenses
and refinance  certain Existing Debt of the Company and the Borrower agrees that
it shall use the proceeds of the  Revolving  Credit  Facility  and  issuances of
Letters  of Credit  solely to provide  working  capital  and to finance  general
corporate purposes  (including certain permitted  acquisitions) for the Borrower
and its Restricted Subsidiaries.

         SECTION  2.14  Defaulting  Lenders.  (a) In the event that,  at any one
time, (i) any Lender Party shall be a Defaulting  Lender,  (ii) such  Defaulting
Lender  shall owe a Defaulted  Advance to the  Borrower  and (iii) the  Borrower
shall be required to make any payment hereunder or under any other Loan Document
to or for the account of such Defaulting Lender,  then the Borrower may, so long
as no  Default  shall  occur or be  continuing  at such time and to the  fullest
extent  permitted by applicable law, set -off and otherwise apply the Obligation
of the  Borrower to make such  payment to or for the account of such  Defaulting
Lender against the obligation of such  Defaulting  Lender to make such Defaulted
Advance.  In the event that,  on any date,  the  Borrower  shall so set -off and
otherwise  apply its obligation to make any such payment  against the obligation
of such Defaulting Lender to make any such Defaulted Advance on or prior to such
date,  the  amount  so set -off and  otherwise  applied  by the  Borrower  shall
constitute  for all purposes of this  Agreement and the other Loan  Documents an
Advance by such  Defaulting  Lender made on the date of such  set-off  under the
Facility  pursuant to which such Defaulted  Advance was  originally  required to
have been made pursuant to Section 2.01.  Such Advance shall be considered,  for
all purposes of this Agreement,  to comprise part of the Borrowing in connection
with which such  Defaulted  Advance  was  originally  required to have been made
pursuant to Section 2.01,  even if the other Advances  comprising such Borrowing
shall be Eurodollar  Rate Advances on the date such Advance is deemed to be made
pursuant to this  subsection  (a). The Borrower shall notify the  Administrative
Agent at any time the Borrower  exercises its right of set-off  pursuant to this
subsection (a) and shall set forth in such notice (A) the name of the Defaulting

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Lender and the Defaulted  Advance required to be made by such Defaulting  Lender
and (B) the amount set -off and otherwise  applied in respect of such  Defaulted
Advance  pursuant to this subsection (a). Any portion of such payment  otherwise
required to be made by the  Borrower  to or for the  account of such  Defaulting
Lender which is paid by the Borrower, after giving effect to the amount set -off
and otherwise  applied by the Borrower pursuant to this subsection (a), shall be
applied by the  Administrative  Agent as specified in  subsection  (b) or (c) of
this Section 2.14.

                  (b) In the event that,  at any one time,  (i) any Lender Party
         shall be a Defaulting  Lender,  (ii) such Defaulting Lender shall owe a
         Defaulted  Amount to any Agent or any of the other  Lender  Parties and
         (iii) the Borrower shall make any payment  hereunder or under any other
         Loan  Document  to the  Administrative  Agent for the  account  of such
         Defaulting Lender, then the Administrative  Agent may, on its behalf or
         on behalf of such other Agents or such other Lender  Parties and to the
         fullest  extent  permitted by  applicable  law,  apply at such time the
         amount so paid by the Borrower to or for the account of such Defaulting
         Lender to the  payment  of each  such  Defaulted  Amount to the  extent
         required  to  pay  such  Defaulted   Amount.  In  the  event  that  the
         Administrative  Agent  shall so apply any such amount to the payment of
         any such  Defaulted  Amount on any date,  the  amount so applied by the
         Administrative   Agent  shall  constitute  for  all  purposes  of  this
         Agreement and the other Loan Documents payment, to such extent, of such
         Defaulted  Amount  on such  date.  Any such  amount so  applied  by the
         Administrative  Agent shall be retained by the Administrative  Agent or
         distributed  by the  Administrative  Agent to such other Agents or such
         other  Lender  Parties,  ratably  in  accordance  with  the  respective
         portions  of  such  Defaulted  Amounts  payable  at  such  time  to the
         Administrative  Agent,  such other Agents and such other Lender Parties
         and, if the amount of such payment  made by the Borrower  shall at such
         time be insufficient to pay all Defaulted Amounts owing at such time to
         the  Administrative  Agent,  such other  Agents  and such other  Lender
         Parties, in the following order of priority:

                           (i) first,  to the Agents for any  Defaulted  Amounts
                  then owing to them, in their  capacities  as such,  ratably in
                  accordance with such respective  Defaulted  Amounts then owing
                  to the Agents;

                           (ii)  second,  to the Issuing Bank and the Swing Line
                  Bank for any  Defaulted  Amounts then owing to them,  in their
                  capacities as such, ratably in accordance with such respective
                  Defaulted Amounts then owing to the Issuing Bank and the Swing
                  Line Bank; and

                           (iii)  third,  to any other  Lender  Parties  for any
                  Defaulted  Amounts  then owing to such other  Lender  Parties,
                  ratably in accordance with such respective  Defaulted  Amounts
                  then owing to such other Lender Parties.

Any  portion  of such  amount  paid by the  Borrower  for  the  account  of such
Defaulting  Lender  remaining,  after giving effect to the amount applied by the
Administrative  Agent pursuant to this  subsection  (b), shall be applied by the
Administrative Agent as specified in subsection (c) of this Section 2.14.

                  (c) In the event that,  at any one time,  (i) any Lender Party
         shall be a Defaulting Lender, (ii) such Defaulting Lender shall not owe
         a Defaulted  Advance or a Defaulted Amount and (iii) the Borrower,  any
         Agent or any other Lender Party shall be required to pay or  distribute
         any amount  hereunder  or under any other Loan  Document  to or for the

                                       49
<PAGE>

         account of such Defaulting  Lender,  then the Borrower or such Agent or
         such other  Lender  Party shall pay such  amount to the  Administrative
         Agent to be held by the  Administrative  Agent,  to the fullest  extent
         permitted  by  applicable  law, in escrow or the  Administrative  Agent
         shall,  to the fullest  extent  permitted by  applicable  law,  hold in
         escrow  such  amount  otherwise  held  by it.  Any  funds  held  by the
         Administrative  Agent in  escrow  under  this  subsection  (c) shall be
         deposited  by the  Administrative  Agent in an account with a bank (the
         "Escrow Bank")  selected by the  Administrative  Agent, in the name and
         under the  control  of the  Administrative  Agent,  but  subject to the
         provisions  of  this  subsection  (c).  The  terms  applicable  to such
         account,  including  the rate of interest  payable  with respect to the
         credit  balance of such account from time to time,  shall be the Escrow
         Bank's standard terms applicable to escrow accounts maintained with it.
         Any  interest  credited to such account from time to time shall be held
         by the  Administrative  Agent  in  escrow  under,  and  applied  by the
         Administrative   Agent  from  time  to  time  in  accordance  with  the
         provisions of, this subsection (c). The Administrative  Agent shall, to
         the fullest extent permitted by applicable law, apply all funds so held
         in  escrow  from  time to  time to the  extent  necessary  to make  any
         Advances  required to be made by such Defaulting  Lender and to pay any
         amount payable by such Defaulting  Lender hereunder and under the other
         Loan Documents to the  Administrative  Agent or any other Lender Party,
         as and when such  Advances or amounts  are  required to be made or paid
         and, if the amount so held in escrow shall at any time be  insufficient
         to make and pay all such  Advances  and amounts  required to be made or
         paid at such time, in the following order of priority:

                           (i) first, to the Agents for any amounts then due and
                  payable by such Defaulting Lender to them hereunder,  in their
                  capacities as such, ratably in accordance with such respective
                  amounts then due and payable to the Agents;

                           (ii)  second,  to the Issuing Bank and the Swing Line
                  Bank for any amounts  then due and payable to them  hereunder,
                  in  their  capacities  as  such,  by such  Defaulting  Lender,
                  ratably in accordance  with such  respective  amounts then due
                  and payable to the Issuing Bank and the Swing Line Bank;

                           (iii)  third,  to any other  Lender  Parties  for any
                  amount then due and payable by such Defaulting  Lender to such
                  other Lender  Parties  hereunder,  ratably in accordance  with
                  such  respective  amounts  then due and  payable to such other
                  Lender Parties; and

                           (iv)  fourth,  to the  Borrower  for any Advance then
                  required to be made by such  Defaulting  Lender  pursuant to a
                  Commitment of such Defaulting Lender.

In the event that any Lender Party that is a  Defaulting  Lender  shall,  at any
time,  cease to be a  Defaulting  Lender,  any funds held by the  Administrative
Agent in  escrow  at such  time  with  respect  to such  Lender  Party  shall be
distributed by the Administrative Agent to such Lender Party and applied by such
Lender  Party to the  Obligations  owing to such Lender Party at such time under
this  Agreement  and the other Loan  Documents  ratably in  accordance  with the
respective amounts of such Obligations outstanding at such time.

                  (d) The rights and remedies against a Defaulting  Lender under
         this Section 2.14 are in addition to other rights and remedies that the
         Borrower may have against  such  Defaulting  Lender with respect to any
         Defaulted  Advance  and that any  Agent or any  Lender  Party  may have
         against such Defaulting Lender with respect to any Defaulted Amount.

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<PAGE>

         SECTION 2.15 Evidence of Debt.  (a) Each Lender Party shall maintain in
accordance  with its usual  practice  an  account  or  accounts  evidencing  the
indebtedness of the Borrower to such Lender resulting from each Advance owing to
such Lender  Party from time to time,  including  the amounts of  principal  and
interest  payable  and paid to such  Lender  from  time to time  hereunder.  The
Borrower  agrees that upon notice by any Lender  Party to the  Borrower  (with a
copy of such notice to the Administrative Agent) to the effect that a promissory
note or other evidence of  indebtedness  is required or appropriate in order for
such Lender Party to evidence  (whether for purposes of pledge,  enforcement  or
otherwise)  the  Advances  owing to, or to be made by,  such Lender  Party,  the
Borrower shall promptly execute and deliver to such Lender Party, with a copy to
the  Administrative  Agent,  a  Revolving  Credit  Note,  and a Term B Note,  as
applicable,   in  substantially  the  form  of  Exhibits  A-1  and  A-2  hereto,
respectively,  payable to the order of such Lender  Party in a principal  amount
equal  to  the  Revolving   Credit   Commitment   and  the  Term  B  Commitment,
respectively,  of such  Lender  Party.  All  references  to  Notes  in the  Loan
Documents shall mean Notes, if any, to the extent issued hereunder.

                  (b)  The  Register  maintained  by  the  Administrative  Agent
         pursuant to Section  9.07(d)  shall  include a control  account,  and a
         subsidiary  account for each Lender  Party,  in which  accounts  (taken
         together)  shall be recorded (i) the date and amount of each  Borrowing
         made hereunder,  the Type of Advances comprising such Borrowing and, if
         appropriate,  the Interest Period applicable thereto, (ii) the terms of
         each  Assignment and Acceptance  delivered to and accepted by it, (iii)
         the amount of any  principal  or interest  due and payable or to become
         due and payable from the Borrower to each Lender Party  hereunder,  and
         (iv) the amount of any sum  received by the  Administrative  Agent from
         the Borrower hereunder and each Lender Party's share thereof.

                  (c) Entries made in good faith by the Administrative  Agent in
         the Register pursuant to subsection (b) above, and by each Lender Party
         in its account or accounts  pursuant to subsection (a) above,  shall be
         prima facie  evidence of the amount of  principal  and interest due and
         payable or to become due and payable  from the Borrower to, in the case
         of the Register,  each Lender Party and, in the case of such account or
         accounts,  such Lender Party,  under this  Agreement,  absent  manifest
         error; provided,  however, that the failure of the Administrative Agent
         or such Lender Party to make an entry,  or any finding that an entry is
         incorrect,  in the Register or such account or accounts shall not limit
         or  otherwise  affect  the  obligations  of  the  Borrower  under  this
         Agreement.

         SECTION 2.16 Issuance of and Drawings and  Reimbursement  Under Letters
of Credit (a) Request for  Issuance.  Each Letter of Credit shall be issued upon
notice,  given not  later  than  11:00  A.M.  (New York City  time) on the fifth
Business Day prior to the date of the proposed issuance of such Letter of Credit
(except in the case of the initial Letter of Credit, which notice shall be given
not later than 11:00 A.M.  (New York City time) on the first  Business Day prior
to the date of the proposed issuance of such Letter of Credit),  by the Borrower
to the  Issuing  Bank,  which  shall give to the  Administrative  Agent and each
Revolving  Credit  Lender  prompt  notice  thereof by  telecopier  or electronic
communication.  Each such notice of issuance of a Letter of Credit (a "Notice of

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<PAGE>

Issuance")  shall  be  by  telephone,   confirmed  immediately  in  writing,  or
telecopier electronic  communication,  specifying therein the requested (A) date
of such issuance  (which shall be a Business Day), (B) Available  Amount of such
Letter of Credit,  (C)  expiration  date of such Letter of Credit,  (D) name and
address of the  beneficiary of such Letter of Credit and (E) form of such Letter
of Credit, and shall be accompanied by such application and agreement for letter
of credit as the Issuing Bank may specify to the Borrower for use in  connection
with such requested  Letter of Credit (a "Letter of Credit  Agreement").  If (x)
the requested form of such Letter of Credit is acceptable to the Issuing Bank in
its sole  discretion  and (y) it has not  received  notice of  objection to such
issuance  from  Lenders  holding at least a  majority  of the  Revolving  Credit
Commitments,   the  Issuing  Bank  will,  upon  fulfillment  of  the  applicable
conditions set forth in Article III, make such Letter of Credit available to the
Borrower at its office  referred to in Section 9.02 or as otherwise  agreed with
the Borrower in connection  with such  issuance.  In the event and to the extent
that the provisions of any Letter of Credit  Agreement  shall conflict with this
Agreement, the provisions of this Agreement shall govern.

                  (b) Letter of Credit  Reports.  The Issuing Bank shall furnish
         (A) to the Administrative  Agent on the first Business Day of each week
         a written report  summarizing  issuance and expiration dates of Letters
         of Credit issued during the previous week and drawings during such week
         under all Letters of Credit, (B) to each Revolving Credit Lender on the
         first Business Day of each month a written report summarizing  issuance
         and  expiration  dates of Letters of Credit issued during the preceding
         month and  drawings  during  such month under all Letters of Credit and
         (C) to the Administrative Agent and each Revolving Credit Lender on the
         first  Business Day of each calendar  quarter a written  report setting
         forth the average daily aggregate Available Amount during the preceding
         calendar quarter of all Letters of Credit.

                  (c) Participations in Letters of Credit.  Upon the issuance of
         a Letter of Credit by the  Issuing  Bank  under  Section  2.16(a),  the
         Issuing  Bank  shall be  deemed,  without  further  action by any party
         hereto,  to have sold to each Revolving  Credit  Lender,  and each such
         Revolving Credit Lender shall be deemed,  without further action by any
         party hereto,  to have purchased from the Issuing Bank, a participation
         in such Letter of Credit in an amount for each Revolving  Credit Lender
         equal to such Lender's Pro Rata Share of the  Available  Amount of such
         Letter of Credit, effective upon the issuance of such Letter of Credit.
         In  consideration  and in furtherance of the foregoing,  each Revolving
         Credit Lender hereby absolutely and unconditionally  agrees to pay such
         Lender's  Pro Rata Share of each L/C  Disbursement  made by the Issuing
         Bank and not  reimbursed  by the Borrower  forthwith on the date due by
         making  available for the account of its  Applicable  Lending Office to
         the Administrative Agent for the account of the Issuing Bank by deposit
         to the  Administrative  Agent's  Account,  in same day funds, an amount
         equal to such  Lender's Pro Rata Share of such L/C  Disbursement.  Each
         Revolving Credit Lender  acknowledges and agrees that its obligation to
         acquire  participations  pursuant to this Section 2.16(c) in respect of
         Letters  of  Credit  is  absolute  and  unconditional  and shall not be
         affected by any circumstance  whatsoever,  including the occurrence and
         continuance  of a Default or an Event of Default or the  termination of
         the  Commitments,  and that each such payment shall be made without any
         off-set,  abatement,  withholding  or reduction  whatsoever.  Each such
         purchase and advance by each Revolving Credit Lender shall constitute a
         Revolving  Advance.  The Borrower  hereby  agrees to each such sale and

                                       52
<PAGE>

         assignment.  Each  Revolving  Credit  Lender agrees to purchase its Pro
         Rata Share of an outstanding L/C Disbursement on (i) such Business Day,
         provided that notice of such L/C  Disbursement  is given not later than
         11:00 A.M.  (New York City time) on such Business Day or (ii) the first
         Business Day next  succeeding  such  Business Day if notice of such L/C
         Disbursement  is given  after  such  time.  Upon  any such  sale by the
         Issuing Bank to any other  Revolving  Credit  Lender of a portion of an
         L/C  Disbursement,  the Issuing  Bank  represents  and warrants to such
         other Lender that the Issuing Bank is the legal and beneficial owner of
         such interest  being sold by it, free and clear of any adverse  claims,
         but  makes  no  other   representation   or  warranty  and  assumes  no
         responsibility  with  respect  to  such  L/C  Disbursement,   the  Loan
         Documents  or any Loan Party.  If and to the extent that any  Revolving
         Credit   Lender  shall  not  have  so  made  the  amount  of  such  L/C
         Disbursement  available to the  Administrative  Agent,  such  Revolving
         Credit Lender agrees to pay to the  Administrative  Agent  forthwith on
         demand such amount  together with interest  thereon,  for each day from
         the date such L/C  Disbursement  is due  until the date such  amount is
         paid to the  Administrative  Agent,  at the Federal  Funds Rate for its
         account or the  account of the Issuing  Bank,  as  applicable.  If such
         Lender  shall  pay to the  Administrative  Agent  such  amount  for the
         account of the Issuing Bank on any Business Day, such amount so paid in
         respect of principal  shall  constitute a Letter of Credit Advance made
         by such Lender on such Business Day for purposes of this Agreement, and
         the outstanding  principal  amount of the Letter of Credit Advance made
         by the Issuing  Bank shall be reduced by such  amount on such  Business
         Day.

                  (d) Drawing and Reimbursement. The payment by the Issuing Bank
         of a draft drawn under any Letter of Credit  shall  constitute  for all
         purposes of this  Agreement  the making by the Issuing Bank of a Letter
         of Credit Advance, which shall be a Base Rate Advance, in the amount of
         such draft.

                  (e) Failure to Make Letter of Credit Advances.  The failure of
         any Lender to make the Letter of Credit Advance to be made by it on the
         date specified in Section 2.16(d) shall not relieve any other Lender of
         its  obligation  hereunder to make its Letter of Credit Advance on such
         date, but no Lender shall be  responsible  for the failure of any other
         Lender to make the  Letter of Credit  Advance  to be made by such other
         Lender on such date.

                                  ARTICLE III

                              CONDITIONS OF LENDING

         SECTION 3.01 Conditions  Precedent to Initial Extension of Credit.  The
obligation  of each Lender to make an Advance or of the Issuing  Bank to issue a
Letter of Credit on the occasion of the Initial Extension of Credit hereunder is
subject to the  satisfaction  of the following  conditions  precedent  before or
concurrently with the Initial Extension of Credit:

                  (a) The Administrative  Agent shall have received on or before
         the day of the Initial  Extension of Credit the  following,  each dated
         such  day  (unless   otherwise   specified),   in  form  and  substance
         satisfactory to the Administrative  Agent (unless otherwise  specified)
         and (except for the Notes) in sufficient copies for each Lender Party:

                           (i) The Notes  payable to the order of the Lenders to
                  the extent  requested by the Lenders  pursuant to the terms of
                  Section 2.15.

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<PAGE>

                           (ii) A security  agreement in substantially  the form
                  of  Exhibit  D  hereto  (together  with  each  other  security
                  agreement and security agreement supplement delivered pursuant
                  to Section  5.01(j),  in each case as amended,  the  "Security
                  Agreement"), duly executed by each Loan Party, together with:

                                    (A)  certificates  representing  the Pledged
                           Shares  referred  to therein  accompanied  by undated
                           stock  powers   executed  in  blank  and  instruments
                           evidencing the Pledged Debt indorsed in blank,

                                    (B)  proper  financing  statements  in  form
                           appropriate  for filing under the Uniform  Commercial
                           Code of all  jurisdictions  that  the  Administrative
                           Agent may deem  necessary  or  desirable  in order to
                           perfect  and  protect  the first  priority  liens and
                           security   interests   created   under  the  Security
                           Agreement,  covering the Collateral  described in the
                           Security Agreement,

                                    (C)  completed   requests  for  information,
                           dated on or before the date of the Initial  Extension
                           of  Credit  and all  effective  financing  statements
                           filed in the jurisdictions  referred to in clause (B)
                           above that name any Loan Party as debtor,

                                    (D)  the  Intellectual   Property   Security
                           Agreement duly executed by each Loan Party,

                                    (E) evidence of the  completion of all other
                           recordings  and  filings  of or with  respect  to the
                           Security Agreement that the Administrative  Agent may
                           deem  necessary  or desirable in order to perfect and
                           protect the security interest created thereunder,

                                    (F)  evidence of the  insurance  required by
                           the terms of the Security Agreement,

                                    (G) the Deposit Account  Control  Agreements
                           referred to in the Security Agreement,  duly executed
                           by the Collateral  Agent,  the applicable  Loan Party
                           and the applicable deposit account bank,

                                    (H) the Securities Account Control Agreement
                           referred to in the Security Agreement,  duly executed
                           by the Collateral  Agent,  the applicable  Loan Party
                           and the applicable securities intermediary,

                                    (I) evidence  that all other action that the
                           Administrative Agent may deem reasonably necessary or
                           desirable  in order to perfect  and protect the first
                           priority liens and security  interests  created under
                           the  Security  Agreement  has been taken  (including,
                           without  limitation,  receipt of duly executed payoff
                           letters,  UCC-3 termination statements and landlords'
                           and bailees' waiver and consent agreements).

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<PAGE>

                           (iii)  Certified  copies  of the  resolutions  of the
                  Board of Directors (or other  equivalent  governing  board) of
                  each Loan Party approving the Transaction and each Transaction
                  Document  to  which  it is or is to be a  party,  and  of  all
                  documents  evidencing  other  necessary  corporate  action and
                  governmental and other third party approvals and consents,  if
                  any,  with  respect to the  Transaction  and each  Transaction
                  Document to which it is or is to be a party.

                           (iv) A copy  of a  certificate  of the  Secretary  of
                  State of the  jurisdiction of incorporation or organization of
                  each Loan Party, dated reasonably near the date of the Initial
                  Extension of Credit,  certifying  (to the extent the following
                  are matters so certified  by the relevant  Secretary of State)
                  (A) as to a true and correct  copy of the charter of such Loan
                  Party and each amendment  thereto on file in such  Secretary's
                  office  and  (B)  that  (1)  such   amendments  are  the  only
                  amendments  to  such  Loan  Party's  charter  on  file in such
                  Secretary's office, (2) such Loan Party has paid all franchise
                  taxes to the date of such  certificate and (3) such Loan Party
                  is duly  incorporated  or  organized  and in good  standing or
                  presently  subsisting  under  the  laws  of the  State  of the
                  jurisdiction of its incorporation or organization.

                           (v) A  certificate  of each  Loan  Party,  signed  on
                  behalf of such Loan Party by its President or a Vice President
                  and its  Secretary or any  Assistant  Secretary (or such other
                  equivalent positions), dated the date of the Initial Extension
                  of Credit (the statements made in which  certificate shall be,
                  true  on and as of  the  date  of  the  Initial  Extension  of
                  Credit), certifying as to (A) the absence of any amendments to
                  the charter of such Loan Party since the date of the Secretary
                  of State's certificate referred to in Section 3.01(a)(iv), (B)
                  a true and correct copy of the bylaws,  operating agreement or
                  partnership  agreement  of such Loan Party as in effect on the
                  date  on  which  the   resolutions   referred  to  in  Section
                  3.01(a)(iii)  were  adopted  and on the  date  of the  Initial
                  Extension of Credit, (C) the due incorporation or organization
                  and good  standing or valid  existence of such Loan Party as a
                  corporation,   limited   liability   company  or   partnership
                  organized   under  the  laws  of  the   jurisdiction   of  its
                  incorporation  or   organization,   and  the  absence  of  any
                  proceeding  for the  dissolution  or  liquidation of such Loan
                  Party,  (D) the truth of the  representations  and  warranties
                  contained  in the Loan  Documents  as though made on and as of
                  the  date  of the  Initial  Extension  of  Credit  and (E) the
                  absence of any event  occurring and  continuing,  or resulting
                  from the Initial  Extension  of Credit,  that  constitutes  an
                  Event of Default.

                           (vi) A  certificate  of the Secretary or an Assistant
                  Secretary  of each Loan  Party  certifying  the names and true
                  signatures  of the officers of such Loan Party  authorized  to
                  sign each  Transaction  Document  to which it is or is to be a
                  party and the other  documents to be delivered  hereunder  and
                  thereunder.

                           (vii)  Certified   copies  of  each  of  the  Related
                  Documents,  duly  executed by the parties  thereto and in form
                  and substance  satisfactory  to the Lender  Parties,  together
                  with all agreements, instruments and other documents delivered
                  in  connection  therewith  as the  Administrative  Agent shall
                  request.

                                       55
<PAGE>

                           (viii)  A form of  certificate  of  merger  or  other
                  confirmation   satisfactory   to  the  Lender   Parties   (the
                  "Certificate  of  Merger"),  to be  filed  no  later  than one
                  Business Day after Closing.

                           (ix) Certificates in form and substance  satisfactory
                  to the Lender Parties,  attesting to the Solvency of each Loan
                  Party (other than Hydrocarbon Technologies,  Inc.) immediately
                  before and after giving  effect to the  Transaction,  from the
                  Borrower's  Chief  Financial   Officer  with  respect  to  the
                  Borrower  and  its   Subsidiaries   (other  than   Hydrocarbon
                  Technologies, Inc.), individually and from the Company's Chief
                  Financial   Officer  with  respect  to  the  Company  and  its
                  Subsidiaries (other than Flexcrete LLC), individually.

                           (x) Such  financial,  business and other  information
                  regarding each Loan Party and its  Subsidiaries  as the Lender
                  Parties shall have requested,  including,  without limitation,
                  information  as  to  possible  contingent   liabilities,   tax
                  matters,   environmental  matters,  obligations  under  Plans,
                  Multiemployer Plans and Welfare Plans,  collective  bargaining
                  agreements and other  arrangements  with employees,  reaudited
                  financial  statements of the Borrower and its Subsidiaries for
                  the period ended  September 30, 2001 and the financial  review
                  of the Borrower and its  Subsidiaries for the six-month period
                  ended March 31,  2002,  interim  financial  statements  of the
                  Borrower and its Subsidiaries dated the end of the most recent
                  fiscal  quarter for which  financial  statements are available
                  (or, in the event the Lender  Parties'  due  diligence  review
                  reveals material changes since such financial  statements,  as
                  of a later  date  within  45  days  of the day of the  Initial
                  Extension of Credit), pro forma financial statements as to the
                  Borrower and forecasts  prepared by management of the Company,
                  in form and substance  satisfactory to the Lender Parties,  of
                  balance sheets,  income statements and cash flow statements on
                  a quarterly  basis for the first year following the day of the
                  Initial  Extension  of Credit and on an annual  basis for each
                  year thereafter until the Termination Date.

                           (xi)  Evidence  of  insurance  naming the  Collateral
                  Agent  as   additional   insured  and  loss  payee  with  such
                  responsible and reputable insurance companies or associations,
                  and  in  such   amounts  and  covering   such  risks,   as  is
                  satisfactory  to  the  Lender  Parties  ,  including,  without
                  limitation, business interruption insurance.

                           (xii) A certified copy of the Material Contract.

                           (xiii) A Notice of  Borrowing  or Notice of Issuance,
                  as applicable, relating to the Initial Extension of Credit.

                           (xiv) An opinion of Pillsbury  Winthrop LLP,  counsel
                  for the Borrower and its Subsidiaries, addressed to the Agents
                  and  the  Lender  Parties  and in  substantially  the  form of
                  Exhibit J-1 hereto and as to such other  matters as any Lender
                  Party through the Administrative Agent may reasonably request.

                                       56
<PAGE>

                           (xv) An opinion of Parsons, Behle & Latimer,  counsel
                  for the Company and its Subsidiaries,  addressed to the Agents
                  and  the  Lender  Parties  and in  substantially  the  form of
                  Exhibit J-2 hereto and as to such other  matters as any Lender
                  Party through the Administrative Agent may reasonably request.

                           (xvi) An opinion of Harlan Hatfield, internal counsel
                  for the Borrower and its Subsidiaries, addressed to the Agents
                  and  the  Lender  Parties  and in  substantially  the  form of
                  Exhibit J-3 hereto and as to such other  matters as any Lender
                  Party through the Administrative Agent may reasonably request.

                  (b) The Lender Parties shall be reasonably  satisfied with any
         changes  occurring on or after July 15, 2002 in the corporate and legal
         structure  and  capitalization  of  each  Loan  Party  and  each of its
         Subsidiaries  the  Equity  Interests  in  which  Subsidiaries  is being
         pledged  pursuant  to the  Loan  Documents,  including  the  terms  and
         conditions of the charter,  bylaws and each class of Equity Interest in
         each Loan Party and of each  agreement or  instrument  relating to such
         structure or capitalization.

                  (c) The Lender  Parties  shall be satisfied  that all Existing
         Debt, other than Surviving Debt, has been prepaid, redeemed or defeased
         in full or otherwise  satisfied and  extinguished  and all  commitments
         relating thereto terminated.

                  (d) Before giving effect to the Transaction,  there shall have
         occurred no (i) Material  Adverse  Change and (ii) no material  adverse
         change in the business, condition (financial or otherwise), operations,
         performance,  or properties of the Company and its Subsidiaries,  taken
         as a whole since December 31, 2001.

                  (e)  There  shall  exist  no  action,   suit,   investigation,
         litigation  or  proceeding  affecting  any  Loan  Party  or  any of its
         Subsidiaries pending or, to the Borrower's knowledge, threatened before
         any Governmental  Authority that (i) could be reasonably likely to have
         a Material Adverse Effect or a material adverse effect on the business,
         condition (financial or otherwise) operations, performance or prospects
         of  the  Company  and  its  Subsidiaries,  taken  as a  whole  or  (ii)
         materially adversely affects the Transaction.

                  (f) All Governmental  Authorizations  and third party consents
         and approvals  necessary in connection with the Transaction  shall have
         been obtained  (without the imposition of any  conditions  that are not
         acceptable  to the Lender  Parties)  (other than any such  consents and
         approvals  the  absence of which  could not  reasonably  be expected to
         have,  either  individually  or in the  aggregate,  a Material  Adverse
         Effect  or  a  material  adverse  effect  on  the  business,  condition
         (financial or otherwise),  operations, performance or properties of the
         Company  and its  Subsidiaries,  taken as a whole) and shall  remain in
         effect;   all  applicable   waiting  periods  in  connection  with  the
         Transaction  shall have  expired  without any action being taken by any
         competent  authority,  and no law or regulation  shall be applicable in
         the  judgment  of the  Lender  Parties,  in each case  that  restrains,
         prevents or imposes  materially adverse conditions upon the Transaction
         or the  rights  of the Loan  Parties  or their  Subsidiaries  freely to
         transfer  or  otherwise  dispose  of,  or to  create  any Lien on,  any
         properties now owned or hereafter acquired by any of them.

                                       57
<PAGE>

                  (g) All of the  Pre-Commitment  Information  shall be true and
         correct in all material  aspects and the Lender  Parties shall not have
         discovered  information  (whether  (x)  through the  completion  by the
         Lender  Parties of their (i)  bring-down  business due  diligence  with
         respect to the Borrower, the Company and their respective subsidiaries,
         (ii)  bring-down  accounting  due diligence with the Borrower's and the
         Company's  auditors and (iii) legal due  diligence  with respect to the
         assets and businesses of the Borrower, the Company and their respective
         subsidiaries  (in  each  case in  scope  satisfactory  to  them) or (y)
         otherwise which the Lender Parties  reasonably believe in good faith to
         be materially  negative  information with respect to the Transaction or
         the  business,   condition   (financial  or   otherwise),   operations,
         performance,  properties  or  prospects  of (A)  the  Borrower  and its
         subsidiaries,   taken  as  a  whole,   or  (B)  the   Company  and  its
         subsidiaries, taken as a whole.

                  (h) The  Borrower  shall  have  paid all  accrued  fees of the
         Agents and the Lender  Parties and all  accrued  expenses of the Agents
         (including   the   accrued   fees  and   expenses  of  counsel  to  the
         Administrative Agent and local counsel to the Lender Parties).

                  (i) The Merger shall have been  consummated in accordance with
         the terms of the Merger Agreement,  without any waiver or amendment not
         consented to by the Lender Parties of any term,  provision or condition
         set forth therein,  and in compliance  with all applicable  laws (other
         than any such  violations  which  could not  reasonably  be expected to
         have,  either  individually  or in the  aggregate,  a Material  Adverse
         Effect  or  a  material  adverse  effect  on  the  business,  condition
         (financial or otherwise),  operations, performance or properties of the
         Company and its Subsidiaries, taken as a whole).

                  (j) Other than the amendment to the Merger  Agreement dated as
         of the date hereof,  the Merger  Agreement  has not been amended  since
         July 15, 2002 and shall be in full force and effect.

                  (k) The Notice of Acceptance  shall have been delivered to the
         Depositary.

                  (l) The Borrower  shall have  received  issued  debentures  as
         consideration for the Merger in amount of not less than $20,000,000.

                  (m) Bank of America shall have  delivered a pay-off  letter in
         respect  of its  Credit  Agreement  dated as of March 4,  1998 with ISG
         Resources  Inc., as amended and  restated,  within two Business Days of
         the date of Closing.

         SECTION 3.02  Conditions  Precedent to Each  Borrowing and Issuance and
Renewal. (a) The obligation of each Appropriate Lender to make an Advance (other
than a Letter of Credit  Advance made by the Issuing Bank or a Revolving  Credit
Lender  pursuant  to Section  2.16(c) a Swing Line  Advance  made by a Revolving
Credit  Lender  pursuant to Section  2.02(b)) on the occasion of each  Borrowing
(including  the initial  Borrowing),  and the  obligation of the Issuing Bank to
issue a Letter of Credit  (including the initial  issuance) or renew a Letter of
Credit and the right of the Borrower to request a Swing Line Borrowing, shall be
subject to the further  conditions  precedent that on the date of such Borrowing
or issuance or renewal the following  statements  shall be true (and each of the
giving of the applicable  Notice of Borrowing,  Notice of Swing Line  Borrowing,
Notice of Issuance or Notice of Renewal and the  acceptance  by the  Borrower of

                                       58
<PAGE>

the  proceeds  of such  Borrowing  or of such Letter of Credit or the renewal of
such Letter of Credit  shall  constitute  a  representation  and warranty by the
Borrower that both on the date of such notice and on the date of such  Borrowing
or issuance or renewal such statements are true):

                           (i) the representations  and warranties  contained in
                  each Loan Document are correct on and as of such date,  before
                  and  after  giving  effect  to  such   Borrowing  and  to  the
                  application of the proceeds  therefrom,  as though made on and
                  as of such  date,  other  than  any  such  representations  or
                  warranties  that,  by their  terms,  refer to a specific  date
                  other  than the date of such  Borrowing,  in which  case as of
                  such specific date; and

                           (ii) no Default has  occurred and is  continuing,  or
                  would result from such  Borrowing or from the  application  of
                  the proceeds therefrom,

and the  Administrative  Agent  shall have  received  such  other  certificates,
opinions  and other  documents as any Lender  Party  through the  Administrative
Agent  may  reasonably  request  in order to  confirm  (i) the  accuracy  of the
Borrower's representations and warranties, (ii) the Borrower's timely compliance
with the terms,  covenants and  agreements set forth in this Agreement and (iii)
the absence of any Default.

         SECTION  3.03  Determinations  Under  Section  3.01.  For  purposes  of
determining  compliance  with the  conditions  specified in Section  3.01,  each
Lender Party shall be deemed to have consented to, approved or accepted or to be
satisfied with each document or other matter required thereunder to be consented
to or approved by or acceptable or  satisfactory to the Lender Parties unless an
officer  of  the   Administrative   Agent   responsible  for  the   transactions
contemplated  by the Loan Documents  shall have received notice from such Lender
Party prior to the Initial  Extension of Credit specifying its objection thereto
and, if the Initial  Extension of Credit  consists of a  Borrowing,  such Lender
Party  shall not have made  available  to the  Administrative  Agent such Lender
Party's ratable portion of such Borrowing.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

         SECTION  4.01  Representations  and  Warranties  of the  Borrower.  The
Borrower represents and warrants as follows:

                  (a) Each Loan Party (i) is a  corporation,  limited  liability
         company or partnership  duly  organized,  validly  existing and in good
         standing under the laws of the  jurisdiction  of its  incorporation  or
         organization,  (ii) is duly qualified and in good standing as a foreign
         corporation,  limited  liability  company or  partnership in each other
         jurisdiction  in  which it owns or  leases  property  or in  which  the
         conduct  of its  business  requires  it to so  qualify  or be  licensed
         (except for  jurisdictions in which the failure to so qualify could not
         reasonably be expect to result in a Material  Adverse Effect) and (iii)
         has all requisite  corporate  power and authority  (including,  without
         limitation, all necessary Governmental  Authorizations) to own or lease
         and  operate  its  properties  and  to  carry  on its  business  as now
         conducted  and as  proposed  to be  conducted.  All of the  outstanding
         Equity  Interests in the Borrower have been validly  issued,  are fully
         paid and non-assessable.

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<PAGE>

                  (b) Set forth on  Schedule  4.01(b)  hereto is a complete  and
         accurate list of all  Subsidiaries of each Loan Party (and whether such
         Subsidiary  is an  Unrestricted  Subsidiaries),  showing as of the date
         hereof  (as  to  each  such   Subsidiary)   the   jurisdiction  of  its
         incorporation,  the  number  of  shares  of each  class  of its  Equity
         Interests  authorized,  and the number outstanding,  on the date hereof
         and the  percentage  of each such class of its Equity  Interests  owned
         (directly  or  indirectly)  by such Loan Party and the number of shares
         covered by all outstanding options,  warrants,  rights of conversion or
         purchase and similar rights at the date hereof.  As of the date hereof,
         all  of  the  outstanding   Equity   Interests  in  each  Loan  Party's
         Subsidiaries  (other  than the  Unrestricted  Subsidiaries)  have  been
         validly issued, are fully paid and non-assessable and are owned by such
         Loan  Party or one or more of its  Subsidiaries  free and  clear of all
         Liens, except those created under the Collateral Documents.

                  (c) The execution, delivery and performance by each Loan Party
         of each  Transaction  Document to which it is or is to be a party,  and
         the  consummation  of the  Transaction,  are within  such Loan  Party's
         corporate powers,  have been duly authorized by all necessary corporate
         action,  and do not (i) contravene such Loan Party's charter or bylaws,
         (ii) violate any law, rule, regulation (including,  without limitation,
         Regulation X of the Board of Governors of the Federal Reserve  System),
         order,  writ,  judgment,  injunction,  decree,  determination or award,
         (iii) conflict with or result in the breach of, or constitute a default
         or require any payment to be made under, any contract,  loan agreement,
         indenture,  mortgage,  deed of trust, lease or other instrument binding
         on or affecting any Loan Party, any of its Subsidiaries or any of their
         properties  or (iv)  except  for  the  Liens  created  under  the  Loan
         Documents,  result in or require the creation or imposition of any Lien
         upon or with respect to any of the properties of any Loan Party, except
         such  contraventions,  violations  or  conflicts  which  could  not  be
         reasonably  likely to have a Material Adverse Effect.  No Loan Party is
         in violation of any such law, rule, regulation,  order, writ, judgment,
         injunction,  decree,  determination  or award or in  breach of any such
         contract, loan agreement,  indenture, mortgage, deed of trust, lease or
         other instrument,  the violation or breach of which could be reasonably
         likely to have a Material Adverse Effect.

                  (d) No Governmental Authorization,  and no notice to or filing
         with, any  Governmental  Authority or any other third party is required
         for (i) the due execution, delivery, recordation, filing or performance
         by any Loan Party of any  Transaction  Document to which it is or is to
         be a party, or for the consummation of the Transaction,  (ii) the grant
         by any Loan Party of the Liens granted by it pursuant to the Collateral
         Documents,  (iii) the  perfection or  maintenance  of the Liens created
         under the Collateral  Documents  (including  the first priority  nature
         thereof) or (iv) the  exercise by any Agent or any Lender  Party of its
         rights  under the Loan  Documents  or the  remedies  in  respect of the
         Collateral  pursuant to the  Collateral  Documents,  except for (A) the
         authorizations,  approvals,  actions,  notices  and  filings  listed on
         Schedule 4.01(d) hereto,  all of which have been duly obtained,  taken,
         given or made and are in full force and effect  (except those which are

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<PAGE>

         specifically indicated on such Schedule 4.01(d) as being made after the
         Initial  Extension of Credit) and (B) any such  consents and  approvals
         the absence of which could not  reasonably be expected to have,  either
         individually  or in the  aggregate,  a  Material  Adverse  Effect.  All
         applicable  waiting  periods in connection  with the  Transaction  have
         expired without any action having been taken by any competent authority
         restraining,  preventing or imposing materially adverse conditions upon
         the Transaction or the rights of the Loan Parties or their Subsidiaries
         freely to transfer or  otherwise  dispose of, or to create any Lien on,
         any  properties  now owned or  hereafter  acquired by any of them.  The
         Merger has been consummated in accordance with the Merger Agreement and
         applicable law.

                  (e)  This  Agreement  has  been,  and each  other  Transaction
         Document when  delivered  hereunder  will have been,  duly executed and
         delivered by each Loan Party thereto. This Agreement is, and each other
         Transaction Document when delivered hereunder will be, the legal, valid
         and binding obligation of each Loan Party thereto,  enforceable against
         such Loan Party in accordance with its terms, except to the extent that
         such enforcement may be subject to applicable  bankruptcy,  insolvency,
         reorganization,  moratorium,  or  other  laws  of  general  application
         relating to or  affecting  enforcement  of  creditors'  rights and laws
         concerning equitable remedies.

                  (f) Other than as disclosed on Schedule  4.01(f),  there is no
         action,  suit,  investigation,  litigation or proceeding  affecting any
         Loan  Party or any of its  Subsidiaries,  including  any  Environmental
         Action,  pending or  threatened  before any  Governmental  Authority or
         arbitrator  that (i)  could be  reasonably  likely  to have a  Material
         Adverse  Effect or (ii)  purports to affect the  legality,  validity or
         enforceability  of any Transaction  Document or the consummation of the
         Transaction.

                  (g) The Consolidated balance sheet of (i) the Borrower and its
         Subsidiaries  as of  September  30,  2001  and  (ii)  Company  and  its
         Subsidiaries  as at December  31,  2001,  and the related  Consolidated
         statement of income and Consolidated statement of cash flows of (i) the
         Borrower and its Subsidiaries and (ii) the Company and its Subsidiaries
         in  each  case  for the  fiscal  year  then  ended,  accompanied  by an
         unqualified  opinion of  PriceWaterhouse  Coopers,  independent  public
         accountants, and the Consolidated balance sheet of (i) the Borrower and
         its  Subsidiaries  and (ii) the Company and its  Subsidiaries,  in each
         case as at June 30,  2002,  and the related  Consolidated  statement of
         income and Consolidated statement of cash flows of (i) the Borrower and
         its  Subsidiaries  and (ii) the Company and its  Subsidiaries,  for the
         nine months then ended in the case of the Borrower and its Subsidiaries
         and for the six months  then ended in the case of the  Company  and its
         Subsidiaries,  duly  certified  by the Chief  Financial  Officer of the
         Borrower and the Company, as the case may be, copies of which have been
         furnished to each Lender Party, fairly present, subject, in the case of
         said balance sheets as at June 30, 2002, and said  statements of income
         and  cash  flows  for the  nine  months  and  six  months  then  ended,
         respectively, to year-end audit adjustments, the Consolidated financial
         condition of each of (i) the Borrower and its Subsidiaries and (ii) the
         Company  and  its  Subsidiaries  as at  such  respective  date  and the
         Consolidated  results  of  operations  of  (i)  the  Borrower  and  its
         Subsidiaries  and (ii) the Company and its  Subsidiaries for the period

                                       61
<PAGE>

         ended  on  such  respective  date,  all in  accordance  with  generally
         accepted  accounting  principles  applicable  in the  United  States of
         America and applied on a consistent  basis, and since (i) September 30,
         2001,  in the  case of the  Borrower  and  its  Subsidiaries  and  (ii)
         December  31,  2001,  in the case of the Company and its  Subsidiaries,
         there has been no Material Adverse Change.

                  (h) The  Consolidated  pro forma balance sheet of the Borrower
         and its Subsidiaries as at June 30, 2002, and the related  Consolidated
         pro forma  statements  of income and cash flows of the Borrower and its
         Subsidiaries  for the nine months then  ended,  certified  by the Chief
         Financial Officer of the Borrower,  copies of which have been furnished
         to each  Lender  Party,  fairly  present  the  Consolidated  pro  forma
         financial  condition of the Borrower  and its  Subsidiaries  as at such
         date and the  Consolidated  and  consolidating  pro  forma  results  of
         operations of the Borrower and its Subsidiaries for the period ended on
         such  date,  in each  case  giving  effect to the  Transaction,  all in
         accordance with GAAP.

                  (i) The Consolidated  forecasted  balance sheet,  statement of
         income and statement of cash flows of the Borrower and its Subsidiaries
         delivered to the Lender Parties  pursuant to Section  3.01(a)(xi)  were
         prepared in good faith on the basis of the assumptions  stated therein,
         which assumptions were fair in light of the conditions  existing at the
         time of delivery of such  forecasts,  and  represented,  at the time of
         delivery,  the Borrower's  reasonable  estimate of its future financial
         performance.

                  (j)  After  giving  full  effect  to any  cautionary  language
         regarding  statements,   estimates  and  projections  provided  by  the
         Borrower with respect to the Borrower's future performance, neither the
         Information  Memorandum  nor any other  information,  exhibit or report
         furnished  by or on behalf of any Loan Party to any Agent or any Lender
         Party in connection  with its due diligence  and/or the negotiation and
         syndication  of the Loan Documents or pursuant to the terms of the Loan
         Documents  contained any untrue statement of a material fact or omitted
         to state a material fact necessary to make the statements  made therein
         not materially misleading.

                  (k) The  Borrower is not engaged in the  business of extending
         credit for the purpose of purchasing or carrying Margin Stock.

                  (l)  No  Loan  Party  is  an  "investment   company",   or  an
         "affiliated  person" of, or "promoter" or "principal  underwriter" for,
         an  "investment  company",  as such terms are defined in the Investment
         Company Act of 1940, as amended.  No Loan Party 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",  as such  terms are  defined in the  Public  Utility  Holding
         Company Act of 1935, as amended. As at the date of Closing, neither the
         making of any Advances,  nor the issuance of any Letters of Credit, nor
         the  application of the proceeds or repayment  thereof by the Borrower,
         nor the  consummation  of the other  transactions  contemplated  by the
         Transaction  Documents,  will violate any  provision of any such Act or
         any rule, regulation or order of the Securities and Exchange Commission
         thereunder.

                  (m) After the Initial Advances,  all filings and other actions
         necessary or desirable to perfect and protect the security  interest in
         the Collateral  created under the  Collateral  Documents have been duly

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<PAGE>

         made or taken and are in full  force  and  effect,  and the  Collateral
         Documents  create in favor of the  Collateral  Agent for the benefit of
         the Secured  Parties a valid and,  together with such filings and other
         actions,  perfected first priority  security interest in the Collateral
         subject to Liens permitted by the Loan Documents,  securing the payment
         of the Secured Obligations, and all filings and other actions necessary
         or advisable to perfect and protect such  security  interest  have been
         duly taken. After the Initial Advances,  the Loan Parties are the legal
         and  beneficial  owners of the  Collateral  free and clear of any Lien,
         except for the liens and security  interests created or permitted under
         the Loan Documents.

                  (n) Each Loan Party is Solvent.

                  (o) (i) No ERISA Event has occurred or is reasonably  expected
         to occur with  respect to any Plan that could be  reasonably  likely to
         have a Material Adverse Effect.

                           (ii) Schedule B (Actuarial  Information)  to the most
                  recent annual report (Form 5500 Series) for each Plan,  copies
                  of which have been filed with the Internal Revenue Service and
                  furnished to the Lender Parties,  is complete and accurate and
                  fairly presents the funding status of such Plan, and since the
                  date of such  Schedule  B there has been no  material  adverse
                  change in such funding status.

                           (iii) Neither any Loan Party nor any ERISA  Affiliate
                  has incurred or is reasonably expected to incur any Withdrawal
                  Liability to any  Multiemployer  Plan that could reasonably be
                  expected to have a Material Adverse Effect.

                           (iv)  Neither any Loan Party nor any ERISA  Affiliate
                  has been notified by the sponsor of a Multiemployer  Plan that
                  such  Multiemployer  Plan  is in  reorganization  or has  been
                  terminated,  within the  meaning of Title IV of ERISA,  and no
                  such  Multiemployer  Plan  is  reasonably  expected  to  be in
                  reorganization  or to be  terminated,  within  the  meaning of
                  Title IV of ERISA.

                  (p)  Except  as could not  reasonably  be  expected  to have a
         Material Adverse Effect:

                           (i) The  operations and properties of each Loan Party
                  comply  in  all   material   respects   with  all   applicable
                  Environmental  Laws  and  Environmental   Permits,   all  past
                  non-compliance  with such Environmental Laws and Environmental
                  Permits  has been  resolved  without  ongoing  obligations  or
                  costs,  and, to the knowledge of the senior  management of the
                  Loan Parties,  no circumstances exist that could be reasonably
                  likely  to (A)  form  the  basis  of an  Environmental  Action
                  against any Loan Party or any of their properties or (B) cause
                  any  such  property  to be  subject  to  any  restrictions  on
                  ownership,   occupancy,   use  or  transferability  under  any
                  Environmental Law.

                           (ii) To the knowledge of the senior management of the
                  Loan Party, none of the properties currently or formerly owned
                  or  operated  by any Loan  Party is  listed  or  proposed  for
                  listing on the NPL or on the CERCLIS or any analogous foreign,
                  state or local  list;  there  are no and  never  have been any
                  underground  or  aboveground  storage  tanks  or  any  surface
                  impoundments,  septic tanks,  pits,  sumps or lagoons in which

                                       63
<PAGE>

                  Hazardous Materials are being or have been treated,  stored or
                  disposed on any  property  currently  owned or operated by any
                  Loan Party or any of its  Subsidiaries  or, to the best of its
                  knowledge,  on any property  formerly owned or operated by any
                  Loan Party or any of its Subsidiaries; there is no asbestos or
                  asbestos-containing  material on any property  currently owned
                  or operated by any Loan Party or any of its Subsidiaries;  and
                  Hazardous  Materials  have not been  released,  discharged  or
                  disposed of on any  property  currently  or formerly  owned or
                  operated by any Loan Party or any of its Subsidiaries.

                           (iii)   Neither   any  Loan  Party  nor  any  of  its
                  Subsidiaries  is  undertaking,  and has not completed,  either
                  individually  or together with other  potentially  responsible
                  parties,  any  investigation  or  assessment  or  remedial  or
                  response action relating to any actual or threatened  release,
                  discharge  or disposal  of  Hazardous  Materials  at any site,
                  location or operation,  either  voluntarily or pursuant to the
                  order  of any  governmental  or  regulatory  authority  or the
                  requirements  of any  Environmental  Law;  and  all  Hazardous
                  Materials generated,  used, treated,  handled or stored at, or
                  transported  to or from,  any  property  currently or formerly
                  owned or operated by any Loan Party or any of its Subsidiaries
                  have been disposed of in a manner not  reasonably  expected to
                  result in material  liability  to any Loan Party or any of its
                  Subsidiaries.

                  (q) (i) Neither any Loan Party nor any of its  Subsidiaries is
         party to any tax sharing  agreement other than a tax sharing  agreement
         approved  by the  Required  Lenders  or one  between  Borrower  and its
         Restricted Subsidiaries.

                           (ii) Each Loan Party and each of its Subsidiaries and
                  Affiliates  has  filed,  has  caused  to be  filed or has been
                  included  in  all  tax  returns  (Federal,  state,  local  and
                  foreign)  required  to be filed and has paid all  taxes  shown
                  thereon  to be due,  together  with  applicable  interest  and
                  penalties.

                           (iii)  Set  forth on  Schedule  4.01(q)  hereto  is a
                  complete and  accurate  list,  as of the date hereof,  of each
                  taxable  year of each Loan Party and each of its  Subsidiaries
                  and  Affiliates for which Federal income tax returns have been
                  filed and for which the expiration of the  applicable  statute
                  of  limitations  for assessment or collection has not occurred
                  by reason of extension or otherwise (an "Open Year").

                           (iv)  The  aggregate  unpaid  amount,  as of the date
                  hereof,  of adjustments to the Federal income tax liability of
                  each Loan Party and each of its  Subsidiaries  and  Affiliates
                  proposed by the Internal  Revenue Service with respect to Open
                  Years does not exceed $250,000.  No issues have been raised by
                  the Internal Revenue Service in respect of Open Years that, in
                  the aggregate,  could be reasonably  likely to have a Material
                  Adverse Effect.

                           (v)  The  aggregate  unpaid  amount,  as of the  date
                  hereof,  of  adjustments  to the state,  local and foreign tax
                  liability  of  each  Loan  Party  and  its   Subsidiaries  and
                  Affiliates  proposed by all state,  local and  foreign  taxing
                  authorities  (other than amounts  arising from  adjustments to
                  Federal  income  tax  returns)  does not exceed  $250,000.  No
                  issues have been raised by such taxing  authorities  that,  in
                  the aggregate,  could be reasonably  likely to have a Material
                  Adverse Effect.

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                           (vi)  The  Merger  will  not  be  taxable  under  the
                  Internal   Revenue   Code  to  the   Company  or  any  of  its
                  Subsidiaries or Affiliates.

                  (r) Set forth on  Schedule  4.01(r)  hereto is a complete  and
         accurate list of all Existing Debt (other than Surviving Debt), showing
         as of the date hereof the obligor and the principal amount  outstanding
         thereunder.

                  (s) Set forth on  Schedule  4.01(s)  hereto is a complete  and
         accurate list of all Surviving Debt,  showing as of the date hereof the
         obligor and the principal amount outstanding  thereunder,  the maturity
         date thereof and the amortization schedule therefor.

                  (t) Set forth on  Schedule  4.01(t)  hereto is a complete  and
         accurate list of all Liens, other than Permitted Liens, on the property
         or assets of any Loan Party or any of its  Subsidiaries,  showing as of
         the date hereof the  lienholder  thereof,  the principal  amount of the
         obligations  secured  thereby  and the  property or assets of such Loan
         Party or such Subsidiary subject thereto.

                  (u) Set forth on  Schedule  4.01(u)  hereto is a complete  and
         accurate  list of all real  property  owned by any Loan Party or any of
         its Subsidiaries on the date hereof,  showing as of the date hereof the
         street address,  county or other relevant  jurisdiction,  state, record
         owner and book and  estimated  fair value  thereof.  Each Loan Party or
         such Subsidiary has good,  marketable and insurable fee simple title to
         such real property,  free and clear of all Liens,  other than Permitted
         Liens and Liens created or permitted by the Loan Documents.

                  (v) Set forth on  Schedule  4.01(v)  hereto is a complete  and
         accurate list of all leases of real property under which any Loan Party
         or any of its  Subsidiaries  is the lessee on the date hereof and under
         which such Loan Party or its  Subsidiary  is obligated to pay an annual
         rental  cost in excess of  $500,000  per annum,  showing as of the date
         hereof the street  address,  lessor,  lessee and expiration  date. Each
         such lease is the legal,  valid and  binding  obligation  of the lessor
         thereof,  enforceable in accordance with its terms except as limited by
         applicable bankruptcy, insolvency, reorganization, moratorium and other
         laws of general application  affecting enforcement of creditors' rights
         generally  and as limited by laws relating to equitable  remedies.  The
         rents  related  to the leases set forth on  Schedule  4.01(v)  are Fair
         Market Rents.

                  (w) Set forth on  Schedule  4.01(w)  hereto is a complete  and
         accurate list of all  Investments  held by any Loan Party or any of its
         Subsidiaries  on the date  hereof,  showing  as of the date  hereof the
         amount, obligor or issuer and maturity, if any, thereof.

                  (x) Set forth on  Schedule  4.01(x)  hereto is a complete  and
         accurate list of all patents,  trademarks,  trade names,  service marks
         and copyrights,  and all applications  therefor and licenses in respect
         of which a Loan Party is a licensee thereof,  of each Loan Party or any
         of its  Subsidiaries on the date hereof,  showing as of the date hereof
         the jurisdiction in which registered, the registration number, the date
         of registration and the expiration date.

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                  (y) As of the date hereof, the Material Contract has been duly
         authorized, executed and delivered by all parties thereto, has not been
         amended or otherwise  modified,  except as permitted by this Agreement,
         is in full force and effect and is binding upon and enforceable against
         all parties thereto in accordance  with its terms,  and there exists no
         default under the Material Contract by any party thereto.

                                   ARTICLE V

                            COVENANTS OF THE BORROWER

         SECTION 5.01 Affirmative Covenants. So long as any Advance or any other
Obligation of any Loan Party under any Loan Document  shall remain  unpaid,  any
Letter of  Credit  shall be  outstanding  or any  Lender  Party  shall  have any
Commitment hereunder, the Borrower will:

                  (a)  Certificate  of Merger.  File the  Certificate  of Merger
         within one Business Day after the Closing Date.

                  (b) Compliance with Laws, Etc.  Comply,  and cause each of its
         Subsidiaries to comply,  with all applicable laws,  rules,  regulations
         and orders, such compliance to include, without limitation,  compliance
         with ERISA, Environmental Laws and the Racketeer Influenced and Corrupt
         Organizations  Chapter  of the  Organized  Crime  Control  Act of 1970,
         except where the failure to do so,  individually  or in the  aggregate,
         could not  reasonable  be  expected  to result  in a  Material  Adverse
         Effect.

                  (c) Payment of Taxes,  Etc. Pay and discharge,  and cause each
         of its Subsidiaries to pay and discharge,  before the same shall become
         delinquent,  (i) all taxes,  assessments  and  governmental  charges or
         levies  imposed upon it or upon its property and (ii) all lawful claims
         that,  if  unpaid,  might  by law  become  a Lien  upon  its  property;
         provided,   however,   that   neither  the  Borrower  nor  any  of  its
         Subsidiaries  shall be  required  to pay or  discharge  any  such  tax,
         assessment,  charge or claim that is being  contested in good faith and
         by proper  proceedings and as to which  appropriate  reserves are being
         maintained,  unless and until any Lien resulting  therefrom attaches to
         its property and becomes enforceable against its other creditors.

                  (d) Maintenance of Insurance.  (i) Without limiting any of the
         other  obligations or liabilities of the Borrower under this Agreement,
         the  Borrower  shall,  during  the term of this  Agreement,  carry  and
         maintain,  at its own expense,  at least the minimum insurance coverage
         set forth in this Section 5.01(d)(i). All insurance carried pursuant to
         this Section  5.01(d)(i)  shall be placed with such  insurers  having a
         minimum A.M.  Best rating of A:X, or as may be otherwise  acceptable to
         the  Administrative  Agent.  Such insurance shall be in such form, with
         terms,  conditions,  limits  and  deductibles  as shall  be  reasonably
         acceptable to the Administrative Agent.

                           (A) All Risk Property  Insurance.  The Borrower shall
                  maintain all risk property insurance covering against physical
                  loss or damage, including but not limited to fire and extended
                  coverage,  collapse,  flood,  earth movement and comprehensive

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                  boiler   and   machinery   coverage   (including    electrical
                  malfunction  and  mechanical  breakdown).  Coverage  shall  be
                  written on a replacement  cost basis.  Such  insurance  policy
                  shall  contain  an  agreed  amount  endorsement   waiving  any
                  coinsurance  penalty  and  shall  include  expediting  expense
                  coverage; and

                           (B)  Commercial  General  Liability  Insurance.   The
                  Borrower shall maintain commercial general liability insurance
                  written on an  occurrence  basis with a limit of not less than
                  $1,000,000.  Such coverage shall  include,  but not be limited
                  to,  premises/operations,   explosion,  collapse,  underground
                  hazards,   contractual  liability,   independent  contractors,
                  products/completed  operations,  property  damage and personal
                  injury   liability.   Such  insurance  shall  not  contain  an
                  exclusion for punitive or exemplary damages where insurable by
                  law; and

                           (C) Workers'  Compensation/Employer's  Liability. The
                  Borrower shall  maintain  Workers'  Compensation  insurance in
                  accordance  with  statutory   provisions  covering  accidental
                  injury,  illness or death of an employee of the Borrower while
                  at work or in the scope of his  employment  with the  Borrower
                  and   Employer's   Liability   in  an  amount  not  less  than
                  $1,000,000.  Such coverage shall not contain any  occupational
                  disease exclusions; and

                           (D) Automobile Liability. The Borrower shall maintain
                  Automobile  Liability  insurance  covering  owned,  non-owned,
                  leased,  hired or borrowed  vehicles  against bodily injury or
                  property damage.  Such coverage shall have a limit of not less
                  than $1,000,000;

                           (E)  Excess/Umbrella  Liability.  The Borrower  shall
                  maintain excess or umbrella  liability  insurance in an amount
                  not less than  $10,000,000  and cause  that  Public  Sub shall
                  maintain excess or umbrella  liability  insurance in an amount
                  not less  than  $50,000,000  written  on an  occurrence  basis
                  providing  coverage  limits  excess  of the  insurance  limits
                  required under sections (i)(B),  (i)(C)  employer's  liability
                  only, and (i)(D). Such insurance shall follow form the primary
                  insurances  and drop down in case of  exhaustion of underlying
                  limits and/or aggregates.  Such insurance shall not contain an
                  exclusion for punitive or exemplary  damages  where  insurable
                  under law.

                                    (ii) The Borrower  shall cause all insurance
                           policies  carried and  maintained in accordance  with
                           Section 5.01(d)(i) to be endorsed as follows:

                           (A) The Borrower  shall be the named  insured and the
                  Agents  and  Lenders  shall be  additional  insureds  with the
                  Administrative  Agent as loss payee with  respect to  policies
                  described in  subsection  (i)(A).  The  Borrower  shall be the
                  named  insured  and  the  Agents  and  the  Lenders  shall  be
                  additional  insureds  with  respect to policies  described  in
                  subsections  (i)(B),  (i)(C)  to the  extent  allowed  by law,
                  (i)(D), and (i)(E). It shall be understood that any obligation
                  imposed upon the  Borrower,  including  but not limited to the
                  obligation  to pay premiums,  shall be the sole  obligation of
                  the Borrower and not that of the Agents or the Lenders; and

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<PAGE>

                           (B) with respect to policies described in subsections
                  (i)(A),  the  interests of the Agents and Lenders shall not be
                  invalidated by any action or inaction of the Borrower,  or any
                  other  Person,  and shall insure the Agent and Lenders under a
                  standard mortgagee or lenders loss payable clause; and

                           (C) inasmuch as the liability policies are written to
                  cover more than one insured,  all terms  conditions,  insuring
                  agreements and endorsements,  with the exception of the limits
                  of  liability,  shall  operate in the same  manner as if there
                  were a separate policy covering each insured; and

                           (D) the insurers thereunder shall waive all rights of
                  subrogation against the Agents and Lenders any right of setoff
                  or counterclaim  and any other right to deduction,  whether by
                  attachment or otherwise; and

                           (E) such insurance  shall be primary without right of
                  contribution of any other insurance carried by or on behalf of
                  the Agents and Lenders with respect to this loan; and,

                           (F) if such  insurance  is  canceled  for any  reason
                  whatsoever,  including  nonpayment of premium,  or any changes
                  are  initiated  by the  Borrower or carrier  which  affect the
                  interests  of the Agents and  Lenders,  such  cancellation  or
                  change  shall not be  effective  as to the  Agent and  Lenders
                  until  thirty  (30) days,  except for  non-payment  of premium
                  which  shall be ten (10) days,  after  written  notice sent by
                  first class U.S. mail from such insurer to the  Administrative
                  Agent.

                                    (iii)  On the  Effective  Date,  and at each
                           policy renewal, but not less than annually,  Borrower
                           shall provide to the  Administrative  Agent  approved
                           certification  from each insurer or by an  authorized
                           representative  of each insurer.  Such  certification
                           shall   identify  the   underwriters,   the  type  of
                           insurance, the limits, deductibles,  and term thereof
                           and shall specifically list the special provisions as
                           delineated in paragraph (ii) above for such insurance
                           required by Section 5.01(d)(i).

                                    (iv) Concurrently with the furnishing of all
                           certificates  referred  to in  Section  5.01(d)(iii),
                           Borrower shall furnish the Administrative  Agent with
                           an opinion from an independent  insurance  broker, in
                           form acceptable to the broker and the  Administrative
                           Agent, stating that as of the date of the opinion (1)
                           the  insurance  policies  listed  with  the  broker's
                           opinion are in full force and effect;  (2) the broker
                           has  not  received  any  notice  of  cancellation  or
                           non-renewal  with respect to the listed  policies and
                           is not aware of any  circumstances  which  would make
                           the giving of such a notice by an insurer likely; (3)
                           in  the  broker's  view,   based  upon  the  broker's
                           understanding of this Section  5.01(d),  the policies
                           listed with the broker's  opinion are consistent with
                           the minimum requirements of this Section 5.01(d); and
                           (4) based upon the broker's experience, the coverages
                           provided by the policies  listed with the opinion are
                           consistent with those normally  provided to companies
                           similarly situated to the Borrower and Public Sub.

                                    (v)  The   Administrative   Agent  shall  be
                           entitled,  upon reasonable  advance notice, to review
                           the  Borrower's  books  and  records   regarding  all
                           insurance   policies   carried  and  maintained  with

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<PAGE>

                           respect  to the  Borrower's  obligations  under  this
                           Section  5.01(d).  Upon request,  the Borrower  shall
                           furnish the  Administrative  Agent with copies of all
                           insurance policies, binders, and cover notes or other
                           evidence of such insurance.  Notwithstanding anything
                           to the contrary herein,  no provision of this Section
                           5.01(d)  or any  provision  of this  Agreement  shall
                           impose  on  the  Administrative  Agent  any  duty  or
                           obligation to verify the existence or adequacy of the
                           insurance  coverage  maintained by the Borrower,  nor
                           shall the Administrative Agent be responsible for any
                           representations or warranties made by or on behalf of
                           the  Borrower  to any  insurance  broker,  company or
                           underwriter.  The  Administrative  Agent, at its sole
                           option,  may obtain such insurance if not provided by
                           the  Borrower and in such event,  the Borrower  shall
                           reimburse  the  Administrative  Agent upon demand for
                           the cost thereof together with interest.

                  (e) Preservation of Corporate Existence, Etc. Without limiting
         the exceptions set forth in Section 5.02(d), preserve and maintain, and
         cause each of its Subsidiaries to preserve and maintain, its existence,
         legal structure,  legal name, rights (charter and statutory),  permits,
         licenses, approvals, privileges and franchises; provided, however, that
         the Borrower may consummate the Merger;  provided  further that neither
         the Borrower nor any of its Subsidiaries  shall be required to preserve
         any right,  permit,  license,  approval,  privilege or franchise if the
         Board of Directors of the Borrower or such  Subsidiary  shall determine
         that the preservation  thereof is no longer desirable in the conduct of
         the  business of the Borrower or such  Subsidiary,  as the case may be,
         and  that the  loss  thereof  is not  disadvantageous  in any  material
         respect to the Borrower, such Subsidiary or the Lender Parties.

                  (f) Visitation  Rights. At any reasonable time during ordinary
         business  hours  and from time to time upon  reasonable  prior  notice,
         permit any of the Agents or any of the Lender Parties, or any agents or
         representatives  thereof,  to examine and make copies of and  abstracts
         from the records and books of account of, and visit the  properties of,
         the Borrower and any of its  Subsidiaries,  and to discuss the affairs,
         finances and accounts of the Borrower and any of its Subsidiaries  with
         any of their officers or directors and with their independent certified
         public  accountants;  provided,  however,  that any such  visitation or
         inspection by a Lender Party other than the Administrative  Agent shall
         be coordinated by (any request for such a visit or inspection  shall be
         presented through) the Administrative Agent;  provided,  further, that,
         in  connection  with any such  visitation  or  inspection,  the  Lender
         Parties  and  the  Agents  agree  to  comply  with  and  adhere  to all
         applicable laws,  rules and regulations  governing site visitations and
         inspections  (including,  without  limitation,  applicable  health  and
         safety  regulations and visitation and inspection rules mandated by the
         owner or operator of applicable property).

                  (g) Keeping of Books. Keep, and cause each of its Subsidiaries
         to keep, proper books of record and account,  in which full and correct
         entries shall be made of all financial  transactions and the assets and
         business of the Borrower and each such  Subsidiary in  accordance  with
         generally accepted accounting principles in effect in the United States
         of America from time to time.

                  (h) Maintenance of Properties, Etc. Maintain and preserve, and
         cause each of its  Subsidiaries  to maintain and  preserve,  all of its
         properties  that are used or useful in the  conduct of its  business in

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         good working  order and  condition,  ordinary  wear and tear  excepted,
         except in those circumstances where in the reasonable business judgment
         of the Borrower such  properties need not be so maintained or preserved
         and will  from  time to time  make or cause to be made all  appropriate
         repairs,  renewals and replacements  thereof except where failure to do
         so would not have a Material Adverse Effect.

                  (i)  Transactions  with  Affiliates.  Except  as set  forth on
         Schedule  5.01(i),  conduct,  and  cause  each of its  Subsidiaries  to
         conduct, all transactions  otherwise permitted under the Loan Documents
         with any of their  Affiliates  that is not  either  the  Borrower  or a
         Restricted Subsidiary on terms that are fair and reasonable and no less
         favorable to the Borrower or such  Subsidiary than it would obtain in a
         comparable arm's-length transaction with a Person not an Affiliate.

                  (j) Covenant to Guarantee Obligations and Give Security.  Upon
         (x) the request of the  Collateral  Agent  following the occurrence and
         during the  continuance of a Default,  (y) the formation or acquisition
         of any new direct or indirect Subsidiaries by any Loan Party or (z) the
         acquisition of any property by any Loan Party,  and such  property,  in
         the judgment of the Collateral Agent, shall not already be subject to a
         perfected first priority  security  interest in favor of the Collateral
         Agent for the benefit of the Secured Parties,  then in each case at the
         Borrower's expense:

                           (i) in connection  with the formation or  acquisition
                  of a Subsidiary  that is not (x)  designated  an  Unrestricted
                  Subsidiary at the time of its formation or acquisition,  (y) a
                  CFC or (z) a Subsidiary that is held directly or indirectly by
                  a CFC,  within 30 days after such  formation  or  acquisition,
                  cause each such Subsidiary, and cause each direct and indirect
                  parent of such  Subsidiary (if it has not already done so), to
                  duly execute and deliver to the Collateral Agent a guaranty or
                  guaranty   supplement,   in  form  and  substance   reasonably
                  satisfactory to the Collateral  Agent,  guaranteeing the other
                  Loan Parties' obligations under the Loan Documents,

                           (ii) within 30 days after (A) such request furnish to
                  the  Collateral  Agent a description  of the real and personal
                  properties   of  the  Loan   Parties   in  detail   reasonably
                  satisfactory to the Collateral Agent and (B) such formation or
                  acquisition  (other than the  formation  or  acquisition  of a
                  Subsidiary  that is designated an  Unrestricted  Subsidiary at
                  the  time  of  its  formation  or  acquisition  or a CFC  or a
                  Subsidiary  held directly or indirectly by a CFC),  furnish to
                  the  Collateral  Agent a description  of the real and personal
                  properties  of  such  Subsidiary  or  the  real  and  personal
                  properties  so  acquired,  in each case in  detail  reasonably
                  satisfactory to the Collateral Agent,

                           (iii)  within  60 days  after  (A)  such  request  or
                  acquisition  of property by any Loan Party,  duly  execute and
                  deliver,  and  cause  each  Loan  Party  to duly  execute  and
                  deliver,  to the Collateral  Agent such additional  mortgages,
                  pledges,   assignments,    security   agreement   supplements,
                  intellectual property security agreement supplements and other
                  security agreements as specified by, and in form and substance
                  satisfactory to the Collateral Agent,  securing payment of all
                  the  Obligations  of such Loan Party under the Loan  Documents
                  and  constituting  Liens on all such  properties  and (B) such
                  formation or acquisition of any new Subsidiary (other than the
                  formation or acquisition of a Subsidiary that is designated an

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                  Unrestricted  Subsidiary  at  the  time  of its  formation  or
                  acquisition  or  a  CFC  or  a  Subsidiary  held  directly  or
                  indirectly by a CFC),  duly execute and deliver and cause each
                  Subsidiary to duly execute and deliver to the Collateral Agent
                  mortgages,    pledges,    assignments,    security   agreement
                  supplements,    intellectual   property   security   agreement
                  supplements and other security agreements as specified by, and
                  in  form  and  substance   reasonably   satisfactory   to  the
                  Collateral  Agent,  securing payment of all of the obligations
                  of such Subsidiary under the Loan Documents; provided that (A)
                  the stock of any Subsidiary held by a CFC shall not be pledged
                  and (B) if such new  property  is Equity  Interests  in a CFC,
                  only 66% of such Equity Interests shall be pledged in favor of
                  the Secured Parties,

                           (iv) within 60 days after such request,  formation or
                  acquisition,  take,  and cause  each Loan Party and each newly
                  acquired or newly formed Subsidiary (other than any Subsidiary
                  that is (x) designated an Unrestricted  Subsidiary at the time
                  of its formation or acquisition, (y) a CFC or (z) a Subsidiary
                  that  is  held  directly  or  indirectly  by a CFC)  to  take,
                  whatever reasonable action (including, without limitation, the
                  recording of mortgages,  the filing of Uniform Commercial Code
                  financing   statements,   the  giving  of   notices   and  the
                  endorsement  of notices on title  documents) may be reasonably
                  necessary or advisable in the opinion of the Collateral  Agent
                  to vest in the Collateral Agent (or in any  representative  of
                  the  Collateral  Agent  designated by it) valid and subsisting
                  Liens  on  the  properties  purported  to be  subject  to  the
                  mortgages,    pledges,    assignments,    security   agreement
                  supplements,    intellectual   property   security   agreement
                  supplements and security agreements delivered pursuant to this
                  Section  5.01(j),  enforceable  against  all third  parties in
                  accordance with their terms,

                           (v) within 60 days after any such request,  formation
                  or  acquisition,  deliver to the  Collateral  Agent,  upon the
                  request  of the  Collateral  Agent in its sole  discretion,  a
                  signed copy of an opinion,  addressed to the Collateral  Agent
                  and the other Secured Parties, of counsel for the Loan Parties
                  reasonably  acceptable to the  Collateral  Agent as to (1) the
                  matters  contained in clauses (i),  (iii) and (iv) above,  (2)
                  such guaranties,  guaranty  supplements,  mortgages,  pledges,
                  assignments,  security  agreement  supplements,   intellectual
                  property   security   agreement   supplements   and   security
                  agreements being legal, valid and binding  obligations of each
                  Loan Party thereto enforceable in accordance with their terms,
                  as to the matters  contained  in clause  (iv) above,  (3) such
                  recordings,  filings, notices,  endorsements and other actions
                  being  sufficient  to  create  valid  perfected  Liens on such
                  properties, and (4) such other matters as the Collateral Agent
                  may reasonably request,

                           (vi)  as  promptly  as  practicable  after  any  such
                  request,  formation or acquisition,  deliver, upon the request
                  of  the  Collateral  Agent  in  its  sole  discretion,  to the
                  Collateral  Agent with respect to each parcel of real property
                  owned or held by each Loan  Party and each newly  acquired  or
                  newly formed  Subsidiary  (other than any Subsidiary  that (x)
                  designated  an  Unrestricted  Subsidiary  at the  time  of its
                  formation  or  acquisition,  (y) is a CFC or (z) a  Subsidiary
                  that is held directly or  indirectly by a CFC) title  reports,
                  surveys  and  engineering,   soils  and  other  reports,   and
                  environmental  assessment  reports,  each in  scope,  form and
                  substance  reasonably  satisfactory  to the Collateral  Agent,
                  provided,  however,  that to the extent that any Loan Party or
                  any of its Subsidiaries  shall have otherwise  received any of
                  the foregoing  items with respect to such real property,  such
                  items shall,  promptly after the receipt thereof, be delivered
                  to the Collateral Agent, and

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                           (vii) at any time  and  from  time to time,  promptly
                  execute and deliver,  and cause to execute and  deliver,  each
                  Loan Party and each newly acquired or newly formed  Subsidiary
                  (other  than  any   Subsidiary   that  is  (x)  designated  an
                  Unrestricted  Subsidiary  at  the  time  of its  formation  or
                  acquisition,  (y) a CFC  or  (z) a  Subsidiary  that  is  held
                  directly  or   indirectly  by  a  CFC)  any  and  all  further
                  instruments  and documents and take, and cause each Loan Party
                  and each newly acquired or newly formed Subsidiary (other than
                  (x) designated an  Unrestricted  Subsidiary at the time of its
                  formation or acquisition,  (y) any Subsidiary that is a CFC or
                  (z) a Subsidiary that is held directly or indirectly by a CFC)
                  to take,  all such other  action as the  Collateral  Agent may
                  deem  reasonably  necessary or desirable in obtaining the full
                  benefits of, or in  perfecting  and  preserving  the Liens of,
                  such guaranties,  mortgages,  pledges,  assignments,  security
                  agreement   supplements,    intellectual   property   security
                  agreement supplements and security agreements.

                  (k)  Further  Assurances.  (i)  Promptly  upon  request by any
         Agent, or any Lender Party through the Administrative  Agent,  correct,
         and cause each of its  Subsidiaries  promptly to correct,  any material
         defect or error that may be discovered in any Collateral Document or in
         the execution, acknowledgment, filing or recordation thereof, and

                           (ii)  Promptly  upon  request  by any  Agent,  or any
                  Lender Party through the  Administrative  Agent,  do, execute,
                  acknowledge,   deliver,  record,  re-record,   file,  re-file,
                  register and re-register  any and all such further  reasonable
                  acts, deeds, conveyances, pledge agreements,  mortgages, deeds
                  of trust, trust deeds,  assignments,  financing statements and
                  continuations  thereof,  termination  statements,  notices  of
                  assignment,  transfers,  certificates,  assurances  and  other
                  instruments  as any Agent,  or any Lender  Party  through  the
                  Administrative Agent, may reasonably require from time to time
                  in order to (A) carry out more effectively the purposes of the
                  Loan  Documents,  (B)  to  the  fullest  extent  permitted  by
                  applicable  law,  subject  any  Loan  Party's  or  any  of its
                  Subsidiaries'  properties,  assets, rights or interests to the
                  Liens now or  hereafter  intended  to be covered by any of the
                  Collateral  Documents,  (C) perfect and maintain the validity,
                  effectiveness and priority of any of the Collateral  Documents
                  and any of the Liens intended to be created thereunder and (D)
                  assure, convey, grant, assign, transfer, preserve, protect and
                  confirm more  effectively  unto the Secured Parties the rights
                  granted  or now or  hereafter  intended  to be  granted to the
                  Secured  Parties  under any Loan  Document  or under any other
                  instrument  executed in  connection  with any Loan Document to
                  which any Loan Party or any of its Subsidiaries is or is to be
                  a party, and cause each of its Subsidiaries to do so.

                  (l) Performance of Related Documents. Perform and observe, and
         cause each of its Subsidiaries to perform and observe, all of the terms
         and provisions of each Related  Document to be performed or observed by
         it,  maintain  each such  Related  Document  in full force and  effect,
         enforce such Related  Document in accordance  with its terms,  take all

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         such  action  to  such  end as may be  from  time  to  time  reasonably
         requested by the Administrative  Agent and, upon the reasonable request
         of the  Administrative  Agent,  make to each  other  party to each such
         Related  Document such reasonable  demands and requests for information
         and reports or for action as any Loan Party or any of its  Subsidiaries
         is entitled to make under such Related Document.

                  (m) Preparation of  Environmental  Reports.  At the request of
         the Administrative Agent at any time that the Administrative  Agent, in
         its reasonable  judgment,  believes that the prospect of payment of the
         Obligations  of the Loan Parties under the Loan Documents in the normal
         course  is  impaired  (but in no  event  more  than one in any two year
         period,  unless an Event of Default has  occurred  and is  continuing),
         provide to the Lender  Parties  within 120 days after such request,  at
         the expense of the Borrower,  an environmental  site assessment  report
         for any of its or its Subsidiaries' owned properties  described in such
         request,  prepared  by  an  environmental  consulting  firm  reasonably
         acceptable  to  the  Administrative  Agent  or  the  Collateral  Agent,
         indicating  the  presence or absence of  Hazardous  Materials;  without
         limiting the generality of the foregoing,  if the Administrative  Agent
         or the  Collateral  Agent  determines  at any time that a material risk
         exists  that  any such  report  will not be  provided  within  the time
         referred to above, the Administrative Agent or the Collateral Agent may
         retain an  environmental  consulting firm to prepare such report at the
         expense of the Borrower,  and the Borrower  hereby grants and agrees to
         cause any Subsidiary  that owns any property  described in such request
         to grant at the time of such request to the Agents, the Lender Parties,
         such firm and any  agents or  representatives  thereof  an  irrevocable
         non-exclusive license,  subject to the rights of tenants, to enter onto
         their respective properties to undertake such an assessment.

                  (n) Compliance with Terms of Leaseholds. Make all payments and
         otherwise  perform  all  obligations  in  respect of all leases of real
         property to which the Borrower or any of its  Subsidiaries  is a party,
         keep such  leases in full force and effect and not allow such leases to
         lapse or be  terminated  or any  rights  to  renew  such  leases  to be
         forfeited or cancelled,  notify the Administrative Agent of any default
         by any  party  with  respect  to such  leases  and  cooperate  with the
         Administrative  Agent in all  respects  to cure any such  default,  and
         cause each of its Subsidiaries to do so, except, in any case, where the
         failure to do so, either individually or in the aggregate, could not be
         reasonably likely to have a Material Adverse Effect.

                  (o) Interest Rate  Hedging.  Enter into prior to 90 days after
         Closing,  and  maintain at all times  thereafter,  interest  rate Hedge
         Agreements  with  Persons  acceptable  to  the  Administrative   Agent,
         covering  a  notional  amount of not less  than 50% of the  Commitments
         under all of the  Facilities  or such  other  level  acceptable  to the
         Administrative Agent.

                  (p) Performance of Material Contract.  Perform and observe all
         the terms and  provisions  of the Material  Contract to be performed or
         observed  by it,  maintain  the  Material  Contract  in full  force and
         effect, enforce the Material Contract in accordance with its terms and,
         upon the reasonable request of the  Administrative  Agent, make to each
         other party to the  Material  Contract  such  demands and  requests for
         information  and  reports or for action as any Loan Party or any of its
         Subsidiaries is entitled to make under the Material Contract, and cause

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<PAGE>

         each of its  Subsidiaries  to do so,  except,  in any  case,  where the
         failure to do so, either individually or in the aggregate,  could would
         not be reasonably  likely to have a Material Adverse Effect;  provided,
         however,  that  a  termination  of  the  Material  Contract  shall  not
         constitute a breach of this Section  5.01(o)  unless the Borrower shall
         not  have  entered  into  a  substitute  contract  with a  third  party
         acceptable  to  the  Administrative   Agent  within  60  days  of  such
         termination.

                  (q) Real  Property.  Within 60 days  following the date of the
         Initial  Extension  of  Credit,  the  Administrative  Agent  shall have
         received deeds of trust, trust deeds and mortgages in substantially the
         form of Exhibit G hereto  (with  such  changes  as may be  required  to
         account  for local law  matters)  or  otherwise  in form and  substance
         reasonably  satisfactory to the  Administrative  Agent and covering the
         owned  properties  listed on Schedule 4.01(q) hereto with an individual
         book value in excess of  $500,000  (together  with each other  mortgage
         delivered  pursuant to Section  5.01(j),  in each case as amended,  the
         "Mortgages"),  duly executed by the  appropriate  Loan Party,  together
         with:

                           (A) evidence that  counterparts of the Mortgages have
                  been duly  recorded  within 60 days  following  the day of the
                  Initial Extension of Credit in all filing or recording offices
                  that the Administrative  Agent may deem necessary or desirable
                  in order to create a valid  first and  subsisting  Lien on the
                  property  described  therein in favor of the Collateral  Agent
                  for the benefit of the Secured Parties and that all filing and
                  recording taxes and fees have been paid,

                           (B)  fully  paid  American  Land  Title   Association
                  Lender's  Extended  Coverage  title  insurance  policies  (the
                  "Mortgage Policies") in form and substance,  with endorsements
                  and in  amount  reasonably  acceptable  to the  Administrative
                  Agent,  issued  and  reinsured  by title  insurers  reasonably
                  acceptable to the Administrative Agent, insuring the Mortgages
                  to be  valid  first  and  subsisting  Liens  on  the  property
                  described therein,  free and clear of all defects  (including,
                  but not limited to,  mechanics' and  materialmen's  Liens) and
                  encumbrances,   excepting  only  Permitted  Encumbrances,  and
                  providing  for such  other  affirmative  insurance  (including
                  endorsements  for future advances under the Loan Documents and
                  for mechanics' and materialmen's Liens),

                           (C) American  Land Title  Association  form  surveys,
                  dated  no more  than 60 days  after  the  date of the  Initial
                  Extension of Credit, certified to the Administrative Agent and
                  the issuer of the Mortgage  Policies in a manner  satisfactory
                  to the Administrative Agent by a land surveyor duly registered
                  and licensed in the States in which the property  described in
                  such surveys is located and  acceptable to the  Administrative
                  Agent,  showing  all  buildings  and other  improvements,  any
                  off-site improvements,  the location of any easements, parking
                  spaces,  rights  of way,  building  set-back  lines  and other
                  dimensional  regulations  and the  absence  of  encroachments,
                  either by such improvements or on to such property,  and other
                  defects, other than encroachments and other defects acceptable
                  to the  Administrative  Agent;  provided,  however,  that with
                  respect  to the  property  indicated  with  a "+" on  Schedule
                  4.01(u), the form survey previously received on March 18, 2002
                  need only be delivered to the Administrative Agent;  provided,

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<PAGE>

                  further that with respect to the  properties  indicated with a
                  "*" on  Schedule  4.01(u),  only  "drive-by"  surveys  need be
                  obtained  to  update  the  surveys  previously  received  with
                  respect to such properties,

                           (D) such consents and agreements of lessors and other
                  third   parties,   and  such   estoppel   letters   and  other
                  confirmations,  as the Administrative Agent may deem necessary
                  or desirable,

                           (E) evidence of the  insurance  required by the terms
                  of the Mortgages,

                           (F)   evidence   that  all  other   action  that  the
                  Administrative  Agent may deem necessary or desirable in order
                  to create  valid first and  subsisting  Liens on the  property
                  described in the Mortgages has been taken,

                           (G) opinions of local counsel for the Loan Parties in
                  states in which the  Properties  are located,  with respect to
                  the  enforceability  and  perfection  of the Mortgages and any
                  related fixture filings substantially in the form of Exhibit K
                  hereto,  and otherwise in form and substance  satisfactory  to
                  the Administrative Agent.

                  (r) Bank  Accounts.  (i) Within 30 days  following the date of
         the Initial Extension of Credit, close the Company's securities account
         (Account No. 875708) with Banc of America Securities LLC.

                           (ii) Within 10 Business  Days  following  the date of
                  the Initial Extension of Credit, close (A) Best Masonry & Tool
                  Supply,  Inc.'s deposit  account with Branch Banking and Trust
                  Company (Account No. 5140720668), (B) Lewis W. Osborne, Inc.'s
                  deposit  account  with  Bank of  Orange  County  (Account  No.
                  21539471),  and  (C)  United  Terrazzo  Supply  Co.'s  deposit
                  account with Ban of Orange County.

                           (iii) Permit only the Borrower's  shares purchased or
                  issued by the Borrower for use under the  Borrower's  Employee
                  Stock  Purchase Plan to be held in its UBS Paine Webber,  Inc.
                  securities account, with no other Investments or amounts.

         SECTION 5.02  Negative  Covenants.  So long as any Advance or any other
Obligation of any Loan Party under any Loan Document  shall remain  unpaid,  any
Letter of  Credit  shall be  outstanding  or any  Lender  Party  shall  have any
Commitment hereunder, the Borrower will not, at any time:

                  (a) Liens, Etc. Create,  incur,  assume or suffer to exist, or
         permit any of its Restricted  Subsidiaries to create,  incur, assume or
         suffer to exist,  any Lien on or with respect to any of its  properties
         of any character (including, without limitation,  accounts) whether now
         owned or  hereafter  acquired,  or sign or file or suffer to exist,  or
         permit any of its Restricted  Subsidiaries to sign or file or suffer to
         exist,  under  the  Uniform  Commercial  Code  of any  jurisdiction,  a
         financing  statement that names the Borrower or any of its Subsidiaries
         as debtor,  or sign or suffer to exist, or permit any of its Restricted

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<PAGE>

         Subsidiaries  to  sign or  suffer  to  exist,  any  security  agreement
         authorizing  any  secured  party  thereunder  to  file  such  financing
         statement,  or assign, or permit any of its Restricted  Subsidiaries to
         assign, any accounts or other right to receive income, except:

                           (i) Liens created under the Loan Documents;

                           (ii) Permitted Liens;

                           (iii) Liens existing on the date hereof and described
                  on Schedule 4.01(v) hereto;

                           (iv) purchase money Liens upon or in real property or
                  equipment  acquired  or  held  by the  Borrower  or any of its
                  Restricted  Subsidiaries in the ordinary course of business to
                  secure the purchase  price of such property or equipment or to
                  secure Debt  incurred  solely for the purpose of financing the
                  acquisition,  construction or improvement of any such property
                  or equipment to be subject to such Liens, or Liens existing on
                  any such  property  or  equipment  at the time of  acquisition
                  (other than any such Liens  created in  contemplation  of such
                  acquisition  that  do  not  secure  the  purchase  price),  or
                  extensions,  renewals or  replacements of any of the foregoing
                  for the same or a lesser amount;  provided,  however,  that no
                  such Lien shall extend to or cover any property other than the
                  property or equipment being acquired, constructed or improved,
                  and no such extension,  renewal or replacement shall extend to
                  or cover any  property  not  theretofore  subject  to the Lien
                  being extended, renewed or replaced; and provided further that
                  the  aggregate  principal  amount of the Debt secured by Liens
                  permitted  by this  clause  (iv)  shall not  exceed the amount
                  permitted   under   Section   5.02(b)(ii)(C)   at   any   time
                  outstanding;

                           (v) Liens  arising  in  connection  with  Capitalized
                  Leases permitted under Section  5.02(b)(ii)(D);  provided that
                  no such Lien shall extend to or cover any Collateral or assets
                  other than the assets subject to such Capitalized Leases; and

                           (vi) the  replacement,  extension  or  renewal of any
                  Lien  permitted  by  clause  (iii)  above  upon or in the same
                  property  theretofore  subject  thereto  or  the  replacement,
                  extension or renewal (without increase in the amount or change
                  in any  direct  or  contingent  obligor)  of the Debt  secured
                  thereby.

                  (b) Debt. Create,  incur, assume or suffer to exist, or permit
         any of its Restricted  Subsidiaries to create,  incur, assume or suffer
         to exist, any Debt, except:

                           (i) in the case of the  Borrower,  Debt in respect of
                  Hedge  Agreements  designed to hedge against  fluctuations  in
                  interest  rates or  foreign  exchange  rates  incurred  in the
                  ordinary  course of business and  consistent  with  reasonable
                  business practice, and

                           (ii) in the case of any Loan Party:

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<PAGE>

                                    (A)  Debt  owed  to the  Borrower  or to any
                           other Loan Party,  provided that, in each case,  such
                           Debt (x) shall constitute  Pledged Debt, (y) shall be
                           on terms acceptable to the  Administrative  Agent and
                           (z) shall be  evidenced by  promissory  notes in form
                           and  substance  satisfactory  to  the  Administrative
                           Agent and such  promissory  notes shall be pledged as
                           security for the  Obligations  of the holder  thereof
                           under the Loan  Documents  to which such  holder is a
                           party and delivered to the Collateral  Agent pursuant
                           to the terms of the Security Agreement;

                                    (B) Debt under the Loan Documents;

                                    (C)  Debt  secured  by  Liens  permitted  by
                           Section  5.02(a)(iv)  not to exceed in the aggregate,
                           on a  Consolidated  basis,  $5,000,000  at  any  time
                           outstanding;

                                    (D) Capitalized  Leases not to exceed in the
                           aggregate, on a Consolidated basis, $5,000,000 at any
                           time outstanding;

                                    (E) the Surviving Debt;

                                    (F) unsecured  Debt incurred in the ordinary
                           course of business for the deferred purchase price of
                           property or services,  aggregating, on a Consolidated
                           basis,  not  more  than  $5,000,000  at any one  time
                           outstanding;

                                    (G)  Debt  of  a   Subsidiary   acquired  as
                           permitted in  accordance  with  Section  5.02(f)(vii)
                           hereof so long as (x) such Debt was in  existence  at
                           the  time of  acquisition  and was  not  incurred  in
                           connection   with  such   acquisition   and  (y)  the
                           aggregate   principal   amount   of  all  such   Debt
                           outstanding at any time shall not exceed $25 million;

                                    (H) Debt in respect of take or pay contracts
                           entered  into  by the  Borrower  and  its  Restricted
                           Subsidiaries  in the ordinary  course of business and
                           consistent with past practices; and

                                    (I)  Debt  in  respect   of  the   Mezzanine
                           Facility  not to exceed a  principal  amount,  in the
                           aggregate, of $20,000,000,  plus pay-in-kind interest
                           accruing  in   accordance   with  the  terms  of  the
                           Mezzanine Facility as in effect on the date hereof.

                  (c) Change in Nature of Business.  Make,  or permit any of its
         Restricted  Subsidiaries  to make, any material change in the nature of
         its business as carried on at the date hereof and as currently proposed
         to be conducted as more fully described in the Information Memorandum.

                  (d) Mergers, Etc. Merge into or consolidate with any Person or
         permit any  Person to merge  into it, or permit  any of its  Restricted
         Subsidiaries to do so, except that:

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<PAGE>

                           (i) the Borrower and its Restricted  Subsidiaries may
                  consummate the Merger;

                           (ii) any  Restricted  Subsidiary  of the Borrower may
                  merge into or consolidate with any other Restricted Subsidiary
                  of the Borrower, provided that, in the case of any such merger
                  or  consolidation,   the  Person  formed  by  such  merger  or
                  consolidation shall be a wholly owned Restricted Subsidiary of
                  the Borrower,  provided  further that, in the case of any such
                  merger or consolidation  to which a Subsidiary  Guarantor is a
                  party, the Person formed by such merger or consolidation shall
                  be a Subsidiary Guarantor;

                           (iii) in connection  with any  acquisition  permitted
                  under  Section  5.02(f),  any  Restricted  Subsidiary  of  the
                  Borrower may merge into or  consolidate  with any other Person
                  or permit any other Person to merge into or  consolidate  with
                  it; provided that the person  surviving such merger shall be a
                  wholly owned Restricted  Subsidiary of the Borrower,  provided
                  further that, in the case of any such merger or  consolidation
                  to which a Subsidiary  Guarantor is a party, the Person formed
                  by  such  merger  or  consolidation   shall  be  a  Subsidiary
                  Guarantor; and

                           (iv) any Loan Party may merge into the Borrower;

         provided,  however,  that in each  case,  immediately  before and after
         giving effect thereto, no Default shall have occurred and be continuing
         and, in the case of any such  merger to which the  Borrower is a party,
         the Borrower is the surviving corporation.

                  (e) Sales, Etc., of Assets. Sell, lease, transfer or otherwise
         dispose  of,  or permit  any of its  Restricted  Subsidiaries  to sell,
         lease,  transfer or  otherwise  dispose  of, any  assets,  or grant any
         option or other  right to  purchase,  lease or  otherwise  acquire  any
         assets, except:

                           (i) sales of Inventory in the ordinary  course of its
                  business  and the  granting  of any  option or other  right to
                  purchase, lease or otherwise acquire Inventory in the ordinary
                  course of its business;

                           (ii) sales or grants of exclusive  and  non-exclusive
                  licenses of intellectual property entered into in the ordinary
                  course  of  business;

                           (iii) (A) sales,  transfers or other  dispositions of
                  assets among the Loan Parties  (including,  without limitation
                  sales,  transfers  or  other  dispositions,  with  or  without
                  consideration,   of  intellectual   property  among  the  Loan
                  Parties)  and (B)  transfer  of assets  set forth on  Schedule
                  5.02(e) by the Loan Parties to Flexcrete LLC;

                           (iv) sales, transfers or other dispositions of assets
                  for cash and for fair  value  in an  aggregate  amount  not to
                  exceed $75  million  (including,  without  limitation,  Equity
                  Interests in Subsidiaries but excluding any original issuances
                  of stock of any  Subsidiary)  so long as (x) no Default  shall
                  have occurred and be continuing or would result from such sale
                  and (y) the Net Cash  Proceeds  from such  sale,  transfer  or
                  disposition  are applied as set forth in Section  2.05(b)(ii);
                  and

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<PAGE>

                           (v) sales of assets for cash proceeds in an aggregate
                  amount of $1,000,000 annually so long as no Default shall have
                  occurred and be continuing or would result from such sale (the
                  proceeds  from such sale not being  subject  to the  mandatory
                  prepayment provisions set forth in Section 2.05(b)).

                  (f) Investments in Other Persons.  Make or hold, or permit any
         of its Restricted  Subsidiaries  to make or hold, any Investment in any
         Person, except:

                           (i) (A) equity  Investments  by the  Borrower and its
                  Restricted  Subsidiaries in their Subsidiaries  outstanding on
                  the date hereof,  (B)  additional  equity  Investments in Loan
                  Parties  and  (C)  additional   Investments  in  wholly  owned
                  Subsidiaries  that are not Loan Parties in an aggregate amount
                  invested (together with the aggregate amount invested pursuant
                  to clause  (vii) below) from the date hereof not to exceed the
                  sum of (x)  $10,000,000,  (y)  the  aggregate  amount  of cash
                  received  (up  to  the  aggregate  amount  of  Investments  in
                  Unrestricted  Subsidiaries  made by the Loan Parties  prior to
                  the date of  receipt of such  cash) by the Loan  Parties  from
                  Unrestricted  Subsidiaries from the repayment or prepayment of
                  any Debt owed by an  Unrestricted  Subsidiary or as a dividend
                  or  distribution  in  respect of the  Equity  Interests  of an
                  Unrestricted Subsidiary and (z) the aggregate amount of Excess
                  Cash Flow not required to prepay the Advances  pursuant to the
                  provisions   of  Section   2.05(b)(i)   (provided   that  such
                  $10,000,000  limit  shall  not  include  contributions  by the
                  Borrower of its common  stock to any wholly  owned  Subsidiary
                  that is not a Loan Party);

                           (ii) loans and  advances to employees in the ordinary
                  course of the  business  of the  Borrower  and its  Restricted
                  Subsidiaries as presently  conducted in an aggregate principal
                  amount not to exceed $1,000,000 at any time outstanding;

                           (iii)   Investments   by   the   Borrower   in   Cash
                  Equivalents;

                           (iv)  Investments  existing  on the date  hereof  and
                  described on Schedule 4.01(x) hereto;

                           (v)  Investments by the Borrower in Hedge  Agreements
                  permitted under Section 5.02(b)(i);

                           (vi)  Investments  consisting  of  intercompany  Debt
                  permitted under Section 5.02(b); and

                           (vii) the purchase or other acquisition of all of the
                  Equity  Interests  in,  or  all  or  substantially  all of the
                  property and assets of, any Person that, upon the consummation
                  thereof,  will be wholly owned directly by the Borrower or one
                  or  more  of  its   wholly   owned   Restricted   Subsidiaries
                  (including,  without  limitation,  as a result  of a merger or
                  consolidation);  provided that,  with respect to each purchase
                  or other acquisition made pursuant to this clause (vii):

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<PAGE>

                                    (A)  any  such  newly  created  or  acquired
                           Subsidiary shall either be designated an Unrestricted
                           Subsidiary at the time of its creation or acquisition
                           or comply with the requirements of Section 5.01(i);

                                    (B) the lines of  business  of the Person to
                           be (or the property and assets of which are to be) so
                           purchased    or   otherwise    acquired    shall   be
                           substantially  the same lines of  business  as one or
                           more of the principal  businesses of the Borrower and
                           its Subsidiaries in the ordinary course or reasonably
                           related thereto;

                                    (C) such purchase or other acquisition shall
                           not include or result in any  contingent  liabilities
                           that could  reasonably  be expected to be material to
                           the  business,  financial  condition,  operations  or
                           prospects  of  the   Borrower   and  its   Restricted
                           Subsidiaries, taken as a whole (as determined in good
                           faith by the board of directors of the Borrower);

                                    (D) the total cash and noncash consideration
                           (including, without limitation, the fair market value
                           of all Equity  Interests issued or transferred to the
                           sellers thereof (other than consideration  consisting
                           of common stock of the Borrower in connection with an
                           Investment made by an Unrestricted  Subsidiary),  all
                           indemnities,  earnouts and other  contingent  payment
                           obligations to, and the aggregate  amounts paid or to
                           be  paid  under  noncompete,   consulting  and  other
                           affiliated  agreements with, the sellers thereof, all
                           write-downs  of property  and assets and reserves for
                           liabilities  with respect thereto and all assumptions
                           of  debt,   liabilities  and  other   obligations  in
                           connection  therewith)  paid by or on  behalf  of the
                           Borrower and its Restricted Subsidiaries for any such
                           purchase or other  acquisition,  when aggregated with
                           the total cash and noncash  consideration  paid by or
                           on  behalf  of  the  Borrower   and  its   Restricted
                           Subsidiaries   for  all  other  purchases  and  other
                           acquisitions  made by the Borrower and its Restricted
                           Subsidiaries  pursuant to this clause (vii) (together
                           with the  aggregate  amount  invested  under  Section
                           5.02(f)(i)(C)) from the date hereof, shall not exceed
                           the sum of (i) $10,000,000,  (y) the aggregate amount
                           of  cash  received  (up to the  aggregate  amount  of
                           Investments in Unrestricted  Subsidiaries made by the
                           Loan  Parties  prior to the date of  receipt  of such
                           cash)  by  the   Loan   Parties   from   Unrestricted
                           Subsidiaries  from the repayment or prepayment of any
                           Debt  owed  by  an  Unrestricted  Subsidiary  or as a
                           divided  or  distribution  in  respect  of the Equity
                           Interests of an  Unrestricted  Subsidiary and (z) the
                           aggregate  amount of Excess Cash Flow not required to
                           prepay the  Advances  pursuant to the  provisions  of
                           Section 2.05(b)(i);

                                    (E) (1) immediately  before such purchase or
                           acquisition,  the entity being  purchased or acquired
                           shall be EBITDA positive;  (2) immediately before and
                           immediately after giving pro forma effect to any such
                           purchase or other acquisition,  no Default shall have

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<PAGE>

                           occurred and be  continuing,  (3)  immediately  after
                           giving effect to such purchase or other  acquisition,
                           the Borrower and its Restricted Subsidiaries shall be
                           in pro forma compliance with all of the covenants set
                           forth  in  Section  5.04,   such   compliance  to  be
                           determined on the basis of the  financial  statements
                           most recently delivered pursuant to Section 5.03 most
                           recently  delivered to the  Administrative  Agent and
                           the Lender  Parties as though such  purchase or other
                           acquisition had been  consummated as of the first day
                           of the fiscal period covered  thereby,  (4) the Total
                           Leverage  Ratio of the  Borrower  and its  Restricted
                           Subsidiaries,  taken as a whole, will be reduced as a
                           result of such purchase or  acquisition;  and (5) any
                           debt  assumed in  connection  with such  purchase  or
                           acquisition  shall be  subordinated to the Facilities
                           and, when  aggregated  with the total debt assumed by
                           the Borrower in connection  with all other  purchases
                           and  acquisitions   made  by  the  Borrower  and  its
                           Restricted   Subsidiaries  pursuant  to  this  clause
                           (vii), shall not exceed $25,000,000; and

                                    (F) the Borrower shall have delivered to the
                           Administrative   Agent,   on  behalf  of  the  Lender
                           Parties,  at least  five  Business  Days prior to the
                           date on which any such purchase or other  acquisition
                           is to be consummated,  a certificate of a Responsible
                           Officer,    in   form   and   substance    reasonably
                           satisfactory to the Administrative Agent,  certifying
                           that all of the requirements set forth in this clause
                           (vii) have been  satisfied or will be satisfied on or
                           prior to the  consummation  of such purchase or other
                           acquisition.

                  Notwithstanding  the  foregoing,  it  is  understood  that  no
                  proceeds of any Advance  will be used to purchase or carry any
                  Margin Stock or to extend  credit to others for the purpose of
                  purchasing or carrying any Margin Stock.

                  (g)  Restricted  Payments.   Declare  or  pay  any  dividends,
         purchase, redeem, retire, defease or otherwise acquire for value any of
         its Equity Interests now or hereafter  outstanding,  return any capital
         to its  stockholders,  partners or members (or the  equivalent  Persons
         thereof) as such, make any  distribution of assets,  Equity  Interests,
         obligations or securities to its stockholders,  partners or members (or
         the equivalent Persons thereof) as such or permit any of its Restricted
         Subsidiaries  to do  any  of  the  foregoing,  or  permit  any  of  its
         Restricted  Subsidiaries  to  purchase,   redeem,  retire,  defease  or
         otherwise  acquire for value any Equity Interests in the Borrower or to
         issue or sell any Equity Interests therein,  except that, so long as no
         Default shall have occurred and be continuing at the time of any action
         described below or would result therefrom:

                           (i) the  Borrower may declare and pay  dividends  and
                  distributions  payable only in common  stock of the  Borrower;
                  and

                           (ii) any  Restricted  Subsidiary  of the Borrower may
                  (A)  declare  and pay  cash  dividends  to the  Borrower,  (B)
                  declare and pay cash dividends to any other Loan Party and (C)
                  accept capital contributions from any Loan Party.

                                       81
<PAGE>

         Nothing  in  this  Section   5.02(g)  shall  prohibit  any  transaction
permitted by Section 5.02(e).

                  (h) Amendments of Constitutive Documents. Amend, or permit any
         of  its  Restricted   Subsidiaries   to  amend,   its   certificate  of
         incorporation  or bylaws or other  constitutive  documents  other  than
         amendments  that could not be  reasonably  expected  to have a Material
         Adverse Effect.

                  (i) Accounting  Changes.  Make or permit, or permit any of its
         Restricted  Subsidiaries to make or permit,  any change in Fiscal Year,
         or any  accounting  policies or  reporting  practices,  in any material
         respect,   except  as  required  or  permitted  by  generally  accepted
         accounting  principles,  as in effect in the  United  States of America
         from time to time.

                  (j)  Prepayments,  Etc., of Debt.  Prepay,  redeem,  purchase,
         defease or otherwise satisfy prior to the scheduled maturity thereof in
         any manner, or make any payment in violation of any subordination terms
         of,  any Debt for  Borrowed  Money,  except (i) the  prepayment  of the
         Advances in accordance with the terms of this Agreement, (ii) regularly
         scheduled  required  repayments  or optional  redemptions  of Surviving
         Debt, (iii) payments of scheduled interest in respect of the Debt under
         the Mezzanine Facility,  and (iv) prepayments of the Debt in respect of
         the Mezzanine Facility with up to 50% of the Net Cash Proceeds from the
         sale or issuance by the Borrower or any of its Restricted  Subsidiaries
         of any  Equity  Interests  during the first six  months  following  the
         Closing  Date,  or amend,  modify or change in any  manner  any term or
         condition of any Subordinated  Debt or Surviving Debt, or permit any of
         its Restricted  Subsidiaries  to do any of the foregoing  other than to
         prepay any Debt payable to the Borrower.

                  (k) Amendment, Etc., of Related Documents. Cancel or terminate
         any  Related  Document  or  consent to or accept  any  cancellation  or
         termination thereof,  amend, modify or change in any manner any term or
         condition  of any  Related  Document  or give any  consent,  waiver  or
         approval thereunder,  waive any default under or any breach of any term
         or condition of any Related Document,  agree in any manner to any other
         amendment,  modification  or  change  of any term or  condition  of any
         Related  Document  or take any  other  action  in  connection  with any
         Related  Document that would impair the value of the interest or rights
         of any Loan  Party  thereunder  or that  would  impair  the  rights  or
         interests  of any  Agent or any  Lender  Party,  or  permit  any of its
         Restricted Subsidiaries to do any of the foregoing, except in each case
         as could not reasonably be expected to have a Material Adverse Effect.

                  (l) Negative Pledge.  Enter into or suffer to exist, or permit
         any of its  Restricted  Subsidiaries  to enter into or suffer to exist,
         any agreement prohibiting or conditioning the creation or assumption of
         any Lien upon any of its property or assets  except (i) in favor of the
         Secured  Parties or (ii) in connection with (A) any Surviving Debt, (B)
         any purchase money Debt permitted by Section  5.02(b)(ii)(B)  solely to
         the  extent  that the  agreement  or  instrument  governing  such  Debt

                                       82
<PAGE>

         prohibits a Lien on the  property  acquired  with the  proceeds of such
         Debt or (C) any Capitalized  Lease permitted by Section  5.02(b)(ii)(C)
         solely to the extent that such  Capitalized  Lease  prohibits a Lien on
         the property subject  thereto,  or (D) any Debt outstanding on the date
         any  Restricted  Subsidiary  of the Borrower  becomes such a Restricted
         Subsidiary  (so long as such  agreement  was not entered into solely in
         contemplation  of such  Restricted  Subsidiary  becoming  a  Restricted
         Subsidiary of the Borrower).

                  (m) Partnerships, Etc. Become a general partner in any general
         or  limited  partnership  or  joint  venture,  or  permit  any  of  its
         Restricted  Subsidiaries to do so, other than any Restricted Subsidiary
         the sole assets of which consist of its interest in such partnership or
         joint venture.

                  (n)  Speculative  Transactions.  Engage,  or permit any of its
         Restricted   Subsidiaries  to  engage,  in  any  transaction  involving
         commodity  options  or futures  contracts  or any  similar  speculative
         transactions,  except for take or pay contracts entered in the ordinary
         course of business and consistent with past practices.

                  (o)  Capital   Expenditures.   Make,  or  permit  any  of  its
         Restricted  Subsidiaries to make, any Capital  Expenditures  that would
         cause  the  aggregate  of all  such  Capital  Expenditures  made by the
         Borrower  and  its  Restricted  Subsidiaries  in  any  year  to  exceed
         $15,000,000.

                  (p) Formation of Subsidiaries.  Organize or invest,  or permit
         any of its Restricted  Subsidiaries  to organize or invest,  in any new
         Subsidiary other than as permitted under Section 5.02(f) hereof.

                  (q) Payment Restrictions  Affecting  Restricted  Subsidiaries.
         Directly or indirectly, enter into or suffer to exist, or permit any of
         its  Restricted  Subsidiaries  to enter  into or suffer  to exist,  any
         agreement or arrangement  limiting the ability of any of its Restricted
         Subsidiaries  to declare or pay  dividends  or other  distributions  in
         respect  of its Equity  Interests  or repay or prepay any Debt owed to,
         make loans or advances  to, or otherwise  transfer  assets to or invest
         in, the Borrower or any Restricted  Subsidiary of the Borrower (whether
         through a covenant  restricting  dividends,  loans,  asset transfers or
         investments,  a financial  covenant or otherwise),  except (i) the Loan
         Documents  and (ii) any agreement or  instrument  evidencing  Surviving
         Debt.

                  (r) Amendment, Etc., of Material Contract. Cancel or terminate
         the  Material  Contract  or consent to or accept  any  cancellation  or
         termination thereof, amend or otherwise modify the Material Contract or
         give any  consent,  waiver or  approval  thereunder,  waive any default
         under or breach of the  Material  Contract,  agree in any manner to any
         other amendment, modification or change of any term or condition of the
         Material  Contract  or take any  other  action in  connection  with the
         Material  Contract  that  would  materially  impair  the  value  of the
         interest  or  rights  of  any  Loan  Party  thereunder  or  that  would
         materially  impair  the  interest  or rights of any Agent or any Lender
         Party,  or permit any of its  Subsidiaries  to do any of the foregoing,
         provided  that  a  termination  of  the  Material  Contract  shall  not
         constitute a breach of this Section  5.02(r)  unless the Borrower shall
         not  have  entered  into  a  substitute  contract  with a  third  party
         acceptable  to  the  Administrative   Agent  within  60  days  of  such
         termination.

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<PAGE>

         SECTION  5.03  Reporting  Requirements.  So long as any  Advance or any
other  Obligation of any Loan Party under any Loan Document shall remain unpaid,
any Letter of Credit  shall be  outstanding  or any Lender  Party shall have any
Commitment  hereunder,  the  Borrower  will furnish to the Agents and the Lender
Parties:

                  (a)  Default  Notice.  As soon as  possible  and in any  event
         within two Business  Days after the  occurrence  of each Default or any
         event,  development or occurrence  reasonably likely to have a Material
         Adverse Effect continuing on the date of such statement, a statement of
         the Chief  Financial  Officer of the Borrower  setting forth details of
         such Default and the action that the Borrower has taken and proposes to
         take with respect thereto.

                  (b) Annual  Financials.  As soon as available and in any event
         within 90 days after the end of each Fiscal  Year, a copy of the annual
         audit  report  for such  year for the  Borrower  and its  Subsidiaries,
         including therein Consolidated and consolidating  balance sheets of the
         Borrower  and its  Subsidiaries  as of the end of such  Fiscal Year and
         Consolidated  and  consolidating  statements of income and Consolidated
         and  Consolidating  statements  of cash flows of the  Borrower  and its
         Subsidiaries  for such  Fiscal  Year,  in each case  accompanied  by an
         unqualified  opinion  reasonably  acceptable to the Required Lenders of
         PriceWaterhouseCoopers  or  other  independent  public  accountants  of
         recognized standing reasonably  acceptable to the Administrative Agent,
         together with (i) a certificate of such  accounting  firm to the Lender
         Parties stating that in the course of the regular audit of the business
         of the Borrower and its Subsidiaries, which audit was conducted by such
         accounting  firm  in  accordance  with  generally   accepted   auditing
         standards,  such  accounting  firm has  obtained  no  knowledge  that a
         Default has occurred and is  continuing,  or if, in the opinion of such
         accounting firm, a Default has occurred and is continuing,  a statement
         as to the nature thereof,  (ii) a schedule in form  satisfactory to the
         Administrative  Agent of the  computations  used by such accountants in
         determining,  as of the end of such Fiscal  Year,  compliance  with the
         covenants  contained in Section 5.04, provided that in the event of any
         change  in  generally  accepted  accounting   principles  used  in  the
         preparation  of such  financial  statements,  the  Borrower  shall also
         provide,  if necessary for the determination of compliance with Section
         5.04,  a  statement  of   reconciliation   conforming   such  financial
         statements  to GAAP and  (iii) a  certificate  of the  Chief  Financial
         Officer of the  Borrower  stating  that no Default has  occurred and is
         continuing or, if a Default has occurred and is continuing, a statement
         as to the nature thereof and the action that the Borrower has taken and
         proposes  to  take  with  respect   thereto,   provided,   that,   each
         consolidating  balance  sheet,  consolidating  statement  of income and
         consolidating statement of cash flow to be delivered under this Section
         5.03(b)  shall  distinguish  between the  Restricted  Subsidiaries  and
         Unrestricted Subsidiaries of the Borrower.

                  (c)  Quarterly  Financials.  As soon as  available  and in any
         event within 45 days after the end of each of the first three  quarters
         of each Fiscal Year,  Consolidated and consolidating  balance sheets of
         the  Borrower  and its  Subsidiaries  as of the end of such quarter and
         Consolidated  and  consolidating  statements of income and Consolidated
         and  consolidating  statements  of cash flows of the  Borrower  and its
         Subsidiaries  for the  period  commencing  at the  end of the  previous

                                       84
<PAGE>

         fiscal  quarter  and ending  with the end of such  fiscal  quarter  and
         Consolidated and consolidating  statements of income and a Consolidated
         statement of cash flows of the Borrower  and its  Subsidiaries  for the
         period  commencing  at the end of the  previous  Fiscal Year and ending
         with the end of such quarter, setting forth in each case in comparative
         form the corresponding  figures for the corresponding date or period of
         the preceding Fiscal Year, all in reasonable  detail and duly certified
         (subject to normal  year-end audit  adjustments) by the Chief Financial
         Officer of the  Borrower as having been  prepared  in  accordance  with
         GAAP,  together with (i) a certificate of said officer  stating that no
         Default has  occurred and is  continuing  or, if a Default has occurred
         and is continuing,  a statement as to the nature thereof and the action
         that the Borrower  has taken and proposes to take with respect  thereto
         and (ii) a schedule in form satisfactory to the Administrative Agent of
         the  computations  used by the Borrower in determining  compliance with
         the covenants  contained in Section 5.04, provided that in the event of
         any change in  generally  accepted  accounting  principles  used in the
         preparation  of such  financial  statements,  the  Borrower  shall also
         provide,  if necessary for the determination of compliance with Section
         5.04,  a  statement  of   reconciliation   conforming   such  financial
         statements to GAAP,  provided that each  consolidating  balance  sheet,
         consolidating  statement of income and consolidating  statement of cash
         flow to be  delivered  under this  Section  5.03(c)  shall  distinguish
         between the Restricted  Subsidiaries and  Unrestricted  Subsidiaries of
         the Borrower.

                  (d) Annual Forecasts. As soon as available and in any event no
         later  than 15 days  before  the end of  each  Fiscal  Year,  forecasts
         prepared by  management of the Borrower,  in form  satisfactory  to the
         Administrative  Agent,  of balance sheets,  income  statements and cash
         flow  statements of the Borrower and its Restricted  Subsidiaries  on a
         quarterly  basis for the Fiscal Year  following such Fiscal Year and on
         an annual basis for each Fiscal Year  thereafter  until the Termination
         Date.

                  (e)  Litigation.  Promptly  after  the  commencement  thereof,
         notice  of  all  actions,   suits,   investigations,   litigation   and
         proceedings before any Governmental  Authority affecting any Loan Party
         of the type described in Section 4.01(f).

                  (f) Securities  Reports.  Promptly after the sending or filing
         thereof,  copies  of all proxy  statements,  financial  statements  and
         reports  that any Loan  Party or any of its  Subsidiaries  sends to its
         stockholders,  and copies of all regular, periodic and special reports,
         and all  registration  statements,  that any  Loan  Party or any of its
         Subsidiaries  files with the Securities and Exchange  Commission or any
         governmental  authority that may be substituted  therefor,  or with any
         national securities exchange.

                  (g) Agreement Notices.  Promptly upon receipt thereof,  copies
         of all material notices, material requests and other material documents
         received by any Loan Party or any of its Restricted  Subsidiaries under
         or pursuant to any Related Document or Material Contract or instrument,
         indenture,  loan or credit or similar  agreement and, from time to time
         upon request by the Administrative  Agent, such information and reports
         regarding  the  Related  Documents  and the  Material  Contract  as the
         Administrative Agent may reasonably request.

                                       85
<PAGE>

                  (h) ERISA  Events and ERISA  Reports.  (A) Promptly and in any
         event within 10 days after any Loan Party or any ERISA  Affiliate knows
         or has reason to know that any ERISA Event has occurred, a statement of
         the Chief Financial Officer of the Borrower describing such ERISA Event
         and the action,  if any,  that such Loan Party or such ERISA  Affiliate
         has taken and proposes to take with respect thereto and (B) on the date
         any records,  documents or other  information  must be furnished to the
         PBGC with respect to any Plan pursuant to Section 4010 of ERISA, a copy
         of such records, documents and information.

                  (i) Plan  Terminations.  Promptly  and in any event within ten
         Business  Days  after  receipt  thereof  by and Loan Party or any ERISA
         Affiliate, copies of such notice from the PBGC stating its intention to
         terminate  any Plan or to have a trustee  appointed to  administer  any
         Plan.

                  (j) Plan Annual  Reports.  Promptly and in any event within 30
         days after the filing thereof with the Internal Revenue Service, copies
         of each Schedule B (Actuarial  Information)  to the annual report (Form
         5500 Series) with respect to each Plan.

                  (k)  Multiemployer  Plan  Notices.  Promptly  and in any event
         within five Business  Days after  receipt  thereof by any Loan Party or
         any ERISA Affiliate from the sponsor of a Multiemployer Plan, copies of
         each notice  concerning (A) the  imposition of Withdrawal  Liability by
         any such  Multiemployer  Plan, (B) the  reorganization  or termination,
         within the meaning of Title IV of ERISA, of any such Multiemployer Plan
         or (C) the amount of liability  incurred,  or that may be incurred,  by
         such Loan Party or any ERISA  Affiliate  in  connection  with any event
         described  in clause (A) or (B) that would  reasonably  be  expected to
         have a Material Adverse Effect.

                  (l) Environmental Conditions.  Promptly after the assertion of
         occurrence  thereof,  notice of any Environmental  Action against or of
         any  noncompliance  by any Loan  Party  with any  Environmental  Law or
         Environmental  Permit that could (i)  reasonably  be expected to have a
         Material  Adverse  Effect or (ii) cause any  property  described in the
         Mortgages to be subject to any  restrictions  on ownership,  occupancy,
         use or transferability under any Environmental Law.

                  (m)  Real  Property.  As soon as  available  and in any  event
         within  30  days  after  the  end  of  each  Fiscal   Year,   a  report
         supplementing  Schedules  4.10(v)  and  4.01(w)  hereto,  including  an
         identification of all owned and leased real property disposed of by any
         Loan Party during such Fiscal Year, a list and  description  (including
         the street  address,  country or other  relevant  jurisdiction,  state,
         record  owner,  book  value  thereof  and,  in the  case of  leases  or
         property,  lessor,  lessee,  expiration  date and  annual  rental  cost
         hereof) of all real property acquired or leased during such Fiscal Year
         and a description of such other changes in the information  included in
         such  Schedules as may be necessary  for such  Schedules to be accurate
         and complete.

                  (n) Other Information.  Such other information  respecting the
         business, condition (financial or otherwise), operations,  performance,
         properties  or prospects of any Loan Party as any Agent,  or any Lender
         Party  through  the  Administrative   Agent,  may  from  time  to  time
         reasonably request.

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<PAGE>

         SECTION 5.04 Financial  Covenants.  So long as any Advance or any other
Obligation of any Loan Party under any Loan Document  shall remain  unpaid,  any
Letter of  Credit  shall be  outstanding  or any  Lender  Party  shall  have any
Commitment hereunder, the Borrower and each of its Restricted Subsidiaries will:

                  (a) Total Leverage. Maintain at the end of each fiscal quarter
         of the Borrower a Total  Leverage Ratio of not more than the amount set
         forth below for each period set forth below:

                     Quarter Ending                               Ratio
                     --------------                               -----
                  September 30, 2002                             3.00:1.0
                  December 31, 2002                              2.75:1.0
                  March 31, 2003                                 2.75:1.0
                  June 30, 2003                                  2.50:1.0
                  September 30, 2003                             2.50:1.0
                  December 31, 2003                              2.25:1.0
                  March 31, 2004                                 2.25:1.0
                  June 30, 2004 and thereafter                   2.00:1.0

                  (b)  Senior  Leverage.  Maintain  at the  end of  each  fiscal
         quarter of the  Borrower a Senior  Leverage  Ratio of not more than the
         amount set forth below for each period set forth below:

                  (c)

                     Quarter Ending                               Ratio
                     --------------                               -----
                  September 30, 2002                             2.50:1.0
                  December 31, 2002                              2.25:1.0
                  March 31, 2003                                 2.25:1.0
                  June 30, 2003                                  2.00:1.0
                  September 30, 2003                             2.00:1.0
                  December 31, 2003                              1.75:1.0
                  March 31, 2004                                 1.75:1.0
                  June 30, 2004 and thereafter                   1.50:1.0

                  (d)  Interest  Coverage  Ratio.  Maintain  at the  end of each
         fiscal  quarter of the Borrower an Interest  Coverage Ratio of not less
         than the amount set forth below for each period set forth below:

                     Quarter Ending                               Ratio
                     --------------                               -----
                  September 30, 2002                             3.75:1.0
                  December 31, 2002                              4.00:1.0
                  March 31, 2003                                 4.00:1.0
                  June 30, 2003                                  4.00:1.0
                  September 30, 2003                             4.00:1.0
                  December 31, 2003 and thereafter               5.00:1.0

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                                   ARTICLE VI

                                EVENTS OF DEFAULT

         SECTION 6.01 Events of Default. If any of the following events ("Events
of Default") shall occur and be continuing:

                  (a) (i) the  Borrower  shall fail to pay any  principal of any
         Advance when the same shall become due and payable or (ii) the Borrower
         shall fail to pay any interest on any Advance,  or any Loan Party shall
         fail to make any other  payment under any Loan  Document,  in each case
         under this  clause  (ii)  within 3  Business  Days after the same shall
         become due and payable; or

                  (b) any  representation or warranty made by any Loan Party (or
         any of its  officers)  under or in  connection  with any Loan  Document
         shall prove to have been  incorrect in any material  respect when made;
         or

                  (c) the  Borrower  shall fail to perform or observe  any term,
         covenant or agreement contained in Sections 2.13, 5.01(d) (with respect
         to the Borrower only),  5.02,  5.03(a),  (b) and (c) or 5.04;  provided
         that,  in respect to Section  5.03(a)  only,  the  Borrower  shall have
         failed to comply with this Section 6.01(c) for a period of 15 days; or

                  (d) any Loan Party  shall fail to perform or observe any other
         term,  covenant or agreement contained in any Loan Document on its part
         to be performed or observed if such failure shall remain unremedied for
         30 days  after  the  earlier  of the  date on which  (i) a  Responsible
         Officer  becomes aware of such failure or (ii) written  notice  thereof
         shall have been given to the Borrower by any Agent or any Lender Party;
         or

                  (e) any Loan  Party or any of its  Subsidiaries  shall fail to
         pay any  principal  of,  premium  or  interest  on or any other  amount
         payable in  respect  of any Debt of such Loan Party or such  Subsidiary
         (as the case may be) that is outstanding in a principal  amount (or, in
         the  case of any  Hedge  Agreement,  an  Agreement  Value)  of at least
         $3,000,000  either  individually  or in the aggregate for all such Loan
         Parties and Subsidiaries  (but excluding Debt  outstanding  hereunder),
         when the same becomes due and payable  (whether by scheduled  maturity,
         required  prepayment,  acceleration,  demand  or  otherwise),  and such
         failure shall  continue  after the  applicable  grace  period,  if any,
         specified in the agreement or instrument  relating to such Debt; or any
         other event shall occur or condition shall exist under any agreement or
         instrument  relating  to any such  Debt and  shall  continue  after the
         applicable  grace  period,  if  any,  specified  in such  agreement  or
         instrument,  if the effect of such event or condition is to accelerate,
         or to  permit  the  acceleration  of,  the  maturity  of  such  Debt or
         otherwise to cause, or to permit the holder thereof to cause, such Debt
         to mature;  or any such Debt shall be declared to be due and payable or
         required to be prepaid or redeemed (other than by a regularly scheduled

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         required prepayment or redemption),  purchased or defeased, or an offer
         to prepay,  redeem,  purchase or defease such Debt shall be required to
         be made, in each case prior to the stated  maturity  thereof  (provided
         that in the  case  of Debt  consisting  of a take  or pay  contract,  a
         default  of the type  described  above  under such  contract  shall not
         constitute  an  Event  of  Default  so  long  as the  Borrower  and its
         Subsidiaries   are   contesting   such   default   pursuant  to  proper
         proceedings); or

                  (f) any Loan Party or any of its Subsidiaries  shall generally
         not pay its debts as such debts  become  due, or shall admit in writing
         its  inability  to pay its  debts  generally,  or shall  make a general
         assignment  for the benefit of creditors;  or any  proceeding  shall be
         instituted  by or  against  any Loan  Party or any of its  Subsidiaries
         seeking  to  adjudicate   it  a  bankrupt  or  insolvent,   or  seeking
         liquidation,  winding  up,  reorganization,   arrangement,  adjustment,
         protection,  relief,  or  composition  of it or its debts under any law
         relating  to  bankruptcy,  insolvency  or  reorganization  or relief of
         debtors, or seeking the entry of an order for relief or the appointment
         of a  receiver,  trustee or other  similar  official  for it or for any
         substantial  part  of its  property  and,  in  the  case  of  any  such
         proceeding  instituted  against it (but not  instituted  by it) that is
         being diligently  contested by it in good faith, either such proceeding
         shall remain  undismissed or unstayed for a period of 60 days or any of
         the actions sought in such proceeding  (including,  without limitation,
         the entry of an order  for  relief  against,  or the  appointment  of a
         receiver,  trustee,  custodian or other similar official for, it or any
         substantial part of its property) shall occur; or any Loan Party or any
         of its Subsidiaries shall take any corporate action to authorize any of
         the actions set forth above in this subsection (f); or

                  (g) any  judgments or orders,  either  individually  or in the
         aggregate,  for the payment of money in excess of  $3,000,000  shall be
         rendered  against any Loan Party or any of its  Subsidiaries and either
         (i) enforcement  proceedings  shall have been commenced by any creditor
         upon such  judgment  or order or (ii)  there  shall be any period of 10
         consecutive days during which a stay of enforcement of such judgment or
         order,  by  reason of a pending  appeal or  otherwise,  shall not be in
         effect; or

                  (h) any  non-monetary  judgment  or order  shall  be  rendered
         against  any  Loan  Party  or any of its  Subsidiaries  that  could  be
         reasonably likely to have a Material Adverse Effect, and there shall be
         any period of 10 consecutive days during which a stay of enforcement of
         such  judgment or order,  by reason of a pending  appeal or  otherwise,
         shall not be in effect; or

                  (i) any provision of any Loan Document after delivery  thereof
         pursuant to Section  3.01 or 5.01(j)  shall for any reason  cease to be
         valid and  binding on or  enforceable  against any Loan Party to it, or
         any such Loan Party shall so state in writing; or

                  (j) any  Collateral  Document  or  financing  statement  after
         delivery  thereof  pursuant  to Section  3.01 or 5.01(j)  shall for any
         reason  (other than  pursuant to the terms  thereof)  cease to create a
         valid and perfected first priority lien on and security interest in the
         Collateral purported to be covered thereby; or

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                  (k) a Change of Control shall occur; or

                  (l) any ERISA Event shall have occurred with respect to a Plan
         and the sum  (determined  as of the date of  occurrence  of such  ERISA
         Event) of the  Insufficiency of such Plan and the  Insufficiency of any
         and all other  Plans with  respect to which an ERISA  Event  shall have
         occurred  and then exist (or the  liability of the Loan Parties and the
         ERISA Affiliates related to such ERISA Event) exceeds $3,000,000; or

                  (m) any Loan  Party or any  ERISA  Affiliate  shall  have been
         notified by the sponsor of a  Multiemployer  Plan that it has  incurred
         Withdrawal Liability to such Multiemployer Plan in an amount that, when
         aggregated with all other amounts  required to be paid to Multiemployer
         Plans  by the Loan  Parties  and the  ERISA  Affiliates  as  Withdrawal
         Liability  (determined  as of the date of such  notification),  exceeds
         $3,000,000 or requires payments exceeding $1,000,000 per annum; or

                  (n) any Loan  Party or any  ERISA  Affiliate  shall  have been
         notified by the sponsor of a Multiemployer Plan that such Multiemployer
         Plan is in reorganization or is being terminated, within the meaning of
         Title  IV  of  ERISA,  and  as  a  result  of  such  reorganization  or
         termination the aggregate annual  contributions of the Loan Parties and
         the  ERISA  Affiliates  to all  Multiemployer  Plans  that  are then in
         reorganization  or being terminated have been or will be increased over
         the amounts  contributed to such Multiemployer Plans for the plan years
         of such  Multiemployer  Plans  immediately  preceding  the plan year in
         which such  reorganization or termination occurs by an amount exceeding
         $1,000,000; or

                  (o) an "Event of Default" (as defined in any  Mortgage)  shall
         have occurred and be continuing;

then, and in any such event, the Administrative  Agent (i) shall at the request,
or may with the consent,  of the Required  Lenders,  by notice to the  Borrower,
declare the  Commitments  of each Lender Party and the obligation of each Lender
Party to make  Advances  (other than Swing Line  Advances by a Revolving  Credit
Lender pursuant to Section  2.02(b)) to be terminated,  whereupon the same shall
forthwith terminate,  and (ii) shall at the request, or may with the consent, of
the Required  Lenders,  (A) by notice to the  Borrower,  declare the Notes,  all
interest  thereon and all other  amounts  payable  under this  Agreement and the
other Loan Documents to be forthwith due and payable,  whereupon the Notes,  all
such  interest  and all such  amounts  shall  become  and be  forthwith  due and
payable, without presentment, demand, protest or further notice of any kind, all
of which are hereby expressly waived by the Borrower; provided, however, that in
the event of an actual or deemed  entry of an order for relief  with  respect to
the Borrower  under the Federal  Bankruptcy  Code,  (x) the  Commitments of each
Lender Party and the  obligation  of each Lender Party to make  Advances  (other
than Swing Line  Advances  by a  Revolving  Credit  Lender  pursuant  to Section
2.02(b)) shall  automatically be terminated and (y) the Notes, all such interest
and all such amounts shall automatically become and be due and payable,  without
presentment,  demand, protest or any notice of any kind, all of which are hereby
expressly waived by the Borrower.

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         SECTION 6.02 Actions in Respect of the Letters of Credit upon  Default.
If  any  Event  of  Default   shall  have  occurred  and  be   continuing,   the
Administrative  Agent  may,  or shall at the  request of the  Required  Lenders,
irrespective  of whether it is taking any of the  actions  described  in Section
6.01 or  otherwise,  make demand upon the Borrower to, and  forthwith  upon such
demand the Borrower will,  pay to the  Collateral  Agent on behalf of the Lender
Parties in same day funds at the Collateral  Agent's  office  designated in such
demand, for deposit in the L/C Cash Collateral  Account,  an amount equal to the
aggregate Available Amount of all Letters of Credit then outstanding.  If at any
time the Administrative  Agent or the Collateral Agent determines that any funds
held in the L/C  Collateral  Account  are  subject  to any right or claim of any
Person other than the Agents and the Lender  Parties or that the total amount of
such funds is less than the aggregate Available Amount of all Letters of Credit,
the Borrower  will,  forthwith  upon demand by the  Administrative  Agent or the
Collateral  Agent,  pay to the  Collateral  Agent,  as  additional  funds  to be
deposited and held in the L/C Collateral  Account, an amount equal to the excess
of (a) such aggregate  Available  Amount over (b) the total amount of funds,  if
any, then held in the L/C Collateral  Account that the  Administrative  Agent or
the Collateral Agent, as the case may be, determines to be free and clear of any
such right and claim.  Upon the  drawing of any Letter of Credit for which funds
are on deposit in the L/C  Collateral  Account,  such funds  shall be applied to
reimburse the Issuing Bank or Revolving  Credit Lenders,  as applicable,  to the
extent permitted by applicable law.

                                  ARTICLE VII

                                    GUARANTY

         SECTION 7.01  Guaranty;  Limitation  of Liability.  (a) Each  Guarantor
jointly  and  severally  hereby  absolutely,   unconditionally  and  irrevocably
guarantees the punctual  payment when due,  whether at scheduled  maturity or on
any date of a required  prepayment or by acceleration,  demand or otherwise,  of
all  Obligations of each other Loan Party now or hereafter  existing under or in
respect of the Loan Documents  (including,  without limitation,  any extensions,
modifications,  substitutions,  amendments  or  renewals  of  any  or all of the
foregoing Obligations),  whether direct or indirect, absolute or contingent, and
whether for principal, interest, premiums, fees, indemnities, contract causes of
action,  costs,  expenses or otherwise (such  Obligations  being the "Guaranteed
Obligations"),  and agrees to pay any and all  reasonable  expenses  (including,
without  limitation,  reasonable  fees and expenses of counsel)  incurred by the
Administrative  Agent or any other  Secured  Party in enforcing any rights under
this Guaranty or any other Loan Document. Without limiting the generality of the
foregoing,   each  Guarantor's  liability  shall  extend  to  all  amounts  that
constitute  part of the  Guaranteed  Obligations  and would be owed by any other
Loan Party to any Secured  Party under or in respect of the Loan  Documents  but
for the fact that they are  unenforceable  or not allowable due to the existence
of a bankruptcy,  reorganization or similar proceeding involving such other Loan
Party.

                  (b) Each  Guarantor,  and by its  acceptance of this Guaranty,
         the Administrative  Agent and each other Secured Party, hereby confirms
         that it is the intention of all such Persons that this Guaranty and the
         Obligations  of each  Guarantor  hereunder not  constitute a fraudulent
         transfer or conveyance for purposes of Bankruptcy  Law (as  hereinafter
         defined), the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
         Transfer Act or any similar foreign, federal or state law to the extent
         applicable  to this  Guaranty  and the  Obligations  of each  Guarantor
         hereunder.  To effectuate the foregoing  intention,  the Administrative
         Agent, the other Secured Parties and the Guarantors hereby  irrevocably

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<PAGE>

         agree that the Obligations of each Guarantor under this Guaranty at any
         time  shall be  limited  to the  maximum  amount as will  result in the
         Obligations  of such Guarantor  under this Guaranty not  constituting a
         fraudulent  transfer or conveyance.  For purposes  hereof,  "Bankruptcy
         Law" means any proceeding of the type referred to in Section 6.01(f) of
         the Credit  Agreement or Title 11, U.S.  Code, or any similar  foreign,
         federal or state law for the relief of debtors.

                  (c) Each  Guarantor  hereby  unconditionally  and  irrevocably
         agrees  that in the event any  payment  shall be required to be made to
         any Secured  Party  under this  Guaranty  or any other  guaranty,  such
         Guarantor will contribute, to the maximum extent permitted by law, such
         amounts  to each other  Guarantor  and each  other  guarantor  so as to
         maximize the aggregate  amount paid to the Secured  Parties under or in
         respect of the Loan Documents.

                  (d) Each Subsidiary  Guarantor hereby  acknowledges that it is
         receiving  and will  receive  substantial  benefits  and other good and
         valuable consideration in connection with its provision of a guarantees
         under this Article VII.

         SECTION 7.02 Guaranty  Absolute.  Each Guarantor  jointly and severally
guarantees that the Guaranteed  Obligations  will be paid strictly in accordance
with the terms of the Loan Documents, regardless of any law, regulation or order
now or hereafter in effect in any  jurisdiction  affecting  any of such terms or
the rights of any Secured Party with respect  thereto.  The  Obligations of each
Guarantor under or in respect of this Guaranty are independent of the Guaranteed
Obligations or any other Obligations of any other Loan Party under or in respect
of the Loan  Documents,  and a  separate  action or actions  may be brought  and
prosecuted  against each  Guarantor to enforce this  Guaranty,  irrespective  of
whether any action is brought  against  the  Borrower or any other Loan Party or
whether  the  Borrower  or any other Loan Party is joined in any such  action or
actions.   The  liability  of  each  Guarantor  under  this  Guaranty  shall  be
irrevocable,  absolute and  unconditional  irrespective  of, and each  Guarantor
hereby  irrevocably  waives any defenses it may now have or hereafter acquire in
any way relating to, any or all of the following:

                  (a)  any  lack  of  validity  or  enforceability  of any  Loan
         Document or any agreement or instrument relating thereto;

                  (b) any change in the time,  manner or place of payment of, or
         in any other term of, all or any of the  Guaranteed  Obligations or any
         other  Obligations  of any other Loan Party  under or in respect of the
         Loan  Documents,  or any other amendment or waiver of or any consent to
         departure from any Loan Document,  including,  without limitation,  any
         increase in the Guaranteed  Obligations resulting from the extension of
         additional  credit  to any  Loan  Party or any of its  Subsidiaries  or
         otherwise;

                  (c) any  manner  of  application  of  Collateral  or any other
         collateral,  or  proceeds  thereof,  to all  or  any of the  Guaranteed
         Obligations or any other  Obligations of any other Loan Party under the
         Loan  Documents,  or any  manner  of sale or other  disposition  of any
         Collateral  or any other  collateral  for all or any of the  Guaranteed
         Obligations  or any other  Obligations of any Loan Party under the Loan
         Documents  or  any  other  assets  of  any  Loan  Party  or  any of its
         Subsidiaries;

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<PAGE>

                  (d) any change,  restructuring or termination of the corporate
         structure or existence of any Loan Party or any of its Subsidiaries;

                  (e) any failure of any  Secured  Party to disclose to any Loan
         Party any information relating to the business, condition (financial or
         otherwise),  operations,  performance,  properties  or prospects of any
         other Loan Party now or  hereafter  known to such  Secured  Party (each
         Guarantor  waiving  any  duty on the  part of the  Secured  Parties  to
         disclose such information);

                  (f) the failure of any other Person (other than the Guarantor)
         to  execute or deliver  this  Guaranty,  any  Guaranty  Supplement  (as
         hereinafter defined) or any other guaranty; or

                  (g) any other circumstance (including, without limitation, any
         statute  of  limitations)  or  any  existence  of or  reliance  on  any
         representation  by any Secured Party that might otherwise  constitute a
         defense  available  to, or a discharge  of, any Loan Party or any other
         guarantor or surety.

         This Guaranty shall  continue to be effective or be reinstated,  as the
case may be, if at any time any payment of any of the Guaranteed  Obligations is
rescinded or must otherwise be returned by any Secured Party or any other Person
for any reason (and whether as a result of any demand, settlement, litigation or
otherwise) upon the insolvency,  bankruptcy or reorganization of the Borrower or
any other Loan Party or otherwise, all as though such payment had not been made.

         SECTION 7.03 Waivers and  Acknowledgments.  (a) Each  Guarantor  hereby
unconditionally  and  irrevocably  waives  promptness,   diligence,   notice  of
acceptance,  presentment,  demand  for  performance,  notice of  nonperformance,
default, acceleration,  protest or dishonor and any other notice with respect to
any of the Guaranteed Obligations and this Guaranty and any requirement that any
Secured  Party  protect,  secure,  perfect  or insure  any Lien or any  property
subject  thereto or exhaust any right or take any action  against any Loan Party
or any other Person or any Collateral.

                  (b) Each  Guarantor  hereby  unconditionally  and  irrevocably
         waives any right to revoke this  Guaranty  and  acknowledges  that this
         Guaranty  is  continuing  in  nature  and  applies  to  all  Guaranteed
         Obligations, whether existing now or in the future.

                  (c) Each  Guarantor  hereby  unconditionally  and  irrevocably
         waives (i) any defense  arising by reason of any claim or defense based
         upon an election  of  remedies by any Secured  Party that in any manner
         impairs,   reduces,   releases  or  otherwise   adversely  affects  the
         subrogation,     reimbursement,     exoneration,     contribution    or
         indemnification  rights  of such  Guarantor  or  other  rights  of such
         Guarantor to proceed  against any of the other Loan Parties,  any other
         guarantor  or any other Person or any  Collateral  and (ii) any defense
         based on any right of set-off or counterclaim  against or in respect of
         the Obligations of such Guarantor hereunder.

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<PAGE>

                  (d) Each Guarantor acknowledges that the Collateral Agent may,
         without notice to or demand upon such  Guarantor and without  affecting
         the liability of such Guarantor  under this Guaranty,  foreclose  under
         any mortgage by nonjudicial  sale, and each Guarantor hereby waives any
         defense to the recovery by the  Collateral  Agent and the other Secured
         Parties against such Guarantor of any deficiency after such nonjudicial
         sale and any  defense or benefits  that may be  afforded by  applicable
         law.

                  (e) Each  Guarantor  hereby  unconditionally  and  irrevocably
         waives any duty on the part of any  Secured  Party to  disclose to such
         Guarantor any matter, fact or thing relating to the business, condition
         (financial  or  otherwise),  operations,   performance,  properties  or
         prospects  of any other  Loan Party or any of its  Subsidiaries  now or
         hereafter known by such Secured Party.

                  (f)  Each   Guarantor   acknowledges   that  it  will  receive
         substantial   direct  and   indirect   benefits   from  the   financing
         arrangements  contemplated  by the Loan  Documents and that the waivers
         set forth in Section 7.02 and this Section 7.03 are  knowingly  made in
         contemplation of such benefits.

         SECTION 7.04  Subrogation.  Each Guarantor hereby  unconditionally  and
irrevocably  agrees not to exercise any rights that it may now have or hereafter
acquire  against the Borrower,  any other Loan Party or any other Guarantor that
arise  from  the  existence,   payment,   performance  or  enforcement  of  such
Guarantor's  Obligations  under or in respect of this Guaranty or any other Loan
Document,   including,   without   limitation,   any   right   of   subrogation,
reimbursement,  exoneration,  contribution or  indemnification  and any right to
participate  in any claim or remedy of any Secured  Party  against the Borrower,
any other Loan Party or any other insider  guarantor or any Collateral,  whether
or not such claim,  remedy or right arises in equity or under contract,  statute
or common law, including,  without limitation, the right to take or receive from
the  Borrower,  any  other  Loan  Party  or any  other  Guarantor,  directly  or
indirectly,  in cash or other  property  or by set-off  or in any other  manner,
payment or security on account of such claim,  remedy or right, unless and until
all of the  Guaranteed  Obligations  and all other  amounts  payable  under this
Guaranty  shall have been paid in full in cash and all Secured Hedge  Agreements
shall have expired or been terminated and the Commitments  shall have expired or
been  terminated.  If any amount shall be paid to any  Guarantor in violation of
the  immediately  preceding  sentence at any time prior to the latest of (a) the
payment  in full in cash of the  Guaranteed  Obligations  and all other  amounts
payable under this Guaranty, (b) the Termination Date and (c) the latest date of
expiration or termination of all Secured Hedge Agreements,  such amount shall be
received  and held in trust for the  benefit of the  Secured  Parties,  shall be
segregated  from other property and funds of such Guarantor and shall  forthwith
be paid or delivered to the Administrative Agent in the same form as so received
(with any necessary endorsement or assignment) to be credited and applied to the
Guaranteed  Obligations  and all other  amounts  payable  under  this  Guaranty,
whether  matured  or  unmatured,  in  accordance  with  the  terms  of the  Loan
Documents,  or to be held as Collateral for any Guaranteed  Obligations or other
amounts  payable under this Guaranty  thereafter  arising.  If (i) any Guarantor
shall make  payment to any  Secured  Party of all or any part of the  Guaranteed
Obligations,  (ii)  all of the  Guaranteed  Obligations  and all  other  amounts
payable  under this  Guaranty  shall  have been paid in full in cash,  (iii) the

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Termination Date shall have occurred and (iv) all Secured Hedge Agreements shall
have expired or been  terminated,  the Secured Parties will, at such Guarantor's
request  and  expense,   execute  and  deliver  to  such  Guarantor  appropriate
documents, without recourse and without representation or warranty, necessary to
evidence the  transfer by  subrogation  to such  Guarantor of an interest in the
Guaranteed  Obligations  resulting  from  such  payment  made by such  Guarantor
pursuant to this Guaranty.

         SECTION 7.05  Representations  and  Warranties.  Each Guarantor  hereby
makes each  representation  and  warranty  made  under  Article IV hereof by the
Borrower  with  respect to such  Guarantor  and each  Guarantor  hereby  further
represents and warrants as follows:

                  (a) There are no conditions  precedent to the effectiveness of
         this Guaranty that have not been satisfied or waived.

                  (b) Such Guarantor  has,  independently  and without  reliance
         upon any Secured Party and based on such  documents and  information as
         it has deemed appropriate, made its own credit analysis and decision to
         enter into this Guaranty and each other Loan Document to which it is or
         is to be a party, and such Guarantor has established  adequate means of
         obtaining from each other Loan Party on a continuing basis  information
         pertaining to, and is now and on a continuing  basis will be completely
         familiar  with,  the  business,  condition  (financial  or  otherwise),
         operations,  performance,  properties  and prospects of such other Loan
         Party.

         SECTION 7.06  Covenants.  Each Guarantor  covenants and agrees that, so
long as any part of the Guaranteed  Obligations shall remain unpaid,  any Lender
Party shall have any  Commitment  or any  Secured  Hedge  Agreement  shall be in
effect,  such  Guarantor  will  perform  and  observe,  and  cause  each  of its
Subsidiaries to perform and observe, all of the terms,  covenants and agreements
set forth in the Loan Documents on its or their part to be performed or observed
or that the Borrower has agreed to cause such Guarantor or such  Subsidiaries to
perform or observe.

         SECTION 7.07 Guaranty Supplements, Etc. Upon the execution and delivery
by any Person of a guaranty  supplement in  substantially  the form of Exhibit E
hereto (each, a "Guaranty Supplement"),  (i) such Person shall be referred to as
an  "Additional  Guarantor" and shall become and be a Guarantor  hereunder,  and
each  reference  in this  Guaranty  to a  "Guarantor"  shall  also mean and be a
reference to such  Additional  Guarantor,  and each  reference in any other Loan
Document to a "Subsidiary  Guarantor" shall also mean and be a reference to such
Guarantor and  Additional  Guarantor,  and (ii) each  reference  herein to "this
Guaranty",  "hereunder",  "hereof"  or words of like  import  referring  to this
Guaranty,  and each  reference  in any other Loan  Document  to the  "Subsidiary
Guaranty",  "thereunder",  "thereof"  or words of like import  referring to this
Guaranty, shall mean and be a reference to this Guaranty as supplemented by such
Guaranty Supplement.

         SECTION 7.08 Subordination.  Each Guarantor hereby subordinates any and
all debts,  liabilities  and other  Obligations  owed to such  Guarantor by each
other Loan Party (the "Subordinated  Obligations") to the Guaranteed Obligations
to the extent and in the manner hereinafter set forth in this Section 7.08:

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                  (a) Prohibited Payments, Etc. Except during the continuance of
         a  Default  (including,   without  limitation,   the  commencement  and
         continuation of any proceeding under any Bankruptcy Law relating to any
         other Loan  Party),  each  Guarantor  may receive  regularly  scheduled
         payments  from any other  Loan  Party on  account  of the  Subordinated
         Obligations.  After the  occurrence  and during the  continuance of any
         Default  (including the commencement and continuation of any proceeding
         under any  Bankruptcy  Law relating to such Guarantor or the Borrower),
         however, unless the Administrative Agent otherwise agrees, no Guarantor
         shall  demand,  accept or take any  action to  collect  any  payment on
         account of the Subordinated Obligations.

                  (b) Prior Payment of Guaranteed Obligations. In any proceeding
         under any  Bankruptcy  Law relating to such  Guarantor or the Borrower,
         each  Guarantor  agrees that the Secured  Parties  shall be entitled to
         receive  payment  in  full  in  cash  of  all  Guaranteed   Obligations
         (including all interest and expenses accruing after the commencement of
         a proceeding  under any Bankruptcy Law,  whether or not constituting an
         allowed claim in such  proceeding  ("Post Petition  Interest"))  before
         such Guarantor receives payment of any Subordinated Obligations.

                  (c) Turn-Over. After the occurrence and during the continuance
         of any Default  (including,  without  limitation,  the commencement and
         continuation  of any  proceeding  under any  Bankruptcy Law relating to
         such  Guarantor  or  the  Borrower),   each  Guarantor  shall,  if  the
         Administrative Agent so requests, collect, enforce and receive payments
         on account of the  Subordinated  Obligations as trustee for the Secured
         Parties  and  deliver  such  payments  to the  Administrative  Agent on
         account of the  Guaranteed  Obligations  (including  all Post  Petition
         Interest),   together   with  any  necessary   endorsements   or  other
         instruments  of  transfer,  but without  reducing or  affecting  in any
         manner the liability of such  Guarantor  under the other  provisions of
         this Guaranty.

                  (d) Administrative Agent  Authorization.  After the occurrence
         and  during  the  continuance  of  any  Default   (including,   without
         limitation,  the  commencement and continuation of any proceeding under
         any   Bankruptcy   Law   relating  to  any  other  Loan   Party),   the
         Administrative  Agent is  authorized  and  empowered  (but  without any
         obligation  to so  do),  in its  discretion,  (i) in the  name  of each
         Guarantor,  to collect and enforce, and to submit claims in respect of,
         Subordinated  Obligations and to apply any amounts  received thereon to
         the  Guaranteed  Obligations  (including  any  and  all  Post  Petition
         Interest),  and (ii) to  require  each  Guarantor  (A) to  collect  and
         enforce,  and to submit claims in respect of, Subordinated  Obligations
         and  (B) to  pay  any  amounts  received  on  such  obligations  to the
         Administrative  Agent for  application  to the  Guaranteed  Obligations
         (including any and all Post Petition Interest).

         SECTION  7.09  Continuing  Guaranty;  Assignments.  This  Guaranty is a
continuing  guaranty  and shall (a) remain in full  force and  effect  until the
latest of (i) the payment in full in cash of the Guaranteed  Obligations and all
other  amounts  payable under this  Guaranty and (ii) the  Termination  Date and
(iii)  the  latest  date of  expiration  or  termination  of all  Secured  Hedge
Agreements,  (b) be binding upon the  Guarantor,  its successors and assigns and
(c) inure to the benefit of and be enforceable by the Secured  Parties and their
successors,  transferees and assigns.  Without limiting the generality of clause
(c) of the  immediately  preceding  sentence,  any  Secured  Party may assign or
otherwise  transfer all or any portion of its rights and obligations  under this
Agreement (including, without limitation, all or any portion of its Commitments,

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the Advances  owing to it and the Note or Notes held by it) to any other Person,
and such other Person  shall  thereupon  become  vested with all the benefits in
respect thereof granted to such Secured Party herein or otherwise,  in each case
as and to the extent  provided in Section 9.07 hereof.  No Guarantor  shall have
the right to assign its rights or obligations  hereunder or any interest  herein
without the prior written consent of the Secured Parties.

                                  ARTICLE VIII

                                   THE AGENTS

         SECTION  8.01  Authorization  and  Action.  Each  Lender  Party (in its
capacities as a Lender,  the Swing Line Bank (if  applicable),  the Issuing Bank
(if  applicable)  and on behalf of itself and its Affiliates as potential  Hedge
Banks) hereby appoints and authorizes each Agent to take such action as agent on
its behalf and to exercise such powers and  discretion  under this Agreement and
the other Loan  Documents as are delegated to such Agent by the terms hereof and
thereof,  together with such powers and discretion as are reasonably  incidental
thereto.  As to any matters not  expressly  provided  for by the Loan  Documents
(including,  without  limitation,  enforcement  or collection of the Notes),  no
Agent shall be required to exercise any discretion or take any action, but shall
be required to act or to refrain from acting (and shall be fully protected in so
acting or refraining from acting) upon the  instructions of the Required Lenders
(or, to the extent required hereby, all Lenders), and such instructions shall be
binding  upon all Lender  Parties and all holders of Notes;  provided,  however,
that no Agent shall be required  to take any action that  exposes  such Agent to
personal liability or that is contrary to this Agreement or applicable law. Each
Agent agrees to give to each Lender Party prompt  notice of each notice given to
it by the Borrower pursuant to the terms of this Agreement.

         SECTION 8.02 Agents' Reliance, Etc.. Neither any Agent nor any of their
respective  directors,  officers,  agents or  employees  shall be liable for any
action  taken or omitted to be taken by it or them under or in  connection  with
the Loan  Documents,  except  for its or their own gross  negligence  or willful
misconduct.  Without limitation of the generality of the foregoing,  each Agent:
(a) may treat the payee of any Note as the holder thereof until,  in the case of
the  Administrative  Agent,  the  Administrative  Agent  receives and accepts an
Assignment and  Acceptance  entered into by the Lender that is the payee of such
Note, as assignor, and an Eligible Assignee, as assignee, or, in the case of any
other Agent, such Agent has received notice from the  Administrative  Agent that
it has received and accepted such  Assignment  and  Acceptance,  in each case as
provided in Section 9.07; (b) may consult with legal counsel  (including counsel
for any Loan Party),  independent  public accountants and other experts selected
by it and shall not be liable  for any  action  taken or  omitted to be taken in
good faith by it in accordance  with the advice of such counsel,  accountants or
experts;  (c) makes no warranty or  representation to any Lender Party and shall
not be  responsible  to any  Lender  Party  for any  statements,  warranties  or
representations (whether written or oral) made in or in connection with the Loan
Documents;  (d) shall not have any duty to  ascertain  or to  inquire  as to the
performance,  observance  or  satisfaction  of any of the  terms,  covenants  or
conditions  of any Loan  Document on the part of any Loan Party or the existence
at any time of any Default  under the Loan  Documents or to inspect the property

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(including  the  books  and  records)  of  any  Loan  Party;  (e)  shall  not be
responsible  to any  Lender  Party for the due  execution,  legality,  validity,
enforceability,  genuineness,  sufficiency  or value  of, or the  perfection  or
priority of any lien or security  interest  created or  purported  to be created
under or in  connection  with,  any Loan  Document  or any other  instrument  or
document furnished  pursuant thereto;  and (f) shall incur no liability under or
in respect of any Loan Document by acting upon any notice, consent,  certificate
or other  instrument  or writing  (which may be by telegram,  telecopy or telex)
believed by it to be genuine and signed or sent by the proper party or parties.

         SECTION 8.03 General Electric Capital Corporation and Affiliates.  With
respect to its Commitments,  the Advances made by it and the Notes issued to it,
General  Electric  Capital  Corporation (or any successor  Agent) shall have the
same rights and powers  under the Loan  Documents  as any other Lender Party and
may  exercise  the same as  though it were not an  Agent;  and the term  "Lender
Party" or "Lender Parties" shall, unless otherwise expressly indicated,  include
General Electric Capital  Corporation (or any successor Agent) in its individual
capacity.  General Electric Capital Corporation (or any successor Agent) and its
affiliates  may accept  deposits  from,  lend  money to,  act as  trustee  under
indentures of, accept investment  banking  engagements from and generally engage
in any kind of business with, any Loan Party,  any of its  Subsidiaries  and any
Person that may do business with or own securities of any Loan Party or any such
Subsidiary,  all as if General  Electric  Capital  Corporation (or any successor
Agent) was not an Agent and without  any duty to account  therefor to the Lender
Parties.  No Agent shall have any duty to disclose any  information  obtained or
received by it or any of its Affiliates relating to any Loan Party or any of its
Subsidiaries  to the extent  such  information  was  obtained or received in any
capacity other than as such Agent.

         SECTION  8.04  Lender  Party   Credit   Decision.   Each  Lender  Party
acknowledges  that it has,  independently and without reliance upon any Agent or
any other  Lender  Party and based on the  financial  statements  referred to in
Section  4.01  and  such  other  documents  and  information  as it  has  deemed
appropriate,  made its own  credit  analysis  and  decision  to enter  into this
Agreement.  Each Lender Party also acknowledges that it will,  independently and
without  reliance  upon any  Agent or any other  Lender  Party 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.

         SECTION 8.05 Indemnification. (a) Each Lender Party severally agrees to
indemnify  each Agent (to the extent not promptly  reimbursed  by the  Borrower)
from and against  such Lender  Party's  ratable  share  (determined  as provided
below) of any and all  liabilities,  obligations,  losses,  damages,  penalties,
actions,  judgments,  suits,  costs,  expenses or  disbursements  of any kind or
nature  whatsoever that may be imposed on, incurred by, or asserted against such
Agent in any way relating to or arising out of the Loan  Documents or any action
taken or omitted  by such  Agent  under the Loan  Documents  (collectively,  the
"Indemnified  Costs");  provided,  however, that no Lender Party shall be liable
for any portion of such liabilities,  obligations,  losses, damages,  penalties,
actions,  judgments, suits, costs, expenses or disbursements resulting from such
Agent's  gross  negligence  or willful  misconduct.  Without  limitation  of the
foregoing, each Lender Party agrees to reimburse each Agent promptly upon demand
for its ratable share of any costs and expenses (including,  without limitation,

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reasonable  fees and expenses of counsel)  payable by the Borrower under Section
9.04,  to the extent that such Agent is not promptly  reimbursed  for such costs
and expenses by the Borrower.  In the case of any  investigation,  litigation or
proceeding  giving rise to any  Indemnified  Costs,  this  Section  8.05 applies
whether  any such  investigation,  litigation  or  proceeding  is brought by any
Lender Party or any other Person.

                  (b) Each  Lender  Party  severally  agrees  to  indemnify  the
         Issuing Bank (to the extent not promptly  reimbursed  by the  Borrower)
         from and against  such Lender  Party's  ratable  share  (determined  as
         provided  below)  of any  and  all  liabilities,  obligations,  losses,
         damages,  penalties,  actions,  judgments,  suits,  costs,  expenses or
         disbursements of any kind or nature  whatsoever that may be imposed on,
         incurred  by, or asserted  against the Issuing Bank in any way relating
         to or arising out of the Loan  Documents or any action taken or omitted
         by the Issuing Bank under the Loan Documents;  provided,  however, that
         no Lender  Party shall be liable for any  portion of such  liabilities,
         obligations,  losses, damages,  penalties,  actions,  judgments, suits,
         costs,  expenses or  disbursements  resulting  from the Issuing  Bank's
         gross  negligence  or willful  misconduct.  Without  limitation  of the
         foregoing,  each Lender  Party  agrees to  reimburse  the Issuing  Bank
         promptly  upon demand for its ratable  share of any costs and  expenses
         (including,  without  limitation,   reasonable  fees  and  expenses  of
         counsel) payable by the Borrower under Section 9.04, to the extent that
         the Issuing Bank is not promptly reimbursed for such costs and expenses
         by the Borrower.

                  (c) For purposes of this  Section  8.05,  the Lender  Parties'
         respective  ratable  shares of any amount shall be  determined,  at any
         time, according to the sum of (i) the aggregate principal amount of the
         Advances  outstanding at such time and owing to the  respective  Lender
         Parties,  (ii) the aggregate unused portions of their respective Term B
         Commitments at such time and (iii) their  respective  Unused  Revolving
         Credit Commitments at such time;  provided that the aggregate principal
         amount  of Swing  Line  Advances  owing to the  Swing  Line Bank and of
         Letter of Credit Advances owing to the Issuing Bank shall be considered
         to be owed to the Revolving  Credit Lenders  ratably in accordance with
         their  respective  Revolving  Credit  Commitments.  The  failure of any
         Lender Party to reimburse  any Agent or the Issuing  Bank,  as the case
         may be,  promptly  upon  demand  for its  ratable  share of any  amount
         required to be paid by the Lender  Parties to such Agent or the Issuing
         Bank,  as the case may be, as  provided  herein  shall not  relieve any
         other Lender Party of its obligation  hereunder to reimburse such Agent
         or the Issuing  Bank, as the case may be, for its ratable share of such
         amount, but no Lender Party shall be responsible for the failure of any
         other Lender Party to reimburse  such Agent or the Issuing Bank, as the
         case may be,  for  such  other  Lender  Party's  ratable  share of such
         amount. Without prejudice to the survival of any other agreement of any
         Lender Party  hereunder,  the agreement and  obligations of each Lender
         Party  contained in this Section 8.05 shall survive the payment in full
         of  principal,  interest and all other  amounts  payable  hereunder and
         under the other Loan Documents.

         SECTION  8.06  Successor  Agents.  Any Agent may  resign at any time by
giving  written notice thereof to the Lender Parties and the Borrower and may be
removed at any time with or without  cause by the  Required  Lenders;  provided,
however,  that any  removal of the  Administrative  Agent will not be  effective
until it has also  been  replaced  as  Collateral  Agent,  Swing  Line  Bank and
released  from  all of  its  obligations  in  respect  thereof.  Upon  any  such
resignation or removal,  the Required  Lenders shall have the right to appoint a

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successor  Agent.  If no  successor  Agent shall have been so  appointed  by the
Required Lenders, and shall have accepted such appointment, within 30 days after
the retiring  Agent's giving of notice of  resignation or the Required  Lenders'
removal of the retiring  Agent,  then the  retiring  Agent may, on behalf of the
Lender Parties,  appoint a successor Agent,  which shall be a commercial bank or
other financial  institution organized under the laws of the United States or of
any  State  thereof  and  having a  combined  capital  and  surplus  of at least
$250,000,000.  Upon the acceptance of any  appointment  as Agent  hereunder by a
successor  Agent and,  in the case of a  successor  Collateral  Agent,  upon the
execution and filing or recording of such  financing  statements,  or amendments
thereto,  and such  amendments or supplements  to the Mortgages,  and such other
instruments  or notices,  as may be necessary or  desirable,  or as the Required
Lenders may request, in order to continue the perfection of the Liens granted or
purported to be granted by the Collateral Documents,  such successor Agent shall
succeed to and become vested with all the rights, powers, discretion, privileges
and duties of the retiring  Agent,  and the retiring  Agent shall be  discharged
from its  duties and  obligations  under the Loan  Documents.  If within 45 days
after written  notice is given of the retiring  Agent's  resignation  or removal
under this Section 8.06 no successor  Agent shall have been  appointed and shall
have accepted such  appointment,  then on such 45th day (a) the retiring Agent's
resignation  or removal  shall become  effective,  (b) the retiring  Agent shall
thereupon be discharged from its duties and obligations under the Loan Documents
and (c) the Required Lenders shall thereafter perform all duties of the retiring
Agent under the Loan Documents until such time, if any, as the Required  Lenders
appoint  a  successor  Agent as  provided  above.  After  any  retiring  Agent's
resignation  or removal  hereunder  as Agent  shall have become  effective,  the
provisions  of this  Article  VIII shall  inure to its benefit as to any actions
taken or omitted to be taken by it while it was Agent under this Agreement.

         SECTION 8.07 Limitation of Scope. This Article VIII concerns and is for
the benefit of each Agent and the Lender  Parties  and  nothing in this  Article
VIII (other than the  provisions of Section 8.06) shall be deemed or interpreted
to affect, limit, bind, govern or otherwise apply to any of the Loan Parties.

                                   ARTICLE IX

                                  MISCELLANEOUS

         SECTION 9.01  Amendments,  Etc. No amendment or waiver of any provision
of this  Agreement or the Notes or any other Loan  Document,  nor consent to any
departure by any Loan Party  therefrom,  shall in any event be effective  unless
the same  shall be in  writing  and signed  (or,  in the case of the  Collateral
Documents,  consented  to) by the  Required  Lenders,  and then  such  waiver or
consent  shall be effective  only in the specific  instance and for the specific
purpose for which given;  provided,  however,  that (a) no amendment,  waiver or
consent shall,  unless in writing and signed by all of the Lender Parties (other
than any Lender Party that is, at such time, a Defaulting Lender), do any of the
following at any time: (i) waive any of the conditions specified in Section 3.01
or, in the case of the Initial  Extension of Credit,  Section 3.02,  (ii) change
the  number of  Lenders  or the  percentage  of (x) the  Commitments  or (y) the
aggregate  unpaid  principal amount of the Advances that, in each case, shall be
required  for the  Lenders  or any of them to take any action  hereunder,  (iii)

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reduce or limit the obligations of any Guarantor under Section 7.01 hereunder or
release such  Guarantor  or  otherwise  limit such  Guarantor's  liability  with
respect to the  Obligations  owing to the Agents  and the Lender  parties,  (iv)
release all or substantially  all of the Collateral in any transaction or series
of related  transactions to secure any Obligations  other than Obligations owing
to the Secured Parties under the Loan Documents,  (v) amend Section 2.12 or this
Section or (vi) amend,  modify or otherwise  affect any other  provision of this
Agreement or any of the other Loan  Documents  requiring the consent or approval
of all of the Lender  Parties  and (b) no  amendment,  waiver or consent  shall,
unless in writing and signed by the Required Lenders and each Lender (other than
any Lender that is, at such time,  a  Defaulting  Lender)  that has a Commitment
under,  or is owed any amounts  under or in respect  of, a Term  Facility or the
Revolving  Credit Facility if such Lender is directly and adversely  affected by
such amendment,  waiver or consent: (i) increase the Commitments of such Lender;
(ii) reduce the  principal  of, or stated rate of interest on, the Notes held by
such Lender or any fees or other amounts stated to be payable  hereunder to such
Lender;  (iii)  postpone the final  maturity of the Notes held by such Lender or
any date fixed for any  payment of  interest on the Notes held by such Lender or
the fees  hereunder or any  Guaranteed  Obligations  payable  under  Article VII
hereof;  or (iv) change the order of application  of any prepayment  between the
Term B Facility and the Revolving  Credit Facility from the application  thereof
set  forth  in  the  applicable   provisions  of  Section  2.04(b)  or  2.05(b),
respectively,  in any manner that  materially  affects  the  Lenders  under such
Facilities;  provided further that no amendment, waiver or consent shall, unless
in writing  and signed by the Swing Line Bank or the Issuing  Bank,  as the case
may be, in addition to the Lenders  required  above to take such action,  affect
the rights or  obligations  of the Swing Line Bank or the Issuing  Bank,  as the
case may be,  under this  Agreement;  and provided  further  that no  amendment,
waiver or consent shall, unless in writing and signed by an Agent in addition to
the Lenders  required above to take such action,  affect the rights or duties of
such Agent under this Agreement or the other Loan Documents.

         SECTION  9.02  Notices,  Etc.  All  notices  and  other  communications
provided  for  hereunder  shall be in  writing  (including  telecopy  or  e-mail
communication) and mailed,  telecopied or delivered,  if to the Borrower, at its
address at 11778 South Election Road, Suite 210, Draper, Utah, 84020, Attention:
Chief Financial Officer; if to any Initial Lender Party, at its Domestic Lending
Office specified  opposite its name on Schedule I hereto; if to any other Lender
Party, at its Domestic Lending Office specified in the Assignment and Acceptance
pursuant to which it became a Lender Party;  if to the Collateral  Agent, at its
address  at 120 Long  Ridge  Road,  3rd Floor,  Stamford,  CT 06927,  Attention:
Manager of  Operations,  Fax No. (203)  961-2017;  and if to the  Administrative
Agent,  at its address at 120 Long Ridge Road,  3rd Floor,  Stamford,  CT 06927,
Attention:  Manager of Operations,  or, as to the Borrower or the Administrative
Agent,  at such other  address as shall be designated by such party in a written
notice to the other  parties and, as to each other party,  at such other address
as shall be designated by such party in a written notice to the Borrower and the
Administrative  Agent.  All such notices and other  communications  shall,  when
mailed,  telecopied  or  E-mailed,  be  effective  when  received.  Delivery  by
telecopier of an executed  counterpart  of a signature  page to any amendment or
waiver of any provision of this  Agreement or the Notes or of any Exhibit hereto
to be executed  and  delivered  hereunder  shall be  effective as delivery of an
original executed counterpart thereof.

         SECTION 9.03 No Waiver;  Remedies. No failure on the part of any Lender
Party or any Agent to exercise, and no delay in exercising,  any right hereunder
or under any Note or any other Loan Document shall operate as a waiver  thereof;
nor shall any single or partial exercise of any such right preclude any other or
further exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

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         SECTION  9.04 Costs and  Expenses.  (a) The  Borrower  agrees to pay on
demand (i) all reasonable costs and expenses of each Agent and the Lead Arranger
in  connection  with  the  preparation,   execution,  delivery,  administration,
modification  and  amendment  of,  or any  consent  or  waiver  under,  the Loan
Documents  (including,  without  limitation,  (A) all due diligence,  collateral
review,  syndication,  (including  printing,  distribution  and  bank  meetings)
transportation,  computer, duplication, appraisal, audit, insurance, consultant,
search,  filing and recording fees and expenses and (B) the reasonable  fees and
expenses of counsel for each Agent and the Lead Arranger  with respect  thereto,
with respect to advising such Agent or the Lead Arranger, as the case may be, as
to  its  rights  and   responsibilities,   or  the  perfection,   protection  or
preservation of rights or interests,  under the Loan Documents,  with respect to
negotiations  with any Loan Party or with other  creditors  of any Loan Party or
any  of  its  Subsidiaries   arising  out  of  any  Default  or  any  events  or
circumstances  that may give rise to a Default  and with  respect to  presenting
claims in or otherwise participating in or monitoring any bankruptcy, insolvency
or other  similar  proceeding  involving  creditors'  rights  generally  and any
proceeding ancillary thereto) and (ii) all reasonable costs and expenses of each
Agent,  the  Lead  Arranger  and  each  Lender  Party  in  connection  with  the
enforcement of the Loan Documents, whether in any action, suit or litigation, or
any bankruptcy, insolvency,  restructuring or other similar proceeding affecting
creditors' rights generally (including,  without limitation, the reasonable fees
and expenses of counsel for the Administrative Agent, the Lead Arranger and each
Lender Party with respect thereto).

                  (b) The Borrower agrees to indemnify, defend and save and hold
         harmless each Agent,  the Lead Arranger,  each Lender Party and each of
         their Affiliates and their respective officers,  directors,  employees,
         agents,  advisors and trustees (each, an "Indemnified  Party") from and
         against, and shall pay on demand, any and all claims, damages,  losses,
         liabilities and expenses  (including,  without  limitation,  reasonable
         fees and  expenses of  counsel)  that may be incurred by or asserted or
         awarded against any  Indemnified  Party, in each case arising out of or
         in connection with or by reason of (including,  without limitation,  in
         connection  with  any   investigation,   litigation  or  proceeding  or
         preparation of a defense in connection  therewith) (i) the  Facilities,
         the  actual  or  proposed  use of the  proceeds  of the  Advances,  the
         Transaction Documents or any of the transactions  contemplated thereby,
         or (ii) the actual or alleged  presence of  Hazardous  Materials on any
         property  of  any  Loan  Party  or  any  of  its  Subsidiaries  or  any
         Environmental  Action  relating  in any way to any Loan Party or any of
         its  Subsidiaries,  except to the  extent  such  claim,  damage,  loss,
         liability  or expense  resulted  from such  Indemnified  Party's  gross
         negligence  or  willful  misconduct.  In the case of an  investigation,
         litigation  or other  proceeding to which the indemnity in this Section
         9.04(b) applies,  such indemnity shall be effective whether or not such
         investigation,  litigation  or proceeding is brought by any Loan Party,
         its directors, shareholders or creditors or an Indemnified Party or any
         other Person, whether or not any Indemnified Party is otherwise a party
         thereto and whether or not the Transaction is consummated. The Borrower
         also  agrees  not to  assert  any claim  against  any  Agent,  the Lead
         Arranger, any Lender Party or any of their Affiliates,  or any of their
         respective officers, directors,  employees, agents and advisors, on any
         theory of liability, for special,  indirect,  consequential or punitive
         damages  arising out of or otherwise  relating to the  Facilities,  the
         Transaction  Documents or any of the  transactions  contemplated by the
         Transaction Documents.

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                  (c) If any  payment of  principal  of, or  Conversion  of, any
         Eurodollar  Rate  Advance is made by the Borrower to or for the account
         of a Lender Party other than on the last day of the Interest Period for
         such  Advance,  as a result  of a payment  or  Conversion  pursuant  to
         Section 2.05, 2.08(a) or 2.08(b)(i), or acceleration of the maturity of
         the Notes  pursuant to Section 6.01,  or if the Borrower  fails to make
         any  payment  or  prepayment  of an  Advance  for  which  a  notice  of
         prepayment  has been given or that is  otherwise  required  to be made,
         whether  pursuant  to  Section  2.03,  2.05 or 6.01 or  otherwise,  the
         Borrower  shall,  upon demand by such Lender Party (with a copy of such
         demand to the Administrative  Agent),  pay to the Administrative  Agent
         for the account of such Lender Party any amounts required to compensate
         such Lender Party for any additional losses,  costs or expenses that it
         may reasonably  incur as a result of such payment or Conversion or such
         failure  to pay or  prepay,  as the  case  may be,  including,  without
         limitation,  any loss (including loss of anticipated profits),  cost or
         expense  incurred  by  reason of the  liquidation  or  reemployment  of
         deposits  or  other  funds  acquired  by any  Lender  Party  to fund or
         maintain  such Advance;  provided,  however,  that such written  demand
         shall be  accompanied a  certificate  as to the amount of such loss and
         the method of  determination  of such increased loss,  submitted to the
         Borrower by such Lender Party,  shall be prima facie  evidence,  absent
         manifest error.  Such certificate  shall contain a representation  that
         any and all  calculations  made  therein  have  been  made in a  manner
         consistent  with the  treatment  given by such Lender  Party to similar
         businesses in similar circumstances.

                  (d) If any  Loan  Party  fails  to pay  when  due  any  costs,
         expenses  or  other  amounts  payable  by it under  any Loan  Document,
         including,  without  limitation,  fees  and  expenses  of  counsel  and
         indemnities,  such  amount  may be paid on behalf of such Loan Party by
         the Administrative Agent or any Lender Party, in its sole discretion.

                  (e) Without  prejudice to the survival of any other  agreement
         of any Loan  Party  hereunder  or under any other  Loan  Document,  the
         agreements and  obligations of the Borrower  contained in Sections 2.09
         and 2.11 and this  Section  9.04 shall  survive  the payment in full of
         principal,  interest and all other amounts payable  hereunder and under
         any of the other Loan Documents.

         SECTION 9.05 Right of Set-off.  Upon (a) the  occurrence and during the
continuance  of any Event of Default  and (b) the  making of the  request or the
granting  of  the  consent   specified  by  Section   6.01  to   authorize   the
Administrative  Agent to  declare  the Notes  due and  payable  pursuant  to the
provisions of Section 6.01, each Agent,  the Lead Arranger and each Lender Party
and each of their  respective  Affiliates  is hereby  authorized at any time and
from time to time,  to the  fullest  extent  permitted  by law,  to set -off and
otherwise  apply any and all  deposits  (general  or  special,  time or  demand,
provisional or final) at any time held and other  indebtedness at any time owing
by such Agent, the Lead Arranger,  such Lender Party or such Affiliate to or for
the credit or the account of the Borrower against any and all of the Obligations
of the Borrower now or hereafter existing under the Loan Documents, irrespective
of whether  such Agent,  the Lead  Arranger or such Lender Party shall have made
any  demand  under  this  Agreement  or such  Note or Notes  and  although  such
Obligations  may be  unmatured.  Each Agent,  the Lead  Arranger and each Lender
Party  agrees  promptly  to  notify  the  Borrower  after any such  set-off  and
application;  provided,  however, that the failure to give such notice shall not

                                      103
<PAGE>

affect the validity of such set-off and  application.  The rights of each Agent,
the Lead Arranger and each Lender Party and their  respective  Affiliates  under
this Section are in addition to other rights and  remedies  (including,  without
limitation,  other rights of set-off)  that such Agent,  the Lead  Arranger such
Lender Party and their respective Affiliates may have.

         SECTION 9.06 Binding Effect. This Agreement shall become effective when
it shall have been executed by the Borrower and each Agent and the Lead Arranger
and the  Administrative  Agent shall have been  notified by each Initial  Lender
Party that such Initial  Lender Party has  executed it and  thereafter  shall be
binding  upon and inure to the benefit of the  Borrower,  each  Agent,  the Lead
Arranger  and each Lender  Party and their  respective  successors  and assigns,
except  that the  Borrower  shall  not have the right to  assign  its  rights or
obligations  hereunder or any interest  herein without the prior written consent
of the Lender Parties.

         SECTION 9.07 Assignments and Participations. (a) Each Lender may assign
to one or more Eligible Assignees all or a portion of its rights and obligations
under this Agreement  (including,  without  limitation,  all or a portion of its
Commitment or  Commitments,  the Advances owing to it and the Note or Notes held
by it) and (i) each such  assignment  shall be of a uniform,  and not a varying,
percentage  of all  rights  and  obligations  under and in respect of any or all
Facilities,  (ii)  except  in  the  case  of an  assignment  to a  Person  that,
immediately  prior to such assignment,  was a Lender or any Affiliate thereof or
an assignment of all of a Lender's rights and  obligations  under this Agreement
or an assignment to an Approved  Fund, the aggregate  amount of the  Commitments
being assigned to such Eligible Assignee pursuant to such assignment (determined
as of the date of the Assignment and Acceptance with respect to such assignment)
shall in no event be less  than  $1,000,000  under  each  Facility  for  which a
Commitment is being assigned, (iii) each such assignment shall be to an Eligible
Assignee,  (iv) no such  assignments  (other  than to a Lender or any  Affiliate
thereof or to an Approved  Fund) shall be  permitted  without the consent of the
Administrative  Agent until the  Administrative  Agent shall have  notified  the
Lender Parties that syndication of the Commitments hereunder has been completed,
(v) the  parties  to each such  assignment  shall  execute  and  deliver  to the
Administrative  Agent,  for its  acceptance  and recording in the  Register,  an
Assignment  and  Acceptance,  together  with any Note or Notes  subject  to such
assignment,  and  (vi) no  such  assignments  (other  than  to a  Lender  or any
Affiliate  thereof or any Approved Fund) shall be permitted  without the consent
of the Borrower (which consent shall not be unreasonably withheld) so long as no
Event of Default has occurred and continues to remain uncured.

                  (b) Upon such execution,  delivery,  acceptance and recording,
         from and after the  effective  date  specified in such  Assignment  and
         Acceptance, (i) the assignee thereunder shall be a party hereto and, to
         the extent that rights and obligations  hereunder have been assigned to
         it  pursuant to such  Assignment  and  Acceptance,  have the rights and
         obligations of a Lender or Issuing Bank, as the case may be,  hereunder
         and (ii) the Lender or Issuing Bank assignor  thereunder  shall, to the
         extent that rights and  obligations  hereunder have been assigned by it
         pursuant  to such  Assignment  and  Acceptance,  relinquish  its rights
         (other than its rights under Sections 2.09, 2.11 and 9.04 to the extent
         any  claim  thereunder  relates  to an  event  arising  prior  to  such
         assignment) and be released from its  obligations  under this Agreement
         (and, in the case of an Assignment and  Acceptance  covering all of the
         remaining portion of an assigning Lender's or Issuing Bank's rights and
         obligations  under this  Agreement,  such Lender or Issuing  Bank shall
         cease to be a party hereto).

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<PAGE>

                  (c) By executing and delivering an Assignment and  Acceptance,
         each Lender Party  assignor  thereunder  and each  assignee  thereunder
         confirm to and agree with each other and the other parties  thereto and
         hereto as follows:  (i) other than as provided in such  Assignment  and
         Acceptance,  such  assigning  Lender Party makes no  representation  or
         warranty and assumes no responsibility  with respect to any statements,
         warranties or  representations  made in or in connection  with any Loan
         Document  or  the  execution,   legality,   validity,   enforceability,
         genuineness,  sufficiency or value of, or the perfection or priority of
         any lien or security  interest created or purported to be created under
         or in connection  with,  any Loan  Document or any other  instrument or
         document furnished  pursuant thereto;  (ii) such assigning Lender Party
         makes no representation or warranty and assumes no responsibility  with
         respect to the financial condition of any Loan Party or the performance
         or  observance  by any Loan Party of any of its  obligations  under any
         Loan Document or any other  instrument or document  furnished  pursuant
         thereto;  (iii) such  assignee  confirms that it has received a copy of
         this  Agreement,  together  with  copies  of the  financial  statements
         referred to in Section 4.01 and such other documents and information as
         it has deemed  appropriate to make its own credit analysis and decision
         to enter into such Assignment and Acceptance;  (iv) such assignee will,
         independently  and  without  reliance  upon any Agent,  such  assigning
         Lender Party or any other Lender Party 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;  (v) such assignee confirms that it is an Eligible Assignee;
         (vi) such  assignee  appoints  and  authorizes  each Agent to take such
         action  as  agent  on  its  behalf  and to  exercise  such  powers  and
         discretion  under the Loan  Documents as are delegated to such Agent by
         the terms hereof and thereof,  together with such powers and discretion
         as are reasonably  incidental  thereto;  and (vii) such assignee agrees
         that  it  will  perform  in  accordance  with  their  terms  all of the
         obligations  that by the terms of this  Agreement  are  required  to be
         performed by it as a Lender or Issuing Bank, as the case may be.

                  (d) The  Administrative  Agent  shall  maintain at its address
         referred to in Section 9.02 a copy of each  Assignment  and  Acceptance
         delivered to and accepted by it and a register for the  recordation  of
         the names and addresses of the Lender Parties and the Commitment  under
         each Facility of, and principal amount of the Advances owing under each
         Facility to, each Lender Party from time to time (the "Register").  The
         entries in the Register shall be prima facie evidence,  absent manifest
         error,  and the Borrower,  the Agents and the Lender  Parties may treat
         each Person  whose name is recorded in the  Register as a Lender  Party
         hereunder  for all purposes of this  Agreement.  The Register  shall be
         available  for  inspection  by the  Borrower or any Agent or any Lender
         Party at any  reasonable  time and from  time to time  upon  reasonable
         prior notice.

                  (e) Upon its receipt of an Assignment and Acceptance  executed
         by an assigning Lender Party and an assignee, together with any Note or
         Notes subject to such assignment,  the  Administrative  Agent shall, if
         such  Assignment and  Acceptance has been properly  completed and is in
         substantially the form of Exhibit C hereto,  (i) accept such Assignment
         and Acceptance,  (ii) record the information  contained  therein in the
         Register and (iii) give prompt notice  thereof to the Borrower and each
         other  Agent.  In the case of any  assignment  by a Lender and upon the
         request  of such new  Lender  pursuant  to the terms of  Section  2.15,
         within  five  Business  Days  after its  receipt  of such  notice,  the
         Borrower,  at  its  own  expense,  shall  execute  and  deliver  to the

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<PAGE>

         Administrative  Agent in exchange for the  surrendered  Note or Notes a
         new Note to the order of such  Eligible  Assignee in an amount equal to
         the  Commitment  assumed by it under  each  Facility  pursuant  to such
         Assignment and Acceptance  and, if any assigning  Lender has retained a
         Commitment  hereunder  under such Facility,  a new Note to the order of
         such assigning Lender in an amount equal to the Commitment  retained by
         it hereunder. Such new Note or Notes shall be in an aggregate principal
         amount equal to the aggregate principal amount of such surrendered Note
         or Notes,  shall be dated the  effective  date of such  Assignment  and
         Acceptance and shall otherwise be in substantially  the form of Exhibit
         A-1 or A-2 hereto, as the case may be.

                  (f) Each Lender Party may sell  participations  to one or more
         Persons  (other than any Loan Party or any of its  Affiliates) in or to
         all or a portion  of its rights and  obligations  under this  Agreement
         (including,  without  limitation,  all or a portion of its Commitments,
         the  Advances  owing to it and the Note or Notes  (if any) held by it);
         provided,  however, that (i) such Lender Party's obligations under this
         Agreement (including, without limitation, its Commitments) shall remain
         unchanged,  (ii) such Lender Party shall remain solely  responsible  to
         the other parties hereto for the performance of such obligations, (iii)
         such  Lender  Party  shall  remain  the holder of any such Note for all
         purposes of this Agreement, (iv) the Borrower, the Agents and the other
         Lender  Parties  shall  continue to deal solely and directly  with such
         Lender  Party  in  connection  with  such  Lender  Party's  rights  and
         obligations  under this Agreement and (v) no participant under any such
         participation  shall have any right to approve any  amendment or waiver
         of any provision of any Loan Document,  or any consent to any departure
         by any Loan Party therefrom,  except to the extent that such amendment,
         waiver or consent  would reduce the  principal  of, or interest on, the
         Notes or any fees or other amounts payable  hereunder,  in each case to
         the extent subject to such  participation,  postpone any date fixed for
         any payment of  principal  of, or interest on, the Notes or any fees or
         other amounts payable hereunder,  in each case to the extent subject to
         such  participation,  or  release  all  or  substantially  all  of  the
         Collateral.

                  (g) Any Lender Party may, in connection with any assignment or
         participation or proposed assignment or participation  pursuant to this
         Section  9.07,  disclose  to the  assignee or  participant  or proposed
         assignee  or  participant  any  information  relating  to the  Borrower
         furnished  to  such  Lender  Party  by or on  behalf  of the  Borrower;
         provided,  however, that, prior to any such disclosure, the assignee or
         participant or proposed assignee or participant shall agree to preserve
         the confidentiality of any Confidential Information received by it from
         such Lender Party.

                  (h)  Notwithstanding  any  other  provision  set forth in this
         Agreement,  any Lender Party may at any time create a security interest
         in all or any portion of its rights  under this  Agreement  (including,
         without limitation, the Advances owing to it and the Note or Notes held
         by  it) in  favor  of any  Federal  Reserve  Bank  in  accordance  with
         Regulation A of the Board of Governors of the Federal Reserve System.

                  (i) Notwithstanding anything to the contrary contained herein,
         any  Lender  that is a fund that  invests  in bank  loans may  create a
         security interest in all or any portion of the Advances owing to it and
         the Note or Notes held by it to the trustee for holders of  obligations
         owed,  or  securities  issued,  by  such  fund  as  security  for  such
         obligations or securities,  provided that unless and until such trustee

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<PAGE>

         actually  becomes a Lender in compliance  with the other  provisions of
         this Section 9.07, (i) no such pledge shall release the pledging Lender
         from any of its  obligations  under  the Loan  Documents  and (ii) such
         trustee shall not be entitled to exercise any of the rights of a Lender
         under the Loan  Documents  even though such  trustee may have  acquired
         ownership   rights  with  respect  to  the  pledged   interest  through
         foreclosure or otherwise.

                  (j) Notwithstanding anything to the contrary contained herein,
         any Lender Party (a "Granting  Lender") may grant to a special  purpose
         funding vehicle  identified as such in writing from time to time by the
         Granting Lender to the Administrative Agent and the Borrower (an "SPC")
         the option to provide all or any part of any Advance that such Granting
         Lender would otherwise be obligated to make pursuant to this Agreement,
         provided that (i) nothing  herein shall  constitute a commitment by any
         SPC to fund any Advance, and (ii) if an SPC elects not to exercise such
         option or otherwise fails to make all or any part of such Advance,  the
         Granting Lender shall be obligated to make such Advance pursuant to the
         terms  hereof.  The  making of an  Advance  by an SPC  hereunder  shall
         utilize the Commitment of the Granting  Lender to the same extent,  and
         as if,  such  Advance  were made by such  Granting  Lender.  Each party
         hereto  hereby agrees that (i) no SPC shall be liable for any indemnity
         or similar payment  obligation  under this Agreement for which a Lender
         Party would be liable, (ii) no SPC shall be entitled to the benefits of
         Sections  2.09  and  2.11  (or any  other  increased  costs  protection
         provision)  and  (iii)  the  Granting  Bank  shall  for  all  purposes,
         including,  without limitation, the approval of any amendment or waiver
         of any  provision  of any Loan  Document,  remain the  Lender  Party of
         record hereunder. Notwithstanding anything to the contrary contained in
         this  Agreement,  any SPC may (i) with  notice  to, but  without  prior
         consent  of, the  Borrower  and the  Administrative  Agent and  without
         paying any  processing  fee therefor,  assign all or any portion of its
         interest in any Advance to the Granting  Lender and (ii)  disclose on a
         confidential basis any non-public  information  relating to its funding
         of Advances to any rating agency,  commercial  paper dealer or provider
         of any surety or guarantee or credit or liquidity  enhancement  to such
         SPC. This  subsection (k) may not be amended  without the prior written
         consent of each Granting Lender,  all or any part of whose Advances are
         being funded by the SPC at the time of such amendment.

                  (k) The Issuing Bank may assign to an Eligible Assignee all of
         its rights and  obligations  under the undrawn portion of its Letter of
         Credit Commitment at any time;  provided,  however,  that (i) each such
         assignment  shall be to an  Eligible  Assignee  and (ii) the parties to
         each such  assignment  shall execute and deliver to the  Administrative
         Agent, for its acceptance and recording in the Register,  an Assignment
         and Acceptance.

         SECTION 9.08 Execution in Counterparts.  This Agreement may be executed
in any  number of  counterparts  and by  different  parties  hereto in  separate
counterparts,  each of which when so executed  shall be deemed to be an original
and all of which taken  together shall  constitute  one and the same  agreement.
Delivery by telecopier of an executed  counterpart  of a signature  page to this
Agreement shall be effective as delivery of an original executed  counterpart of
this Agreement.

         SECTION  9.09  Confidentiality.  Neither any Agent nor any Lender Party
shall disclose any Confidential Information to any Person without the consent of
the Borrower,  other than (a) to such Agent's or such Lender Party's  Affiliates
and their officers,  directors,  employees, agents and advisors and to actual or

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prospective Eligible Assignees and participants, and then only on a confidential
basis, (b) as required by any law, rule or regulation or judicial  process,  (c)
as requested or required by any state,  Federal or foreign authority or examiner
(including the National  Association of Insurance  Commissioners  or any similar
organization or quasi-regulatory authority) regulating such Lender Party, (d) to
any  rating  agency  when  required  by it,  provided  that,  prior  to any such
disclosure,  such rating agency shall undertake to preserve the  confidentiality
of any Confidential Information relating to the Loan Parties received by it from
such Lender  Party,  (e) to the extent so  requested  or ordered by a court,  in
connection  with any litigation or proceeding to which such Agent or such Lender
Party  or any of its  Affiliates  may be a party or (f) in  connection  with the
exercise of any right or remedy under this Agreement or any other Loan Document.

         SECTION 9.10 Release of Collateral.  Upon the sale, lease,  transfer or
other  disposition  of any  item of  Collateral  of any Loan  Party  (including,
without limitation, as a result of the sale, in accordance with the terms of the
Loan Documents,  of the Loan Party that owns such Collateral) in accordance with
the terms of the Loan  Documents,  the Collateral  Agent will, at the Borrower's
expense,  promptly execute and deliver to such Loan Party such documents as such
Loan  Party may  reasonably  request  to  evidence  the  release of such item of
Collateral  from  the  assignment  and  security   interest  granted  under  the
Collateral Documents in accordance with the terms of the Loan Documents.

         SECTION 9.11 No Liability of the Issuing Bank. The Borrower assumes all
risks of the acts or omissions of any beneficiary or transferee of any Letter of
Credit  with  respect to its use of such  Letter of Credit.  Neither the Issuing
Bank nor any of its officers or directors  shall be liable or  responsible  for:
(a) the use that may be made of any Letter of Credit or any acts or omissions of
any  beneficiary  or  transferee  in  connection  therewith;  (b) the  validity,
sufficiency or genuineness of documents,  or of any endorsement thereon, even if
such documents should prove to be in any or all respects invalid,  insufficient,
fraudulent or forged;  (c) payment by the Issuing Bank against  presentation  of
documents  that do not comply  with the terms of a Letter of  Credit,  including
failure of any  documents  to bear any  reference  or adequate  reference to the
Letter of Credit; or (d) any other circumstances whatsoever in making or failing
to make payment under any Letter of Credit,  except that the Borrower shall have
a claim  against the Issuing  Bank,  and the Issuing Bank shall be liable to the
Borrower,  to the extent of any direct, but not consequential,  damages suffered
by the Borrower that the Borrower  proves were caused by (i) the Issuing  Bank's
willful misconduct or gross negligence as determined in a final,  non-appealable
judgment by a court of competent  jurisdiction in determining  whether documents
presented  under any  Letter of Credit  comply  with the terms of the  Letter of
Credit or (ii) the Issuing Bank's willful failure to make lawful payment under a
Letter  of  Credit  after the  presentation  to it of a draft  and  certificates
strictly  complying  with the terms and  conditions of the Letter of Credit.  In
furtherance and not in limitation of the foregoing,  the Issuing Bank may accept
documents that appear on their face to be in order,  without  responsibility for
further investigation, regardless of any notice or information to the contrary.

         SECTION 9.12  Jurisdiction,  Etc. (a) Each of the parties hereto hereby
irrevocably and  unconditionally  submits,  for itself and its property,  to the
nonexclusive  jurisdiction  of any New York State court or Federal  court of the
United States of America  sitting in New York City, and any appellate court from
any  thereof,  in any action or  proceeding  arising  out of or relating to this

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Agreement  or any of the other  Loan  Documents  to which it is a party,  or for
recognition  or  enforcement  of any  judgment,  and each of the parties  hereto
hereby irrevocably and unconditionally  agrees that all claims in respect of any
such action or proceeding may be heard and determined in any such New York State
court or, to the fullest  extent  permitted by law, in such Federal  court.  The
Borrower hereby irrevocably designates and appoints Corporation Service Company,
80 State  Street,  Albany,  NY 12207,  as its agent to  receive  service  of all
process  brought against the Borrower with respect to any such proceeding in any
such court in New York,  such service being hereby  acknowledged by the Borrower
to be effective and binding service in every respect. Each of the parties hereto
agrees  that a  final  judgment  in any  such  action  or  proceeding  shall  be
conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law.  Nothing in this Agreement shall affect any
right  that any  party may  otherwise  have to bring  any  action or  proceeding
relating to this  Agreement or any of the other Loan  Documents in the courts of
any jurisdiction.

                  (b) Each of the parties hereto irrevocably and unconditionally
         waives, to the fullest extent it may legally and effectively do so, any
         objection  that it may now or hereafter  have to the laying of venue of
         any suit,  action or  proceeding  arising  out of or  relating  to this
         Agreement or any of the other Loan  Documents to which it is a party in
         any New York State or Federal court.  Each of the parties hereto hereby
         irrevocably waives, to the fullest extent permitted by law, the defense
         of  an  inconvenient  forum  to  the  maintenance  of  such  action  or
         proceeding in any such court.

         SECTION  9.13  Governing  Law.  This  Agreement  and the Notes shall be
governed by, and  construed  in  accordance  with,  the laws of the State of New
York.

         SECTION 9.14 Waiver of Jury Trial. Each of the Borrower, the Agents and
the Lender Parties  irrevocably waives all right to trial by jury in any action,
proceeding  or  counterclaim  (whether  based on  contract,  tort or  otherwise)
arising  out of or relating to any of the Loan  Documents,  the  Advances or the
actions of any Agent or any  Lender  Party in the  negotiation,  administration,
performance or enforcement thereof.

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<PAGE>

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

                                  HEADWATERS INCORPORATED

                                  By  /s/ Kirk A. Benson
                                    -----------------------------
                                  Name: Kirk A. Benson
                                  Title: Chief Executive Officer

                                  HYDROCARBON TECHNOLOGIES, INC.,
                                  COVOL FUELS OPERATORS, LLC,
                                  CHEMSAMPCO, INC.,
                                  HYDROCARBON ENVIRONMENTAL TECHNOLOGIES, INC.,
                                  CARBOREX, LLC,
                                  COVOL SYNFUEL, LLC,
                                  UTAH SYNFUEL #1, L.P.,
                                  each as a Subsidiary Guarantor

                                  By  /s/ Harlan M. Hatfield
                                    -----------------------------
                                  Name: Harlan M. Hatfield
                                  Title: Vice President, General Counsel
                                         and Secretary

                                      110
<PAGE>

                                  HEADWATERS OLYSUB CORPORATION,
                                  ISG RESOURCES, INC.,
                                  BEST MASONY & TOOL SUPPLY, INC.
                                      F/K/A J. MARVIN ISAAC INTERESTS, INC.,
                                  LEWIS W. OSBORNE, INC.,
                                  UNITED TERRAZZO SUPPLY CO, INC.,
                                  MAGNA WALL, INC.,
                                  ISG MANUFACTURED PRODUCTS, INC.,
                                  ISG PARTNER, INC.,
                                  ISG CAPITAL CORPORATION,
                                  ISG SWIFT CRETE, INC.,
                                  DON'S BUILDING SUPPLY, L.P.,
                                  PALESTINE CONCRETE TITLE COMPANY, L.P.
                                   each as a Subsidiary Guarantor

                                   By  /s/ Brett A. Hickman
                                     -----------------------------
                                   Name: Brett A. Hickman
                                   Title: Senior Vice President, General
                                          Counsel and Secretary

                                      111
<PAGE>

                                    GENERAL ELECTRIC CAPITAL CORPORATION,
                                        as Administrative Agent

                                        By  /s/ John J. Ryan
                                            -----------------------------
                                        Name:    John J. Ryan
                                        Title:   Manager of Operations

                                    GENERAL ELECTRIC CAPITAL CORPORATION,
                                        as Collateral Agent

                                        By    /s/ John J. Ryan
                                            -----------------------------
                                        Name:    John J. Ryan
                                        Title:   Manager of Operations

                                        Initial Lenders

                                        MORGAN STANLEY SENIOR FUNDING, INC

                                        By    /s/ R. Bram Smith
                                            -----------------------------
                                        Name:    R. Bram Smith
                                        Title:   Managing Director

                                        ZIONS FIRST NATIONAL BANK

                                        By     /s/ Tracy Groll
                                            -----------------------------
                                        Name:    Tracy Groll
                                        Title:   Vice President

                                      112
<PAGE>

                                        CIT LENDING SERVICES CORPORATION

                                        By     /s/ Mark O'Keeffe
                                            -----------------------------
                                        Name:    Mark O'Keeffe
                                        Title:   Vice President

                                        ARK II CLO 2001-1, LIMITED

                                        By:  Patriarch Partners II, LLC,
                                                its Collateral Manager

                                        By    /s/ Lynn Tilton
                                            -----------------------------
                                        Name:   Lynn Tilton
                                        Title:  Manager

                                      113

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