Document:

LEASE MODIFICATION AGREEMENT
                                NO. 1

This  Agreement  made  as  of  the 13th day of June, 2001 by  and between
ELIZABETH   METROMALL   LLC,  a  Delaware   limited   liability   company
("Landlord"),  with  its principal  office  at  20  South  Third  Street,
Columbus, Ohio 43215, and Cinema Ride Times Square, Inc. ("Tenant") d/b/a
Cinema Ride, a New York  corporation,  with its principal office at 12001
Ventura Place,  Suite 340, Studio City, CA  91604.

                          W I T N E S S E T H:

WHEREAS, Landlord and Tenant have entered  into  a  Lease Agreement dated
November 1, 1999 (the "Lease"), for  those certain premises designated as
space  numbers 1111 and 1112 (the "Premises") within the  Jersey  Gardens
(the "Shopping  Center")  located  in the City of Elizabeth, and State of
New Jersey;

WHEREAS,  CINEMA  RIDE,  INC.  guaranteed  the  performance  of  Tenant's
obligations under the Lease pursuant to a Guaranty of Lease dated October
19, 1999; and,

WHEREAS, Landlord and Tenant mutually  intend  and  desire  to modify the
Lease on and subject to the terms and conditions hereinafter set forth.

NOW,  THEREFORE,  in  consideration  of  the premises and other good  and
valuable consideration, the receipt and legal  sufficiency  of  which  is
hereby acknowledged, Landlord and Tenant hereby agree as follows:

1.   Undefined  capitalized  terms  used herein shall have the respective
meanings given such terms in the Lease.

2.   The following Sections of the Lease are hereby amended, effective as
of November 1, 1999, as follows:

     a.)  Data Sheet, Section 2.01.

The  new   paragraph (iii ) shall  be  added to Section  2.01 on   page 1
of  the  Data  Sheet of the Lease, as follows:   "(iii)   Notwithstanding
anything to the  contrary  in  this  Lease,  for the period commencing on
January 1, 2001 and expiring on the last day of the original term of this
Lease  (the  "Modification Period"), the sum of  Fifty-two  Thousand  Six
Hundred Fifty-seven  and  50/100 Dollars ($52,657.00) annually, which sum
shall be payable by Tenant  in  equal consecutive monthly installments of
Four Thousand Three Hundred Thirty-three  and  13/100 Dollars ($4,388.13)
each."

     b.)  Data  Sheet, Section 2.02.

The new  paragraph (iii) shall be added to  Section 2.02  on  page  2  of
the Data Sheet of the Lease, as follows:  "(iii) Notwithstanding anything
to  the  contrary   in   this   Lease,  for   the   period  commencing on
January 1, 2001 and expiring on the last day of the original term of this
Lease (the "Modification  Period"), a sum equal to ten  percent (10%)(the
"percentage   factor")  of  all  "Gross Sales"  resulting  from  business
conducted  in,  on or from the leased premises  during each lease year in

                              -1-
<PAGE>

excess of Five Hundred Twenty-six Thousand Five Hundred Seventy-four and
99/100 Dollars ($526,574.99)."

     c.)     Section 1.02.

The following  paragraph in  Section 1.02 of the Lease is  hereby deleted
in its  entirety:  "Further, in  the  event  that  a  movie  theater  has
not opened at the regional development within eighteen (18) months of the
Commencement  Date,  Tenant  shall have the right, within sixty (60) days
of the end of the aforementioned eighteen (18) month period, to terminate
this Lease by written notice to Landlord.  In the event the movie theater
opens during  the aforementioned sixty (60) day period, and before Tenant
has given Landlord written notice that it is terminating the  Lease, such
right to terminate shall be void and of no further force and effect as of
the date the movie theater opens."

3.   In consideration for Landlord  entering  into this Agreement, Tenant
shall  pay  Landlord,  by  certified  or  bank check,  simultaneous  with
Tenant's  execution  of this Agreement, the sum  of  Fifty  Thousand  and
00/100 Dollars ($50,000.00),  which  sum shall be accepted by Landlord in
full  satisfaction  of  Tenant's  outstanding   balance  for  the  period
commencing on October 1, 2000 and continuing through  May  31,  2001, and
settlement of associated construction chargebacks.

4.   As  a  material inducement to Landlord entering into this Agreement,
Tenant certifies  to Landlord that as of the date hereof:  (i) the Lease,
as modified hereby,  contains  the  entire  agreement between the parties
hereto relating to the Premises and that there  are  no  other agreements
between the parties relating to the Premises, the Lease or  the  Shopping
Center which are not contained herein or in the Lease;  (ii) Landlord  is
not  in  default  in  any  respect  in  any  of  the terms, covenants and
conditions of the Lease; and  (iii) Tenant has no  setoffs, counterclaims
or defenses against Landlord under the Lease.

5.   Tenant  and  its  predecessors,  successors,  parent,  subsidiaries,
affiliates and any related entity or person, hereby  release Landlord and
its  parent,  subsidiaries,  or  affiliated entities, and  their  agents,
partners, officers, directors, and  employees,  and the respective heirs,
executors,  administrators,  successors  and  assigns   of   any  of  the
foregoing, from any and all liability, claims, damages, causes  of action
or any other form of relief, legal or equitable, that are, have been,  or
could have been or in the future might be asserted in any way relating to
the  Lease,  the Landlord's performance thereunder, or the Premises, from
the beginning of time to the date of signature of this Agreement.

6.   Landlord and Tenant each mutually covenants, represents and warrants
to the other that  it  has  had  no  dealings  or communications with any
broker or agent in connection with this Agreement  and each covenants and
agrees to pay, hold harmless and indemnify the other from and against any
and all cost, expense (including reasonable attorneys' fees) or liability
for  any  compensation,  commission  or  charges to any broker  or  agent
claiming through the indemnifying party with respect hereto.

7.   Tenant  represents and warrants that it  has  taken  all  corporate,
partnership or  other  action  necessary  to  execute  and  deliver  this

                              -2-
<PAGE>

Agreement,  and  that  this  Agreement  constitutes  the  legally binding
obligation  of  Tenant enforceable in accordance with its terms.   Tenant
shall  save and hold  Landlord  harmless  from  any  claims,  or  damages
including    reasonable    attorneys'    fees   arising   from   Tenant's
misrepresentation  of  its  authority  to enter  into  and  execute  this
Agreement.

8.   As modified and amended hereby, Landlord  and  Tenant  each ratifies
and affirms the terms of the Lease.

                              -3-
<PAGE>

IN  WITNESS WHEREOF, Landlord and Tenant have set their respective  hands
as of the date first above written.

                                 LANDLORD:

 Witnessed By:                   ELIZABETH METROMALL LLC, a
                                 Delaware limited liability company
  Laurie A. Curl
 ______________________________  By: Glimcher New Jersey Metromall LLC,
                                 a Delaware limited liability company,
  Faith Oldaker Stubbs           Managing Member
 ______________________________

                                 By: Glimcher Properties Limited
                                 Partnership, a Delaware limited
                                 partnership, Managing Member

                                 By: Glimcher Properties Corporation,
                                 a Delaware corporation, General
                                 Partner

                                 /s/ Michael P. Gilmcher
                                 _______________________________
                                 By: Michael P. Glimcher, President

                                 TENANT:

Witnessed By:                    Cinema Ride Times Square, Inc.

Sue Harrison                     /s/ Mitch Francis
_______________________________  ________________________________
                                 Printed Name: Mitch Francis
Teresa C. Hurd                   Title: President
_______________________________

The  undersigned  acknowledges this Lease Modification Agreement No. 1 as
being a part of this  Lease  for the purpose of a Guaranty of Lease dated
October  19,  1999  and  further acknowledges  and  reaffirms   continued
obligations under that certain  Guaranty of Lease, executed in connection
with  the Lease, to guaranty the full  performance  of  all  of  Tenant's
obligations   under  the  Lease  and  any  amendments,  modifications  or
alterations thereto, including the payment of all amounts that may become
due and payable by Tenant to or for the benefit of Landlord.

     TENANT'S GUARANTOR

     Cinema Ride, Inc.

________________________________ By: /s/ Mitch Francis
                                 ________________________________
________________________________ Printed Name: Mitch Francis
                                 Title: President

                                    -4-FOURTH AMENDMENT TO
REVOLVING CREDIT FACILITY AGREEMENT

     
THIS  FOURTH  AMENDMENT  TO  REVOLVING   CREDIT  FACILITY   AGREEMENT  (the
“Amendment”),  dated as of June 29, 2001, is among LENNOX
 INTERNATIONAL INC., a
Delaware corporation (the “Borrower”), each of the lenders
 listed as a lender on
the signatures pages hereto  (individually,  a “Lender”
and,  collectively,  the
“Lenders”),  THE CHASE MANHATTAN BANK (as the successor
in interest by merger to
Chase Bank of Texas,  National  Association),  as  administrative  agent for the
Lenders (in such capacity, the “Administrative  Agent”),
 WACHOVIA BANK, N.A., a
national  banking  association,  as  syndication  agent (in such  capacity,  the
“Syndication  Agent” and  together  with the  Administrative  Agent,
 herein the
“Agents”) and THE BANK OF NOVA SCOTIA, as documentation
agent.

     The
  Borrower,  the Agents and the Lenders  have  entered into that certain
Revolving  Credit  Facility  Agreement  dated as of July 29, 1999 (as amended or
otherwise modified by the First Amendment to Revolving Credit Facility Agreement
dated as of August 6, 1999, the Second  Amendment to Revolving  Credit  Facility
Agreement  dated as of January 25,  2000 and the Third  Amendment  to  Revolving
Credit  Agreement  dated as of January  23, 2001 the  “Credit
Agreement”).  The
Borrower,  the Lenders and the Agents  desire to amend the Credit  Agreement  as
herein set forth.

     
NOW, THEREFORE, in consideration of the premises herein contained and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged,  the  parties  hereto  agree as follows  effective  as of the date
hereof:

ARTICLE 1

 Definitions

     
1.1     Definitions.
Capitalized  terms
used in this  Amendment  and
defined in the Credit  Agreement,  to the extent not otherwise  defined  herein,
shall have the same meaning as in the Credit Agreement, as amended hereby.

ARTICLE 2

Amendments

     
Section 2.1     Additions to Section 1.01.
The following  definitions are added
to Section 1.01 of the Credit Agreement in proper alphabetical order:

	 	
        “364 Day Facility”
  means that certain 364 Day  Revolving  Credit
     Facility  Agreement  dated as of January 25, 2000 among the  Borrower,
     Chase Bank of Texas,  National  Association  [now The Chase  Manhattan
     Bank], as administrative agent, the other agents named therein and the
     lenders  named  therein,  as the same has  been and may  hereafter  be
     amended or otherwise modified.

	 	
        
          “Approved   Receivables   Securitization”   means
 a  receivables
     securitization  or  other  receivables  sale  program  as  long as the
     aggregate amount of the commitments to purchase  receivables under all
     such programs does not at any time exceed $225,000,000.

	 	
        
          “Collateral  Agent” means The Chase Manhattan Bank,
 as collateral
     agent under the terms of the Intercreditor  Agreement (for the benefit
     of the Lenders,  the lenders under the 364 Day  Facility,  the lenders
     party to the Senior Note  Purchase  Agreements  and any other  lenders
     which  become  entitled to the  benefits  of the Liens  granted in the
     Pledge

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     Agreement  under the  terms of the  Intercreditor  Agreement)  and its
     successors and assigns in such capacity.

	 	
        
          “Existing   Letters  of  Credit”  means  the  letters
 of  credit
     described on Schedule 1.01.

	 	
        
          “Intercreditor   Agreement”  means  that  certain
  Intercreditor
     Agreement to be executed  pursuant to Section 5.23(a)  initially among
     the  Borrower,  the  Material  Restricted   Subsidiaries,   The  Chase
     Manhattan Bank, as collateral  agent  thereunder,  the  Administrative
     Agent, the  administrative  agent under the 364 Day Facility,  and the
     lenders party to the Senior Note Purchase  Agreements,  as approved by
     the  Required  Lenders  and as the same may be  amended  or  otherwise
     modified from time to time.

	 	
        
          “Lender Affiliates” shall have the meaning assigned
it in Section
     8.04(b).

	 	
        
          “Material  Restricted  Subsidiary”  means Lennox
Industries Inc.,
     Armstrong Air Conditioning  Inc., Excel Comfort Systems Inc.,  Service
     Experts Inc. and each other Restricted  Subsidiary (except LPAC Corp.)
     the book value  (determined  in  accordance  with GAAP) of whose total
     assets  equals  or  exceeds  ten  percent  (10%)  of  the  book  value
     (determined in accordance with GAAP) of the consolidated  total assets
     of Borrower and all  Subsidiaries  as determined as of the last day of
     each fiscal quarter.

	 	
        
          “Material  Transfer”  shall mean, with respect to
the Borrower or
     any  Restricted  Subsidiary,  any  transaction  or  group  of  related
     transactions  having a value in excess of  $10,000,000  in which  such
     Person  sells,  conveys,  transfers  or leases (as  lessor) any of its
     property,  including  capital  stock of, or a  Security  issued  by, a
     Subsidiary;  provided  that, the term  “Material  Transfer”
shall not
     include  the  sale  of  receivables  sold  by  the  Borrower  and  the
     Restricted Subsidiaries under an Approved Receivables  Securitization.
     For  purposes  of this  definition  the term  “value” of any
property
     transferred  shall be equal to the  transfer  price  specified  in the
     applicable sale, lease or other transfer documents for the property in
     question.

	 	
        
          “Maximum  Rate”  shall have the  meaning  assigned
 it in Section
     8.13.

	 	
        
          “Negotiated  Rate  Borrowing”  means a Swingline
 Loan that bears
     interest at a rate based upon the Negotiated Rate.

	 	
        
          “Negotiated  Rate” means,  for any Negotiated  Rate
Borrowing for
     any Interest  Period  therefor,  the rate per annum that the Swingline
     Lender and the Borrower  have agreed will apply to such  Borrowing and
     Interest Period in accordance with Section 2.20(a).

	 	
        
          “Obligated   Parties”   means  the   Borrower  and
 the  Material
     Restricted Subsidiaries.

	 	
        
          “Pledge  Agreement”  means that  certain  Pledge
 Agreement to be
     executed by the Borrower in favor of the Collateral  Agent pursuant to
     Section 5.23(a), as the same may be modified from time to time.

	 	
        
          “Subsidiary   Guaranty”   means  the  guaranty  of
 the  Material
     Restricted  Subsidiaries  in favor of the  Administrative  Agent,  the
     Issuing Bank and the Lenders,  substantially  in the form of Exhibit D
     hereto, as the same may be modified pursuant to one or more Subsidiary
     Joinder Agreements and as the same may otherwise be modified from time
     to time.

2

	 	
        
          “Subsidiary  Joinder Agreement” means an agreement
 which has been
     or will be executed by a Material Restricted Subsidiary adding it as a
     party to the Subsidiary Guaranty, in substantially the form of Exhibit
     E hereto

	 	
        
          “Swingline  Lender” shall mean Chase in its capacity
as lender of
     Swingline Loans.

	 	
        
          “Swingline Loan” shall have the meaning assigned to
 it in Section
     2.20.

     Section  2.2     “
Amendments to Existing Definitions in Section 1.01”.  The
following existing definitions contained in “Section 1.01” of
the Credit Agreement
are amended as follows:

     
            
(a)     The  following  defined  terms  are  amended
 in their respective
entireties to read as follows:

	 	
        
          “ABR Loan” shall mean any Loan or Swingline Loan
 bearing interest
     at a rate  determined  by  reference  to the  Alternate  Base  Rate in
     accordance with the provisions of Article 2.

	 	
        
          “Applicable  Percentage”  means, with respect to
any Lender,  the
     percentage  of the  total  Commitments  represented  by such  Lender's
     Commitment.  If  the  Commitments  have  terminated  or  expired,  the
     Applicable  Percentage  shall be  determined  based upon the Revolving
     Exposures, or if all Loans and Swingline Loans have been repaid, based
     on the Commitments in effect immediately prior to their termination or
     expiration.

	 	
        
          “Borrowing” shall mean (a) a group of Loans of a single
 Type made
     by the Lenders on a single date and, with respect to Eurodollar  Loans
     or Negotiated Rate Borrowings, as to which a single Interest Period is
     in effect or (b) with respect to a Swingline Loan which is also an ABR
     Loan, such Swingline Loan.

	 	
        
          “EBITDA”  means,  for any  period,  the  total  of the
following
     calculated  for  Borrower  and  the  Restricted  Subsidiaries  without
     duplication   on  a  consolidated   basis  in  accordance   with  GAAP
     consistently applied for such period: (a) Consolidated Net Income from
     operations;  plus (b) any deduction for (or less any gain from) income
     or franchise  taxes included in determining  Consolidated  Net Income;
     plus (c) interest  expense  (including the interest portion of Capital
     Leases)  deducted in  determining  Consolidated  Net Income;  plus (d)
     amortization   and   depreciation   expense  deducted  in  determining
     Consolidated  Net  Income;  plus  (e) any  non-recurring  and non cash
     charges  resulting  from  application  of GAAP that  requires a charge
     against  earnings  for the  impairment  of  goodwill to the extent not
     already  added back or not included in  determining  Consolidated  Net
     Income.

	 	
        
          “Eurodollar  Loan” shall mean any Loan or Swingline
 Loan bearing
     interest  at a rate  determined  by  reference  to the  LIBO  Rate  in
     accordance with the provisions of Article 2.

	 	
        
          “Fee Letters” shall mean the  following:  (i) that
 certain letter
     agreement  among the Borrower,  JP Morgan  Securities  Inc.  (formerly
     Chase  Securities Inc.) and Chase dated as of June 29, 2001; (ii) that
     certain letter agreement among the Borrower, Chase Securities Inc. and
     Chase  dated June 4, 1999;  and (iii) that  certain  letter  agreement
     among the Borrower,  Wachovia  Securities Inc. and Wachovia dated June
     4, 1999.

3

	 	
        
          “Interest  Payment  Date” shall mean (a) with  respect
 to any ABR
     Borrowing  or the payment of the Letter of Credit  fees under  Section
     2.04(c),  each  March  31,  June 30,  September  30 and  December  31,
     beginning  on the first  such date  after  the date  hereof;  (b) with
     respect to any Eurodollar  Loan,  the last day of the Interest  Period
     applicable  thereto and, in the case of such a Eurodollar Loan with an
     Interest  Period of more than three  months,  each day that would have
     been an Interest  Payment Date for such Eurodollar Loan had successive
     Interest  Periods of three months  duration,  as the case may be, been
     applicable to such Eurodollar Loan; (c) with respect to any Negotiated
     Rate  Borrowing,  the  last  day of  the  Interest  Period  applicable
     thereto; (d) in addition, with respect to all Borrowings,  the date of
     any prepayment thereof and the Maturity Date; and (e) in addition with
     respect  to the  payment of the  Letter of Credit  fees under  Section
     2.04(c), the Maturity Date.

	 	
        
          “Interest  Period”  shall mean:  (i) with respect
to a Eurodollar
     Borrowing,  the  period  commencing  on the  date  of  the  Eurodollar
     Borrowing  and ending on the  numerically  corresponding  day (or,  if
     there is no  numerically  corresponding  day,  on the last day) in the
     calendar  month that is 1 month  thereafter  in the case of  Swingline
     Loans or 1, 2, 3 or 6 months  thereafter in the case of the Loans, or,
     in addition,  in the case of any Eurodollar  Borrowing made during the
     30-day period ending on the Maturity  Date,  the period  commencing on
     the date of such Borrowing and ending on the seventh or fourteenth day
     thereafter,  as the  Borrower  may elect,  or the  Maturity  Date,  if
     earlier; provided,  however, that if any Interest Period
applicable to
     a Eurodollar  Borrowing  would end on a day other than a Business Day,
     such Interest Period shall be extended to the next succeeding Business
     Day unless such next  succeeding  Business  Day would fall in the next
     calendar  month,  in which case such Interest  Period shall end on the
     next preceding Business Day and (ii) with respect to a Negotiated Rate
     Borrowing,  the period  commencing on the date of the Negotiated  Rate
     Borrowing and ending on the Business Day agreed to by the Borrower and
     the Swingline  Lender in accordance with Section 2.20 (a) which is not
     later than 30 days  thereafter,  or the  Maturity  Date,  if  earlier.
     Interest  shall accrue from and including the first day of an Interest
     Period to but excluding the last day of such Interest Period.

	 	
        
          “LIBO Rate” shall mean, with respect to any Eurodollar
 Borrowing
     for any Interest Period,  an interest rate per annum (rounded upwards,
     if  necessary,  to the  next  1/16 of 1%)  equal  to the rate at which
     dollar  deposits  approximately  equal  in  principal  amount  to  the
     Administrative  Agent's portion of such Eurodollar Borrowing and for a
     maturity  comparable  to  such  Interest  Period  are  offered  to the
     principal  London  offices  of  Chase  or  one of  its  Affiliates  in
     immediately   available  funds  in  the  London  interbank  market  at
     approximately  11:00 a.m., London time, (i) two Business Days prior to
     the  commencement  of such Interest Period or (ii) with respect to any
     Swingline  Loan that is also a Eurodollar  Borrowing,  on the Business
     Day of the commencement of such Interest Period.

	 	
        
          “Material Adverse Effect” shall mean a material
adverse effect on
     (a) the business, operations,  affairs, financial condition, assets or
     properties of the Borrower and its Restricted  Subsidiaries taken as a
     whole,  or (b) the ability of the Borrower to perform its  obligations
     under  this  Agreement  and the  ability  of the  Material  Restricted
     Subsidiaries  to  perform  their  respective   obligations  under  the
     Subsidiary  Guaranty,  taken  as a  whole,  or  (c)  the  validity  or
     enforceability  of  this  Agreement,   the  Pledge  Agreement  or  the
     Subsidiary Guaranty.

	 	
        
          “Revolving  Exposure”  shall mean,  with respect to
any Lender at
     any time, the sum of the outstanding principal amount of such Lender's
     Loans and its  participating

4

	 	
     interest in the outstanding Swingline Loans and Letters of Credit (or,
     if  determined  with  respect  to a Lender  who is also the  Swingline
     Lender or the  Issuing  Bank,  its  direct  interests  in  outstanding
     Swingline  Loans  or  Letters  of  Credit  minus  all  other  Lenders'
     participation  interests  therein  whether  or not  notice of any such
     participation shall have been given under Section 2.20(b)).

	 	
        
          “Senior Note Purchase Agreements” shall mean the
following:

	 	   
          (i)
     nine  separate  Note Purchase Agreements, dated as of
          December 1, 1993, as each of the same have been amended,  between
          the  Borrower  and each of The  Prudential  Insurance  Company of
          America,  Connecticut General Life Insurance Company, Connecticut
          General Life Insurance Company, on behalf of one or more separate
          accounts, United of Omaha Life Insurance Company, Mutual of Omaha
          Insurance Company, Companion Life Insurance Company, United World
          Life  Insurance  Company,  First Colony Life  Insurance  Company,
          General Electric Capital  Assurance  Company (as a successor) and
          GE Life and Annuity Assurance Company (as a successor);

	 	   
          
               (ii)     the Note Purchase Agreement,
 dated as of July 6, 1995
          between  the  Borrower  and   Teachers   Insurance   and  Annuity
          Association of America, as the same has been amended;

	 	   
          
               (iii)     eight separate Note Purchase
 Agreements, dated as of
          April 3, 1998, as each of the same have been amended, between the
          Borrower and each of The Prudential Insurance Company of America,
          U.S.  Private  Placement  Fund,  Teachers  Insurance  and Annuity
          Association  of  America,   Connecticut  General  Life  Insurance
          Company, Connecticut General Life Insurance Company, on behalf of
          one or  more  separate  accounts,  CIGNA  Property  and  Casualty
          Insurance  Company,  United of Omaha Life  Insurance  Company and
          Companion Life Insurance Company; and

	 	   
          
               (iv)     that  certain  Master  Shelf
 Agreement  dated as of
          October 15,  1999  between  the  Borrower  and  the   Prudential
          Insurance Company of America, as the same has been amended.

	 	
        
          “Type”",  when used in respect  of any Loan,
Swingline  Loan,  or
     Borrowing,  shall refer to the Rate by reference to which  interest on
     such Loan or on the Loans or Swingline Loan  comprising such Borrowing
     is  determined.  For purposes  hereof,  “Rate” shall
 include the LIBO
     Rate, the Alternate Base Rate and the Negotiated Rate.

     
            
(b)     Clause (ii)
of the  definition of the term  “Adjusted  EBITDA” is
amended in its entirety to read as follows:

	 	   
               
(ii)     to  the extent deducted in computing such
consolidated net
     income (or loss), without duplication, the sum of (a) any deduction for (or
     less any gain from) income or franchise taxes included in determining
 such
     consolidated net income (or loss); plus (b) interest expense
(including the
     interest   portion  of  Capital  Leases)   deducted  in  determining   such
     consolidated  net income (or loss);  plus (c) amortization and
depreciation
     expense deducted in determining such consolidated net income (or loss) plus
     (d) any  non-recurring  and non cash charges resulting from the application
     of GAAP that  requires a charge  against  earnings  for the  impairment  of
     goodwill  to  the  extent  not

5

	 	
     already added back or not included in  determining  such  consolidated
     net income (or loss); minus,

     
            
          (c)     Clauses (f)  and (g) of
 the definition of the term “Consolidated
Net Income” are amended in their respective  entireties to read as
follows and a
new clause (h) is added thereto to read as follows:

	 	   
          
     (f)     any  non-recurring
loss arising from the sale or  other
     disposition  of assets  recorded (i) during the fiscal  quarter  ended
     June 30,  2001,  but only to the extent that the  aggregate  amount of
     such losses plus the  restructuring  charges  allowed in Clause (g)(i)
     hereof  for such  fiscal  quarter is less than  $32,400,000;  and (ii)
     after June 30,  2001,  in an  aggregate  amount for such period not to
     exceed $25,000,000;

	 	   
          
     (g)     any  non-recurring
 restructuring  charges recorded (i)
     during the fiscal  quarter ended June 30, 2001, but only to the extent
     that the  aggregate  amount  of such  restructuring  charges  plus the
     losses allowed in Clause (f)(i) hereof for such fiscal quarter is less
     than $32,400,000; and (ii) after June 30, 2001, in an aggregate amount
     for such  period  not to exceed  $25,000,000  but  provided  that cash
     charges included in such restructuring charges shall at no time exceed
     $12,500,000; and

	 	   
          
     (h)     any  non-recurring
and  non cash charges resulting from
     the  application of GAAP that requires a charge  against  earnings for
     the impairment of goodwill.

     
     Section 2.3     Amendment to Section 2.02.
 Section 2.02 of the Credit Agreement
is amended as follows:

     
            
          (a)     The word “Percentage” in
the second line of Clause (a) is amended
to be “Percentages”;

     
            
          (b)     Clause (b) is amended in its
entirety to read as follows:

	 	   
          
     (b)     
Each Borrowing (including any Borrowing  of a Swingline
     Loan) shall be comprised entirely of Eurodollar Loans or ABR Loans, or
     with  respect  to  Swingline  Loans  only,  Swingline  Loans  accruing
     interest at the Negotiated  Rate as the Borrower may request  pursuant
     to Section 2.03 or, with respect to Swingline Loans,  Section 2.20(a).
     Each Lender may at its option make any Eurodollar  Loan by causing any
     domestic or foreign  branch or  Affiliate  of such Lender to make such
     Loan;  provided  that any exercise of such option shall not affect the
     obligation of the Borrower to repay such Loan in  accordance  with the
     terms  of this  Agreement.  Borrowings  of more  than  one Type may be
     outstanding at the same time.

     
            
          (c)     Clause (d) is amended in its
 entirety to read as follows:

	 	   
               
               (d)     Borrower   may    Convert  all
or  any  part  of any
     Borrowing  (excluding a Borrowing  comprised of a Swingline Loan) to a
     Borrowing  of a different  Type and  Borrower  may Continue all or any
     part of any Eurodollar Borrowing (excluding a Borrowing comprised of a
     Swingline  Loan)  as a  Borrowing  of the same  Type,  by  giving  the
     Administrative  Agent  written  notice  on  the  Business  Day  of the
     Conversion  into an ABR  Borrowing  and on the  Business  Day at least
     three  Business  Days  before  Conversion  into or  Continuation  of a
     Eurodollar  Borrowing  specifying:  (i) the Conversion or Continuation
     date,  (ii) the amount of the  Borrowing to be Converted or Continued,
     (iii)  in the  case  of  Conversions,  the  Type  of  Borrowing  to be
     Converted  into,  and  (iv)  in  the  case

6

	 	
     of a Continuation  of or Conversion into a Eurodollar  Borrowing,  the
     duration of the Interest Period applicable thereto;  provided that (a)
     Eurodollar  Borrowings  may only be  Converted  on the last day of the
     Interest  Period;  (b) except for  Conversions to ABR  Borrowings,  no
     Conversions  shall be made while an Event of Default has  occurred and
     is  continuing;  (c) only ten (10)  Eurodollar  Borrowings  (including
     Eurodollar  Borrowings of Swingline  Loans) may be in existence at any
     one time; and (d) no Interest  Period may end after the Maturity Date.
     All notices given under this Section shall be irrevocable and shall be
     given  not  later  than  11:00  a.m.  New  York,  New York time on the
     Business  Day  which is not less  than the  number  of  Business  Days
     specified  above for such notice.  If the Borrower  shall fail to give
     the Agent the notice as specified above for Continuation or Conversion
     of a Eurodollar  Borrowing (excluding a Borrowing of a Swingline Loan)
     prior to the end of the  Interest  Period with respect  thereto,  such
     Eurodollar  Borrowing shall automatically be continued as a Eurodollar
     Borrowing with an Interest  Period of one month's  duration unless any
     Event of Default exists in which case such Eurodollar  Borrowing shall
     be  automatically  converted  to an ABR  Borrowing.  The  Agent  shall
     promptly  advise  the  Lenders of any notice  given  pursuant  to this
     Section 2.02.

     
     Section 2.4     Amendment to Section 2.03.
The first line of Section 2.03
of the Credit Agreement is amended to add the phrase  “(other  than a  Swingline
Loan)” after the word “Borrowing”.

     
     Section 2.5     Amendment  to Section  2.04.
 Section  2.04  of the Credit
Agreement is amended as follows:

     
            
          (a)     Clause (a) is amended in its
entirety to read as follows:

	 	   
              
  (a)     The Borrower agrees to pay to each Lender,
through the
     Administrative  Agent,  on each March 31,  June 30,  September  30 and
     December  31 and on each date on which the  Commitment  of such Lender
     shall  be  terminated  as  provided   herein,   a  commitment  fee  (a
     “Commitment  Fee”),  at a rate per annum equal to the  Commitment  Fee
     Percentage  from  time to time in  effect  on the  amount of the daily
     average of the unused Commitment of such Lender,  during the preceding
     quarter (or other period  commencing on the  Effective  Date or ending
     with the  Maturity  Date or any date on which the  Commitment  of such
     Lender shall be terminated).  All Commitment Fees shall be computed on
     the basis of the actual number of days elapsed in a year of 365 or 366
     days, as the case may be. The  Commitment Fee due to each Lender shall
     commence to accrue on the Effective Date, and shall cease to accrue on
     the earlier of the Maturity Date or the  termination of the Commitment
     of such Lender as provided herein. A Lender's  Commitment  (other than
     the Swingline  Lender) shall be deemed used by the aggregate amount of
     all Loans made by the Lender and such Lender's  Applicable  Percentage
     of the Letter of Credit Liabilities. Swingline Loans are not a use for
     purposes of  calculating  the Commitment Fee for any Lender other than
     the Swingline  Lender.  The  Swingline  Lender's  Commitment  shall be
     deemed used by the aggregate  amount of all Loans and Swingline  Loans
     made by the  Swingline  Lender and the Swingline  Lender's  Applicable
     Percentage of the Letter of Credit Liabilities.

     
            
          (b)     Clause (d) is amended in its
entirety to read as follows:

	 	   
               
 (d)     The fees payable under this Section 2.04
(the “Fees”)
     shall be paid on the dates due, in immediately available funds, to the
     Administrative  Agent  (or to the  Issuing  Bank,  in the case of fees
     payable  to it) for  distribution,  if and as  appropriate,  among the
     Lenders or Agents.  Once paid,  none of such Fees shall be  refundable
     under any circumstances.

7

       Section 2.6   
  Amendment to Section 2.05.
 Clauses (a) and (b) of Section
2.05 of the Credit Agreement are amended in their respective entireties  to read
as follows:

	 	   
            
    (a)     The
 Borrower  hereby unconditionally promises to pay
     (i) the then unpaid principal amount of each Loan on the Maturity Date
     and (ii) the then unpaid  principal  amount of each  Swingline Loan on
     the  earlier  of (A) the  Maturity  Date or (B) the later of the first
     date after such Swingline Loan is made that is the 15th or last day of
     a  calendar  month  and is at  least  two  Business  Days  after  such
     Swingline Loan is made or, in the case of each Swingline Loan which is
     a Eurodollar Borrowing or a Negotiated Rate Borrowing, the last day of
     the Interest Period with respect  thereto;  provided that on each date
     that a Loan is made, the Borrower shall repay all Swingline Loans then
     outstanding  which are ABR Loans.  Payments  under this  Section  2.05
     shall  be made to the  Administrative  Agent  for the  account  of the
     Lenders except payments made in respect of Swingline Loans in which no
     participations  have  been  purchased  shall be made to the  Swingline
     Lender.  Following receipt by the Administrative  Agent of any payment
     from the Borrower pursuant to this paragraph, the Administrative Agent
     shall  distribute  such payment to the Lenders as their  interests may
     appear in accordance with Section 2.18.

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

       
Section 2.7     Amendment to Section 2.06.
Section 2.06 of the Credit Agreement
is amended in its entirety to read as follows:

        
         
Section 2.06     Interest On Loans;
Margin and Fees.

	 	   
               
 (a)     Subject  to the  provisions of Section  2.07, the Loans
     and Swingline Loans  comprising  each Eurodollar  Borrowing shall bear
     interest  (computed on the basis of the actual  number of days elapsed
     over a year of 360  days) at a rate per  annum  equal to the LIBO Rate
     for the  Interest  Period  in  effect  for  such  Borrowing  plus  the
     Applicable  Margin  from  time  to  time  in  effect.  Subject  to the
     provisions  of Section  2.07,  the  Swingline  Loans  comprising  each
     Negotiated Rate Borrowing  shall bear interest  (computed on the basis
     of the  actual  number of days  elapsed  over a year of 360 days) at a
     rate per annum equal to the Negotiated Rate for the Interest Period in
     effect for such Borrowing.

	 	   
               
 (b)     Subject to  the  provisions of Section  2.07, the Loans
     and Swingline Loans  comprising each ABR Borrowing shall bear interest
     (computed  on the basis of the actual  number of days  elapsed  over a
     year of 365 or 366 days, as the case may be, for periods  during which
     the  Alternate  Base Rate is determined by reference to the Prime Rate
     and 360 days for other periods and including for all  calculations the
     first day of any  period but  excluding  the last) at a rate per annum
     equal to the Alternate Base Rate.

	 	   
               
 (c)     Interest  on  each  Loan  and  Swingline  Loan shall be
     payable  on each  Interest  Payment  Date  applicable  to such Loan or
     Swingline  Loan except as otherwise  provided in this  Agreement.  The
     applicable LIBO Rate or Alternate Base Rate shall be determined by the
     Administrative  Agent,  and such  determination  shall  be  conclusive
     absent manifest error;  provided that the Administrative  Agent shall,
     upon

8

	 	
     request,  provide  to the  Borrower  a  certificate  setting  forth in
     reasonable detail the basis for such determination.

	 	   
               
 (d)     The Applicable Margin identified in this Section 2.06
     and the Commitment Fee Percentage  identified in Section 2.04 shall be
     defined and determined as follows:

	 	   
  
               “Applicable  Margin”  shall  mean (i) during the period
          commencing  on the  July  12,  2001  and  ending  on but not
          including  the first  Adjustment  Date (as  defined  below),
          2.00%  per  annum  and  (ii)  during  each  period  from and
          including  one  Adjustment  Date to but  excluding  the next
          Adjustment Date (herein a “Calculation Period”), the percent
          per annum set forth in the  table  below  under the  heading
          “Margin”  opposite  the Debt to Adjusted  EBITDA Ratio which
          corresponds  to the Debt to Adjusted  EBITDA Ratio set forth
          in, and as  calculated in accordance  with,  the  applicable
          Compliance Certificate.

	 	   
     
               “Commitment Fee  Percentage”  shall mean (1) during the
          period commencing on the July 12, 2001 and ending on but not
          including the first  Adjustment  Date,  0.375% per annum and
          (2) during each  Calculation  Period,  the percent per annum
          set forth in the table below  under the heading  “Commitment
          Fee  Percentage”  opposite the Debt to Adjusted EBITDA Ratio
          which  corresponds to the Debt to Adjusted  EBITDA Ratio set
          forth  in,  and  as  calculated  in  accordance   with,  the
          applicable Compliance Certificate.

                                                                    Commitment
     Debt to Adjusted EBITDA Ratio                        Margin  Fee Percentage
     Greater than 3.50 to 1.00                            2.250%       0.500%
     Greater than 3.25 to 1.0 but less than or equal      2.000%       0.375%
     to 3.50 to 1.0
     Greater than 3.00 to 1.0 but less than or equal      1.750%       0.375%
     to 3.25 to 1.0
     Greater than 2.75 to 1.0 but less than or equal      1.500%       0.300%
     to 3.00 to 1.0
     Greater than 2.50 to 1.0 but less than or equal      1.125%       0.300%
     to 2.75 to 1.0
     Greater than 2.00 to 1.0 but less than or equal      0.875%       0.250%
     to 2.50 to 1.0
     Greater than 1.50 to 1.0 but less than or equal      0.750%       0.200%
     to 2.00 to 1.0
     Greater than 1.00 to 1.0 but less than or equal      0.625%       0.1875%
     to 1.50 to 1.0
     Less than or equal to 1.00 to 1.00                   0.500%       0.150%

	 	
     Upon delivery of the Compliance  Certificate pursuant to Section 5.20(g) in
     connection   with  the  financial   statements  of  the  Borrower  and  its
     Subsidiaries required to be delivered pursuant to Sections 5.20(a) and (b),
     commencing with such Compliance  Certificate  delivered with respect to the
     fiscal quarter ending on June 30, 2001, the Applicable Margin (for Interest
     Periods commencing after the applicable Adjustment Date) and the Commitment
     Fee Percentage shall  automatically be adjusted in accordance with the Debt
     to Adjusted  EBITDA Ratio set forth  therein and the table set forth above,
     such automatic adjustment to take effect as of the first Business Day after
     the receipt by the Agent of the related Compliance  Certificate pursuant to
     Section  5.20(g)  (each such  Business  Day

9

	 	
     when such  margin or fees  change  pursuant  to this  sentence  or the next
     following sentence,  herein an “Adjustment Date”). If the Borrower fails to
     deliver  such  Compliance  Certificate  which  so sets  forth  the  Debt to
     Adjusted  EBITDA  Ratio  within  the  period of time  required  by  Section
     5.20(g):  (i) the Applicable Margin (for Interest Periods  commencing after
     the applicable  Adjustment Date) shall  automatically be adjusted to 2.250%
     per annum;  and (ii) the Commitment Fee Percentage  shall  automatically be
     adjusted to 0.500% per annum, such automatic  adjustments to take effect as
     of the first  Business  Day after  the last day on which the  Borrower  was
     required to deliver the  applicable  Compliance  Certificate  in accordance
     with Section 5.20(g) and to remain in effect until subsequently adjusted in
     accordance herewith upon the delivery of a Compliance Certificate.

        
     Section  2.8     Amendment  to  Sections 2.09.  Section  2.09  of the  Credit
     Agreement is amended in its entirety to read as follows:

     
              
          Section 2.09     Termination and Reduction of Commitments.

	 	   
               
 (a)     The  commitment of the Issuing Bank to issue Letters of
     Credit under Section  2.19,  the  Commitment  of the Swingline  Lender
     under Section 2.20 to make Swingline  Loans and the Commitments of the
     Lenders shall  automatically  be terminated on the Maturity Date. Such
     commitments  may also  terminate  as provided  in Section  2.10(c) and
     Article 6.

	 	   
               
 (b)     Upon at least three  Business  Days' prior  irrevocable
     written notice to the  Administrative  Agent, the Borrower may, at any
     time, in whole permanently  terminate,  or, from time to time, in part
     permanently reduce, the Total Commitment;  provided, however, that (i)
     each partial reduction of the Total Commitment shall be in an integral
     multiple of $5,000,000 and in a minimum principal amount of $5,000,000
     and (ii) no such  termination  or reduction  shall be made which would
     reduce the Total Commitment to an amount less than $50,000,000, unless
     the result of such  termination  or  reduction  is to reduce the Total
     Commitment to $0. The Administrative Agent shall advise the Lenders of
     any notice given pursuant to this Section 2.09(b) and of each Lender's
     portion of any such termination or reduction of the Total  Commitment.
     Upon the  termination of the Total  Commitment,  the commitment of the
     Issuing  Bank to issue  Letters of Credit  under  Section 2.19 and the
     commitment  of the  Swingline  Lender  under  Section  2.20 shall also
     terminate.

	 	   
               
 (c)     Immediately   after   giving   effect   to  a  Transfer
     authorized under Section 5.11(c) that is a Material  Transfer,  60% of
     the net,  after tax proceeds of such Transfer  shall be used to reduce
     the commitments  under the revolving Senior Secured Credit  Facilities
     and/or  the  principal  amounts  outstanding  under any  other  Senior
     Secured  Credit  Facilities.  The  Borrower  shall  have the option of
     determining  which Senior  Secured  Credit  Facility or  Facilities to
     which to apply such  proceeds.  If any of such proceeds are applied to
     this  Agreement,  the amount the Borrower has  determined  to apply to
     this Agreement shall be used to reduce the Total  Commitments and make
     any  repayments  of the  Loans or  Swingline  Loans  required  by such
     reduction.  The term “Senior  Secured  Credit  Facilities”  means this
     Agreement,  the 364 Day Facility,  the Senior Note Purchase Agreements
     and any other facility providing  Indebtedness which refinances any of
     the  foregoing  or  is  otherwise  entitled  under  the  Intercreditor
     Agreement  to the  benefits  of the Liens  granted  under  the  Pledge
     Agreement.

	 	   
               
 (d)     If the Borrower wants any Indebtedness that is hereafter
     incurred  to be  entitled  under the  Intercreditor  Agreement  to the
     benefits of the Liens granted under

10

	 	
     the Pledge  Agreement,  the  Borrower  shall use the  proceeds of such
     Indebtedness  to reduce the  commitments  under the  revolving  Senior
     Secured  Credit  Facilities  in  existence on June 29, 2001 and/or the
     outstanding  under any  other  Senior  Secured  Credit  Facilities  in
     existence  on June 29,  2001.  The  Borrower  shall have the option of
     determining  which Senior  Secured  Credit  Facility or  Facilities to
     which to apply such  proceeds.  If any of such proceeds are applied to
     this  Agreement,  the amount the Borrower has  determined  to apply to
     this Agreement shall be used to reduce the Total  Commitments and make
     any  repayments  of the  Loans or  Swingline  Loans  required  by such
     reduction.

	 	   
               
 (e)     Each reduction in the Total Commitment  hereunder shall
     be made ratably among the Lenders in accordance with their  respective
     Commitments.  The Borrower shall pay to the  Administrative  Agent for
     the  account  of the  Lenders,  on the  date  of each  termination  or
     reduction of the Total  Commitment,  the Commitment Fees on the amount
     of the  Commitments so terminated or reduced  accrued through the date
     of such termination or reduction.

       
     Section  2.9     Amendments  to  Section  2.10.  Section  2.10  of the  Credit
Agreement is amended as follows:

     
            
          (a)     The  heading  and  Clauses  (a)  and (b)  are  amended  in  their
respective entireties to read as follows

	 	
        
          Section 2.10     Prepayment  Including  Prepayment  as a Result of a
     Change of Control and Material Transfer.

	 	   
               
 (a)     The Borrower shall have the right at any time and from
     time to time to prepay any Borrowing, in whole or in part, upon giving
     telecopy notice (or telephone  notice promptly  confirmed by telecopy)
     to the Administrative Agent: (i) before 11:00 a.m., New York, New York
     time,  three  Business  Days  prior  to  prepayment,  in the  case  of
     Eurodollar Loans and Negotiated Rate Borrowings which prepayment shall
     be  accompanied  by any amount owed under  Section  8.05(b),  and (ii)
     before 11:00 a.m.,  New York, New York time, one Business Day prior to
     prepayment,  in the case of ABR Loans;  provided,  however,  that each
     partial prepayment shall be in an amount which is an integral multiple
     of $1,000,000 and not less than $3,000,000.

	 	   
               
 (b)     On the date of any termination or reduction of the Total
     Commitment pursuant to Section 2.09 (including without limitation, any
     reduction  arising as a result of a Material  Transfer),  the Borrower
     shall pay or prepay so much of the Borrowings as shall be necessary in
     order that the aggregate outstanding principal amount of the Loans and
     Swingline Loans will not exceed the sum of the Total  Commitment minus
     all  Letter  of  Credit  Liabilities,  after  giving  effect  to  such
     termination or reduction.

     
            
          (b)     The first  paragraph  of  Clause  (c) is  amended  to read in its
entirety as follows:

	 	   
               
 At least 15 Business Days (or, in the case of any transaction
     permitted by Section 5.10  resulting in a Change of Control,  at least
     45 days)  and not more  than 90 days  prior to the  occurrence  of any
     Change of Control,  the Borrower will give written  notice  thereof to
     each Lender. Such notice shall contain (i) an offer by the Borrower to
     prepay, on the date of such Change of Control or, if such notice shall
     be  delivered  less than 35 days  prior to the date of such  Change of
     Control,  on the  date 35 days  after  the  date of such  notice  (the
     “Prepayment Date”), all Loans and Swingline Loans made by each Lender,
     together with interest  accrued thereon to the Prepayment Date and all
     other

11

	 	
     liquidated  obligations  owed to such Lender  under the terms  hereof,
     (ii) the estimated amount of accrued  interest,  showing in reasonable
     detail the  calculation  thereof and (iii) the Borrower's  estimate of
     the date on which such Change of Control shall occur. Said offer shall
     be  deemed  to lapse  as to any  such  Lender  which  has not  replied
     affirmatively  thereto in writing within 35 days of the giving of such
     notice.  As soon as  practicable  (and in any event at least 24 hours)
     prior to such  Change of  Control,  the  Borrower  shall give  written
     confirmation  of the  date  thereof  to  each  such  Lender  that  has
     affirmatively  replied  to the  notice  given  pursuant  to the  first
     sentence of this Section  2.10(c).  Borrower  shall, on the Prepayment
     Date,  prepay to each  Lender  that has  affirmatively  replied to the
     notice given  pursuant to the first  sentence of this Section  2.10(c)
     all Loans and funded  participation  interests in Swingline Loans then
     held by such Lender  together  with accrued  interest  thereon and all
     other  liquidated  obligations  owed to such  Lender  under  the terms
     hereof.   Thereupon,   each  Lender  that  shall  have  received  such
     prepayment  shall  have  no  further   obligation  to  make  Loans  or
     participate  in  Swingline  Loans or Letters of Credit  made or issued
     after the Prepayment Date and the Total Commitment shall be reduced by
     the amount of each such Lender's Commitment; provided that each Lender
     that shall have  received  such  prepayment  shall  continue to have a
     participation  interest  in any Letter of Credit  issued  prior to the
     Prepayment Date or any Swingline Loan  outstanding  immediately  after
     the Prepayment Date and shall be entitled to the continued  payment of
     the  Fees  paid  in  respect  thereof.  The  participation   interests
     described in the foregoing  sentence shall be calculated  based on the
     Applicable  Percentages determined immediately prior to the Prepayment
     Date and each such Lender  shall  continue to be obligated to fund its
     participation interest therein as herein specified as if no prepayment
     had occurred. Any Loan made after the Prepayment Date shall be made by
     the  remaining  Lenders  and such  Lenders  shall  have  participation
     interests in any Swingline Loan made after the Prepayment  Date and in
     any Letter of Credit issued after the  Prepayment  Date based on their
     Applicable  Percentages  (calculated without including the Commitments
     of the Lenders  that shall have  received  the  prepayment  under this
     Section  2.10(c)).  If  requested by the  Administrative  Agent or the
     Lenders who are to receive prepayment under this Section 2.10(c),  the
     Borrower shall use its  commercially  reasonable  efforts to cause all
     Letters of Credit that are to be outstanding as of the Prepayment Date
     to be terminated as of the Prepayment Date or as soon thereafter as is
     possible.

       
     Section  2.10     Amendment  to  Section  2.11.   The  phase  “such  Lender's
Commitment, the Loans” in Clause (b) of Section 2.11 of the Credit  Agreement is
amended to read “such Lender's Commitment, the Loans and Swingline Loans”.

       
     Section 2.11     Amendment  to Section  2.14.   Sections  2.14  of the Credit
Agreement is amended in its entirety to read as follows:

	 	
        Section 2.14     Sharing of Setoffs. Subject to the  terms  of  the
     Intercreditor   Agreement   which  shall  have   precedence  over  any
     conflicting  provisions in this Section 2.14,  each Lender agrees that
     if it shall,  through the exercise of a right of banker's lien, setoff
     or  counterclaim,  or pursuant to a secured claim under Section 506 of
     Title 11 of the  United  States  Code or other  security  or  interest
     arising  from,  or in lieu of, such  secured  claim,  received by such
     Lender under any  applicable  bankruptcy,  insolvency or other similar
     law or otherwise,  or by any other means, obtain payment (voluntary or
     involuntary)  in respect of any amounts due  hereunder  as a result of
     which  the  unpaid   principal   portion  of  such  amount   shall  be
     proportionately  less than the unpaid principal portion of such amount
     owed to any other Lender,  it shall be deemed  simultaneously  to have
     purchased from such other Lender at face value, and shall promptly pay
     to such other Lender the purchase price for, a  participation  in such
     amounts of such other Lender, 

12

	 	
     so that the aggregate  unpaid principal amount of the obligations owed
     by the Borrower  hereunder and participations in such obligations held
     by each Lender shall be in the same proportion to the aggregate unpaid
     principal  amount of all  obligations  owed by the Borrower  hereunder
     then outstanding as the principal amount of such obligations  prior to
     such exercise of banker's lien,  setoff or counterclaim or other event
     was to the principal amount of all such obligations  outstanding prior
     to such exercise of banker's  lien,  setoff or  counterclaim  or other
     event;  provided,  however, that, if any such purchase or purchases or
     adjustments  shall  be made  pursuant  to this  Section  2.14  and the
     payment  giving rise  thereto  shall  thereafter  be  recovered,  such
     purchase or purchases or adjustments  shall be rescinded to the extent
     of such  recovery  and the  purchase  price or  prices  or  adjustment
     restored  without  interest.  The Borrower  expressly  consents to the
     foregoing   arrangements   and  agrees  that  any  Lender   holding  a
     participation in the obligations owed hereunder deemed to have been so
     purchased may exercise any and all rights of banker's lien,  setoff or
     counterclaim  with respect to any and all moneys owing by the Borrower
     to such Lender by reason thereof as fully as if such Lender had made a
     Loan in the amount of such participation.

     
  Section  2.12     Amendment to Section
2.17.  The phrase  “date of payment on
the Loans” in Clause (ii) of Section 2.17 of the Credit Agreement is amended to
read “date of payment on the Loans and Swingline Loans”.

     
  Section 2.13     Amendment   to   Section
2.18.  The  phrase ", under  the
Subsidiary  Guaranty  or  under  the Intercreditor Agreement” is hereby
 added to
Section 2.18 of the Credit Agreement between the word “hereunder”
and the phrase
“for the account of”.

     
     Section 2.14     Amendment to Section 2.19.

      
           
(a)     The phrase  "(each a ‘Letter of Credit
’" in the first  paragraph of  Section  2.19 of  the Credit  Agreement
is amended in its entirety to read "
(each such letter of credit along with each Existing  Letter of Credit, herein a
‘Letter of Credit’)”.

     
            
(b)     The $25,000,000  figure  in  the  last sentence  of Clause (a) of
Section 2.19 of the Credit Agreement is amended to be $35,000,000.

     
            
          (c)     The phrase that begins “;provided that”  at  the end of the first
sentence of Clause (d) of Section 2.19 of the Credit Agreement is amended in its
entirety to read as follows:

	 	
     provided that the Borrower may, subject to the conditions to borrowing
     set forth herein, request that such payment be financed with a Loan or
     Swingline  Loan  in an  equivalent  amount,  and,  to  the  extent  so
     financed,  the  Borrower's  obligation  to make such payment  shall be
     discharged and replaced by the resulting Loan or Swingline Loan.

     
            
(d)     A  new  Clause  (i)  is  added  to
Section   2.19  of the Credit
Agreement to read in its entirety as follows:

	 	   
               
 (i)     Amendments.  No  amendment  to  this  Agreement  shall
     amend, modify or otherwise affect the rights and duties of the Issuing
     Bank without the prior written consent of the Issuing Bank.

     
  Section 2.15     Addition  of  Section
 2.20.  Section  2.20  is added to the
Credit Agreement following Section 2.19 to read in its entirety
as follows:

	 	
        
Section 2.20     Swingline  Loans.  Subject   to   the   terms  and
     conditions  set  forth  herein,  the  Swingline  Lender agrees to make
     advances (each such advance a “Swingline

13

	 	
     Loan”)  to the  Borrower  from  time to time on and after the June 29,
     2001, until the earlier of the Maturity Date or the termination of the
     Commitments  hereunder  in an aggregate  principal  amount at any time
     outstanding that will not result in (i) the aggregate principal amount
     of outstanding  Swingline  Loans  exceeding  $20,000,000  and (ii) the
     total  Revolving  Exposures   exceeding  the  Total  Commitment.   The
     Swingline  Loans  comprising any Borrowing shall be in an amount which
     is an integral  multiple of $500,000 and not less than  $1,000,000 (or
     an aggregate  principal  amount equal to the sum of $20,000,000  minus
     all the Swingline Loans then outstanding). Within the foregoing limits
     and subject to the terms and conditions set forth herein, the Borrower
     may borrow, prepay and reborrow Swingline Loans.

	 	   
               
 (a)     Swingline  Request  Procedure.
 To  request a Swingline
     Loan,  the  Borrower  shall  notify the  Administrative  Agent of such
     request by telephone  (confirmed  by  telecopy),  not later than 11:00
     a.m., New York, New York time, on the day of a proposed Swingline Loan
     by use of a duly completed  Borrowing Request.  Each such notice shall
     be  irrevocable  and shall  specify:  (i) the  requested  date of such
     Borrowing  (which  shall be a  Business  Day),  (ii) the amount of the
     requested  Swingline Loan, (iii) whether the Swingline Loan is to be a
     Eurodollar Borrowing, an ABR Borrowing or a Negotiated Rate Borrowing,
     and (iv) in the event of a Negotiated Rate Borrowing is selected,  the
     requested  duration of the Interest  Period therefor and the requested
     interest rate to be applicable  thereto. If no election as to the type
     of Borrowing is specified in any notice,  then the requested Borrowing
     shall be an ABR  Borrowing.  Each  Interest  Period with  respect to a
     Eurodollar  Borrowing  that is a  Swingline  Loan shall be one month's
     duration.  The Administrative Agent will promptly advise the Swingline
     Lender of any such notice  received from the  Borrower.  The Swingline
     Lender  shall make each  Swingline  Loan  available to the Borrower by
     means of a credit to the  account or accounts  specified  from time to
     time in one or more notices delivered by the Borrower to the Swingline
     Lender  (or,  in the case of a  Swingline  Loan  made to  finance  the
     reimbursement of an LC Disbursement as provided in Section 2.19(d), by
     remittance to the Issuing Bank) by 3:00 p.m., New York, New York time,
     on the requested  date of such Swingline  Loan.  The Swingline  Lender
     shall  notify  the  Borrower  on the  date  the  Borrower  requests  a
     Negotiated  Rate  Borrowing if the Swingline  Lender will not agree to
     the rate  requested  in such notice to apply to such  Borrowing or the
     duration of the  related  Interest  Period.  If the  Borrower  and the
     Swingline Lender can not agree on the Negotiated Rate for a Negotiated
     Rate  Borrowing,  the Negotiated Rate Borrowing shall not be available
     hereunder. The determination by the Swingline Lender of the Negotiated
     Rate  applicable to a Negotiated  Rate  Borrowing  shall be conclusive
     absent manifest error.

	 	   
               
 (b)     Lender  Participation.  The  Swingline  Lender  may  by
     written notice given to the Administrative  Agent not later than 11:00
     a.m., New York, New York time, on any Business Day require the Lenders
     to acquire  participations on such Business Day in all or a portion of
     the  Swingline  Loans  outstanding.  Such  notice  shall  specify  the
     aggregate  amount  of  Swingline  Loans  in  which  the  Lenders  will
     participate.  Promptly upon receipt of such notice, the Administrative
     Agent will give  notice  thereof to each  Lender,  specifying  in such
     notice such Lender's  Applicable  Percentage of such Swingline  Loans.
     Each Lender hereby absolutely and unconditionally agrees, upon receipt
     of notice as provided above, to pay to the  Administrative  Agent, for
     the  account  of  the  Swingline  Lender,   such  Lender's  Applicable
     Percentage  of such  Swingline  Loans.  Each Lender  acknowledges  and
     agrees that its  obligation  to acquire  participations  in  Swingline
     Loans  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  Event of  Default  or
     reduction  or  termination  of the  Commitments,  and that  each  such
     payment

14

	 	
     shall be made without any offset, abatement,  withholding or reduction
     whatsoever;  provided that (i) the obligations of a Lender to fund its
     participation  in a Swingline  Loan may be subject to  avoidance  by a
     Lender if such Lender proves that the  Swingline  Lender knew (or with
     the  exercise of care should  have known) that the  conditions  to the
     making  of the  Swingline  Loan were not  satisfied  and (ii) a Lender
     shall not have an  obligation  to acquire or fund a  participation  in
     Swingline  Loans if that  obligation of the Lender has been terminated
     or assigned to another  Person in accordance  with Section  2.10(c) or
     Section 8.04. The parties hereto  expressly agree that, in the absence
     of gross negligence or willful misconduct on the part of the Swingline
     Lender (as finally  determined by a court of competent  jurisdiction),
     the  Swingline  Lender shall be deemed to have  exercised  care.  Each
     Lender shall comply with its  obligation  under this paragraph by wire
     transfer of immediately  available funds, and the Administrative Agent
     shall promptly pay to the Swingline  Lender the amounts so received by
     it from  the  Lenders.  The  Administrative  Agent  shall  notify  the
     Borrower of any participations in any Swingline Loan acquired pursuant
     to  this  paragraph,  and  thereafter  payments  in  respect  of  such
     Swingline  Loan shall be made to the  Administrative  Agent and not to
     the Swingline  Lender.  Any amounts  received by the Swingline  Lender
     from the  Borrower  (or  other  party on behalf  of the  Borrower)  in
     respect of a Swingline  Loan after receipt by the Swingline  Lender of
     the  proceeds of a sale of  participations  therein  shall be promptly
     remitted to the Administrative Agent; any such amounts received by the
     Administrative  Agent shall be promptly remitted by the Administrative
     Agent to the Lenders that shall have made their  payments  pursuant to
     this  paragraph and to the Swingline  Lender,  as their  interests may
     appear. The purchase of participations in a Swingline Loan pursuant to
     this  paragraph  shall not relieve the Borrower of its  obligation for
     the payment thereof in full,  notwithstanding  any Default or Event of
     Default which may exist.

	 	   
               
 (c)     Repayment.  Swingline  Loans  shall  be  repaid  by the
     Borrower in  accordance  with Section  2.05.  Notwithstanding  Section
     2.13,  each Borrowing  comprised of a Swingline  Loan, each payment or
     prepayment  of  principal  of any  Borrowing  comprised of a Swingline
     Loan, and each payment of interest on Swingline  Loans,  shall be paid
     to the  Administrative  Agent for the benefit of the Swingline  Lender
     only.

	 	   
               
 (d)     Amendments. No amendment to this Agreement shall amend,
     modify or  otherwise  affect the  rights  and duties of the  Swingline
     Lender without the prior written consent of the Swingline Lender.

     
  Section 2.16     Amendment  to  Section  3.02.  Section  3.02  of  the Credit
Agreement is amended in its entirety to read as follows:

	 	
        
          Section  3.02     Authorization.
  The   execution,   delivery   and
     performance by the Borrower of this  Agreement,  the Pledge  Agreement
     and the Intercreditor  Agreement, the Borrowings hereunder, the pledge
     of the stock of the Material Restricted  Subsidiaries under the Pledge
     Agreement   and  the   issuance   of  Letters   of  Credit   hereunder
     (collectively,  the  “Transactions”)  (a) have been duly
 authorized by
     all  requisite  corporate  action and (b) will not (i) violate (A) any
     provision  of any  law,  statute,  rule or  regulation  to  which  any
     Obligated Party is subject or of the certificate of  incorporation  or
     other  constituent  documents or by-laws of the Borrower or any of its
     Subsidiaries,  (B) any order of any Applicable  Governmental Authority
     or (C) any  provision  of any Material  indenture,  agreement or other
     instrument to which the Borrower or any of its Subsidiaries is a party
     or by which it or any of its  property  is or may be bound  (including
     the Senior Note Purchase  Agreements and the Indebtedness  limitations
     set forth in any Senior Note Purchase Agreement),  (ii) be in conflict
     with,  result in a breach of or  constitute  (alone or with  notice or
     lapse of time or both) a default under any such  indenture,  agreement
     or

15

	 	
     other  instrument or (iii) result in the creation or imposition of any
     Lien  upon  any  property  or  assets  of the  Borrower  or any of its
     Subsidiaries, except as contemplated by the Pledge Agreement.

     
  Section 2.17     Amendment to Section 3.05. Clause (a) of Section 3.05 of the
Credit Agreement is amended in its entirety to read as follows.

	 	
        
          (a)     Schedule  3.05 is (except as noted  therein) a complete
     and correct  list of the  Borrower's  Subsidiaries  as of May 31, 2001
     showing,  as  to  each  Subsidiary,  the  correct  name  thereof,  the
     jurisdiction of its organization,  the percentage of its capital stock
     or  similar  equity  interests  owned by the  Borrower  and each other
     Subsidiary,  and  specifying  whether such  Subsidiary is a Restricted
     Subsidiary  and  a  Material  Restricted  Subsidiary.  Schedule  3.05A
     correctly sets forth the authorized,  issued, and outstanding  capital
     stock of each Material Restricted  Subsidiary.  All of the outstanding
     capital stock of each Material Restricted  Subsidiary has been validly
     issued, is fully paid, and is nonassessable.  There are no outstanding
     subscriptions,   options,   warrants,   calls,  or  rights  (including
     preemptive  rights)  to  acquire,  and no  outstanding  securities  or
     instruments convertible into, capital stock of any Material Restricted
     Subsidiary.

     
  Section 2.18     Amendment  to  Section  3.12.   Section  3.12  of the Credit
Agreement is amended in its entirety to read as follows:

	 	
        
          Section 3.12     Use of Proceeds; Margin
 Regulation.  The Borrower
     will apply the proceeds of the Loans and Swingline  Loans to refinance
     existing indebtedness, to make acquisitions, for capital expenditures,
     for working  capital and for other  general  corporate  purposes.  The
     Letters  of  Credit  shall be issued to  support  transactions  of the
     Borrower and the  Subsidiaries  entered into in the ordinary course of
     business.  No  part of the  proceeds  from  the  Loans  will be  used,
     directly or  indirectly,  for the  purpose of buying or  carrying  any
     margin stock  within the meaning of  Regulation U of the Board (12 CFR
     221),  or for the  purpose  of buying or  carrying  or  trading in any
     securities  under such  circumstances  as to involve the Borrower in a
     violation of  Regulation X of the Board (12 CFR 224) or to involve any
     broker or dealer in a violation  of  Regulation T of the Board (12 CFR
     220).  Margin stock does not  constitute  more than 5% of the value of
     the   consolidated   assets  of  the  Borrower   and  its   Restricted
     Subsidiaries and the Borrower does not have any present intention that
     margin stock will constitute more than 5% of the value of such assets.
     As used in this  Section,  the terms  “margin  stock” and  “purpose of
     buying or carrying”  shall have the meanings  assigned to them in said
     Regulation U.

     
  Section 2.19     Amendment to Section 3.13. The reference to “June 30,  1999”
contained  in  Section 3.13 of the Credit  Agreement is amended to read “May 26,
2001”.

     
  Section 2.20     Amendment  of  Section  4.01.  The  introduction  phrase and
Clause (a)  of  Section  4.01 of the  Credit  Agreement  are  amended  in  their
respective entireties to read as follows:

	 	
        
          Section 4.01     All Borrowings.  The obligations of the Lenders to
     make Loans after the Effective  Date,  the obligation of the Swingline
     Lender to make Swingline  Loans after June 29, 2001 and the obligation
     of the Issuing Bank to issue, amend, renew or extend Letters of Credit
     are subject to the  satisfaction  of the  following  conditions on the
     date of each Borrowing or issuance:

	 	   
               
 (a)     The Administrative  Agent  shall  have  received a
     notice of such Borrowing, issuance, amendment or other modification as
     required by Section 2.03, 2.19(a) or 2.20(a), as applicable.

16

     
     Section 2.21     Amendment to Article 5. The introductory phrase of Article 5
to the Credit Agreement is amended in its entirety to read as follow:

	 	
        
          The  Borrower  agrees  that,  so  long  as  any  Lender  has  any
     Commitment  hereunder  or any  obligations  to  acquire  or  fund  any
     participation  in any  Swingline  Loan  or  Letter  of  Credit  or the
     Swingline  Lender is obligated to make Swingline  Loans or the Issuing
     Bank is obligated to issue any Letter of Credit, or any amount payable
     hereunder remains unpaid:

     
  Section 2.22     Amendment  to  Section
  5.11.  The  period  at  the  end  of
Subclause (iii) of Clause (c) of Section  5.11 is deleted and
replaced  with “;
or”,  the last sentence of Section 5.11  is  deleted  therefrom
and a new Clause
(d) is added to the end of Section 5.11 to read in its entirety as
follows:

	 	   
               
 (d)     such Transfer is  the sale of receivables, or undivided
     interests therein, pursuant to an Approved Receivables Securitization.

     
  Section 2.23     Amendment to Section 5.12.  The following  sentence is added
after the first sentence of Section 5.12 of the Credit Agreement:

	 	
     In addition to and not in limitation  of the other  provisions of this
     Section  5.12,  from  June 29,  2001  until  the date that the Debt to
     Adjusted  EBITDA Ratio is less than 3.00 to 1.00 as calculated for any
     fiscal quarter after March 31, 2001 and established by the delivery of
     a Covenant  Compliance  Certificate  under  Section  5.20(g)(i)  (such
     period,  herein the “Restriction  Period”),  Borrower shall not permit
     any of  Restricted  Subsidiary  to,  directly or  indirectly,  create,
     incur, assume,  guarantee,  or otherwise become directly or indirectly
     liable with respect to or otherwise  permit any  Indebtedness,  except
     Indebtedness  of such  Subsidiaries  disclosed on Schedule 3.13 hereto
     and  additional  Indebtedness  in an  aggregate  amount  not to exceed
     $10,000,000  for all Restricted  Subsidiaries  during the  Restriction
     Period.

     
  Section 2.24     Amendment  to  Section 5.13.  Section  5.13  of  the  Credit
Agreement is amended as follows:

     
            
(a)     Clauses (f) and (g) are amended  in  their  entireties to read as
follows:

	 	   
               
 (f)     Liens on  property  or  assets of  the  Borrower (other
     than the capital stock of the Material Restricted Subsidiaries) or any
     of  its  Restricted   Subsidiaries   securing  Indebtedness  or  other
     obligations  owing to the  Borrower  or to a Wholly  Owned  Restricted
     Subsidiary;

	 	   
               
 (g)     financing  statements  filed  in  respect of  operating
     leases, liens granted under capital leases in existence as of June 29,
     2001 provided that the amount secured thereby does not exceed $25,000,
     other Liens  existing on June 29, 2001 and  described on Schedule 5.13
     and Liens granted to the Collateral Agent under the Pledge Agreement;

     
            
          (b)     Clause (i) is amended in its
entirety to read as follows:

	 	   
               
 (i)     other Liens  not otherwise permitted by Subsections (a)
     through  (h) above,  provided  that (i) the fair  market  value of the
     assets subject to such other Liens shall not exceed $15,000,000,  (ii)
     such  Liens  secure  Indebtedness  of  the  Borrower  or a  Restricted
     Subsidiary  permitted hereby,  (iii) the aggregate principal amount of
     the

17

	 	
     Indebtedness  secured by all Liens  granted under the  permissions  of
     this clause (i) does not exceed $10,000,000 and (iv) immediately after
     giving effect to the creation thereof,  no Default or Event of Default
     shall exist.

     
  Section  2.25     Amendment  to  Section
 5.14.  Section  5.14  of  the Credit
Agreement is amended to add the following to the end thereof:

	 	
     In addition to the foregoing restrictions,  the Borrower will not, and
     will not  permit  any of its  Restricted  Subsidiaries  to,  redeem or
     otherwise  acquire any of its stock or other  equity  interests or any
     warrants,  rights or other  options  to  purchase  such stock or other
     equity interests except:

	 	     
              
(a)     when solely  in exchange for such stock or other equity
     interests;

	 	     
     
(b)     when made contemporaneously  from the net proceeds of a
     sale of such stock or other equity interests;

	 	     
      
(c)
     the repurchase of up to 577,500 shares of the Borrower's
     capital stock for an aggregate purchase price not to exceed $7,500,000
     in connection  with its obligation to do so arising in connection with
     the documentation of its acquisition of James N Kirby Pty Ltd;

	 	     
    
  (d)     the repurchase by LPAC Corp.from Restricted Subsidiaries
     of LPAC  Corp's  preferred  stock  with  proceeds  of  collections  on
     accounts  receivable  in  connection  with  an  Approved   Receivables
     Securitization; and

	 	     
    
  (e)     Other redemptions or acquisitions
of such stock or equity
     interests  if,  as of the  date of the  payment  thereof,  the Debt to
     Adjusted  EBITDA Ratio is less than 3.00 to 1.00 as calculated for any
     fiscal  quarter:  (i) that has elapsed since March 31, 2001; (ii) that
     has ended  before the date of payment;  and (iii) for which a Covenant
     Compliance Certificate under Section 5.20(g)(i) has been delivered.

     
  Section 2.26     Amendments  to  Section  5.15.
  Section  5.15  of the Credit
Agreement is amended as follows:

     
            
          (a)     The  introductory  phrase  is  amended
 to read in its entirety as
follows:

	 	   
               
 The Borrower covenants and agrees that, so long as any Lender
     has any Commitment hereunder or any obligations to acquire or fund any
     participation  in any  Swingline  Loan  or  Letter  of  Credit  or the
     Swingline  Lender is obligated to make Swingline  Loans or the Issuing
     Bank is obligated to issue any Letter of Credit, or any amount payable
     hereunder  remains  unpaid,  the Borrower will perform and observe the
     following financial covenants:

     
            
(b)     The  first  sentence  of Clause (a) is amended in its entirety to
read as follows:

	 	   
               
 As of the end of each fiscal  quarter,  the  Borrower  shall
     not  permit  the ratio of Cash Flow for the four (4)  fiscal  quarters
     then ending to Interest  Expenses  for such period to be less than (i)
     2.65 to 1.00 for the fiscal quarter ended June 30, 2001;  (ii) 2.75 to
     1.00 for the fiscal  quarter ended  September 30, 2001; and (iii) 3.00
     to 1.00 for all fiscal quarters ending thereafter.

18

     
            
          (c)     Clause (b) is amended in its
entirety to read as follows:

	 	   
               
 (b)     Consolidated  Indebtedness  to Adjusted Ebitda. As
     of the last day  of each fiscal  quarter during the periods  described
     below, the  Borrower  shall  not  permit  the  ratio  of  Consolidated
     Indebtedness outstanding as of such day to the Adjusted EBITDA for the
     four (4) fiscal  quarters  then  ended to exceed: (i) 3.90 to 1.00 for
     the fiscal  quarter  ended  June 30, 2001; (ii)  3.75  to 1.00 for the
     fiscal quarters  ended September 30, 2001 and December 31, 2001; (iii)
     3.50 to 1.00 for the fiscal quarters ended March 31, 2002 and June 30,
     2002; (iv) 3.25  to  1.00 for the fiscal  quarters ended September 30,
     2002 and  December 31, 2002;  and  (v)  3.00  to  1.00  for all fiscal
     quarters  ending after December 31, 2002.

     
  Section 2.27     Amendment to Section 5.20. The  phrase “,the  then existing
Material Restricted Subsidiaries,”  is added to  Subclause  (i) of Clause (g) of
Section  5.20  of  the  Credit  Agreement  after the phrase “the Commitment Fee
Percentage”.

     
  Section 2.28     Addition of Sections 5.23 and 5.24.  Sections  5.23 and 5.24
are  added  to  the  Credit  Agreement  following  Section 5.22 to read in their
entirety as follows:

     
            
          Section 5.23     Post  Closing  Agreements;
 New Material Restricted
     Subsidiaries.

	 	   
               
 (a)     Items  Due by August 15, 2001. On or before August
     15, 2001,  the Borrower  shall deliver or cause to be delivered to the
     Administrative Agent, each of the following, all in form and substance
     acceptable to the Lenders:

		    
                    
          
(i)     The Intercreditor  Agreement executed  by all  the
     parties  thereto;  the  Pledge  Agreement  executed  by  the  Borrower
     pursuant to which the Borrower  shall have  pledged to the  Collateral
     Agent all the capital  stock of each Material  Restricted  Subsidiary;
     certificates representing the capital stock of the Material Restricted
     Subsidiaries  pledged pursuant to the Pledge  Agreement  together with
     undated stock powers duly executed in blank for all such certificates;
     UCC, tax and judgment Lien search reports listing all documentation on
     file against the Borrower and each Material  Restricted  Subsidiary in
     each  jurisdiction in which it has its principal place of business and
     jurisdiction  of  organization;  such  executed  documentation  as the
     Collateral  Agent may deem  necessary to perfect or protect its Liens,
     including, without limitation,  financing statements under the UCC and
     other applicable documentation under the laws of any jurisdiction with
     respect  to  the   perfection  of  Liens;   and  duly  executed  UCC-3
     termination  statements  and  such  other  documentation  as  shall be
     necessary to terminate or release all Liens encumbering the collateral
     pledged  pursuant to the Pledge  Agreement.  To assist the Borrower in
     complying with the  requirements of this paragraph,  the Lenders agree
     to use commercially  reasonable  efforts to cause the Required Lenders
     to approve an  Intercreditor  Agreement which is in form and substance
     satisfactory to them on or before August 15, 2001.

	 	    
                    
          
                    (ii)     a  favorable written opinion from counsel  to the
     Borrower and the  Material  Restricted  Subsidiaries  addressed to the
     Lenders  and  satisfactory  to  Jenkens &  Gilchrist,  a  Professional
     Corporation,  counsel for the Administrative Agent, as to such matters
     relating to the Intercreditor  Agreement,  the Pledge  Agreement,  the
     collateral  pledged  pursuant  thereto and the  capitalization  of the
     Material  Restricted  Subsidiaries  as the  Administrative  Agent  may
     request (and the Borrower hereby instructs its counsel to deliver such
     opinion to the Administrative Agent for the benefit of the Lenders).

19

	 	    
                    
          
                    (iii)     A  certificate  of the  Secretary or an Assistant
     Secretary of the Borrower  certifying that attached  thereto is a true
     and  complete  copy of  resolutions,  duly  adopted  by the  Board  of
     Directors  authorizing the execution,  delivery and performance of the
     Pledge Agreement,  the  Intercreditor  Agreement and the Transactions,
     and that such resolutions have not been modified, rescinded or amended
     and are in full force and effect.

	 	    
                    
          
(iv)     A certificate of the Secretary  or  an   Assistant
     Secretary  of each  Material  Restricted  Subsidiary  certifying  that
     attached  thereto is a true and  complete  copy of  resolutions,  duly
     adopted by the Board of Directors authorizing the execution,  delivery
     and  performance  of  the   Intercreditor   Agreement  and  that  such
     resolutions  have not been  modified,  rescinded or amended and are in
     full force and effect.

	 	   
               
 (b)     New Material Restricted Subsidiaries. Within forty-five
     (45) days after the end of each fiscal  quarter,  the  Borrower  shall
     cause each Material  Restricted  Subsidiary created or acquired during
     the fiscal quarter then ending,  and each Restricted  Subsidiary that,
     as a result  of a change  in  assets,  became  a  Material  Restricted
     Subsidiary  during such fiscal  quarter (any such Material  Restricted
     Subsidiary,  herein  a “New  Material  Subsidiary”),  to  execute  and
     deliver to the  Administrative  Agent a Subsidiary  Joinder  Agreement
     joining it as a guarantor under the Subsidiary Guaranty and such other
     documentation as the  Administrative  Agent may reasonably  request to
     cause such New Material  Subsidiary to evidence or otherwise implement
     the guaranty of the repayment of the  obligations  contemplated by the
     Subsidiary Guaranty and this Agreement. In addition, within forty-five
     (45) days after the end of a fiscal  quarter  in which a New  Material
     Subsidiary  has been created,  acquired or comes into  existence,  the
     Borrower shall take such action as the Collateral Agent may request to
     cause the capital  stock of each such New  Material  Subsidiary  to be
     pledged to the Collateral Agent under the Pledge Agreement,  including
     without limitation, the proper completion, execution and delivery of a
     Pledge Amendment under the terms of the Pledge Agreement, the delivery
     of the stock  certificates  evidencing the stock to be pledged,  along
     with blank stock powers  executed in blank,  Uniform  Commercial  Code
     Financing  Statements and such other  documentation  as the Collateral
     Agent may  reasonably  request to cause such stock to be pledged under
     the  Pledge  Agreement  and  for  such  pledge  to  be  perfected  and
     protected.

	 	
        
          Section  5.24     Restrictions   On
Transfers   to   Unrestricted
     Subsidiaries.  In  addition  to the  other  limitations  of  the  this
     Agreement, from June 29, 2001 until the date that the Debt to Adjusted
     EBITDA  Ratio is less than 3.00 to 1.00 as  calculated  for any fiscal
     quarter  after March 31,  2001 and  established  by the  delivery of a
     Covenant Compliance Certificate under Section 5.20(g)(i) (such period,
     herein the “Section 5.24 Restriction Period”),  the Borrower will not,
     and will not permit  any  Restricted  Subsidiary  to,  consummate  any
     Unrestricted Subsidiary Transfer except:

	 	   
               
 (a)     the sale of inventory to Unrestricted  Subsidiaries  in
     the ordinary course of business;

	 	   
               
 (b)     payments  made  to   Unrestricted   Subsidiaries  after
     June 30, 2001 in an aggregate  amount not to exceed  $30,500,000 to be
     used to satisfy the  obligations  owed to the seller(s)  arising under
     the documentation  governing the acquisition of James N Kirby Pty Ltd;
     and 

	 	   
               
 (c)     if  no  Default  or  Event of  Default  exists or would
     result  therefrom,  Unrestricted  Subsidiary Transfers, in addition to
     the Transfers  described in

20

	 	
     clauses (a) and (b) above,  provided that the aggregate  amount of the
     Unrestricted  Subsidiary Transfers consummated during the Section 5.24
     Restriction  Period under the permissions of this clause (c) shall not
     exceed   $60,000,000.   The  aggregate   amount  of  the  Unrestricted
     Subsidiary Transfers for purposes of determining  compliance with this
     clause (c) as of any date shall  equal the sum of the  following:  (i)
     the aggregate outstanding amount of all loans, advances and extensions
     of credit made by the  Borrower  and the  Restricted  Subsidiaries  to
     Unrestricted  Subsidiaries and outstanding on such date; plus (ii) the
     aggregate amount of all obligations of the  Unrestricted  Subsidiaries
     outstanding  on such  date  that are  guaranteed  by  Borrower  or any
     Restricted  Subsidiary  or secured by a Lien  granted by Borrower or a
     Restricted  Subsidiary;  plus (iii) the  aggregate  Fair Market  Value
     (determined for each Unrestricted  Subsidiary  Transfer as of the date
     of the  applicable  Unrestricted  Subsidiary  Transfer)  of all  other
     property (i.e.,  other than the property  described in clauses (i) and
     (ii) of this sentence)  disposed of during the  Restriction  Period in
     Unrestricted Subsidiary Transfers consummated under the permissions of
     this clause (c).

	 	
        
          The term “Unrestricted  Subsidiary Transfer” means, a transaction
     in any form in  which  an  Unrestricted  Subsidiary  receives  (either
     directly or indirectly)  anything  (including money or other property)
     of value from Borrower or any Restricted  Subsidiary,  including,  any
     loan,  advance or other extension of credit; any sale, lease, or other
     disposition of assets;  any merger,  consolidation  or other corporate
     combination;  any  purchase or  repurchase  of stocks,  bonds,  notes,
     debentures or other  securities or any other capital  contribution  or
     investment;  any  transaction in which a Person provides a Guaranty or
     grants Liens to secure  obligations or Indebtedness of another Person.
     All covenants in this Agreement shall be given  independent  effect so
     that if a particular  action or  condition is not  permitted by any of
     such covenants  (including this Section 5.24),  the fact that it would
     be  permitted  by  an  exception  to,  or  be  otherwise   within  the
     limitations  of, another  covenant shall not avoid the occurrence of a
     Default if such action is taken or such condition exists.

     
  Section 2.29     Amendment to Article 6. Article 6 of the Credit Agreement is
amended as follows:

     
            
          (a)     Clauses (a) through (e)  are amended in their entireties to read
as follows:

	 	   
               
 (a)     the  Borrower  defaults  in  the  payment  of  any
     principal on any Loan or Swingline Loan or the  reimbursement  of
     any LC  Disbursement,  in each case when the same becomes due and
     payable, whether at maturity or at a date fixed for prepayment or
     by declaration or otherwise; or

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

	 	
   
               
 (c)     the Borrower defaults in  the  performance  of  or
     compliance with any term applicable to the Borrower and contained
     in Section 5.20(d),  Section 5.23,  Section 5.24 or Sections 5.10
     through  5.19  or  contained  in  the  Pledge  Agreement,  or any
     Material Restricted  Subsidiary defaults in the performance of or
     compliance with any term applicable to it contained in clause (c)
     of paragraph 6 of the Subsidiary Guaranty; or

	 	
   
               
 (d)     (i) the Borrower defaults in the performance of or
     compliance  with  any term  contained  herein  (other  than those
     referred to in

21

	 	
     paragraphs  (a),  (b) and (c) of this  Article 6) or contained in
     the Intercreditor  Agreement or with any Additional  Covenant and
     such default is not remedied  within 30 days after the earlier of
     (A) a  Responsible  Officer  obtaining  actual  knowledge of such
     default and (B) the  Borrower  receiving  written  notice of such
     default from either Agent or any Lender (any such written  notice
     to  be   identified  as  a  “notice  of  default” and  to  refer
     specifically  to this  paragraph  (d) of  Article  6) or (ii) any
     Material Restricted  Subsidiary defaults in the performance of or
     compliance  with any term  contained in the  Subsidiary  Guaranty
     (other than those  referred to in paragraphs  (a), (b) and (c) of
     this Article 6) or contained  in the  Intercreditor  Agreement or
     with any  Additional  Covenant  and such  default is not remedied
     within 30 days  after the  earlier of (A) a  Responsible  Officer
     obtaining  actual  knowledge of such default and (B) the Borrower
     receiving written notice of such default from either Agent or any
     Lender (any such written  notice to be identified as a “notice of
     default” and to  refer  specifically  to this  paragraph  (d) of
     Article 6); or

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

     
            
(b)     New Clauses (k) and (l) are added
to read as follows:

	 	
   
               
 (k)     the occurrence  of an Event of Default (as defined
     in the Intercreditor Agreement); or

	 	
   
               
 (l)     either  the  Subsidiary  Guaranty  or  the  Pledge
     Agreement  shall  for any  reason  cease to be in full  force and
     effect and valid,  binding and enforceable in accordance with its
     terms,  or the  Borrower or any  Material  Restricted  Subsidiary
     shall so state in writing;

     
            
(c)     The last section of Article 6 (as it exists  without giving effect
to  this  Amendment)  which  follows  the  existing  Clause (j) is amended in its
entirety to read as follows:

	 	
     then, and in every such event,  and at any time thereafter  during the
     continuance of such event, the Administrative Agent, at the request of
     the Required  Lenders,  shall, by notice to the Borrower,  take any or
     all of the  following  actions,  at the same or different  times:  (i)
     terminate  forthwith the right of the Borrower to borrow  hereunder or
     to request  the  issuance,  amendment,  extension  or renewal or other
     modification  of any Letter of Credit,  (ii)  exercise any rights that
     may be  available  upon an Event of Default to terminate or cancel any
     outstanding  Letters  of  Credit,  and (iii)  declare  the  Borrowings
     (including  all  Loans  and  Swingline  Loans)  and all  reimbursement
     obligations for LC Disbursements, then outstanding to be forthwith due
     and  payable  in whole  or in part,  whereupon  the  principal  of the
     Borrowings   (including  all  Loans  and  Swingline   Loans)  and  the
     reimbursement obligations for LC Disbursements,  so declared to be due
     and payable,  together  with accrued  interest  thereon and any unpaid
     accrued  Fees  and  all  other  liabilities  of the  Borrower  accrued
     hereunder,   shall  become   forthwith   due  and   payable,   without
     presentment,  demand, protest, notice of intent to accelerate,  notice
     of  acceleration  or any other  notice  of any kind,  all of which are
     hereby  expressly  waived,  anything  contained herein to the contrary
     notwithstanding;  Provided that in the case of any event  described in
     paragraph  (g) or (h)  above  with  respect  to  the  Borrower  or any

22

	 	
     Material  Restricted  Subsidiary,  all the Commitments of the Lenders,
     the commitment of the Swingline Lender to make Swingline Loans and the
     obligation  of the Issuing Bank  hereunder to issue  Letters of Credit
     shall  automatically   terminate  and  the  principal  amount  of  all
     Borrowings   (including  all  Loans  and  Swingline   Loans)  and  all
     reimbursement  obligations  for LC  Disbursements,  then  outstanding,
     together with accrued interest thereon and any unpaid accrued Fees and
     all  other   liabilities  of  the  Borrower  accrued  hereunder  shall
     automatically  become due and payable,  without  presentment,  demand,
     protest, notice of intent to accelerate, notice of acceleration or any
     other notice of any kind, all of which are hereby  expressly waived by
     the   Borrower,    anything   contained   herein   to   the   contrary
     notwithstanding. In addition to the other rights and remedies that the
     Lenders  may have  upon the  occurrence  of an Event of  Default,  the
     Required Lenders may direct:  (i) the Collateral Agent to exercise the
     rights  and  remedies  available  to the  Collateral  Agent  under the
     Intercreditor   Agreement  and  the  Pledge  Agreement  and  (ii)  the
     Administrative  Agent to exercise the rights and remedies available to
     it under the Subsidiary Guaranty.

     
  Section 2.30     Amendment to Article 7. Article 7 of the Credit Agreement is
amended as follows:

     
            
          (a)     The first  three paragraphs are amended in their entirety to read
as follows:

	 	
        
          In  order  to  expedite  the  transactions  contemplated  by this
     Agreement,  Chase is hereby appointed to act as Administrative  Agent,
     on behalf of the Lenders and the Issuing Bank. Each of the Lenders and
     the Issuing  Bank hereby  irrevocably  authorizes  the  Administrative
     Agent to take such  actions  on behalf of such  Lender or the  Issuing
     Bank and to exercise such powers as are specifically  delegated to the
     Administrative  Agent by the terms and provisions hereof, by the terms
     and  provisions  of the  Subsidiary  Guaranty  and by  the  terms  and
     provisions of the Intercreditor Agreement,  together with such actions
     and powers as are reasonably  incidental  thereto.  The Administrative
     Agent is hereby  expressly  authorized  by the Lenders and the Issuing
     Bank, without hereby limiting any implied authority, (a) to receive on
     behalf  of the  Lenders  and the  Issuing  Bank,  as  applicable,  all
     payments  of  principal  of and  interest  on the  Loans and all other
     amounts due to the Lenders and the Issuing Bank hereunder or under the
     Subsidiary   Guaranty   or  from  the   Collateral   Agent  under  the
     Intercreditor Agreement, and promptly to distribute to each Lender and
     the Issuing Bank its share of each  payment so  received;  (b) to give
     notice on behalf of each of the Lenders  and the  Issuing  Bank to the
     Borrower of any Event of Default of which the Administrative Agent has
     actual knowledge acquired in connection with its agency hereunder; (c)
     to  distribute  to each  Lender  and the  Issuing  Bank  copies of all
     notices,  financial  statements and other  materials  delivered by the
     Borrower  pursuant to this  Agreement  or the  Subsidiary  Guaranty as
     received  by the  Administrative  Agent and (d) to execute and deliver
     the  Intercreditor  Agreement  on its  behalf and bind it to the terms
     thereof.

	 	
        
          Neither Administrative Agent nor any of its directors,  officers,
     employees  or agents  shall be liable as such for any action  taken or
     omitted  by any of  them  except  for  its  or  his or her  own  gross
     negligence or willful misconduct, or be responsible for any statement,
     warranty or  representation  herein or the  contents  of any  document
     delivered in  connection  herewith,  or be required to ascertain or to
     make any inquiry  concerning  the  performance  or  observance  by the
     Borrower or any Material  Restricted  Subsidiary  of any of the terms,
     conditions,  covenants or agreements contained in this Agreement,  the
     Pledge  Agreement,  the  Intercreditor  Agreement  or  the  Subsidiary
     Guaranty.  The  Administrative  Agent shall not be  responsible to the
     Lenders  or the  Issuing  Bank  for  the due  execution,  genuineness,
     validity,  enforceability  or  effectiveness  of this  Agreement,

23

	 	
     the Pledge  Agreement,  the  Intercreditor  Agreement,  the Subsidiary
     Guaranty or other instruments or agreements;  provided that the
     foregoing  exclusion  shall  not  have the  effect  of  releasing  the
     Administrative  Agent  from  its  stated  responsibilities  herein  to
     receive  executed  agreements,  documents and instruments on behalf of
     the Lenders and the Issuing Bank.  The  Administrative  Agent may deem
     and  treat  the  Lender  which  makes  any Loan or  Swingline  Loan or
     participates  in any Swingline  Loan or in the obligation to reimburse
     the  Issuing  Bank  for  any  LC  Disbursement  as the  holder  of the
     indebtedness  resulting  therefrom  for all  purposes  hereof until it
     shall have received notice from such Lender, given as provided herein,
     of the transfer thereof.  The Administrative  Agent shall in all cases
     be fully protected in acting, or refraining from acting, in accordance
     with written  instructions  signed by the Required Lenders and, except
     as otherwise  specifically  provided herein, such instructions and any
     action  or  inaction  pursuant  thereto  shall be  binding  on all the
     Lenders and the Issuing Bank. The  Administrative  Agent shall, in the
     absence of  knowledge  to the  contrary,  be  entitled  to rely on any
     instrument or document  believed by it in good faith to be genuine and
     correct  and to have  been  signed  or sent by the  proper  Person  or
     Persons.  Neither the  Administrative  Agent nor any of its directors,
     officers,  employees  or agents shall have any  responsibility  to the
     Borrower  or any  Material  Restricted  Subsidiary  on  account of the
     failure  of or delay in  performance  or breach  by any  Lender or the
     Issuing Bank of any of its  obligations  hereunder or to any Lender on
     account  of the  failure of or delay in  performance  or breach by any
     Lender or the Issuing Bank or the Borrower of any of their  respective
     obligations   hereunder,   under  the  Pledge  Agreement,   under  the
     Intercreditor  Agreement or in connection  herewith or by any Material
     Restricted Subsidiary of any of their respective obligations under the
     Subsidiary Guaranty.  The Administrative Agent may execute any and all
     duties  hereunder  by or  through  agents  or  employees  and shall be
     entitled to rely upon the advice of legal counsel  selected by it with
     respect to all matters  arising  hereunder and shall not be liable for
     any action  taken or suffered in good faith by it in  accordance  with
     the advice of such counsel.

	 	
        
          The  Lenders and the Issuing  Bank  hereby  acknowledge  that the
     Administrative  Agent shall be under no duty to take any discretionary
     action  permitted to be taken by it pursuant to the provisions of this
     Agreement,  the  Subsidiary  Guaranty or the  Intercreditor  Agreement
     unless  it shall be  requested  in  writing  to do so by the  Required
     Lenders.

     
            
          (b)     The fifth  and  sixth paragraphs are amended in their entirety to
read as follows:

	 	
        
          With  respect  to  the  Loans  and  Swingline  Loans  made  by it
     hereunder,  the Administrative  Agent, in its individual capacity as a
     Lender and the Swingline Lender and not as Administrative  Agent shall
     have the same rights and powers as any other  Lender and may  exercise
     the same as  though  it were  not the  Administrative  Agent,  and the
     Administrative Agent and its Affiliates may accept deposits from, lend
     money to, act as collateral  agent under the  Intercreditor  Agreement
     and generally  engage in any kind of business with the Borrower or any
     Subsidiary  or  other  Affiliate   thereof  as  if  it  were  not  the
     Administrative Agent.

	 	
        
          Each Lender agrees (i) to reimburse the Administrative  Agent, on
     demand,  in the amount of its  Applicable  Percentage  of any expenses
     incurred  for the benefit of the  Lenders or the  Issuing  Bank in its
     role as Administrative  Agent,  including  reasonable counsel fees and
     compensation  of agents and  employees  paid for services  rendered on
     behalf of the Lenders or the Issuing  Bank,  which shall not have been
     reimbursed by the Borrower AND (II) TO INDEMNIFY AND HOLD HARMLESS THE
     ADMINISTRATIVE AGENT AND ANY OF ITS DIRECTORS,  OFFICERS, EMPLOYEES OR
     AGENTS, ON DEMAND, IN THE AMOUNT OF SUCH

24

	 	
     APPLICABLE  PERCENTAGE,  FROM  AND  AGAINST  ANY AND ALL  LIABILITIES,
     TAXES, OBLIGATIONS,  LOSSES, DAMAGES,  PENALTIES,  ACTIONS, JUDGMENTS,
     SUITS,  COSTS,  EXPENSES  OR  DISBURSEMENTS  OF  ANY  KIND  OR  NATURE
     WHATSOEVER WHICH MAY BE IMPOSED ON, INCURRED BY OR ASSERTED AGAINST IT
     IN ANY WAY  RELATING TO OR ARISING OUT OF THIS  AGREEMENT,  THE PLEDGE
     AGREEMENT, THE INTERCREDITOR AGREEMENT, THE SUBSIDIARY GUARANTY OR ANY
     ACTION  TAKEN OR OMITTED BY IT UNDER ANY SUCH  DOCUMENTS TO THE EXTENT
     THE SAME SHALL NOT HAVE BEEN  REIMBURSED  BY THE  BORROWER  (INCLUDING
     WITHOUT  LIMITATION,  ALL  LIABILITIES,  TAXES,  OBLIGATIONS,  LOSSES,
     DAMAGES,  PENALTIES,  ACTIONS,  JUDGMENTS,  SUITS, COSTS, EXPENSES, OR
     DISBURSEMENTS ARISING FROM THE SOLE OR CONTRIBUTORY  NEGLIGENCE OF THE
     ADMINISTRATIVE AGENT);  PROVIDED THAT NO LENDER SHALL BE LIABLE TO THE
     ADMINISTRATIVE AGENT FOR ANY PORTION OF SUCH LIABILITIES, OBLIGATIONS,
     LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES
     OR  DISBURSEMENTS  RESULTING  FROM THE  GROSS  NEGLIGENCE  OR  WILLFUL
     MISCONDUCT  OF THE  ADMINISTRATIVE  AGENT  OR  ANY  OF ITS  DIRECTORS,
     OFFICERS, EMPLOYEES OR AGENTS.

     
  Section 2.31     Amendment  to Section 8.01.  Clause (b) of Section 8.01
to the Credit Agreement is amended in its entirety to read as follows:

	 	   
               
 (b)     if  to  the  Administrative  Agent, the  Swingline
     Lender or the Issuing Bank,  to The Chase  Manhattan  Bank,  2200 Ross
     Avenue, 3rd Floor, Dallas, TX 75201, Attention of Allen King,(Telecopy
     No.  214/965-2044),  with a copy to The Chase  Manhattan Bank, 1 Chase
     Manhattan  Plaza,  8th Floor,  New York,  New York  10081;  Attention:
     Muniram Appanna,  Telephone  212/552-7943;  Telecopy No. 212/552-7490;
     and

     
  Section 2.32     Amendment to Section  8.02.  The phrase “or the  acquisition
and  funding of  participations  in  Letters  of  Credit” in Section 8.02 of the
Credit  Agreement  is  amended  to  read  “or  the  acquisition  and  funding of
participations  in  Swingline  Loans or Letters of Credit,  or the making by the
Swingline  Lender of any Swingline Loan”.

     
  Section 2.33     Amendment  to  Section  8.04.  Section  8.04  of  the Credit
Agreement is amended as follows:

          
       
(a)     The phrase “an  Affiliate  of such Lender” in subclause  (i)
of  Clause  (b)  is amended  to  read “a  Lender  Affiliate”  and  the following
definition is added to the end of Clause (b):

	 	
     As used herein, the term “Lender Affiliate”" means, (a) with respect to
     any  Lender,  (i) an  Affiliate  of such  Lender  or (ii)  any  entity
     (whether  a  corporation,  partnership,  trust or  otherwise)  that is
     engaged in making, purchasing,  holding or otherwise investing in bank
     loans and similar  extensions of credit in the ordinary  course of its
     business and is administered or managed by a Lender or an Affiliate of
     such  Lender and (b) with  respect to any Lender  that is a fund which
     invests in bank loans and similar extensions of credit, any other fund
     that  invests in bank loans and  similar  extensions  of credit and is
     managed  by the  same  investment  advisor  as  such  Lender  or by an
     Affiliate of such investment advisor.

25

   
              
(b)     The phrase “and  Swingline Loans” is added after the word “Loans”
in Clause (d).

   
             
 (c)     The phrase “or Swingline Loans” is  added  after the word “Loans”
in the second sentence of Clause (i).

     
  Section 2.34     Amendment  to  Section 8.05.  Clauses (a) and (b) of Section
8.05 of the Credit  Agreement are amended in their respective entireties to read
as follows:

	 	   
               
 (a)     The Borrower agrees to pay all reasonable out-of-pocket
     expenses incurred by either Agent,  JPMorgan Securities Inc. (formerly
     Chase Securities Inc.), Wachovia Securities,  Inc. or the Issuing Bank
     in connection  with entering into this  Agreement,  the  Intercreditor
     Agreement,  the Pledge  Agreement and the  Subsidiary  Guaranty and in
     connection  with  any  amendments,  modifications  or  waivers  of the
     provisions  thereof  (but only if such  amendments,  modifications  or
     waivers  are  requested  by  the  Borrower  or a  Material  Restricted
     Subsidiary)  (whether or not the transactions  hereby contemplated are
     consummated)  or  in  connection  with  the  issuance,   modification,
     extension  or renewal of any Letter of Credit,  or  incurred by either
     Agent,  the  Issuing  Bank,  or any  Lender  in  connection  with  the
     enforcement  of their rights in connection  with this  Agreement,  the
     Intercreditor  Agreement,  the  Pledge  Agreement  or  the  Subsidiary
     Guaranty or in connection  with the Loans and Swingline Loans made and
     Letters of Credit issued hereunder,  including the reasonable fees and
     disbursements  of counsel for either Agent and the Issuing Bank or, in
     the case of enforcement following an Event of Default, the Lenders.

	 	   
               
 (b)     THE  BORROWER  AGREES  TO  INDEMNIFY  EACH  LENDER  AND
     ISSUING BANK AGAINST ANY LOSS,  CALCULATED IN ACCORDANCE WITH THE NEXT
     SENTENCE,  OR REASONABLE EXPENSE WHICH SUCH LENDER OR ISSUING BANK MAY
     SUSTAIN OR INCUR AS A  CONSEQUENCE  OF (A) ANY FAILURE BY THE BORROWER
     TO  BORROW  OR TO  CONVERT  OR  CONTINUE  ANY LOAN OR  SWINGLINE  LOAN
     HEREUNDER  (INCLUDING AS A RESULT OF THE BORROWER'S FAILURE TO FULFILL
     ANY OF THE  APPLICABLE  CONDITIONS  SET  FORTH  IN  ARTICLE  4)  AFTER
     IRREVOCABLE  NOTICE OF SUCH BORROWING,  CONVERSION OR CONTINUATION HAS
     BEEN GIVEN PURSUANT HERETO, (B) ANY PAYMENT, PREPAYMENT OR CONVERSION,
     ASSIGNMENT  OR  FUNDING  OF  A  EURODOLLAR  LOAN  OR  NEGOTIATED  RATE
     BORROWING  REQUIRED BY ANY  PROVISION  OF THIS  AGREEMENT OR OTHERWISE
     MADE OR DEEMED MADE ON A DATE OTHER THAN THE LAST DAY OF THE  INTEREST
     PERIOD,  IF ANY,  APPLICABLE  THERETO,  (INCLUDING  ANY  FUNDING  OF A
     EURODOLLAR  LOAN OR  NEGOTIATED  RATE  BORROWING  AS A  RESULT  OF THE
     OPERATION  OF  SECTION  2.20(b)),   (C)  ANY  DEFAULT  IN  PAYMENT  OR
     PREPAYMENT  OF THE PRINCIPAL  AMOUNT OF ANY LOAN OR SWINGLINE  LOAN OR
     ANY REIMBURSEMENT  OBLIGATION IN RESPECT OF ANY LC DISBURSEMENT OR ANY
     PART THEREOF OR INTEREST ACCRUED THEREON,  AS AND WHEN DUE AND PAYABLE
     (AT THE DUE DATE THEREOF, WHETHER BY SCHEDULED MATURITY, ACCELERATION,
     IRREVOCABLE  NOTICE OF PREPAYMENT OR OTHERWISE) OR (D) THE  OCCURRENCE
     OF ANY EVENT OF  DEFAULT,  INCLUDING,  IN EACH SUCH CASE,  ANY LOSS OR
     REASONABLE  EXPENSE  SUSTAINED  OR  INCURRED  OR  TO BE  SUSTAINED  OR
     INCURRED BY SUCH LENDER IN  LIQUIDATING  OR  EMPLOYING  DEPOSITS  FROM
     THIRD  PARTIES,  OR WITH RESPECT TO  COMMITMENTS  MADE OR  OBLIGATIONS
     UNDERTAKEN  WITH  THIRD  PARTIES,  TO EFFECT OR  MAINTAIN  ANY LOAN OR
     SWINGLINE LOAN

26

	 	
     HEREUNDER OR ANY PART THEREOF AS A EURODOLLAR  LOAN OR NEGOTIATED RATE
     BORROWING.  SUCH LOSS SHALL INCLUDE AN AMOUNT EQUAL TO THE EXCESS,  IF
     ANY,  AS  REASONABLY  DETERMINED  BY SUCH  LENDER,  OF (i) ITS COST OF
     OBTAINING  THE  FUNDS  FOR THE  LOAN OR  SWINGLINE  LOAN  BEING  PAID,
     PREPAID,  CONVERTED OR NOT  BORROWED  (ASSUMED TO BE THE LIBO RATE OR,
     WITH RESPECT TO A NEGOTIATED RATE BORROWING, THE APPLICABLE NEGOTIATED
     RATE) FOR THE  PERIOD  FROM THE DATE OF SUCH  PAYMENT,  PREPAYMENT  OR
     FAILURE TO BORROW TO THE LAST DAY OF THE INTEREST PERIOD FOR SUCH LOAN
     (OR, IN THE CASE OF A FAILURE TO BORROW THE  INTEREST  PERIOD FOR SUCH
     LOAN OR SWINGLINE  LOAN WHICH WOULD HAVE COMMENCED ON THE DATE OF SUCH
     FAILURE) OVER (ii) THE AMOUNT OF INTEREST (AS REASONABLY DETERMINED BY
     SUCH LENDER) THAT WOULD BE REALIZED BY SUCH LENDER IN RE-EMPLOYING THE
     FUNDS SO PAID,  PREPAID OR NOT  BORROWED  FOR SUCH  PERIOD OR INTEREST
     PERIOD, AS THE CASE MAY BE.

     
  Section 2.35     Amendment  to Section 8.09.  Section 8.09 of the Credit
Agreement is amended in its entirety to read as follows:

	 	
        
          Section 8.09     Entire Agreement. THIS  AGREEMENT  (INCLUDING  THE
     SCHEDULES AND EXHIBITS  HERETO),  THE FEE LETTERS,  THE  INTERCREDITOR
     AGREEMENT, THE PLEDGE AGREEMENT, THE SUBSIDIARY GUARANTY AND THE OTHER
     DOCUMENTATION EXECUTED PURSUANT HERETO (INCLUDING,  BUT NOT LIMITED TO
     ANY LETTER OF CREDIT ISSUED  HEREUNDER)  CONSTITUTE A “LOAN AGREEMENT”
     AS DEFINED IN SECTION  26.03(A)  OF THE TEXAS  BUSINESS  AND  COMMERCE
     CODE, AND REPRESENT THE ENTIRE CONTRACT AMONG THE PARTIES  RELATIVE TO
     THE SUBJECT MATTER HEREOF AND THEREOF.  ANY PREVIOUS  AGREEMENT  AMONG
     THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF IS SUPERSEDED BY
     THIS  AGREEMENT,  THE FEE LETTERS  THE  INTERCREDITOR  AGREEMENT,  THE
     PLEDGE AGREEMENT,  THE SUBSIDIARY GUARANTY AND THE OTHER DOCUMENTATION
     EXECUTED PURSUANT HERETO (INCLUDING,  BUT NOT LIMITED TO ANY LETTER OF
     CREDIT  ISSUED  HEREUNDER).  THERE ARE NO  UNWRITTEN  ORAL  AGREEMENTS
     BETWEEN THE PARTIES. NOTHING IN THIS AGREEMENT,  EXPRESSED OR IMPLIED,
     IS INTENDED TO CONFER UPON ANY PARTY OTHER THAN THE PARTIES HERETO ANY
     RIGHTS,  REMEDIES,  OBLIGATIONS OR  LIABILITIES  UNDER OR BY REASON OF
     THIS AGREEMENT.

     
  Section 2.36     Amendment  to Section 8.13.  Clause (a) of Section 8.13
to the Credit Agreement is amended in its entirety to read as follows:

	 	
        
          (a)     Notwithstanding  anything herein to the contrary,  if at any
     time the applicable  interest rate, together with all fees and charges
     which are treated as interest under applicable law  (collectively  the
     “Charges”),  as provided for herein or in any other document  executed
     in  connection   herewith,   or  otherwise  contracted  for,  charged,
     received,  taken or reserved by any Lender,  shall  exceed the Maximum
     Rate (as defined below) which may be contracted for,  charged,  taken,
     received or reserved by such Lender in accordance with applicable law,
     the rate of interest  payable on the Loans or Swingline  Loans of such
     Lender,  together  with all Charges  payable to such Lender,  shall be
     limited to the Maximum Rate. As used herein,  the term “Maximum  Rate”
     means, at any time

27

	 	
     and with  respect to any  Lender,  the  maximum  rate of  non-usurious
     interest under  applicable  law that such Lender may charge  Borrower.
     The  Maximum  Rate  shall be  calculated  in a manner  that takes into
     account any and all fees, payments,  and other charges contracted for,
     charged,  or  received  in  connection  with the Loan  Documents  that
     constitute  interest under applicable law. Each change in any interest
     rate provided for herein based upon the Maximum Rate  resulting from a
     change  in the  Maximum  Rate  shall  take  effect  without  notice to
     Borrower at the time of such change in the Maximum Rate.  For purposes
     of determining  the Maximum Rate under Texas law, the applicable  rate
     ceiling  shall be the weekly  ceiling  described  in, and  computed in
     accordance with Chapter 303 of the Texas Finance Code.

     
  Section 2.37     Amendment  to  Exhibits.  Exhibits  A  and  B  to the Credit
Agreement are amended in  their  respective  entireties  to read as set forth on
Exhibit A and B attached hereto, respectively.

     
  Section 2.38     Amendment  to  Schedules. Schedules 1.01, 3.05A and 5.13 are
added  to  the Credit  Agreement and shall read as set forth on Schedules  1.01,
3.05A and 5.13  attached  hereto,  respectively.  Schedules 3.05, 3.06, and 3.13
are amended  in  their entirety to read as set forth on Schedules 3.05, 3.06 and
3.13 attached hereto.

ARTICLE 3

Conditions

     
  Section 3.1     Conditions. The effectiveness of Article 2 of this Amendment
is subject  to  the  satisfaction  of the following  conditions  precedent on or
before July 12, 2001 (the “Closing Date”):

     
            
          (a)     The Administrative  Agent  shall  have  received a favorable
written  opinion  from  counsel  to the  Borrower  and the  Material  Restricted
Subsidiaries,   dated  the  Closing  Date  and  addressed  to  the  Lenders  and
satisfactory to Jenkens & Gilchrist, a Professional Corporation, counsel for the
Administrative  Agent,  to the  effect  set forth in  Exhibit C hereto  (and the
Borrower   hereby   instructs  its  counsel  to  deliver  such  opinion  to  the
Administrative Agent for the benefit of the Lenders).

     
            
          (b)     The  Administrative  Agent  shall   have   received:  (i)  a
certificate  as to the good  standing  of the  Borrower as of a recent date from
such  Secretary of State;  (ii) a  certificate  of the Secretary or an Assistant
Secretary of the Borrower  dated the Closing  Date and  certifying  (A) that the
Borrower's bylaws  previously  certified to the  Administrative  Agent under the
Assistant  Secretary's  Certificate dated July 29, 1999 remain in full force and
effect on and as of the Closing Date without further modifications or amendments
in any respect; (B) attached thereto is a true and complete copy of resolutions,
duly adopted by the Board of Directors  authorizing the execution,  delivery and
performance of this Amendment, and that such resolutions have not been modified,
rescinded or amended and are in full force and effect,  (C) that the Articles of
Incorporation dated January 12, 2001 previously  delivered to the Administrative
Agent in January  2001  remain in full force and effect on and as of the Closing
Date without further  modifications or amendments in any respect;  and (D) as to
the incumbency and specimen  signature of each officer  executing this Agreement
or any  other  document  delivered  in  connection  herewith  on  behalf  of the
Borrower;  (iii) a  certificate  of another  officer of the  Borrower  as to the
incumbency  and  specimen  signature of the  Secretary  or  Assistant  Secretary
executing the certificate  pursuant to (ii) above; and (iv) such other documents
as the Lenders or the Administrative Agent, shall reasonably request.

     
            
          (c)     The Administrative  Agent shall have received a certificate,
dated the Closing Date and signed by a Senior Financial  Officer of the Borrower
confirming  compliance with the conditions precedent set forth in paragraphs (b)
and (c) of Section 4.01 of the Credit Agreement.

28

     
            
          (d)     The  Agents  shall  have received all Fees and other amounts
due and payable on or prior to the Closing Date.

     
            
          (e)     The  Administrative Agent shall have received (i) a copy  of
the  certificate of  incorporation,  including all amendments  thereto,  of each
Material Restricted  Subsidiary,  certified as of a recent date by the Secretary
of  State  of its  state  of  incorporation,  and a  certificate  as to the good
standing of such  Material  Restricted  Subsidiary as of a recent date from such
Secretary  of  State;  (ii) a  certificate  of  the  Secretary  or an  Assistant
Secretary  of each  Material  Restricted  Subsidiary  dated the Closing Date and
certifying (A) that attached  thereto is a true and complete copy of the by-laws
of such Material  Restricted  Subsidiary as in effect on the Closing Date and at
all times since a date prior to the date of the resolutions  described in clause
(B) below, (B) that attached thereto is a true and complete copy of resolutions,
duly adopted by the Board of Directors  authorizing the execution,  delivery and
performance of the Subsidiary Guaranty,  and that such resolutions have not been
modified,  rescinded  or amended and are in full force and effect,  (C) that the
certificate  of  incorporation  referred  to in  clause  (i)  above has not been
amended since the date of the last amendment thereto shown on the certificate of
good standing furnished pursuant to such clause (i) and (D) as to the incumbency
and specimen signature of each officer executing the Subsidiary  Guaranty or any
other  document  delivered  in  connection  herewith on behalf of such  Material
Restricted  Subsidiary;  (iii) a certificate of another officer of each Material
Restricted  Subsidiary  as to  the  incumbency  and  specimen  signature  of the
Secretary or Assistant  Secretary  executing the certificate  pursuant to clause
(ii) above;  and (iv) such other documents as the Lenders or the  Administrative
Agent, shall reasonably request.

        
         
          (f)     The Administrative  Agent  shall have received evidence that
all  Persons  who have the benefit of the  provisions  similar or  substantially
similar to the terms of Section 5.06 of the Credit Agreement  (including without
limitation,  the holders of the notes under the Senior Note Purchase Agreements)
shall have consented to the terms of this Amendment and any consent or amendment
executed in connection therewith must be in form and substance acceptable to the
Administrative Agent.

        
         
          (g)     As of the Closing Date, all  representations  and warranties
contained in the Credit  Agreement (as amended  hereby) shall be true,  correct,
and complete in all material  respects except for  representations  specifically
relating to a prior date;

        
         
          (h)     No Default or Event of Default  shall  have  occurred and be
continuing;

        
         
          (i)     All corporate proceedings taken  in   connection   with  the
transactions contemplated by this Amendment and all other agreements, documents,
and instruments executed and/or delivered pursuant hereto, and all legal matters
incident  thereto,  shall be  satisfactory to the  Administrative  Agent and its
legal counsel;

 
        
         
         (j)     Payment  or  reimbursement to the Lenders, and the Agents of
all  outstanding  expenses,  fees and other  costs  incurred  by, or due to, the
Lenders,  and the Agents for which such entity has  presented  an invoice to the
Borrower prior to the Closing Date; and

        
         
          (k)     The Administrative Agent shall have received such additional
agreements,   certificates,   documents,  instruments  and  information  as  the
Administrative Agent or its legal counsel may request to effect the transactions
contemplated hereby.

29

ARTICLE 4

Miscellaneous

     
  Section  4.1     Ratifications.  The terms and  provisions  set forth in this
Amendment shall modify and supersede all  inconsistent  terms and provisions set
forth in the Credit Agreement and except as expressly modified and superseded by
this  Amendment,  the terms and provisions of the Credit  Agreement are ratified
and confirmed  and shall  continue in full force and effect.  The Borrower,  the
Agents and the Lenders agree that the Credit  Agreement as amended  hereby shall
continue to be legal,  valid,  binding and  enforceable  in accordance  with its
terms.  Interest and fees accrued under the Credit  Agreement  prior to July 12,
2001 shall continue to be payable under the Credit Agreement,  as amended hereby
but at the  rates and  amounts  provided  for in the  provisions  of the  Credit
Agreement in effect prior to July 12, 2001.

     
  Section 4.3     Applicable  Law. THIS  AMENDMENT  SHALL  BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

     
  Section  4.5     Counterparts. This  Amendment  may be  executed  in  one or
more counterparts and on telecopy  counterparts,  each of which when so executed
shall be deemed to be an original,  but all of which when taken  together  shall
constitute one and the same agreement.

     
  Section 4.6     Headings.  The headings,  captions,  and  arrangements  used
in  this  Amendment  are  for   convenience   only  and  shall  not  affect  the
interpretation of this Amendment.

     
  Section 4.7     ENTIRE AGREEMENT.
THIS AMENDMENT EMBODIES THE FINAL,  ENTIRE
AGREEMENT AMONG THE PARTIES HERETO AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS,
AGREEMENTS,   REPRESENTATIONS  AND  UNDERSTANDINGS,  WHETHER  WRITTEN OR  ORAL,
RELATING TO THIS AMENDMENT, AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF
PRIOR,  CONTEMPORANEOUS  OR  SUBSEQUENT  ORAL  AGREEMENTS  OR  DISCUSSION OF THE
PARTIES HERETO. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO.

     
  Section  4.8     Required Lenders.
Pursuant to Section 8.08(b) of the  Credit
Agreement,  the Credit  Agreement may be modified as provided in this  Amendment
with the agreement of the Required  Lenders which means Lenders having sixty-six
and  two-thirds  percent  (66-2/3%)  or  more  of the  Total  Commitments  (such
percentage  applicable  to a  Lender,  herein  such  Lender's  “Required  Lender
Percentage”).  For purposes of determining the  effectiveness of this Amendment,
each Lender's Required Lender Percentage is set forth on Schedule 4.8 hereto.

30

     Executed as of the date first written above.

                          LENNOX INTERNATIONAL INC.

                          By: --------------------------------------------------
                          Richard A. Smith, Executive Vice President
                          and Chief Financial Officer

                          THE CHASE  MANHATTAN BANK, as successor in interest by
                          merger  to  Chase Bank of Texas, National Association,
                          individually   as   Lender,   Issuing   Bank,  and  as
                          Administrative Agent

                          By: --------------------------------------------------
                               Allen King
                               Vice President

                          WACHOVIA BANK, N.A., individually as a
                          Lender and as Syndication Agent

                          By: --------------------------------------------------
                               Name: -------------------------------------------
                               Title: ------------------------------------------

                          THE BANK OF NOVA SCOTIA,
                          individually as a Lender and as
                          documentation agent

                          By: --------------------------------------------------
                               Name: -------------------------------------------
                               Title: ------------------------------------------

                          THE NORTHERN TRUST COMPANY,
                          individually as a lender and as a co-agent

                          By: --------------------------------------------------
                               Name: -------------------------------------------
                               Title: ------------------------------------------

                          BANK ONE, NA (successor by merger to Bank One,
                          Texas, N.A., as a Lender

                          By: --------------------------------------------------
                               Name: -------------------------------------------
                               Title: ------------------------------------------

31

                          BANK OF TEXAS, N.A., as a Lender

                          By: --------------------------------------------------
                               Name: -------------------------------------------
                               Title: ------------------------------------------

                          THE BANK OF TOKYO-MITSUBISHI,
                          LTD., as a Lender

                          By: --------------------------------------------------
                               Name: -------------------------------------------
                               Title: ------------------------------------------

                          WELLS FARGO BANK (TEXAS), N.A.,
                          as a Lender

                          By: --------------------------------------------------
                               Name: -------------------------------------------
                               Title: ------------------------------------------

                          ROYAL BANK OF CANADA,
                          as a Lender

                          By: --------------------------------------------------
                               Name: -------------------------------------------
                               Title: ------------------------------------------

                          ABN AMRO BANK N.A., as a Lender

                          By: --------------------------------------------------
                               Name: -------------------------------------------
                               Title: ------------------------------------------

                          By: --------------------------------------------------
                               Name: -------------------------------------------
                               Title: ------------------------------------------

                          THE BANK OF NEW YORK, as a Lender

                          By: --------------------------------------------------
                               Name: -------------------------------------------
                               Title: ------------------------------------------

32

                          COMPASS BANK, as a Lender

                          By: --------------------------------------------------
                               Name: -------------------------------------------
                               Title: ------------------------------------------

33

                         INDEX TO SCHEDULES AND EXHIBITS

     Schedule 4.8         Required Lender Percentage

     Exhibit A            Form of Borrowing Request
     Exhibit B            Assignment and Acceptance
     Exhibit C            Matters to be Covered in Opinion of Counsel
     Exhibit D            Subsidiary Guaranty Agreement
     Exhibit E            Subsidiary Joinder Agreement

     Schedule 1.01        Existing Letters of Credit
     Schedule 3.05        Lennox International Inc. Subsidiaries
     Schedule 3.05A       Material Restricted Subsidiary Capitalization
     Schedule 3.06        Financial Statements
     Schedule 3.13        Existing Indebtedness
     Schedule 5.13        Existing Liens

                                  Schedule 4.8
                                       to
                      Fourth Amendment to Credit Agreement

                           REQUIRED LENDER PERCENTAGE

                                                 Lenders Agreeing to Amendment
                                                (insert % from prior column if
                            Required Lender     Lender signs this Amendment then
         Lender             Percentage Held    total percentages in this column)
         ------             ---------------    ---------------------------------
The Chase Manhattan Bank        11.333%                       11.333%
Wachovia Bank, N.A.             11.333%                       11.333%
The Bank of Nova Scotia         11.333%                       11.333%
The Northern Trust Company      11.333%                       11.333%
Bank One, Texas N.A.             8.333%                        8.333%
Bank of Texas, N.A.              8.333%                        8.333%
The Bank of Tokyo -              8.333%                        8.333%
 Mitsubishi, Ltd.
Wells Fargo Bank (Texas),N.A.    8.333%                        8.333%
Royal Bank of Canada             6.333%                        6.333%
ABN Amro Bank N.V.               5.000%                        5.000%
The Bank of New York             5.000%                        5.000%
Compass Bank                     5.000%                        5.000%
                               -------                       -------
TOTAL                          100.000%                      100.000%

                                                                       EXHIBIT A

                            FORM OF BORROWING REQUEST

The Chase Manhattan Bank, as Administrative                               [Date]
Agent for the Lenders referred to below
2200 Ross Avenue, 3rd floor
Dallas, TX 77002

Attention:  Brenda Harris
Telecopy:  214-965-2044

and

The Chase Manhattan Bank
Loan Syndications Services
1 Chase Manhattan Plaza, 8th Floor
New York, New York 10081

Telecopy:  212-552-5777

Ladies and Gentlemen:

     The undersigned,  Lennox International Inc. (the "Borrower"), refers to the
Revolving  Credit Facility  Agreement dated as of July 29, 1999 (as has been and
it may hereafter be amended,  modified,  extended or restated from time to time,
the "Agreement"),  among the Borrower,  the Lenders named therein, Chase Bank of
Texas,  National  Association (now The Chase Manhattan Bank), as  Administrative
Agent, Wachovia Bank, N.A., as Syndication Agent and The Bank of Nova Scotia, as
documentation  agent.  Capitalized  terms used herein and not otherwise  defined
herein  shall have the  meanings  assigned to such terms in the  Agreement.  The
Borrower  hereby gives you notice pursuant to Section 2.03 of the Agreement that
it requests a Borrowing  under the Agreement,  and sets forth below the terms on
which such Borrowing is requested to be made:

     (A)  Date of Borrowing (which is a Business Day)          -----------------

     (B)  Type of Loan (I.E., Loan or Swingline Loan)          -----------------

     (C)  Principal amount of Borrowing (1)                    -----------------

     (D)  Interest rate basis (2)                              -----------------

     (E)  Interest Period and the last day thereof (3)         -----------------

----------
     (1)  Not less  than  $5,000,000 (and in  integral  multiples of $1,000,000)
or greater than the Total Commitment then available  if  a  Loan  or  note  less
than $1,000,000  (and  in  integral  multiples  of $500,000) or greater than the
Swingline Loan Commitment then available, if a Swingline Loan.

     (2)  Eurodollar Loan, ABR Loan or Negotiated Rate.

     (3)  Which shall be subject to the definition of "Interest Period" and  end
not later than the Maturity Date.

     The  Borrower  represents  and  warrants  that the  conditions  to  lending
specified in Section  4.01(b) and (c) of the Agreement  have been  satisfied and
that after giving effect to the Borrowing  requested hereby, the total Revolving
Exposures of all Lenders shall not exceed the Total Commitment.

                          LENNOX INTERNATIONAL INC.

                          By: --------------------------------------------------
                                Name: ------------------------------------------
                                      Senior Financial Officer

2

                                                                       EXHIBIT B

                            ASSIGNMENT AND ACCEPTANCE

                                                       Dated:  ___________, ____

     Reference is made to the Revolving  Credit  Facility  Agreement dated as of
July 29,  1999 (as the same  has  been  and may be  further  amended,  modified,
extended  or  restated  from  time  to  time,  the  "Agreement"),  among  Lennox
International  Inc. (the "Borrower"),  the lenders that are a party thereto (the
"Lenders"),  Wachovia Bank, N.A., as Syndication Agent, The Bank of Nova Scotia,
as documentation  agent and Chase Bank of Texas,  National  Association (now The
Chase Manhattan Bank), as Administrative Agent for the Lenders. Terms defined in
the Agreement are used herein with the same meanings.

     1.   The Assignor  hereby  sells  and  assigns,  without  recourse,  to the
Assignee, and the Assignee hereby purchases and assumes,  without recourse, from
the  Assignor,  effective  as of the  [Effective  Date of  Assignment  set forth
below],  the  interests  set  forth  below  (the  "Assigned  Interest")  in  the
Assignor's  rights  and  obligations  under the  Agreement,  including,  without
limitation,  the interests set forth below in the  Commitment of the Assignor on
the [Effective Date of Assignment] and the Loans owing to the Assignor which are
outstanding  on the  [Effective  Date  of  Assignment],  and  the  participation
interest of the Assignor in outstanding Letters of Credit on the [Effective Date
of  Assignment]  and  Swingline  Loans  on the  [Effective  Date of  Assignment]
together with unpaid  interest  accrued on the assigned  Loans to the [Effective
Date of Assignment] and the amount,  if any, set forth below of the Fees accrued
to the [Effective Date of Assignment]  for the account of the Assignor.  Each of
the  Assignor  and the  Assignee  hereby makes and agrees to be bound by all the
representations,  warranties  and  agreements  set forth in Section  8.04 of the
Agreement,  a copy of which has been received by each such party. From and after
the [Effective Date of Assignment],  (i) the Assignee shall be a party to and be
bound by the  provisions  of the  Agreement  and, to the extent of the interests
assigned by this Assignment and Acceptance, have the rights and obligations of a
Lender  thereunder and (ii) the Assignor  shall,  to the extent of the interests
assigned  by this  Assignment  and  Acceptance,  relinquish  its  rights  and be
released from its obligations  under the Agreement.  After giving effect to this
Assignment  and  Acceptance,  Assignor's  Commitment  shall  be  $---------- and
Assignee's Commitment shall be $-------------.

     2.   This   Assignment   and   Acceptance   is   being   delivered  to  the
Administrative  Agent  together with (i) if the Assignee is organized  under the
laws of a jurisdiction outside the United States, the forms specified in Section
2.16(g) of the Agreement,  duly completed and executed by such Assignee, (ii) if
the  Assignee is not already a Lender  under the  Agreement,  an  Administrative
Questionnaire and (iii) a processing and recordation fee of $3,000.

     3.   This Assignment and  Acceptance  shall be governed by and construed in
accordance with the laws of the State of Texas.

          Date of Assignment:
                                            ------------------------------------

          Legal Name of Assignor:
                                            ------------------------------------

          Legal Name of Assignee:
                                            ------------------------------------

          Assignee's Address for Notices:
                                            ------------------------------------

                                       1

Effective  Date of  Assignment
(may not be fewer than 5 Business
Days after the Date of Assignment
unless otherwise agreed by the Administrative Agent,
whose execution hereof shall be deemed to be such
consent, if necessary): --------------------------------------------------------

                                             Percentage Assigned of Commitment
                                             (set forth, to at least 8 decimals,
     Facility             Principal Amount   as a percentage of the Total
                             Assigned                    Commitment)
     --------             ----------------   -----------------------------------
Commitment Assigned:      $_______________          __________%
Loans:                    $_______________          __________%
Participation Interest in
  Letters of Credit       $_______________          __________%
Participation Interest in
  Swingline Loans         $_______________          __________%
Fees Assigned (if any):   $_______________          __________%

The terms set forth herein are hereby       Accepted:
agreed to:

--------------------------------, as        LENNOX INTERNATIONAL INC.
Assignor,

By: ----------------------------            By: --------------------------------
     Name:----------------------                Name:---------------------------
     Title: --------------------                Title: -------------------------

--------------------------------, as        THE CHASE MANHATTAN BANK,
Assignee,                                   as Administrative Agent

By: ----------------------------            By: --------------------------------
     Name:----------------------                Name:---------------------------
     Title: --------------------                Title: -------------------------

EXHIBIT C

                            Matters to be Covered in

            Opinion of Counsel to Borrower and Material Subsidiaries

	     1.	
The Borrower and each Material Restricted Subsidiary is duly
   incorporated, validly existing and in good standing. The Borrower
   and each Material Restricted Subsidiary is duly qualified and in
   good standing as a foreign corporation in appropriate jurisdictions.

	     2.	
The Borrower has requisite corporate power and authority to execute,
   deliver and perform the Amendment. Each Material Restricted
   Subsidiary has requisite corporate power and authority to execute,
   deliver and perform the Subsidiary Guaranty.

	     3.	
Due  authorization  and execution of the  Amendment  and the  Subsidiary
   Guaranty and such documents being legal, valid, binding and enforceable.

	     4.	
No conflicts with charter documents, laws or other agreements.

	     5.	
All consents required to execute, deliver or perform the Amendment and the
   Subsidiary Guaranty having been obtained.

	     6.	
No litigation  questioning validity of the Amendment or the Subsidiary
   Guaranty or as to which there is otherwise the reasonable likelihood of a
   Material Adverse Effect.

	     7.	
No violation of Regulations T, U or X of the Federal Reserve Board.

	     8.	
Neither the Borrower nor any Material Restricted Subsidiary is an "investment
   company", or a company "controlled" by an "investment company", under the
   Investment Company Act of 1940, as amended.

EXHIBIT D

SUBSIDIARY GUARANTY AGREEMENT

        WHEREAS, Lennox International Inc., a Delaware corporation (the
“Borrower”), has entered into that certain 364 Day Revolving
Credit Facility Agreement dated as of January 25, 2000, among the Borrower, the
lenders party thereto (the “Lenders”) and Chase Bank of Texas,
National Association (now The Chase Manhattan Bank), as administrative agent for
the Lenders (the “Administrative Agent”) (such 364 Day
Revolving Credit Facility Agreement, as the same has been and may hereafter be
amended or otherwise modified from time to time, being hereinafter referred to
as the “Credit Agreement”, and capitalized terms not otherwise
defined herein shall have the same meaning as set forth in the Credit
Agreement);

    
    
WHEREAS, the execution of this Subsidiary Guaranty Agreement (the “Guaranty
Agreement”) is a condition to the Administrative Agent’s, the Issuing
Bank’s, and each Lender’s obligations under the Credit Agreement; 

    
    
NOW, THEREFORE, for valuable consideration, the receipt and adequacy of which are
hereby acknowledged, each of the undersigned parties and any Material Restricted
Subsidiary hereafter added as a “Guarantor” hereto pursuant to a
Subsidiary Joinder Agreement (individually a “Guarantor” and
collectively the “Guarantors”), hereby jointly, severally, irrevocably
and unconditionally guarantees to the Administrative Agent the full and prompt
payment and performance of the Guaranteed Obligations (hereinafter defined),
this Guaranty Agreement being upon the following terms: 

        1.
     THE GUARANTEED OBLIGATIONS.     The term “Guaranteed
Obligations” means all obligations, indebtedness, and liabilities of
Borrower to the Agents, the Issuing Bank and the Lenders, or any of them,
arising pursuant to the Credit Agreement, the Intercreditor Agreement, the
Pledge Agreement or any document executed and delivered in connection with the
foregoing (collectively, the “Transaction Documents”), whether
any of such obligations, indebtedness and liabilities are now existing or
hereafter arising, whether are direct, indirect, related, unrelated, fixed,
contingent, liquidated, unliquidated, joint, several, or joint and several,
including, without limitation, (i) the obligation of Borrower to repay the Loans
and Swingline Loans, interest on the Loans and Swingline Loans, the obligation
of the Borrower to reimburse the Issuing Bank for all LC Disbursements and all
fees, costs, and expenses (including attorneys’ fees and expenses) provided
for in the Credit Agreement and (ii) all post-petition interest and expenses
(including attorneys’ fees) whether or not allowed under any bankruptcy,
insolvency, or other similar law. However, the Guaranteed Obligations shall be
limited, with respect to each Guarantor, to an aggregate amount equal to the
largest amount that would not render such Guarantor’s obligations hereunder
subject to avoidance under Section 544 or 548 of the United States Bankruptcy
Code or under any applicable state law relating to fraudulent transfers or
conveyances. This Guaranty Agreement is an absolute, present and continuing
Guaranty Agreement of payment and not of collectibility and is in no way
conditional or contingent upon any attempt to collect from the Borrower, any
collateral securing the Guaranteed Obligations or any other guarantor of the
obligations guarantied hereby or upon any other action, occurrence or
circumstance whatsoever. In the event that the Borrower shall fail so to pay any
of such Guaranteed Obligations, the Guarantors jointly and severally agree to
pay the same when due to the Administrative Agent, without demand, presentment,
protest or notice of any kind. Each default in payment of principal of, premium,
if any, or interest on any obligation guarantied hereby shall give rise to a
separate cause of action hereunder and separate suits may be brought hereunder
as each cause of action arises. 

        2.
     INDEMNIFICATION.     EACH GUARANTOR  AGREES TO INDEMNIFY  EACH AGENT,  THE
ISSUING BANK, EACH LENDER, EACH OF THEIR AFFILIATES AND THE

1

DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS OF THE FOREGOING (EACH SUCH PERSON BEING CALLED AN
“INDEMNITEE”) AGAINST, AND TO HOLD EACH INDEMNITEE HARMLESS FROM, ANY
AND ALL LOSSES, CLAIMS, DAMAGES, LIABILITIES AND RELATED EXPENSES, INCLUDING
REASONABLE COUNSEL FEES AND EXPENSES, INCURRED BY OR ASSERTED AGAINST ANY
INDEMNITEE ARISING OUT OF (i) THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED
BY THIS GUARANTY AGREEMENT OR THE CREDIT AGREEMENT, (ii) THE USE OF THE PROCEEDS
OF THE LOANS OR THE USE OF ANY LETTER OF CREDIT OR (iii) ANY CLAIM, LITIGATION,
INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE FOREGOING, WHETHER OR NOT ANY
INDEMNITEE IS A PARTY THERETO (INCLUDING, WITHOUT LIMITATION, ANY LOSSES,
CLAIMS, DAMAGES, LIABILITIES AND RELATED EXPENSES ARISING FROM THE SOLE OR
CONTRIBUTORY NEGLIGENCE OF THE INDEMNITEE); PROVIDED THAT SUCH INDEMNITY SHALL
NOT, AS TO ANY INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS,
DAMAGES, LIABILITIES OR RELATED EXPENSES (i) ARE DETERMINED TO HAVE RESULTED
FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE OR (ii)
RESULT FROM ANY LITIGATION BROUGHT BY SUCH INDEMNITEE AGAINST THE BORROWER OR
ANY GUARANTOR OR BY THE BORROWER OR ANY GUARANTOR AGAINST SUCH INDEMNITEE, IN
WHICH THE BORROWER OR SUCH GUARANTOR IS THE PREVAILING PARTY. 

        3.
     OBLIGATIONS ABSOLUTE.     The obligations of each Guarantor hereunder shall be
primary, continuing, absolute, joint, several, irrevocable and unconditional,
irrespective of the validity, regularity or enforceability of any Transaction
Document, shall not be subject to any counterclaim, setoff, deduction or defense
based upon any claim any Guarantor may have against the Borrower, the
Administrative Agent, any Lender or the Issuing Bank or otherwise or any claim
the Borrower may have against the Administrative Agent, any Lender or the
Issuing Bank or otherwise, and shall remain in full force and effect without
regard to, and shall not be released, discharged or in any way affected by, any
circumstance or condition whatsoever (whether or not such Guarantor shall have
any knowledge or notice thereof), including, without limitation: (a) any
amendment, modification of or supplement to any Transaction Document or any
other instrument referred to therein (except that the obligations of any
Guarantor hereunder shall apply to the applicable Transaction Document or such
other instruments as so amended, modified or supplemented) or any assignment or
transfer of any thereof or of any interest therein, or any furnishing,
acceptance or release of any security for the obligations due under any
Transaction Document, (b) any waiver, consent, extension, indulgence or other
action or inaction under or in respect of any Transaction Document; (c) any
bankruptcy, insolvency, readjustment, composition, liquidation or similar
proceeding with respect to the Borrower or its property; (d) any merger,
amalgamation or consolidation of any Guarantor or of the Borrower into or with
any other corporation or any sale, lease or transfer of any or all of the assets
of any Guarantor or of the Borrower to any Person; (e) any failure on the part
of the Borrower for any reason to comply with or perform any of the terms of any
other agreement with any Guarantor; or (f) any other circumstance which might
otherwise constitute a legal or equitable discharge or defense of a guarantor
(other than a release of the obligations of a Guarantor hereunder granted in
accordance with the provisions of paragraph 21 hereof). Each Guarantor covenants
that its obligations hereunder will not be discharged except by payment in full
of all of the Guaranteed Obligations or a release granted in accordance with the
provisions of paragraph 21. 

        4.
     WAIVER.     Each Guarantor unconditionally waives to the fullest extent permitted by
law, (a) notice of
acceptance hereof, of any action taken or omitted in reliance hereon and of any
defaults by the Borrower in the payment of any amounts due under any Transaction
Document, and of any of the matters referred to in paragraph 2 or 3 hereof, (b)
all notices which may be required by statute, rule of law or otherwise to
preserve any of the rights of the Administrative Agent, the Lenders, and the
Issuing Bank from time to time against any Guarantor, including, without
limitation, presentment to or demand for

2

payment from the Borrower or any Guarantor, notice to the Borrower or to any
Guarantor of default or protest for nonpayment or dishonor and the filing of
claims with a court in the event of the bankruptcy of the Borrower, (c) any
right to the enforcement, assertion or exercise by the Administrative Agent, any
Lender or the Issuing Bank of any right, power or remedy conferred in this
Guaranty Agreement or any Transaction Document, (d) any requirement or diligence
on the part of the Administrative Agent, the Lenders or the Issuing Bank and (e)
any other act or omission or thing or delay to do any other act or thing which
might in any manner or to any extent vary the risk of any Guarantor or which
might otherwise operate as a discharge of any Guarantor. The exercise by the
Administrative Agent, the Issuing Bank and the Lenders of any right or remedy
hereunder or under any other instrument, or at law or in equity, shall not
preclude the concurrent or subsequent exercise of any other right or remedy.

        5.
     OBLIGATIONS UNIMPAIRED.     Each Guarantor authorizes the Administrative Agent, the
Lenders and the Issuing Bank without notice or demand to any Guarantor and
without affecting the obligations of any Guarantor hereunder, from time to time
(a) to renew, compromise, extend, accelerate or otherwise change the time for
payment of, or otherwise change the terms of, all or any part of any Transaction
Document or any other instrument referred to therein, (b) to take and hold
security for the payment and performance of the obligations under any
Transaction Document, for the performance of this Guaranty Agreement or
otherwise for the indebtedness guaranteed hereby and to exchange, enforce, waive
and release any such security, (c) to apply any such security and to direct the
order or manner of sale thereof as the Administrative Agent in its sole
discretion may determine; (d) to obtain additional or substitute endorsers or
guarantors; (e) to exercise or refrain from exercising any rights against the
Borrower and others; and (f) to apply any sums, by whomsoever paid or however
realized, to the payment of the principal of, premium, if any, and interest on
the obligations under the Transaction Documents and any other Guaranteed
Obligation. Each Guarantor waives any right to require the Administrative Agent,
the Lenders or the Issuing Bank to proceed against any additional or substitute
endorsers or guarantors or to pursue or exhaust any security provided by the
Borrower, any Guarantor or any other Person or to pursue any other remedy
available to such entities. 

     6.
     COVENANTS.     Each Guarantor  agrees that, so long as any Lender has any
commitment  or any other  obligations  under any  Transaction  Document,  or any
amount payable hereunder remains unpaid:

          
   
(a)     Corporate Existence     
Subject to
clause (c) of this paragraph 6 each Guarantor will at all times preserve and
keep in full force and effect its corporate existence and all of its rights and
franchises unless, in its good faith judgment, the termination of or failure to
preserve and keep in full force and effect such right or franchise would not,
individually or in the aggregate, have a Material Adverse Effect.

          
   
(b)     Each Guarantor shall permit the representatives
of the Administrative Agent and each
Lender: (i) If no Default or Event of Default then exists, at the expense of
such Agent or Lender and upon reasonable prior notice to the Borrower, to visit
the principal executive office of each Guarantor, to discuss the affairs,
finances and accounts of each Guarantor with their respective officers and (with
the consent of a Guarantor, which consent will not be unreasonably withheld) its
independent public accountants, and (with the consent of a Guarantor, which
consent will not be unreasonably withheld) to visit the other offices and
properties of each Guarantor, all at such reasonable times and as often as may
be reasonably requested in writing; and (ii) If a Default or Event of Default
then exists, at the expense of the Guarantor to visit and inspect any of the
offices or properties of any Guarantor, to examine all their respective books of
account, records, reports and other papers, to make copies and extracts
therefrom, and to discuss their respective affairs, finances and accounts with
their respective officers and independent public accountants (and by this
provision each Guarantor authorizes said accountants to discuss the affairs,
finances and accounts of the Guarantors), all at such 

3

times and as often as may
be requested. Anything
herein to the contrary notwithstanding, no Guarantor shall have any obligations
to disclose pursuant to this Guaranty Agreement any engineering, scientific, or
other technical data without significance to the analysis of the financial
position of the Guarantor and its Subsidiaries.

          
   
(c)     
Merger, Consolidation, Etc.
No Guarantor shall consolidate with or merge with any other corporation or
convey, transfer or lease substantially all of its assets in a single
transaction or series of transactions to any Person except (1) in connection
with the sale of a Guarantor or of all or substantially all of its assets in a
transaction permitted by Section 5.11 of the Credit Agreement to a third party
not affiliated with the Borrower or such Guarantor or (2)
unless:

          
       
          (i)
     
the successor formed by such consolidation or the survivor of such merger or the
Person that acquires by conveyance, transfer or lease substantially all of the
assets of such Guarantor as an entirety, as the case may be, shall be a solvent
corporation or other entity organized and existing under the laws of the United
States or any State thereof (including the District of Columbia), and, if such
Guarantor is not such corporation or other entity, such corporation or other
entity shall have executed and delivered to the Administrative Agent its
assumption of the due and punctual performance and observance of each covenant
and condition of this Guaranty Agreement, together with a favorable opinion of
counsel satisfactory to the Administrative Agent covering such matters relating
to such corporation or other entity and such assumption as the Administrative
Agent may reasonably request; and 

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

          
       
          
(iii)     immediately prior to and after giving effect to
such transaction, the Borrower and the Restricted Subsidiaries would be
permitted by the provisions of Sections 5.12 and 5.17 of the Credit Agreement to
incur at least $1.00 of additional Indebtedness and $1.00 of additional
Restricted Indebtedness, respectively.

    
    No
such conveyance, transfer or lease of substantially all of the assets of any
Guarantor shall have the effect of releasing such Guarantor or any successor
corporation that shall theretofore have become such in the manner prescribed in
this clause (c) of paragraph 6 from its liability under this Guaranty Agreement
provided that a Guarantor may be released from its obligations hereunder in
accordance with paragraph 21 hereof if it or all or substantially all of its
assets are sold to a third party not affiliated with the Borrower or such
Guarantor in a transaction permitted by Section 5.11 of the Credit Agreement. 

          
   
(d)     
Compliance With Loan Documents.     Each Guarantor
shall comply with
all  covenants  set forth in the  Credit  Agreement  and any  other  Transaction
Document applicable to it.

     7.
     SUBROGATION.     Each Guarantor
agrees that it will not exercise any rights which it may have acquired by way of
subrogation under this Guaranty Agreement, by any payment made hereunder or
otherwise, or accept any payment on account of such subrogation rights, or any
rights of reimbursement or indemnity or any rights or recourse to any security
for the obligations under the Credit Agreement or this Guaranty Agreement unless
and until all of the obligations, undertakings or conditions to be performed or
observed by the Borrower pursuant to the Transaction Documents at the time of
any Guarantor's exercise of any such right shall have been performed,
observed or paid in full. For a period of one year after the payment in full of
the Guaranteed Obligations, each Guarantor hereby waives (x) all rights of
subrogation which it may at any time otherwise have as a result of this Guaranty
Agreement (whether, statutory or otherwise) to the claims of the Administrative
Agent, the Lenders and the Issuing Bank against the Borrower or any other
guarantor of the Guaranteed Obligations ( Borrower and such

4

other guarantors are each
herein referred to as an “Other Party”) and all contractual, statutory
or common law rights of reimbursement, contribution or indemnity from any Other
Party which it may at any time otherwise have as a result of this Guaranty
Agreement; and (y) any right to enforce any other remedy which the
Administrative Agent, the Lenders and the Issuing Bank now have or may hereafter
have against any Other Party, any endorser or any other guarantor of all or any
part of the Guaranteed Obligations. 

     8.
     CONTRIBUTION.     The
Guarantors collectively desire to allocate among themselves in a fair and
equitable manner, their obligations arising under this Guaranty Agreement.
Accordingly, in the event any payment or distribution is made by a Guarantor
under this Guaranty Agreement (a “Funding Guarantor”) that
exceeds its Fair Share (as defined below), that Funding Guarantor shall, subject
to paragraph 6 hereof, be entitled to a contribution from each of the other
Guarantors in the amount of such other Guarantor's Fair Share Shortfall
(as defined below), with the result that all such contributions will cause each
Guarantor's Aggregate Payments (as defined below) to equal its Fair
Share. “Fair Share” means, with respect to a Guarantor as of
any date of determination, an amount equal to (i) the ratio of (x) the Adjusted
Maximum Amount (as defined below) with respect to such Guarantor to (y) the
aggregate of the Adjusted Maximum Amounts with respect to all Guarantors,
multiplied by (ii) the aggregate amount paid or distributed on or before such
date by all Funding Guarantors under this Guaranty Agreement in respect of the
obligations guarantied. “Fair Share Shortfall” means, with
respect to a Guarantor as of any date of determination, the excess, if any, of
the Fair Share of such Guarantor over the Aggregate Payments of such Guarantor.
“Adjusted Maximum Amount” means, with respect to a Guarantor
as of any date of determination, the maximum aggregate amount of the obligations
of such Guarantor under this Guaranty Agreement determined in accordance with
the provisions hereof (including, without limitation, the limitations on such
obligations contained in paragraph 1 hereof); provided that, solely for purposes
of calculating the “Adjusted Maximum Amount” with respect to
any Guarantor for purposes of this paragraph 8 the assets or liabilities arising
by virtue of any rights to or obligations of contribution hereunder shall not be
considered as assets or liabilities of such Guarantor. “Aggregate Payments” means, with respect to a Guarantor as of any date of
determination, the aggregate amount of all payments and distributions made on or
before such date by such Contributing Guarantor in respect of this Guaranty
Agreement (including, without limitation, in respect of this paragraph 8). The
amounts payable as contributions hereunder shall be determined as of the date on
which the related payment or distribution is made by the applicable Funding
Guarantor. The allocation among Guarantors of their obligations as set forth in
this paragraph 8 shall not be construed in any way to limit the liability of any
Guarantor hereunder. 

        9.
     REINSTATEMENT OF GUARANTY AGREEMENT. This Guaranty
Agreement shall continue to be effective, or be
reinstated, as the case may be, if and to the extent at any time payment, in
whole or in part, of any of the sums due to the Administrative Agent, any Lender
or the Issuing Bank for principal, premium, if any, or interest on the
obligations under any Transaction Document or any of the other Guaranteed
Obligations is rescinded or must otherwise be restored or returned by such
entity upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Borrower or any Guarantor, or upon or as a result of the
appointment of a custodian, receiver, trustee or other officer with similar
powers with respect to the Borrower, any Guarantor or any substantial part of
their respective properties, or otherwise, all as though such payments had not
been made. If an event permitting the acceleration of the maturity of the
principal due under any Transaction Document shall at any time have occurred and
be continuing and such acceleration shall at such time be prevented or the right
of the Administrative Agent, any Lender or the Issuing Bank to receive any
payment under the applicable Transaction Document shall at such time be delayed
or otherwise affected by reason of the pendency against the Borrower of a case
or proceeding under a bankruptcy or insolvency law, each Guarantor agrees that,
for purposes of this Guaranty Agreement and its obligations hereunder, the
maturity of such principal amount shall be deemed to have been accelerated with
the same effect as if the Administrative Agent, the Lenders or the Issuing 

5

Bank had accelerated the
same in accordance with the terms of the applicable Transaction Documents, and
any Guarantor shall forthwith pay such accelerated principal amount, accrued
interest and premium, if any, thereon and any other amounts guaranteed
hereunder. 

        10.
     PAYMENTS.     Each Guarantor
hereby, jointly and severally, guarantees that the Borrower shall pay the
Guaranteed Obligations to the Administrative Agent in lawful currency of the
United States of America and in immediately available funds, at the times and
places provided in, and otherwise strictly in accordance with the terms and
provisions of, the Credit Agreement or other applicable Transaction Documents
(regardless of any law, regulation or decree now or hereafter in effect which
might in any manner affect the Guaranteed Obligations, or the rights of any such
entity with respect thereto as against the Borrower, or cause or permit to be
invoked any alteration in the time, amount or manner of payment by the Borrower
of any or all of the Guaranteed Obligations), without set-off or counterclaim
and free and clear of, and without reduction for or on account of, any present
or future income, stamp or other taxes, levies, imposts, duties, charges, fees,
deductions, withholdings now or hereafter imposed, levied, collected, withheld
or assessed by any country (or by any political subdivision or taxing authority
thereof or therein) excluding income and franchise taxes of the United States of
America or any political subdivision, state or taxing authority thereof or
therein (including Puerto Rico) such non-excluded taxes being called
“Foreign Taxes”). If any Foreign Taxes are required to be
withheld from any amount payable to the Administrative Agent, any Lender or the
Issuing Bank under this Guaranty Agreement, under the Credit Agreement or any
other Transaction Document, the amounts so payable to such holder shall be
increased to the extent necessary to yield to such entity (after payment of all
Foreign Taxes) interest or any such other amounts at the rates or in the amounts
specified in the applicable Transaction Document. In the event any payment is
made by a Guarantor under this Guaranty Agreement, then such Guarantor shall,
subject to paragraph 6 hereof, be subrogated to the rights then held by the
Administrative Agent, the Issuing Bank and the Lenders with respect to the
Guaranteed Obligations to the extent to which the Guaranteed Obligations was
discharged by such Guarantor. All payments received by the Administrative Agent
under this Guaranty Agreement shall be allocated pro rata among the Lenders in
accordance with the Lenders'; Applicable Percentages unless the
Intercreditor Agreement directs that the proceeds shall be distributed in
another manner.  

        11.
     RANK OF GUARANTY AGREEMENT. Each Guarantor agrees
that its obligations under
this Guaranty Agreement shall rank at least pari passu with all other unsecured
senior obligations of such Guarantor now or hereafter existing. 

        12.
     REPRESENTATIONS AND WARRANTIES OF THE GUARANTORS.

EachGuarantor represents and warrants to the Administrative Agent the Issuing Bank
and each Lender as follows: 

          
   
(a)     Existence.     It: (i) is a corporation duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization, (ii) has all
requisite power and authority to own its property and assets and to carry on its
business as now conducted and as proposed to be conducted, (iii) is qualified to
do business in every jurisdiction where such qualification is required, except
where the failure so to qualify would not result in a Material Adverse Effect,
and (iv) has the corporate power and authority to execute, deliver and perform
its obligations under this Guaranty Agreement and the Intercreditor Agreement. 

          
   
(b)     Authorization.     
Its execution, delivery and performance of this Guaranty
Agreement and the Intercreditor Agreement (i) have been duly authorized by all
requisite corporate action and (ii) will not (A) violate (1) any provision of
any law, statute, rule or regulation to which it is subject or of its
certificate of incorporation or other constituent documents or by-laws, (2) any
order of any 

6

Applicable Governmental Authority or (3) any provision of any Material indenture,
agreement or other
instrument to which it is a party or by which it or any of its property is or
may be bound, (ii) be in conflict with, result in a breach of or constitute
(alone or with notice or lapse of time or both) a default under any such
indenture, agreement or other instrument or (iii) result in the creation or
imposition of any Lien upon any of its property or assets. 

          
   (c)     Enforceability. 
    This Guaranty Agreement constitutes, and when entered into, the
Intercreditor Agreement will constitute, its legal, valid and binding obligation
enforceable against it in accordance with their respective terms, as such
enforceability may be limited by (i) applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors’ rights generally and (ii) general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law). 

          
   (d)     No Consents. 
    No action, consent or approval of, registration or filing with or
other action by any Applicable Governmental Authority is or will be required in
connection with its execution, delivery or performance of this Guaranty
Agreement or the Intercreditor Agreement. 

          
   (e)     Credit Agreement Representations.
     All representations and warranties in the
Credit Agreement relating to it are true and correct as of the date hereof and
are restated herein with the same force and effect as if such representations
and warranties had been made on and as of such date except to the extent that
such representations and warranties relate specifically to another date. 

          
   (f)     
Information.     It has adequate means to obtain
from the Borrower on a continuing
basis information concerning the financial condition and assets of the Borrower
and it is not relying upon the Administrative Agent, the Issuing Bank or any
Lender to provide (and neither the Administrative Agent, the Issuing Bank nor
any Lender shall have any duty to provide) any such information to it either now
or in the future. 

          
   (g)     
Benefit.     The Borrower provides the Guarantors
financing from time to time and
some of the funds used by the Borrower to provide such financing have been and
will hereafter be borrowed by the Borrower under the Credit Agreement. As a
result, the value of the consideration received and to be received by each
Guarantor as a result of the Borrower and the Lenders entering into the Credit
Agreement and each Guarantor’s executing and delivering this Guaranty
Agreement (in light of, among other things, the contribution provisions of
paragraph 8 hereof) is reasonably worth at least as much as the liability and
obligation of each Guarantor hereunder, and such liability and obligation and
the Credit Agreement have benefited and may reasonably be expected to benefit
each Guarantor directly or indirectly. 

          
    (h)     
Solvency. Each Guarantor both individually and on a consolidated basis: (i) owns
and will own assets (included in such assets the rights of contribution set
forth in paragraph 8 hereof) the fair saleable value of which are (A) greater
than the total amount of its liabilities (including contingent liabilities) and
(B) greater than the amount that will be required to pay probable liabilities of
then existing debts as they become absolute and matured considering all
financing alternatives and potential asset sales reasonably available to it;
(ii) has capital that is not unreasonably small in relation to its business as
presently conducted; and (iii) does not intend to incur and does not believe
that it will incur debts beyond its ability to pay such debts as they become
due. 

        13.
     SETOFF. If an Event of
Default shall have occurred and be continuing each Lender is hereby authorized
at any time and from time to time, to the fullest extent permitted by law, to
set off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other indebtedness at any time owing
by such Lender to or for the credit or the account of the any 

7

Guarantor against any of
and all the obligations of such Guarantor now or hereafter existing under this
Guaranty Agreement, irrespective of whether or not such Lender shall have made
any demand under this Guaranty Agreement and although such obligations may be
unmatured. The rights of each Lender under this paragraph are in addition to
other rights and remedies (including other rights of setoff) which such Lender
may have. 

        14.
     SUBORDINATED  INDEBTEDNESS.  
   In  addition  and  not  in  limitation of
paragraph 6 hereof, each Guarantor agrees as follows:

          
   
(a)     
Each Guarantor hereby agrees that the Subordinated Indebtedness (as defined
below) shall be subordinate and junior in right of payment to the prior payment
in full of all Guaranteed Obligations as herein provided. The Subordinated
Indebtedness shall not be payable, and no payment of principal, interest or
other amounts on account thereof, and no property or guarantee of any nature to
secure or pay the Subordinated Indebtedness shall be made or given, directly or
indirectly by or on behalf of any Other Party (as defined in paragraph 7 above)
or received, accepted, retained or applied by any Guarantor unless and until the
Guaranteed Obligations shall have been paid in full in cash for one year; except
that prior to receipt of a notice from the Administrative Agent under this
paragraph (which may be given at any time an Event of Default exists), a
Guarantor shall have the right to receive payments on the Subordinated
Indebtedness made in the ordinary course of business. After receipt of the
notice from the Administrative Agent delivered under the preceding sentence, no
payments of principal or interest or any other amounts may be made or given,
directly or indirectly, by or on behalf of any Other Party or received,
accepted, retained or applied by any Guarantor unless and until the Guaranteed
Obligations shall have been paid in full in cash for one year. If any sums shall
be paid to a Guarantor by any Other Party or any other Person on account of the
Subordinated Indebtedness when such payment is not permitted hereunder, such
sums shall be held in trust by such Guarantor for the benefit of the
Administrative Agent, the Issuing Bank and the Lenders and shall forthwith be
paid to the Administrative Agent without affecting the liability of any
Guarantor under this Guaranty Agreement and may be applied by the Administrative
Agent against the Guaranteed Obligations in accordance with the Credit
Agreement. Upon the request of the Administrative Agent, a Guarantor shall
execute, deliver, and endorse to the Administrative Agent such documentation as
the Administrative Agent may request to perfect, preserve, and enforce its
rights hereunder. For purposes of this Guaranty Agreement and with respect to a
Guarantor, the term “Subordinated Indebtedness” means, with respect to
any Guarantor, all indebtedness, liabilities, and obligations of any Other Party
to such Guarantor, whether such indebtedness, liabilities, and obligations now
exist or are hereafter incurred or arise, or are direct, indirect, contingent,
primary, secondary, several, joint and several, or otherwise, and irrespective
of whether such indebtedness, liabilities, or obligations are evidenced by a
note, contract, open account, or otherwise, and irrespective of the Person or
Persons in whose favor such indebtedness, obligations, or liabilities may, at
their inception, have been, or may hereafter be created, or the manner in which
they have been or may hereafter be acquired by such Guarantor. 

          
   
(b)
Each Guarantor agrees that any and all Liens (including any judgment liens),
upon any Other Party’s assets securing payment of any Subordinated
Indebtedness shall be and remain inferior and subordinate to any and all Liens
upon any Other Party’s assets securing payment of the Guaranteed
Obligations or any part thereof, regardless of whether such Liens in favor of a
Guarantor, the Administrative Agent, the Issuing Bank or any Lender presently
exist or are hereafter created or attached. Without the prior written consent of
the Administrative Agent and otherwise subject to the restrictions set forth in
paragraph 7 hereof when an Event of Default exists, no Guarantor shall (i) file
suit against any Other Party or exercise or enforce any other creditor’s
right it may have against any Other Party, or (ii) foreclose, repossess,
sequester, or otherwise take steps or institute any action or proceedings
(judicial or otherwise, including without limitation the commencement of, or
joinder in, any liquidation, 

8

bankruptcy, rearrangement,
debtor’s relief or insolvency proceeding) to enforce any obligations of any
Other Party to such Guarantor or any Liens held by such Guarantor on assets of
any Other Party. 

          
   
(c)
In the event of any receivership, bankruptcy, reorganization rearrangement,
debtor’s relief, or other insolvency proceeding involving any Other Party
as debtor, the Administrative Agent shall have the right to prove and vote any
claim under the Subordinated Indebtedness and to receive directly from the
receiver, trustee or other court custodian all dividends, distributions, and
payments made in respect of the Subordinated Indebtedness until the Guaranteed
Obligations has been paid in full in cash. The Administrative Agent may apply
any such dividends, distributions, and payments against the Guaranteed
Obligations in accordance with the Credit Agreement. 

        15.
     NOTICES.     Unless
otherwise
specifically provided herein, all notices consents, directions, approvals,
instructions, requests and other communications required or permitted by the
terms hereof shall be in writing, and any such communication shall become
effective when received, addressed in the following manner: (a) if to any
Guarantor, in care of the Borrower in accordance with the notice provisions in
the Credit Agreement or (b) if to any Lender or the Issuing Bank, to the
respective address set forth in the notice provisions of the Credit Agreement,
with a copy to the Administrative Agent; or (c) if to the Administrative Agent,
to the respective address set forth in the notice provisions of the Credit
Agreement; provided, however, that any such addressee may change its address for
communications by notice given as aforesaid to the other parties hereto. 

     16.
     CONSTRUCTION.     The section
and subsection headings in this Guaranty Agreement are for convenience of
reference only and shall neither be deemed to be a part of this Guaranty
Agreement nor modify, define, expand or limit any of the terms or provisions
hereof. All references herein to numbered sections or paragraphs, unless
otherwise indicated, are to sections and paragraphs of this Guaranty Agreement.
Words and definitions in the singular shall be read and construed as though in
the plural and vice versa, and words in the masculine, neuter or feminine gender
shall be read and construed as though in either of the other genders where the
context so requires. 

        17.
     SEVERABILITY.     If any provision of this
Guaranty Agreement, or the application
thereof to any Person or circumstances, shall, for any reason or to any extent,
be invalid or unenforceable, such invalidity or unenforceability shall not in
any manner affect or render invalid or unenforceable the remainder of this
Guaranty Agreement, and the application of that provision to other persons or
circumstances shall not be affected but, rather, shall be enforced to the extent
permitted by applicable law. 

        18.
     STATUTE OF LIMITATIONS.     To the extent
permitted by law, any acknowledgment or
new promise, whether by payment of principal or interest or otherwise and
whether by the Borrower or others (including any Guarantor), with respect to any
of the Guaranteed Obligations shall, if the statute of limitations in favor of
any Guarantor against the Administrative Agent, the Issuing Bank or any Lender
shall have commenced to run, toll the running of such statute of limitations
and, if the period of such statute of limitations shall have expired, prevent
the operation of such statute of limitations. 

        19.
     FEES.     The Guarantors shall, jointly and severally, pay on demand all reasonable
attorneys’ fees and all other reasonable costs and expenses incurred by the
Administrative Agent, the Issuing Bank and the Lenders in connection with the
administration, enforcement, or collection of this Guaranty Agreement. 

        20.
     SUCCESSORS.     The terms and provisions of this Guaranty Agreement shall be binding
upon and inure to the benefit of each Guarantor, the Administrative Agent, the
Lenders and the Issuing Bank from time to time and their respective permitted
successors, transferees and assigns. 

9

        21.
     ENTIRE AGREEMENT; AMENDMENT; RELEASE.     THIS
GUARANTY AGREEMENT CONSTITUTES A “LOAN AGREEMENT” AS DEFINED IN SECTION 26.03(a) OF THE TEXAS BUSINESS AND
COMMERCE CODE, AND REPRESENTS THE ENTIRE CONTRACT AMONG THE PARTIES RELATIVE TO
THE SUBJECT MATTER HEREOF AND THEREOF. ANY PREVIOUS AGREEMENT AMONG THE PARTIES
WITH RESPECT TO THE SUBJECT MATTER HEREOF IS SUPERSEDED BY THIS GUARANTY
AGREEMENT. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. NOTHING
IN THIS GUARANTY AGREEMENT, EXPRESSED OR IMPLIED, IS INTENDED TO CONFER UPON ANY
PARTY OTHER THAN THE PARTIES HERETO ANY RIGHTS, REMEDIES, OBLIGATIONS OR
LIABILITIES UNDER OR BY REASON OF THIS GUARANTY AGREEMENT. THIS GUARANTY
AGREEMENT IS INTENDED BY EACH GUARANTOR, THE ADMINISTRATIVE AGENT, THE ISSUING
BANK AND THE LENDERS AS A FINAL AND COMPLETE EXPRESSION OF THE TERMS OF THE
GUARANTY AGREEMENT, AND NO COURSE OF DEALING AMONG ANY GUARANTOR, THE
ADMINISTRATIVE AGENT, THE ISSUING BANK AND THE LENDERS, NO COURSE OF
PERFORMANCE, NO TRADE PRACTICES, AND NO EVIDENCE OF PRIOR, CONTEMPORANEOUS OR
SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER EXTRINSIC EVIDENCE OF ANY
NATURE SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT OR MODIFY ANY TERM OF THIS
GUARANTY AGREEMENT. No amendment of or supplement to this Guaranty Agreement, or
waiver or modification of, or consent under, the terms hereof shall be effective
unless in writing and signed by the Guarantors, the Administrative Agent and the
Required Lenders; except that without the agreement of the Guarantors, the
Administrative Agent or any Lender, any Material Restricted Subsidiary may be
added hereto as a “Guarantor” by its execution and delivery of
a Subsidiary Joinder Agreement. Notwithstanding the foregoing, no Guarantor
shall be released from its obligations under this Guaranty Agreement without the
prior written consent of all the Lenders, except that the Administrative Agent
may, without the consent or agreement of any Lender, release a Guarantor if such
Guarantor or its assets have been sold to a third party not affiliated with the
Borrower or any other Guarantor in a transaction permitted by Section 5.11 of
the Credit Agreement.

        22.
     TERM OF GUARANTY AGREEMENT.     Subject to the
release provisions of paragraph 21,
this Guaranty Agreement and all guarantees, covenants and agreements of the
Guarantors contained herein shall continue in full force and effect and shall
not be discharged until such time as all of the Guaranteed Obligations shall be
paid or otherwise discharged in full and all commitments of the Lenders and the
Issuing Bank under any Transaction Document terminated. 

        23.
     SURVIVAL.     All warranties, representations
and covenants made by the Guarantors
herein or in any certificate or other instrument delivered by such Guarantors on
their behalf under this Guaranty Agreement shall be considered to have been
relied upon by the Administrative Agent, the Lenders and the Issuing Bank and
shall survive the execution and delivery of this Guaranty Agreement, regardless
of any investigation made by, or on behalf of, the Administrative Agent, the
Lender or the Issuing Bank. 

        24.
     FURTHER ASSURANCES.     Each Guarantor hereby
agrees to execute and deliver all such
instruments and take all such action as the Administrative Agent may from time
to time reasonably request in order to effectuate fully the purposes of this
Guaranty Agreement. 

        25.
     EXERCISE OF REMEDIES.     Each Guarantor  agrees that the  Administrative
Agent,  the Issuing Bank and the Lenders may exercise any and all rights granted
to any of them under the Credit  Agreement  without  affecting  the  validity or
enforceability of this Guaranty Agreement.

        26.
     GOVERNING LAW.     THIS  AGREEMENT  SHALL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF TEXAS.

10

        27.
     WAIVER OF JURY TRIAL.     EACH
PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS GUARANTY AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION. 

        28.
     NO WAIVER.     No failure on the part of the Administrative Agent, the Issuing Bank
or any Lender to exercise, and no delay in exercising, any right, power, or
privilege hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, power, or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, power, or
privilege. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law. 

        29.
     RELIANCE.     Each Guarantor recognizes that the Administrative Agent, the Issuing
Bank and the Lenders are relying upon this Guaranty Agreement and the
undertakings of each Guarantor hereunder in making extensions of credit to the
Borrower under the Credit Agreement and further recognizes that the execution
and delivery of this Guaranty Agreement is a material inducement to the
Administrative Agent, the Issuing Bank and the Lenders in entering into the
Credit Agreement and continuing to extend credit thereunder. Each Guarantor
hereby acknowledges that there are no conditions to the full effectiveness of
this Guaranty Agreement. 

     IN
WITNESS WHEREOF, each Guarantor has caused this Guaranty Agreement to be duly
executed and delivered as of the 29th day of June 2001. 

                                       GUARANTORS:

                                       LENNOX INDUSTRIES INC.
                                       SERVICE EXPERTS INC.
                                       ARMSTRONG AIR CONDITIONING INC.
                                       EXCEL COMFORT SYSTEMS INC.

                                       By:
                                          ______________________________________
                                       Name:
                                          ______________________________________
                                           Authorized officer for each Guarantor

11

EXHIBIT E

SUBSIDIARY JOINDER AGREEMENT

        This
SUBSIDIARY JOINDER AGREEMENT (the “Agreement”) dated as of _______ __,
200_ is executed by the undersigned (“Debtor”) for the benefit of THE
CHASE MANHATTAN BANK in its capacity as administrative agent for the Lenders
party to the hereafter identified Credit Agreement (in such capacity herein, the
“Administrative Agent”) and for the benefit of such Lenders in
connection with that certain 364 Day Revolving Credit Facility Agreement dated
as of January 25, 2001, among the Administrative Agent, Lennox International
Inc. (the “Borrower”), and the Lenders party thereto (as modified, the
“Credit Agreement”, and capitalized terms not otherwise defined herein
being used herein as defined in the Credit Agreement). 

        The
Debtor is a newly formed or newly acquired Material Restricted Subsidiary or, as
a result of a change in assets, has become a Material Restricted Subsidiary and
is required to execute this Subsidiary Joinder Agreement pursuant to the Credit
Agreement. 

        NOW
THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Debtor hereby agrees as follows: 

        1.
The Debtor hereby assumes all the obligations of a “Guarantor” under
the Subsidiary Guaranty (“Guaranty”) and agrees that it is a
“Guarantor” and bound as a “Guarantor” under the terms of
the Guaranty as if it had been an original signatory thereto. In accordance with
the forgoing and for valuable consideration, the receipt and adequacy of which
are hereby acknowledged, Debtor irrevocably and unconditionally guarantees to
the Administrative Agent, the Issuing Bank and the Lenders the full and prompt
payment and performance of the Guaranteed Obligations (as defined in the
Guaranty) upon the terms and conditions set forth in the Guaranty. 

        2.
This Agreement shall be deemed to be part of, and a modification to, the
Guaranty and shall be governed by all the terms and provisions of the Credit
Agreement and the Guaranty, which terms are incorporated herein by reference,
are ratified and confirmed and shall continue in full force and effect as valid
and binding agreements of Debtor enforceable against Debtor. The Debtor hereby
waives notice of the Administrative Agent’s, the Issuing Bank’s or any
Lender’s acceptance of this Agreement. 

        IN
WITNESS WHEREOF, the Debtor has executed this Agreement as of the day and year
first written above. 

                                       DEBTOR:

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

                                       By:
                                          --------------------------------------
                                          Name:
                                               ---------------------------------
                                          Title:
                                               ---------------------------------

                                                          SCHEDULE 1.01

                                                   Existing Letters of Credit

                                                              Date of                            Renewal            Non-renewal
LC Number         Amount                Beneficiary         Last Renewal      Expiration          Terms            Notice (days)
---------         ------                -----------         ------------      ----------     --------------        -------------

D 425 736      $   750,000.00               CAN               1/1/01         12/31/01        continuous - 1             60
                                                                                                 yr.
                                         Lumberman's
D-210105       $16,000,000.00        Underwriting Alliance    1/31/01         12/31/01       continuous - 1             60
                                                                                                 yr.
D-212131       $ 2,714,000.00          ACE INA Insurance       4/2/01         12/31/01       continuous - 1             60
                                                                                                 yr.
D-212714       $   235,000.00           Magnetti Parelli      4/17/01         10/31/01           n/a                    n/a
               --------------
   Total       $19,699,000.00
               ==============

                                                           Solo Page

                                                                       SCHEDULE 3.05

                                                           LENNOX INTERNATIONAL INC. SUBSIDIARIES
                                                                     AS OF MAY 31, 2001

                                                                                              R = Restricted
                                                                                    MR = Material Restricted
                                                                                           UR = Unrestricted

                                                                          LOCATION OF
                                                       JURISDICTION       SUBSTANTIAL            RESTRICTED/
        NAME                              OWNERSHIP      OF INC.        OPERATING ASSETS        UNRESTRICTED
        ----                              ---------      -------        ----------------        ------------

Lennox Industries Inc.                      100%        Iowa              United States             MR
SEE ANNEX A

Heatcraft Inc                               100%        Mississippi       United States              R
   LGL de Mexico, S.A. de C.V                 1%        Mexico            Mexico                    UR
   Lennox Participacoes Ltda                  1%        Brazil            Brazil                    UR
      Frigo-Bohn do Brasil Ltda              99%        Brazil            Brazil                    UR
         Heatcraft do Brazil Ltda         84.47%        Brazil            Brazil                    UR
            SIWA S.A                        100%        Brazil            Brazil                    UR
   LPAC Corp.                                 5%        Delaware          N/A                        R
   Livernois Engineering Co.                100%        Michigan          United States              R
   Heatcraft Advanced Techologies Inc.      100%        Delaware          United States              R
   Heatcraft Heat Transfer Inc.             100%        Delaware          United States              R
   Advanced Distributor Products LLC        100%        Delaware          United States              R
   Heatcraft Refrigeration Products LLC     100%        Delaware          United States              R

Armstrong Air Conditioning Inc.             100%        Ohio              United States             MR
   Jensen-Klich Supply Co.                  100%        Nebraska          United States              R
   Armstrong Distributors Inc.              100%        Delaware          United States              R
   LPAC Corp.                                 5%        Delaware          N/A                        R

Allied Air Enterprises Inc.                 100%        Delaware          United States              R

Heatcraft Technologies Inc.                 100%        Delaware          United States              R
   LGL Peru S.A.C                            10%        Peru              Peru                      UR
   LPAC Corp.                                80%        Delaware          N/A                        R
   Strong LGL Columbia Ltda                  50%        Columbia          Columbia                  UR

Excel Comfort Systems Inc.                  100%        Delaware          United States             MR

National Air Systems, Inc.                  100%        California        United States              R

Service Experts Inc.                        100%        Delaware          United States             MR
   SEE ANNEX C
   Lennox Inc.                              100%        Canada            Canada                    UR

      Lennox Canada Inc.                    100%        Canada            Canada                    UR
         SEE ANNEX B

Lennox Global Ltd.                          100%        Delaware          United States             UR
   SEE ANNEX D

                                                          SCHEDULE 3.05
                                                             ANNEX A

                                               LENNOX INDUSTRIES INC. SUBSIDIARIES

                                                                          LOCATION OF
                                                       JURISDICTION       SUBSTANTIAL            RESTRICTED/
        NAME                              OWNERSHIP      OF INC.        OPERATING ASSETS        UNRESTRICTED
        ----                              ---------      -------        ----------------        ------------

Lennox Industries (Canada) Ltd.            100%         Canada            Canada                    UR

LHP Holdings Inc.                          100%         Delaware          United States              R
   Lennox Hearth Products Inc.             100%         California        United States              R
      Marcomp
   Securite Cheminees International Ltee   100%         Canada            Canada                    UR
      SARL Cheminees Securite              100%         France            France                    UR
      Security Chimneys UK Limited         100%         UK                UK                        UR
      Security USA                         100%                           United States              R
   The Earth Stove, Inc.                   100%         Oregon            United States              R

Products Acceptance Corporation            100%         Iowa              N/A                        R

Lennox Manufacturing Inc.                  100%         Delaware          United States              R

Lennox Finance Inc.                        100%         Canada            Canada                    UR

LPAC Corp.                                  10%         Delaware          N/A                        R

                                  SCHEDULE 3.05
                                     ANNEX B

                         LENNOX CANADA INC. SUBSIDIARIES

The  following  are  all in  Canada,  owned  100%  by  Lennox  Canada  Inc.  and
Unrestricted Subsidiaries:

            Bradley Air Conditioning Limited
            Valley Refrigeration Limited
            Dearie Contracting Inc.
            Dearie Martino Contractors Ltd.
            Foster Air Conditioning Limited
            Bryant Heating & Cooling Co. Ltd.
            Byrant Newco Inc.
            Montwest Air Ltd.
            Fahrhall Mechanical Contractors Limited
            Arpi’s Industries Canada Ltd.
                           Arpi's Holdings Ltd.
                           Advance Mechanical Ltd.
            Welldone Plumbing, Heating & Air Conditioning

                                  SCHEDULE 3.05
                                     ANNEX C

                        SERVICE EXPERTS INC. SUBSIDIARIES

The  following  are all in the United States, owned 100% by Service Experts Inc.
and Restricted Subsidiaries:

   A. Frank Woods and Sons LLC – Virginia
   AC/DAC, L.L.C. – Tennessee
   Academy Air Service Experts, Inc. – Tennessee
   Ainsley & Son Heating LLC – Ohio
   Air Conditioning and Heating, LLC – Tennessee
   Air Engineers, Inc. – Florida
   Air Experts LLC – Georgia
   Air Experts LLC – Ohio
   Air Systems of Florida, Inc. – Florida
   Aire-Tech LLC – Ohio
   Airmaster Heating & Air Conditioning LLC – Michigan
   Allbritten Plumbing, Heating and Air Conditioning Service, Inc. – Tennessee
   Alliance Mechanical Heating & Air Conditioning, Inc. – California
   Andros Refrigeration LLC – Arizona
   Andy Lewis Heating & Air Conditioning LLC – North Carolina
   Andy Lewis Heating & Air Conditioning, Inc. – Georgia
   Arrow Heating & Air Conditioning, Inc. – Wisconsin
   Artic Aire of Chico, Inc. – California
   Atlantic Air Conditioning and Heating LLC – Maryland
   Atmostemp LLC – New Jersey
   Austin Brothers, Inc. – Tennessee
   Barlow Heating and Air Conditioning LLC – Delaware
   Bartels Heating & Air Conditioning LLC – Colorado
   Becht Heating & Cooling LLC – Delaware
   Ben Peer Heating LLC – New York
   Berkshire Air Conditioning LLC – Tennessee
   Berkshire Heating & Cooling LLC – Delaware (to merge out on 6/23/01)
   Blue Springs Heating & Air Conditioning LLC – Missouri
   Broad Ripple Heating & Air Conditioning Inc. – Indiana
   Burnsville Heating & Air Conditioning LLC – Minnesota
   C. Iapaluccio Company LLC – Delaware
   C. Woods Company LLC – Delaware
   Calverley Air Conditioning & Heating LLC – Delaware
   Chanin Air LLC – Florida
   Chief/Bauer Heating & Air Conditioning LLC – Delaware
   Claire’s Air Conditioning and Refrigeration, Inc. – Tennessee
   Climate Control LLC – Alabama
   Climate Design Systems LLC – Tennessee
   Climate Masters Service LLC – Colorado
   Coastal Air Conditioning Service LLC – Georgia
   Comfort Masters Heating & Cooling LLC – Delaware
   Comfort Tech Cooling & Heating LLC – Tennessee
   Comfortech, Inc. – Tennessee
   Contractor Success Group, Inc. – Missouri – Merged out?
   Controlled Comfort LLC – Nebraska
   Cook Heating & Air Conditioning LLC – Michigan
   Cook Heating and Air Conditioning LLC – Delaware
   Cool Breeze LLC – Ohio

1

                   SERVICE EXPERTS INC. SUBSIDIARIES - CONT'D

   Cool Power LLC – New York
   D.A. Bennett LLC – New York
   Dan Jacobs Heating & Cooling LLC – Pennsylvania
   Davis the Plumber LLC – New Mexico
   Dial One Raymond Plumbing, Heating & Cooling, Inc. – Tennessee
   DiMarco Mechanical LLC – Ohio
   Dodge Heating & Air Conditioning LLC – Georgia
   Doler Plumbing & Heating LLC – Delaware
   Economy Heating & Air Conditioning LLC – Pennsylvania
   Edison Heating and Cooling LLC – New Jersey
   Epperson LLC – South Carolina
   Eveready LLC – Virginia
   Falso Service Experts LLC – New  York
   Fras-Air Contracting LLC – New Jersey
   Freschi Air Systems, Inc. – Tennessee
   Frosty Mechanical Contractors LLC – Delaware – to become Service Experts
          of the Berkshires LLC
   Future Acquisition Sub, Inc. – Tennessee
   Gables Air Conditioning LLC – Florida
   General Conditioning LLC – New Jersey
   General Conditioning Plumbing, Inc. – New  Jersey
   Getzschman Heating & Sheet Metal Contractors LLC – Nebraska
   Golden Seal Heating & Air Conditioning LLC – Delaware
   Gordon's Specialty Company LLC – Oklahoma
   Gray Refrigeration LLC – Delaware
   Greenwood Heating & A/C LLC – Washington
   Gregory's Plumbing Co. LLC – Oklahoma
   H.S. Stevenson & Sons LLC – Ohio
   Holmes Sales & Service LLC – Iowa
   Industrial Building Services,  Inc. – Florida
   International Service Leadership Inc. – Delaware
   Jack Nelson Co. LLC – Oklahoma
   Jansen Heating and Air Conditioning LLC – Delaware
   Jebco Heating & Air Conditioning LLC – Colorado
   JM Mechanical LLC – Delaware
   John P. Timmerman Co. LLC – Ohio
   K & S Heating, Air Conditioning & Plumbing LLC – Minnesota
   Kiko Heating & Air Conditioning LLC – Ohio
   Klawinski LLC – Delaware
   Knochelmann Plumbing, Heating & Air LLC – Kentucky
   Kozon LLC – Tennessee
   Kruger's Heating & Air Conditioning LLC – Delaware
   Lake Arbor Heating LLC – Colorado
   Lee Voisard Plumbing & Heating LLC – Ohio
   Local Furnace LLC – Colorado – to become Service Experts of Fort Collins LLC
   Marco Cooling and Refrigeration LLC – Florida
   Mathews Heating & Air Conditioning LLC – Tennessee
   Matz Heating & Air Conditioning LLC – New York
   McPhee Service Experts, Inc. – Colorado
   Midland Heating and Air Conditioning LLC – South Carolina
   Miller Refrigeration, A/C, & Htg. Co. – North  Carolina
   National Air Systems, Inc. – California
   Neal Harris Heating, Air Conditioning & Plumbing LLC –  Missouri
   Norrell Heating and Air Conditioning LLC – Alabama
   Pardee Refrigeration LLC – South Carolina

2

                   SERVICE EXPERTS INC. SUBSIDIARIES - CONT'D

   Parker-Pearce Service Experts LLC – Maryland
   Parrott Mechanical, Inc. – Idaho
   Peachtree Service Experts LLC – Georgia
   Peitz Heating and Cooling  LLC – South  Dakota
   PTM Enterprises LLC – Georgia
   R&M Climate Control LLC – Tennessee
   Roland J. Down LLC – New York
   Rolf Griffin Heating & Air Conditioning LLC – Delaware
   Russell Mechanical LLC – Delaware
   Ryan Heating LLC – Missouri
   S & W Air Conditioning LLC – Tennessee
   San Antonio Air Conditioning LLC – Delaware
   Sanders Indoor Comfort LLC – South Carolina
   Sanders Service Experts, Inc. – Tennessee
   Sedgwick Heating & Air Conditioning LLC – Minnesota
   SEI Management Company, LLC – Tennessee
   SEIIN GP, Inc. – Indiana
   SEITN GP, Inc. – Tennessee
   Service Experts DFW LLC – Tennessee
   Service Experts LLC – Florida
   Service Experts of Arkansas LLC – Arkansas
   Service Experts of Clearwater,  Inc. – Tennessee
   Service Experts of  Denver LLC – Colorado
   Service Experts of Imperial Valley, Inc. – California
   Service Experts of Indiana, L.P. – Tennessee
   Service Experts of Indianapolis, Inc. – Indiana
   Service Experts of Northeast Louisiana LLC – Louisiana
   Service Experts of Northwest Louisiana LLC – Louisiana
   Service Experts of Palm Springs, Inc. – California
   Service Experts of the Triangle LLC – North Carolina
   Service Experts of Salt Lake City LLC – Tennessee
   Service Experts of the Bay Area, Inc. – California
   Service Experts of Utah LLC – Delaware
   Service Experts of Washington LLC – Delaware
   Service Experts Services, LLC – Tennessee
   Service Now, Inc. – California
   Shumate Mechanical LLC – Georgia
   Steel City Heating & Air LLC – Alabama
   Strand Brothers LLC – Tennessee
   Strogen's HVAC LLC – New Hampshire
   Sunbeam Service Experts LLC – New York
   Sylvester's Corp. – Indiana
   Sylvester's, L.P. – Tennessee
   Teays Valley Heating and Cooling LLC – West Virginia
   The McElroy Service Company LLC – Nebraska
   TML LLC – Idaho
   Total Comfort Specialists – California
   Triton Mechanical LLC – New York
   Valentine Heating & Air Conditioning LLC – Georgia
   Venture International, Inc. – Tennessee
   Vogt Heating & Air Conditioning LLC – Minnesota
   Wangsgaard A-Plus, Inc. – Utah
   Wesley G. Wood LLC – Pennsylvania

3

                                            SCHEDULE 3.05
                                               ANNEX D

                                   LENNOX GLOBAL LTD. SUBSIDIARIES
                    ALL LENNOX GLOBAL SUBSIDIARIES ARE UNRESTRICTED SUBSIDIARIES

                                                                       LOCATION OF SUBSTANTIAL
       NAME                        OWNERSHIP     JURISDICTION OF INC.       OPERATING ASSETS
       ----                        ---------     --------------------  ------------------------

LGL Asia-Pacific Pte. Ltd.           100%        Rep. of Singapore              Singapore
   Lennox Global (Wuxi) Co. Ltd.     100%        China

LGL Europe Holding Co.               100%        Delaware                       N/A
   SEE ATTACHED ANNEX E

UK Industries Inc.                   100%        Delaware                       N/A

LGL de Mexico, S.A. de C.V            99%        Mexico                         Mexico

Lennox Participacoes Ltda             99%        Brazil                         Brazil

Frigo-Bohn do Brasil Ltda              1%        Brazil                         Brazil

Strong LGL Dominicana, S.A           100%        Dominican Republic             Dominican Republic

Strong LGL Colombia Ltda              50%        Colombia                       Columbia

LGL Belgium S.P.R.L                   .4%        Belgium                        Belgium

LGL (Thailand) Ltd.                  100%        Thailand                       Thailand

LGL Peru S.A.C                        90%        Peru                           Peru

LGL Australia (US) Inc.              100%        Delaware                       Delaware
   SEE ATTACHED ANNEX F

                                            SCHEDULE 3.05
                                               ANNEX E

                                 LGL EUROPE HOLDING CO. SUBSIDIARIES
                                   (ALL UNRESTRICTED SUBSIDIARIES)

                                                                       LOCATION OF SUBSTANTIAL
      NAME                        OWNERSHIP      JURISDICTION OF INC.      OPERATING ASSETS
      ----                        ---------      --------------------  ------------------------

LGL Holland B.V                      100%        Holland                        Holland
   Friga-Coil S.R.O                   50%        Czech Republic                 Czech Republic
   Ets. Brancher S.A                  70%        France                         France
      Frinotec S.A                 99.68%        France                         France
      LGL France S.A                 100%        France                         France
         Herac Ltd.                  100%        United Kingdom                 N/A
         SCI Groupe Brancher         100%        France                         France
         Hyfra Ind. GmbH             0.1%        Germany                        Germany
LGL Germany GmbH                     100%        Germany                        Germany
   Friga-Bohn Warmeaustauscher GmbH  100%        Germany                        Germany
   Hyfra Ind. GmbH                  99.9%        Germany                        Germany
   Lennox Deutschland GmbH           100%        Germany                        Germany
Lennox Global Spain S.L              100%        Spain                          Spain
   Lennox Refrigeration Spain S A.  90.1%        Spain                          Spain
         Aldo Marine                  70%        Spain                          Spain
   Lennox Espana, S.A                100%        Spain                          Spain
         Redi sur Andalucia           70%        Spain                          Spain
LGL Refrigeration Italia s.r.l        80%        Italy                          Italy
LGL Polska Spzoo                     100%        Poland                         Poland
LGL Belgium S.P.R.L                 99.6%        Belgium                        Belgium
Lennox Benelux B.V                   100%        Netherlands                    Netherlands
   Lennox Benelux N.V                100%        Belgium                        Belgium
HCF Lennox Limited                   100%        United Kingdom                 United Kingdom
   Lennox Industries (UK)            100%        United Kingdom                 United Kingdom
   Environheat Limited               100%        United Kingdom                 N/A

Lennox Janka a.s                     100%        Czech Republic                 Czech Republic
   Friga Coil s.r.o                   50%        Czech Republic                 Czech Republic
   Janka Slovensko, s.r.o            100%        Slovak Republic                Slovak Republic

                                            SCHEDULE 3.05
                                               ANNEX F
                                LGL AUSTRALIA (US) INC. SUBSIDIARIES
                          (ALL UNRESTRICTED SUBSIDIARIES, EXCEPT AS NOTED)

                                                                                                    LOCATION OF
                                                                                                    SUBSTANTIAL
        NAME                                             OWNERSHIP        JURISDICTION OF INC.    OPERATING ASSETS
        ----                                             ---------        --------------------    ----------------

LGL Co Pty Ltd                                              100%             Australia               Australia
   LGL Australia Investment Pty Ltd                         100%             Australia               Australia
      LGL Australia Finance Pty Ltd                          10%             Australia               Australia
   LGL Australia Finance Pty Ltd                             90%             Australia               Australia
      LGL Australia Holdings Pty Ltd                        100%             Australia               Australia
         Lennox Australia Pty. Ltd.                         100%             Australia               Australia
            LGL (Australia) Pty Ltd                         100%             Australia               Australia
            LGL Refrigeration Pry. Ltd                      100%             Australia               Australia
            James N Kirby Pty Ltd*                          100%             Australia               Australia
               Kirby Refrigeration Pty. Ltd
                  (Albury)                                   75%             Australia               Australia
               Kirby Refrigeration Pty. Ltd
                 (Sunshine Coast)                            75%             Australia               Australia
               Kirby Refrigeration Pty. Ltd
                 (Gold Coast)                                75%             Australia               Australia
               Kirby Refrigeration Pty. Ltd
                 (Tasmania)                                  75%             Australia               Australia
               Kirby Refrigeration Pty. Ltd
                 (Hobart)                                   100%             Australia               Australia
               Refrigeration & Heating Wholesale Pty
                 Ltd (Vid)                                  100%             Australia               Australia
               Refrigeration & Heating Wholesale Pty
                 Ltd (SA)                                   100%             Australia               Australia
                   R&H Wholesale Pty Ltd                    100%             Australia               Australia
               Kirby Refrigeration Pty. Ltd.(NT)             75%             Australia               Australia
               Kirby Tubes & Contract Coils Pty Ltd         100%             Australia               Australia
               Kirby Sheet Metal Pty Ltd                    100%             Australia               Australia
               Kirby Central Warehouse Pty. Ltd.            100%             Australia               Australia
               J.N.K. Pty Limited                           100%             Australia               Australia
               P.R.L. Pty Limited                           100%             Australia               Australia
               Kirby USA Inc.                               100%             North Carolina          United States**
               JNK Draughting Pty Limited                   100%             Australia               Australia
               P.R.L Sales Pty Limited                      100%             Australia               Australia
               Air Safe Pty Limited                         100%             Australia               Australia
               James N. Kirby Limited (NZ)                  100%             New Zealand             New Zealand

*Stock is pledged to seller of company to secure a portion of the purchase price and other obligations incurred in
connection with the acquisition

**Restricted

                                             SCHEDULE 3.05A

                             MATERIAL RESTRICTED SUBSIDIARY CAPITALIZATION

                                              Common                  Preferred
                                             Stock Par     Preferred   Stock Par       Issued and
                            Common Stock      Value         Stock        Value         Outstanding
                             Authorized     (per share)   Authorized  (per share)    Capital Stock
                             ----------     -----------   ----------  -----------    -------------

Armstrong Air                    2,000        $1.00           N/A          N/A         1,030 shares
   Conditioning Inc.
Excel Comfort Systems Inc.       1,000        $1.00           N/A          N/A         1,000 shares
Lennox Industries Inc.       1,500,000        $1.00         99,253       $10.00      994,394 shares
                                                                                     of common stock
Service Experts Inc.             1,000        $0.01           N/A          N/A         1,000 shares

                                                                SCHEDULE 3.06

                              FINANCIAL STATEMENTS

        1.
Audited consolidated and consolidating financial statements for the Borrower and
its Subsidiaries for the fiscal years ended December 31, 1997 through December
31, 2000. 

        2.
Unaudited quarterly consolidated and consolidating financial statements for the
Borrower and its Subsidiaries for the period ended March 31, 2001. 

                                  SCHEDULE 3.13

                            LENNOX INTERNATIONAL INC.
                           AND RESTRICTED SUBSIDIARIES
                               INDEBTEDNESS AS OF
                         May 26, 2001 (except as noted)

A.   LENNOX INTERNATIONAL INC.

(1)  Note  Purchase  Agreement  dated as of December 1, 1993         $88,889,000
     among Lennox  International  Inc.  and the  Noteholders
     identified at the end thereof, pursuant to which Lennox
     International   Inc.   delivered   its   6.73%   Senior
     Promissory Notes due 2008

(2)  Note  Purchase  Agreement  dated  as  of  July  6, 1995          20,000,000
     between   Lennox   International   Inc.   and  Teachers
     Insurance and Annuity Association of America,  pursuant
     to which Lennox  International Inc. delivered its 7.06%
     Senior Promissory Notes due 2005.

(3)  Guaranty   dated   September  19,  1995   from   Lennox             475,000
     International  Inc.  to First  Bank of  Natchitoches  &
     Trust   Company   and   Regions   Bank   of   Louisiana
     guaranteeing  50% of debt of  Alliance  Compressors  to
     such Banks under a Promissory  Note dated September 19,
     1995.

(4)  Guaranty of 50% of amounts due from Alliance Compressors            176,762
     under a master  Equipment  Lease  Agreement dated March
     28, 1995 with NationsBanc Leasing Corporation

(5)  Note  Purchase  Agreement  dated  as  of April 3,  1998,
     between Lennox  International  Inc. and the Noteholders
     identified   therein,    pursuant   to   which   Lennox
     International Inc. delivered its:

               6.56% Senior Notes due April 3, 2005                   25,000,000
               6.75% Senior Notes due April 3, 2008                   50,000,000

(6)  Revolving Credit Facility Agreement dated as of July 29,        240,000,000
     1999

(7)  Revolving Credit Facility Agreement dated as of January         115,700,000
     25, 2000

(8)  Master  Shelf  Agreement  dated as of October 15,  1999
     between  Lennox   International   Inc.  and  Prudential
     Insurance Company of America,  pursuant to which Lennox
     International Inc. delivered its:

               7.75% Senior Notes due August 25, 2005                 25,000,000
               8.00% Senior Notes due June 1, 2010                    35,000,000

(9)  Promissory   Note  dated  April 18, 2001   from  Lennox
     International Inc to Mizuho Financial Group                       5,000,000

                                       1

     B.   SERVICE EXPERTS INC.

               Convertible   Notes  and  miscellaneous  debt
               related to original acquisitions of centers             9,981,479

     C.   MISCELLANEOUS OTHER DEBT -(estimate)]                          125,000

     TOTAL OUTSTANDING  INDEBTEDNESS OF LENNOX INTERNATIONAL
     INC.   AND   RESTRICTED    SUBSIDIARIES                        $615,347,241
                                                                    ------------

2

                                             SCHEDULE 5.13

                                             EXISTING LIENS

    JURISDICTION                    SECURED PARTY                         UCC-1 FILE NO.      DATE FILED
    ------------                    -------------                         --------------      ----------
                              DEBTOR: LENNOX INDUSTRIES INC.
                              ------------------------------

Texas Secretary of State      Wachovia Bank, N.A.,                          00-00521016         6/16/00
                              as Administrative Agent
                              for the Secured Parties
                              191 Peachtree Street, N.E
                              Mail Code GA 04-23
                              Atlanta, GA  30303

                              DEBTOR: ARMSTRONG AIR CONDITIONING INC
                              --------------------------------------
Ohio Secretary of State       Wachovia Bank, N.A.,                          AP322733            3/27/01
                              as Administrative Agent
                              for the Secured Parties
                              191 Peachtree Street, N.E
                              Mail Code GA 04-23
                              Atlanta, GA  30303

Huron County, Ohio            Wachovia Bank, N.A.,                          000084073           3/27/01
                              as Administrative Agent
                              for the Secured Parties
                              191 Peachtree Street, N.E
                              Mail Code GA 04-23
                              Atlanta, GA  30303

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