Document:

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                                                                   Exhibit 10.20

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                                CREDIT AGREEMENT
                           dated as of August 2, 2004

                                      among

                                CLAYTON GRP, INC.
                                  as Borrower,

                    THE FINANCIAL INSTITUTIONS PARTY HERETO,
                                   as Lenders,

                          MADISON CAPITAL FUNDING LLC,
        as Administrative Agent, Sole Lead Arranger and Joint Bookrunner,

                              JPMORGAN CHASE BANK,
                   as Joint Bookrunner and Syndications Agent

                                       and

                             MERRILL LYNCH CAPITAL,
         a division of Merrill Lynch Business Financial Services Inc. as
                               Documentation Agent

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                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                        Page
                                                                                                        ----
<S>             <C>                                                                                      <C>
Section 1.      Definitions; Interpretation................................................................1

        1.1.    Definitions................................................................................1

        1.2.    Interpretation............................................................................12

Section 2.      Credit Facilities.........................................................................13

        2.1.    Commitments...............................................................................13
                2.1.1.   Revolving Loan Commitments.......................................................13
                2.1.2.   Term Loan Commitments............................................................13

        2.2.    Loan Procedures...........................................................................13
                2.2.1.   Loan Types.......................................................................13
                2.2.2.   Borrowing........................................................................14
                2.2.3.   Conversion; Continuation.........................................................14

        2.3.    Letters of Credit.........................................................................15
                2.3.1.   Commitment.......................................................................15
                2.3.2.   Application......................................................................15
                2.3.3.   Reimbursement Obligations........................................................15
                2.3.4.   Participations in Letters of Credit..............................................16

        2.4.    Commitments Several.......................................................................17

        2.5.    Certain Conditions........................................................................17

        2.6.    Loan Accounting...........................................................................17
                2.6.1.   Recordkeeping....................................................................17
                2.6.2.   Notes............................................................................17

        2.7.    Interest..................................................................................17
                2.7.1.   Interest Rates...................................................................17
                2.7.2.   Interest Payment Dates...........................................................18
                2.7.3.   Setting and Notice of LIBOR Rates................................................18
                2.7.4.   Computation of Interest..........................................................18

        2.8.    Fees......................................................................................18
                2.8.1.   Commitment Fee...................................................................18
                2.8.2.   Letter of Credit Fees............................................................18
                2.8.3.   Administrative Agent's Fees and JPMorgan Fees....................................19

        2.9.    Commitment Reduction......................................................................19
                2.9.1.   Voluntary Reduction or Termination of Revolving Loan Commitment..................19
                2.9.2.   Mandatory Reduction of Revolving Loan Commitment.................................19
                2.9.3.   All Reductions of Revolving Loan Commitment......................................19

        2.10.   Prepayment................................................................................20
                2.10.1.  Voluntary Prepayment.............................................................20
                2.10.2.  Mandatory Prepayment.............................................................20
                2.10.3.  All Prepayments..................................................................20

        2.11.   Repayment.................................................................................21
                2.11.1.  Revolving Loans..................................................................21
                2.11.2.  Term A Loan......................................................................21
</Table>

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<Table>
<S>             <C>                                                                                       <C>
        2.12.   Payment...................................................................................22
                2.12.1.  Making and Settlement of Payments................................................22
                2.12.2.  Application of Certain Payments..................................................22
                2.12.3.  Payment Dates....................................................................22
                2.12.4.  Set-off..........................................................................22
                2.12.5.  Proration of Payments............................................................23

Section 3.      Yield Protection..........................................................................23

        3.1.    Taxes.....................................................................................23

        3.2.    Increased Cost............................................................................24

        3.3.    Inadequate or Unfair Basis................................................................25

        3.4.    Change in Law.............................................................................25

        3.5.    Funding Losses............................................................................25

        3.6.    Manner of Funding; Alternate Funding Offices..............................................25

        3.7.    Mitigation of Circumstances; Replacement of Lenders.......................................26

        3.8.    Conclusiveness of Statements; Survival....................................................26

Section 4.      Conditions Precedent......................................................................26

        4.1.    Initial Credit Extension..................................................................26
                4.1.1.   Capitalization...................................................................27
                4.1.2.   Initial Loans; Availability......................................................27
                4.1.3.   Prior Debt.......................................................................27
                4.1.4.   Related Transactions.............................................................27
                4.1.5.   Fees.............................................................................27
                4.1.6.   Delivery of Loan Documents.......................................................27
                4.1.7.   Adjusted EBITDA..................................................................29

        4.2.    All Credit Extensions.....................................................................29

Section 5.      Representations and Warranties............................................................29

        5.1.    Organization..............................................................................29

        5.2.    Authorization; No Conflict................................................................29

        5.3.    Validity; Binding Nature..................................................................30

        5.4.    Financial Condition.......................................................................30

        5.5.    No Material Adverse Change................................................................30

        5.6.    Litigation................................................................................30

        5.7.    Ownership of Properties; Liens............................................................30

        5.8.    Capitalization............................................................................31

        5.9.    Pension Plans.............................................................................31

        5.10.   Investment Company Act....................................................................31

        5.11.   Public Utility Holding Company Act........................................................31

        5.12.   Margin Stock..............................................................................31
</Table>

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<Table>
<S>             <C>                                                                                       <C>
        5.13.   Taxes.....................................................................................32

        5.14.   Solvency..................................................................................32

        5.15.   Environmental Matters.....................................................................32

        5.16.   Insurance.................................................................................32

        5.17.   Information...............................................................................33

        5.18.   Intellectual Property.....................................................................33

        5.19.   Restrictive Provisions....................................................................33

        5.20.   Labor Matters.............................................................................33

        5.21.   No Default................................................................................33

        5.22.   Related Agreements........................................................................33

Section 6.      Affirmative Covenants.....................................................................34

        6.1.    Information...............................................................................34
                6.1.1.   Annual Report....................................................................34
                6.1.2.   Interim Reports..................................................................35
                6.1.3.   Compliance Certificate...........................................................35
                6.1.4.   Reports to SEC and Shareholders..................................................35
                6.1.5.   Notice of Default; Litigation; ERISA Matters.....................................35
                6.1.6.   Availability Certificate.........................................................36
                6.1.7.   Management Report................................................................36
                6.1.8.   Projections......................................................................36
                6.1.9.   Subordinated Debt Notices........................................................36
                6.1.10.  Other Information................................................................36

        6.2.    Books; Records; Inspections...............................................................37

        6.3.    Maintenance of Property; Insurance........................................................37

        6.4.    Compliance with Laws; Payment of Taxes and Liabilities....................................38

        6.5.    Maintenance of Existence..................................................................38

        6.6.    Employee Benefit Plans....................................................................38

        6.7.    Environmental Matters.....................................................................38

        6.8.    Further Assurances........................................................................39

        6.9.    Interest Rate Protection..................................................................39

Section 7.      Negative Covenants........................................................................39

        7.1.    Debt......................................................................................39

        7.2.    Liens.....................................................................................40

        7.3.    [INTENTIONALLY OMITTED]...................................................................41

        7.4.    Restricted Payments.......................................................................41

        7.5.    Subsidiaries; Mergers; Consolidations; Asset Sales........................................41

        7.6.    Modification of Organizational Documents..................................................42

        7.7.    Use of Proceeds...........................................................................42
</Table>

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<Table>
<S>             <C>                                                                                       <C>
        7.8.    Transactions with Affiliates..............................................................42

        7.9.    Inconsistent Agreements...................................................................42

        7.10.   Business Activities.......................................................................42

        7.11.   Investments...............................................................................42

        7.12.   Restriction of Amendments to Certain Documents............................................43

        7.13.   Fiscal Year...............................................................................43

        7.14.   Financial Covenants.......................................................................43
                7.14.1.  Fixed Charge Coverage Ratio......................................................43
                7.14.2.  Senior Debt to EBITDA Ratio......................................................43
                7.14.3.  Total Debt to EBITDA Ratio.......................................................44
                7.14.4.  Capital Expenditures.............................................................44

        7.15.   Bank Accounts.............................................................................45

Section 8.      Events of Default; Remedies...............................................................45

        8.1.    Events of Default.........................................................................45
                8.1.1.   Non-Payment of Credit............................................................45
                8.1.2.   Default Under Other Debt.........................................................45
                8.1.3.   Bankruptcy; Insolvency...........................................................45
                8.1.4.   Non-Compliance with Loan Documents...............................................46
                8.1.5.   Representations; Warranties......................................................46
                8.1.6.   Pension Plans....................................................................46
                8.1.7.   Judgments........................................................................46
                8.1.8.   Invalidity of Collateral Documents...............................................46
                8.1.9.   Invalidity of Subordination Provisions...........................................47
                8.1.10.  Change of Control................................................................47

        8.2.    Remedies..................................................................................47

Section 9.      Administrative Agent......................................................................48

        9.1.    Appointment; Authorization................................................................48

        9.2.    Delegation of Duties......................................................................48

        9.3.    Limited Liability.........................................................................48

        9.4.    Reliance..................................................................................49

        9.5.    Notice of Default.........................................................................49

        9.6.    Credit Decision...........................................................................49

        9.7.    Indemnification...........................................................................50

        9.8.    Administrative Agent Individually.........................................................50

        9.9.    Successor Administrative Agent............................................................50

        9.10.   Collateral Matters........................................................................51

        9.11.   Syndications Agent, Sole Lead Arranger and Joint Bookrunner...............................51

Section 10.     Miscellaneous.............................................................................51

        10.1.   Waiver, Amendments........................................................................51
</Table>

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<Table>
<S>             <C>                                                                                       <C>
        10.2.   Notices...................................................................................52

        10.3.   Computations..............................................................................52

        10.4.   Costs; Expenses...........................................................................52

        10.5.   Indemnification by Borrower...............................................................53

        10.6.   Marshaling; Payments Set Aside............................................................53

        10.7.   Nonliability of Lenders...................................................................53

        10.8.   Assignments; Participations...............................................................54
                10.8.1. Assignments.......................................................................54
                10.8.2. Participations....................................................................55

        10.9.   Confidentiality...........................................................................55

        10.10.  Captions..................................................................................56

        10.11.  Nature of Remedies........................................................................56

        10.12.  Counterparts..............................................................................56

        10.13.  Severability..............................................................................56

        10.14.  Entire Agreement..........................................................................57

        10.15.  Successors; Assigns.......................................................................57

        10.16.  Governing Law.............................................................................57

        10.17.  Forum Selection; Consent to Jurisdiction..................................................57

        10.18.  Waiver of Jury Trial......................................................................57
</Table>

                                       -v-
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ANNEXES

Annex I                  Commitments and Pro Rata Shares
Annex II                 Addresses

EXHIBITS

Exhibit A                Form of Assignment Agreement
Exhibit B                Form of Compliance Certificate
Exhibit C                Form of Availability Certificate
Exhibit D                Form of Note
Exhibit E                Permitted Acquisitions Conditions Precedent

SCHEDULES

Schedule 4.13            Prior Debt
Schedule 5.6             Litigation
Schedule 5.8             Capitalization
Schedule 5.16            Insurance
Schedule 5.20            Labor Matters
Schedule 7.1             Existing Debt
Schedule 7.2             Existing Liens
Schedule 7.8             Transactions with Affiliates
Schedule 7.11            Existing Investments
Schedule 7.15            Bank Accounts

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                                CREDIT AGREEMENT

         Credit Agreement dated as of August 2, 2004 (as amended, restated or
otherwise modified from time to time, this "AGREEMENT") among CLAYTON GRP, INC.,
a Delaware corporation ("BORROWER"), the financial institutions party hereto
from time to time (together with their respective successors and assigns,
"LENDERS"), MADISON CAPITAL FUNDING LLC (in its individual capacity, "MADISON"),
as Administrative Agent, Sole Lead Arranger and Joint Bookrunner for all
Lenders, JPMORGAN CHASE BANK (in its individual capacity "JPMORGAN"), as Joint
Bookrunner and Syndications Agent for all Lenders and MERRILL LYNCH CAPITAL, a
division of Merrill Lynch Business Financial Services Inc. (in its individual
capacity "Merrill Lynch"), as Documentation Agent for all Lenders.

         In consideration of the mutual agreements herein contained, the parties
hereto agree as follows:

Section 1.        DEFINITIONS; INTERPRETATION.

         1.1.     DEFINITIONS.

         When used herein the following terms shall have the following meanings:

         ACCOUNT has the meaning set forth in the Guarantee and Collateral
Agreement.

         ACCOUNT DEBTOR means any Person who is obligated to Borrower or any
Subsidiary with respect to any Account.

         ACQUISITION means any transaction or series of related transactions for
the purpose of or resulting, directly or indirectly, in (a) the acquisition of
all or substantially all of the assets of a Person, or of all or substantially
all of any business or division of a Person, (b) the acquisition of in excess of
50% of the capital stock, partnership interests, membership interests or equity
of any Person, or otherwise causing any Person to become a Subsidiary, or (c) a
merger or consolidation or any other combination with another Person (other than
a Person that is already a Subsidiary).

         ACQUISITION AGREEMENT means the Contribution and Asset Transfer
Agreement dated as of June 29, 2004 by and among Borrower, Holdings, the
"Sellers" (as defined therein), the "Stockholders" (as defined therein), and the
"Investors" (as defined therein)

         ACQUISITION ESCROW means collectively, the "Company Escrow" and the
"Escrow Deposit", as such terms are defined in the Acquisition Agreement as in
effect on the Closing Date, in the original aggregate amount of $20,000,000 on
the Closing Date.

         ADJUSTED WORKING CAPITAL means the remainder of (a) the consolidated
current assets of Borrower and the Subsidiaries minus the amount of cash and
cash equivalents included in such consolidated current assets, minus (b) the
consolidated current liabilities of Borrower and the Subsidiaries minus the
amount of consolidated short-term Debt (including current maturities of
long-term Debt) of Borrower and the Subsidiaries included in such consolidated
current liabilities.

         ADMINISTRATIVE AGENT means Madison in its capacity as administrative
agent for all Lenders hereunder and any successor thereto in such capacity.

         AFFILIATE of any Person means (a) any other Person which, directly or
indirectly, controls or is controlled by or is under common control with such
Person, (b) any officer or director of such Person and (c) with respect to any
Lender, any entity administered or managed by such Lender or an Affiliate or

                                       -1-
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investment advisor thereof which is engaged in making, purchasing, holding or
otherwise investing in commercial loans. A Person shall be deemed to be
"controlled by" any other Person if such Person possesses, directly or
indirectly, power to vote 10% or more of the securities (on a fully diluted
basis) having ordinary voting power for the election of directors or managers or
power to direct or cause the direction of the management and policies of such
Person whether by contract or otherwise. Unless expressly stated otherwise
herein, neither Administrative Agent nor any Lender shall be deemed an Affiliate
of Borrower or of any Subsidiary.

         AGREEMENT has the meaning set forth in the PREAMBLE.

         APPLICABLE EBITDA MULTIPLE means (a) from the date hereof to the
earlier of the date of delivery of the financial statements pursuant to SECTION
6.1.2 for September 30, 2004 and October 30, 2004, 3.0; (b) from the earlier of
the date of delivery of the financial statements pursuant to SECTION 6.1.2 for
September 30, 2004 and October 30, 2004 to the earlier of the date of delivery
of the financial statements pursuant to SECTION 6.1.2 for December 31, 2004 and
January 30, 2005, 2.9; (c) from the earlier of the date of delivery of the
financial statements pursuant to SECTION 6.1.2 for December 31, 2004 and January
30, 2004, to the earlier of the date of delivery of the financial statements
pursuant to SECTION 6.1.2 for March 31, 2005 and April 30, 2005, 2.5; (d) from
the earlier of the date of delivery of the financial statements pursuant to
SECTION 6.1.2 for March 31, 2005 and April 30, 2005, to the earlier of the date
of delivery of the financial statements pursuant to SECTION 6.1.2 for June 30,
2005 and July 30, 2005, 2.3; (e) from the earlier of the date of delivery of the
financial statements pursuant to SECTION 6.1.2 for June 30, 2005 and July 30,
2005, to the earlier of the date of delivery of the financial statements
pursuant to SECTION 6.1.2 for September 30, 2005 and October 30, 2005, 2.15; (f)
from the earlier of the date of delivery of the financial statements pursuant to
SECTION 6.1.2 for September 30, 2005 and October 30, 2005, to the earlier of the
date of delivery of the financial statements pursuant to SECTION 6.1.2 for
December 31, 2005 and January 30, 2006, 2.0; (f) from the earlier of the date of
delivery of the financial statements pursuant to SECTION 6.1.2 for December 31,
2005 and January 30, 2006, to the earlier of the date of delivery of the
financial statements pursuant to SECTION 6.1.2 for March 31, 2006 and April 30,
2006, 1.8; (g) from the earlier of the date of delivery of the financial
statements pursuant to SECTION 6.1.2 for March 31, 2006 and April 30, 2006, to
the earlier of the date of delivery of the financial statements pursuant to
SECTION 6.1.2 for June 30, 2006 and July 30, 2006, 1.75; (h) from the earlier of
the date of delivery of the financial statements pursuant to SECTION 6.1.2 for
June 30, 2006 and July 30, 2006, to the earlier of the date of delivery of the
financial statements pursuant to SECTION 6.1.2 for September 30, 2006 and
October 31, 2006, 1.6; and (i) at all times thereafter, 1.5.

         APPLICABLE MARGIN means the applicable rate per annum corresponding to
 the applicable Total Debt to EBITDA Ratio, all as set forth in the following
 table:

<Table>
<Caption>
                                                                    Loans
                                                                ------------
                              Total Debt to                     Base   LIBOR
                              EBITDA Ratio                      Rate    Rate
            ----------------------------------------------------------------
            <S>                                                 <C>     <C>
            GREATER THAN OR EQUAL TO 3.50                       2.75%   4.25%
            GREATER THAN OR EQUAL TO 3.00, but LESS THAN 3.50   2.50%   4.00%
            GREATER THAN OR EQUAL TO 2.50, but LESS THAN 3.00   2.25%   3.75%
            LESS THAN 2.50                                      2.00%   3.50%
</Table>

The Applicable Margin shall be adjusted quarterly, to the extent applicable, on
the date financial statements are required to be delivered pursuant to SECTION
6.1.2 after the end of each related Fiscal Quarter based on the Total Debt to
EBITDA Ratio as of the last day of such Fiscal Quarter. Notwithstanding the
foregoing, (a) until July 31, 2005 the Applicable Margin shall be the rates
corresponding to the Total Debt to EBITDA Ratio of GREATER THAN OR EQUAL TO 3.50
in the foregoing table (with such initial

                                       -2-
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adjustment on July 31, 2005, if applicable, based on the financial statements
dated June 30, 2005 and delivered to Administrative Agent pursuant to SECTION
6.1.2.) (b) if Borrower fails to deliver the financial statements required by
SECTION 6.1.1 or 6.1.2, as applicable, and the related Compliance Certificate
required by SECTION 6.1.3, by the respective date required thereunder after the
end of any related Fiscal Quarter, the Applicable Margin shall be the rates
corresponding to the Total Debt to EBITDA Ratio of GREATER THAN OR EQUAL TO 3.50
in the foregoing table until such financial statements and Compliance
Certificate are delivered, and (c) no reduction to the Applicable Margin shall
become effective at any time when an Event of Default has occurred and is
continuing.

         ASSIGNMENT AGREEMENT means an agreement substantially in the form of
         EXHIBIT A.

         AVAILABILITY CERTIFICATE means a certificate substantially in the form
         of EXHIBIT C.

         BASE RATE means, for any day, the greater of (a) the rate of interest
which is identified as the "Prime Rate" and normally published in the Money
Rates section of THE WALL STREET JOURNAL (or, if such rate ceases to be so
published, as quoted from such other generally available and recognizable source
as Administrative Agent may select) and (b) the sum of the Federal Funds Rate
plus 0.5%. Any change in the Base Rate due to a change in such Prime Rate or the
Federal Funds Rate shall be effective on the effective date of such change in
such Prime Rate or the Federal Funds Rate.

         BASE RATE LOAN means any Loan which bears interest at or by reference
to the Base Rate.

         BORROWER has the meaning set forth in the PREAMBLE.

         BORROWING AVAILABILITY means, at the time of determination, an amount
equal to the lesser of (a) the Revolving Loan Commitment and (b) the sum of (i)
EBITDA multiplied by the Applicable EBITDA Multiple minus (ii) outstanding
Senior Debt.

         BUSINESS DAY means any day on which commercial banks are open for
commercial banking business in Chicago, Illinois and New York, New York, and, in
the case of a Business Day which relates to a LIBOR Loan, on which dealings are
carried on in the London interbank eurodollar market.

         CAPITAL EXPENDITURES means all expenditures which, in accordance with
GAAP, would be required to be capitalized and shown on the consolidated balance
sheet of Borrower, but excluding expenditures made in connection with the
replacement, substitution or restoration of assets to the extent financed (a)
from insurance proceeds (or other similar recoveries) paid on account of the
loss of or damage to the assets being replaced or restored or (b) with awards of
compensation arising from the taking by eminent domain or condemnation of the
assets being replaced.

         CAPITAL LEASE means, with respect to any Person, any lease of (or other
agreement conveying the right to use) any real or personal property by such
Person that, in conformity with GAAP, is accounted for as a capital lease on the
balance sheet of such Person.

         CASH EQUIVALENT INVESTMENT means, at any time, (a) any evidence of
Debt, maturing not more than one year after such time, issued or guaranteed by
the United States Government or any agency thereof, (b) commercial paper, or
corporate demand notes, in each case (unless issued by a Lender or its holding
company) rated at least A-l by Standard & Poor's Ratings Group or P-l by Moody's
Investors Service, Inc., (c) any certificate of deposit (or time deposit
represented by a certificate of deposit) or banker's acceptance maturing not
more than one year after such time, or any overnight Federal Funds transaction
that is issued or sold by any Lender (or by a commercial banking institution
that is a member of the Federal Reserve System and has a combined capital and
surplus and undivided profits of not less than $500,000,000) and (d) any
repurchase agreement entered into with any Lender (or commercial

                                       -3-
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banking institution of the nature referred to in clause (c) above) which (i) is
secured by a fully perfected security interest in any obligation of the type
described in any of clauses (a) through (c) above and (ii) has a market value at
the time such repurchase agreement is entered into of not less than 100% of the
repurchase obligation of such Lender (or other commercial banking institution)
thereunder.

         CLOSING DATE means the date on which all conditions precedent set forth
in SECTION 4.1 have been satisfied or waived in writing by Administrative Agent
and Lenders.

         COLLATERAL has the meaning set forth in the Guarantee and Collateral
Agreement.

         COLLATERAL ACCESS AGREEMENT means an agreement in form and substance
reasonably satisfactory to Administrative Agent pursuant to which a mortgagee or
lessor of real property on which Collateral is stored or otherwise located, or a
warehouseman, processor or other bailee of Inventory or other property owned by
Borrower or any Subsidiary, acknowledges the Liens of Administrative Agent and
waives any Liens held by such Person on such property, and, in the case of any
such agreement with a mortgagee or lessor, permits Administrative Agent
reasonable access to and use of such real property during the continuance of an
Event of Default to assemble, complete and sell any Collateral stored or
otherwise located thereon.

         COLLATERAL DOCUMENTS means, collectively, the Guarantee and Collateral
Agreement, each Mortgage, each Collateral Access Agreement, and each other
agreement or instrument pursuant to or in connection with which Borrower, any
Subsidiary or any other Person grants Collateral to Administrative Agent for the
benefit of Lenders, each as amended, restated or otherwise modified from time to
time.

         COMMITMENT means, as to any Lender, such Lender's Pro Rata Revolving
Share of the Revolving Loan Commitment and such Lender's Pro Rata Term A Share
of the Term A Loan Commitment.

         COMMITMENT FEE means the fee payable by Borrower to Lenders pursuant to
SECTION 2.8.1.

         COMPLIANCE CERTIFICATE means a certificate substantially in the form of
EXHIBIT B.

         COMPUTATION PERIOD means (i) with respect to SECTIONS 7.14.2 and
7.14.3, each period of four consecutive Fiscal Quarters ending on the last day
of a Fiscal Quarter and (ii) with respect to SECTIONS 7.14.1 and 7.14.4, each of
the following periods: (a) the Fiscal Quarter ending September 30, 2004; (b) the
period of two consecutive Fiscal Quarters ending December 31, 2004; (c) the
period of three consecutive Fiscal Quarters ending March 31, 2005; and (d) each
period of four consecutive Fiscal Quarters ending on the last day of a Fiscal
Quarter thereafter.

         CONSOLIDATED NET INCOME means, with respect to Borrower and the
Subsidiaries for any period, the consolidated net income (or loss) of Borrower
and the Subsidiaries for such period, EXCLUDING any gains or non-cash losses
from Dispositions, any extraordinary gains or extraordinary non-cash losses and
any gains or non-cash losses from discontinued operations.

         CONTINGENT OBLIGATION means any agreement, undertaking or arrangement
by which any Person guarantees, endorses or otherwise becomes or is contingently
liable upon (by direct or indirect agreement, contingent or otherwise, to
provide funds for payment, to supply funds to or otherwise to invest in a
debtor, or otherwise to assure a creditor against loss) any indebtedness,
obligation or other liability of any other Person (other than by endorsements of
instruments in the course of collection), or guarantees the payment of dividends
or other distributions upon the shares of any other Person. The amount of any
Person's obligation in respect of any Contingent Obligation shall (subject to
any limitation set forth therein) be deemed to be the principal amount of the
debt, obligation or other liability supported thereby.

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         CONTINGENT PAYMENTS means the "Contingent Payments" as defined in the
Acquisition Agreement as in effect on the Closing Date.

         CONTROLLED GROUP means all members of a controlled group of
corporations and all members of a controlled group of trades or businesses
(whether or not incorporated) under common control which, together with
Borrower, are treated as a single employer under Section 414 of the IRC or
Section 4001 of ERISA.

         DEBT of any Person means, without duplication, (a) all indebtedness of
such Person for borrowed money, whether or not evidenced by bonds, debentures,
notes or similar instruments, (b) all obligations of such Person as lessee under
Capital Leases which have been or should be recorded as liabilities on a balance
sheet of such Person in accordance with GAAP, (c) all obligations of such Person
to pay the deferred purchase price of property or services (excluding trade
accounts payable in the ordinary course of business), (d) all indebtedness
secured by a Lien on the property of such Person, whether or not such
indebtedness shall have been assumed by such Person, (e) all obligations,
contingent or otherwise, with respect to the face amount of all letters of
credit (whether or not drawn) and banker's acceptances issued for the account of
such Person (including the Letters of Credit), (f) all Hedging Obligations of
such Person, (g) all Contingent Obligations of such Person, (h) all indebtedness
of any partnership of which such Person is a general partner, and (i) all
obligations of such Person under any synthetic lease transaction, where such
obligations are considered borrowed money indebtedness for tax purposes but the
transaction is classified as an operating lease in accordance with GAAP;
provided, however, that Debt shall not include the Acquisition Escrow or the
obligations relating to the repurchase of a Loan Party's preferred stock.

         DEFAULT means any event that, if it continues uncured, will, with the
lapse of time or the giving of notice or both, constitute an Event of Default.

         DISPOSITION means, as to any asset or right of Borrower or any
Subsidiary, (a) any sale, lease, assignment or other transfer (other than to
Borrower or any Subsidiary), (b) any loss, destruction or damage thereof or (c)
any actual or threatened condemnation, confiscation, requisition, seizure or
taking thereof, in each case excluding (i) assets subject to a Disposition which
are replaced within 180 days with assets performing the same or a similar
function and (ii) the sale or other transfer of Inventory in the ordinary course
of business.

         DOCUMENTATION AGENT means Merrill Lynch in its capacity as
documentation agent for all Lenders.

         DOLLAR and $ mean lawful money of the United States of America.

         EBITDA means, for any period, Consolidated Net Income for such period
 plus, to the extent deducted in determining such Consolidated Net Income,
 Interest Expense, income tax expense, depreciation and amortization for such
 period, plus or minus any other non-cash charges or gains which have been
 subtracted or added in calculating Consolidated Net Income for such period.

         ENVIRONMENTAL CLAIMS means all claims, however asserted, by any
governmental, regulatory or judicial authority or other Person alleging
potential liability or responsibility for violation of any Environmental Law, or
for release or injury to the environment or any Person or property.

         ENVIRONMENTAL LAWS means all present or future federal, state or local
laws, statutes, common law duties, rules, regulations, ordinances and codes,
together with all administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any governmental authority,
in each case relating to any matter arising out of or relating to health and
safety, or pollution or protection of

                                       -5-
<Page>

the environment or workplace, including any of the foregoing relating to the
presence, use, production, generation, handling, transport, treatment, storage,
disposal, distribution, discharge, release, control or cleanup of any Hazardous
Substance.

         ERISA means the Employee Retirement Income Security Act of 1974, as
amended.

         EVENT OF DEFAULT means any of the events described in SECTION 8.1.

         EXCESS CASH FLOW means, for any period, the remainder of (a) the sum of
(i) EBITDA for such period, plus (ii) any net decrease in Adjusted Working
Capital during such period, plus (iii) any cash payments made in respect of the
Contingent Payments during such period solely to the extent that such payments
are not made with the proceeds of the Acquisition Escrow, minus (b) the sum,
without duplication, of (i) scheduled repayments of principal of Term Loans and
other Funded Debt of Borrower and the Subsidiaries (in respect of Debt permitted
in accordance with SECTION 7.1) made during such period, plus (ii) voluntary
prepayments of the Term Loans pursuant to SECTION 2.10.1 during such period,
plus (iii) cash payments (not financed with the proceeds of Debt) made in such
period with respect to Capital Expenditures permitted under SECTION 7.14.6, plus
(iv) all federal, state, local and foreign income taxes paid in cash by Borrower
and the Subsidiaries, or paid in cash by Holdings with the proceeds of the tax
distributions by Borrower permitted under SECTION 7.4, during such period, plus
(v) all Interest Expense in respect of Debt permitted in accordance with SECTION
7.1 paid in cash by Borrower and the Subsidiaries during such period, plus (vi)
any net increase in Adjusted Working Capital during such period.

         "EXCESS CASH FLOW PERCENTAGE" means the applicable percentage
corresponding to the applicable Total Debt to EBITDA Ratio as shown on the
financial statements delivered by Borrower to Administrative Agent pursuant to
SECTION 6.1.1, all as set forth in the following table:

<Table>
<Caption>
                              Total Debt to                       Excess Cash
                               EBITDA Ratio                     Flow Percentage
                  --------------------------------------        ---------------
                  <S>                                                <C>
                  GREATER THAN OR EQUAL TO    2.50:1.00              75%
                  LESS THAN                   2.50:1.00              50%
</Table>

         FEDERAL FUNDS RATE means, for any day, a rate per annum (rounded upward
to the nearest 1/100th of 1%) equal to the rate published by the Federal Reserve
Bank of New York on the preceding Business Day or, if no such rate is so
published, the average rate per annum, as determined by Administrative Agent,
quoted for overnight Federal Funds transactions last arranged prior to such day.

         FEE LETTERS means, (i) that certain letter agreement dated as of July
15, 2004 by Administrative Agent and acknowledged by Borrower, as amended,
restated or otherwise modified from time to time and (ii) that certain fee
letter dated on or about July 16, 2004 by JPMorgan and acknowledged by Borrower,
as amended, restated or otherwise modified from time to time.

         FISCAL QUARTER means a fiscal quarter of a Fiscal Year.

         FISCAL YEAR means the fiscal year of Borrower and the Subsidiaries,
which period shall be the 12-month period ending on December 31 of each year.

         FIXED CHARGE COVERAGE RATIO means, for any Computation Period, the
ratio of (a) the total for such period of EBITDA minus the sum of all income
taxes and tax distributions described in SECTION 7.4 paid by Borrower and the
Subsidiaries and all Capital Expenditures TO (b) the sum for such period of (i)
Interest Expense paid in cash by Borrower and the Subsidiaries plus (ii) the sum
of (x) scheduled

                                       -6-
<Page>

payments of principal of Funded Debt (including the Term Loans but excluding the
Revolving Loans) and (y) Contingent Payments to the extent such Contingent
Payments are not paid with proceeds of the Acquisition Escrow.

         FRB means the Board of Governors of the Federal Reserve System or any
successor thereto.

         FUNDED DEBT means, as to any Person, all Debt of such Person that
matures more than one year from the date of its creation (or is renewable or
extendible, at the option of such Person, to a date more than one year from such
date).

         GAAP means generally accepted accounting principles in effect in the
United States of America set forth from time to time in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board (or agencies with similar functions of comparable
stature and authority within the U.S. accounting profession), which are
applicable to the circumstances as of the date of determination.

         GUARANTEE AND COLLATERAL AGREEMENT means the Guarantee and Collateral
Agreement dated as of the Closing Date by each Loan Party signatory thereto in
favor of Administrative Agent and Lenders, as amended, restated or otherwise
modified from time to time.

         HAZARDOUS SUBSTANCES means hazardous waste, hazardous substance,
pollutant, contaminant, toxic substance, oil, hazardous material, chemical or
other substance regulated by any Environmental Law.

         HEDGING OBLIGATION means, with respect to any Person, any liability of
such Person under any interest rate, currency or commodity swap agreement, cap
agreement or collar agreement, and any other agreement or arrangement designed
to protect a Person against fluctuations in interest rates, currency exchange
rates or commodity prices.

         HOLDINGS means Clayton Holdings, Inc., a Delaware corporation.

         INTEREST EXPENSE means for any period the consolidated interest expense
of Borrower and the Subsidiaries for such period (including all imputed interest
on Capital Leases).

         INTEREST PERIOD means, as to any LIBOR Loan, the period commencing on
the date such Loan is borrowed or continued as, or converted into, a LIBOR Loan
and ending on the date one, two, three or six months thereafter, as selected by
Borrower pursuant to SECTION 2.2.2 or 2.2.3, as the case may be; provided that:
(a) if any Interest Period would otherwise end on a day that is not a Business
Day, such Interest Period shall be extended to the following Business Day unless
the result of such extension would be to carry such Interest Period into another
calendar month, in which event such Interest Period shall end on the preceding
Business Day; (b) any Interest Period that begins on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period shall end on the last Business Day of the calendar month at the end of
such Interest Period; (c) Borrower may not select any Interest Period for a
Revolving Loan which would extend beyond the scheduled Termination Date; and (d)
Borrower may not select any Interest Period for a Term Loan if, after giving
effect to such selection, the aggregate principal amount of all Term Loans
having Interest Periods ending after any date on which an installment of the
Term Loans is scheduled to be repaid would exceed the aggregate principal amount
of the Term Loans scheduled to be outstanding after giving effect to such
repayment.

         INVENTORY has the meaning set forth in the Guarantee and Collateral
Agreement.

                                       -7-
<Page>

         INVESTMENT means (a) the purchase of any debt or equity security of any
Person, (b) the making of any loan or advance to any Person, (c) becoming
obligated with respect to a Contingent Obligation in respect of obligations of
any Person (other than travel and similar advances to employees in the ordinary
course of business) or (d) the making of an Acquisition.

         IRC means the Internal Revenue Code of 1986, as amended.

         ISSUING LENDER means Madison, unless otherwise specified to Borrower by
Madison.

         JOINT BOOKRUNNERS shall mean Madison and JPMorgan in their capacities
as joint bookrunners for all Lenders.

         LEGAL COSTS means, with respect to any Person, (a) all reasonable fees
and charges of any counsel, accountants, auditors, appraisers, consultants and
other professionals to such Person, (b) the reasonable allocable cost of
internal legal services of such Person and all reasonable disbursements of such
internal counsel and (c) all court costs and similar legal expenses.

         LENDERS has the meaning set forth in the PREAMBLE.

         LETTER OF CREDIT has the meaning set forth in SECTION 2.3.1.

         LETTER OF CREDIT FEE means the fee payable by Borrower to Lenders
pursuant to SECTION 2.8.2.

         LIBOR LOAN means any Loan which bears interest at a rate determined by
reference to the LIBOR Rate.

         LIBOR RATE means, with respect to any LIBOR Loan for any Interest
Period, a rate per annum (rounded upwards, if necessary, to the nearest 1/100 of
1%) equal to (i) the offered rate for deposits in Dollars for the applicable
Interest Period and for the amount of the applicable LIBOR Loan that appears on
Telerate Page 3750 at 11:00 a.m. London time (or if not, in the "Money Rates"
section of THE WALL STREET JOURNAL or another national publication selected by
Administrative Agent) two Business Days prior to the first day of such Interest
Period, divided by (ii) the sum of one minus the daily average during such
Interest Period of the aggregate maximum reserve requirement (expressed as a
decimal) then imposed under Regulation D of the FRB for "Eurocurrency
Liabilities" (as defined therein).

         LIEN means, with respect to any Person, any interest granted by such
Person in any real or personal property, asset or other right owned or being
purchased or acquired by such Person which secures payment or performance of any
obligation and shall include any mortgage, lien, encumbrance, charge or other
security interest of any kind, whether arising by contract, as a matter of law,
by judicial process or otherwise.

         LOAN DOCUMENTS means this Agreement, the Notes, the Letters of Credit,
the Collateral Documents, the Fee Letters and all documents, instruments and
agreements delivered in connection with the foregoing, all as amended, restated
or otherwise modified from time to time.

         LOAN PARTY means Holdings, Borrower and each Subsidiary.

         LOANS means Revolving Loans and Term Loans.

         MADISON has the meaning set forth in the PREAMBLE.

         MARGIN STOCK means any "margin stock" as defined in Regulation T, U or
X of the FRB.

                                       -8-
<Page>

         MATERIAL ADVERSE EFFECT means (a) a material adverse change in, or a
material adverse effect upon, the financial condition, operations, assets,
business, properties or prospects of Loan Parties taken as a whole, (b) a
material impairment of the ability of any Loan Party to perform any of its
Obligations under any Loan Document or (c) a material adverse effect upon any
substantial portion of the Collateral under the Collateral Documents or upon the
legality, validity, binding effect or enforceability against any Loan Party of
any Loan Document.

         MEZZANINE SUBORDINATED DEBT means obligations of Loan Parties under the
Mezzanine Subordinated Debt Documents.

         MEZZANINE SUBORDINATED DEBT DOCUMENTS means the Subordinated Note
Purchase Agreement dated as of the date hereof by and among TA Subordinated Debt
Fund, L.P., TA Investors II, L.P., Stephen M. Lamando and Borrower and any
agreements, instruments and documents executed from time to time in connection
therewith.

         MEZZANINE SUBORDINATION AGREEMENT means the Subordination and
Intercreditor Agreement dated as of even date herewith by and among TA Investors
II, L.P., Stephen M. Lamando, Borrower and Administrative Agent.

         MORTGAGE means a mortgage, deed of trust, leasehold mortgage or similar
instrument granting Administrative Agent a Lien on real property of Borrower or
any Subsidiary, each as amended, restated or otherwise modified from time to
time.

         MULTIEMPLOYER PENSION PLAN means a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, to which Borrower or any member of the Controlled
Group may have any liability.

         NET CASH PROCEEDS means:

                  (a)     with respect to any Disposition, the aggregate cash
         proceeds (including cash proceeds received pursuant to policies of
         insurance and by way of deferred payment of principal pursuant to a
         note, installment receivable or otherwise, but only as and when
         received) received by Borrower or any Subsidiary pursuant to such
         Disposition net of (i) the reasonable direct costs relating to such
         Disposition (including sales commissions and legal, accounting and
         investment banking fees), (ii) taxes paid or reasonably estimated by
         Borrower to be payable as a result thereof (after taking into account
         any available tax credits or deductions and any tax sharing
         arrangements), (iii) amounts required to be applied to the repayment of
         any Debt secured by a Lien prior to the Lien of Administrative Agent on
         the asset subject to such Disposition and (iv) with respect to any
         Disposition described in clause (b) or (c) of the definition thereof,
         all money actually applied within 180 days to repair, replace or
         reconstruct damaged property or property affected by loss, destruction,
         damage, condemnation, confiscation, requisition, seizure or taking, all
         of the costs and expenses reasonably incurred in connection with the
         collection of such proceeds, award or other payments, and any amounts
         retained by or paid to parties having superior rights to such proceeds,
         awards or other payments; and

                  (b)     with respect to any issuance of equity securities or
         Subordinated Debt issued in respect the "Net Indemnification Proceeds"
         (as defined in that certain Side Letter Agreement among Sponsor, other
         equity investors in Holdings, Administrative Agent, Lenders, Holdings
         and Borrower of even date hereof), the aggregate cash proceeds received
         by Holdings, Borrower or any Subsidiary pursuant to such issuance, net
         of the reasonable direct costs relating to such issuance (including
         reasonable sales and underwriter's commission).

                                       -9-
<Page>

         NOTE means a promissory note substantially in the form of EXHIBIT D, as
the same may be amended, restated or otherwise modified from time to time.

         OBLIGATIONS means all obligations (monetary (including post-petition
interest, allowed or not) or otherwise) of any Loan Party under this Agreement,
any other Loan Document, any Collateral Document or any other document or
instrument executed in connection herewith or therewith and all Hedging
Obligations permitted hereunder which are owed to any Lender or its Affiliate,
in each case howsoever created, arising or evidenced, whether direct or
indirect, absolute or contingent, now or hereafter existing, or due or to become
due.

         OPERATING LEASE means any lease of (or other agreement conveying the
right to use) any real or personal property by Borrower or any Subsidiary, as
lessee, other than any Capital Lease.

         PBGC means the Pension Benefit Guaranty Corporation and any entity
succeeding to any or all of its functions under ERISA.

         PENSION PLAN means a "pension plan", as such term is defined in Section
3(2) of ERISA, which is subject to Title IV of ERISA (other than a Multiemployer
Pension Plan), and to which Borrower or any member of the Controlled Group may
have any liability, including any liability by reason of having been a
substantial employer within the meaning of Section 4063 of ERISA at any time
during the preceding five years, or by reason of being deemed to be a
contributing sponsor under Section 4069 of ERISA.

         PERSON means any natural person, corporation, partnership, trust,
limited liability company, association, governmental authority or unit, or any
other entity, whether acting in an individual, fiduciary or other capacity.

         PRIOR DEBT means the Debt listed on SCHEDULE 4.1.3.

         PRO FORMA EBITDA means, with respect to any Target acquired in an
Acquisition, EBITDA for such Target for the most recent twelve (12) month period
for which financial statements are made available to Administrative Agent at the
time of determination thereof, adjusted by extraordinary expenses, increased
costs, identifiable and verifiable expense reductions and excess management
compensation, if any, in each case calculated by Borrower and approved by
Administrative Agent and Required Lenders.

         PRO RATA REVOLVING SHARE means, with respect to any Lender, the
applicable percentage (as adjusted from time to time in accordance with the
terms hereof) specified opposite such Lender's name on ANNEX I which corresponds
to the Revolving Loan Commitment, which percentage shall be with respect to
Revolving Outstandings if the Revolving Loan Commitment has terminated.

         PRO RATA SHARE means, with respect to any Lender, the applicable
percentage (as adjusted from time to time in accordance with the terms hereof)
obtained by dividing (a) the sum of (i) such Lender's Pro Rata Revolving Share
of the Revolving Loan Commitment (or if the Revolving Loan Commitment has
terminated, such Lender's Pro Rata Revolving Share of the Revolving
Outstandings) and (ii) such Lender's Pro Rata Term A Share of the Term A Loan
Commitment (or if the Term A Commitment has terminated, such Lender's Pro Rata
Term A Share of the Term A Loan) by (b) the Total Loan Commitment.

         PRO RATA TERM A LOAN SHARE means, with respect to any Lender, the
applicable percentage (as adjusted from time to time in accordance with the
terms hereof) specified opposite such Lender's name on ANNEX I which corresponds
to the Term A Loan Commitment, which percentage shall be with respect to the
Term A Loan if the Term A Loan Commitment has terminated.

                                      -10-
<Page>

         REGISTRATION RIGHTS AGREEMENT shall mean that certain Registration
Rights Agreement entered in connection with the Acquisition Agreement.

         RELATED AGREEMENTS means collectively, the Mezzanine Subordinated Debt
Documents, Acquisition Agreement, Stock Purchase Agreement, Stockholders
Agreement, and Registration Rights Agreement.

         RELATED TRANSACTIONS means the transactions contemplated by the Related
Agreements.

         REQUIRED LENDERS means Lenders having Pro Rata Shares the aggregate
Dollar equivalent amount of which equals or exceeds 66 2/3% of the Revolving
Outstandings and outstanding Term Loans and Commitments, collectively.

         REVOLVING LOAN COMMITMENT means $20,000,000, as reduced from time to
time pursuant to the terms hereof.

         REVOLVING LOANS has the meaning set forth in SECTION 2.1.1.

         REVOLVING OUTSTANDINGS means, at any time, the sum of (a) the aggregate
principal amount of all outstanding Revolving Loans, plus (b) the Stated Amount
of all Letters of Credit.

         SELLER SUBORDINATED DEBT means Debt in an aggregate amount not to
exceed $20,000,000 relating to Borrower's payment of the Contingent Payments.

         SELLER SUBORDINATION AGREEMENT means the Subordination and
Intercreditor Agreement dated as of even date herewith by and among Sellers,
Borrower, Holdings and Administrative Agent.

         SELLERS means First Madison Services, Inc., Clayton Services, Inc., the
"Clayton Subsidiaries" (as defined in the Acquisition Agreement), Stephen M.
Lamando, Brian Kramer, Peter Krell and the "Other Stockholders" (as defined in
the Acquisition Agreement).

         SENIOR DEBT means all Funded Debt of Borrower and the Subsidiaries,
determined on a consolidated basis, other than Subordinated Debt.

         SENIOR DEBT TO EBITDA RATIO means, as of the last day of any Fiscal
Quarter, the ratio of (i) Senior Debt as of such day to (ii) EBITDA for the
Computation Period ending on such day; provided that, notwithstanding anything
to the contrary, for the Computation Periods ending December 31, 2003, March 31,
2004 and June 30, 2004, EBITDA shall be deemed $3,441,000, $5,371,000 and
$6,162,000, respectively.

         SOLE LEAD ARRANGER means Madison in its capacity as sole lead arranger
for all Lenders.

         SPONSOR means TA Associates, Inc.

         STATED AMOUNT means, with respect to any Letter of Credit at any date
of determination, (a) the maximum aggregate amount available for drawing
thereunder under any and all circumstances, plus (b) the aggregate amount of all
unreimbursed payments and disbursements under such Letter of Credit.

         STOCK PURCHASE AGREEMENT means that certain Stock Purchase Agreement
entered into in connection with the Acquisition Agreement.

                                      -11-
<Page>

         STOCKHOLDERS AGREEMENT means that certain Stockholders Agreement
entered into in connection with the Acquisition Agreement.

         SUBORDINATED DEBT means (a) the Mezzanine Subordinated Debt, (b) the
 Seller Subordinated Debt and (b) any other unsecured Debt of Borrower which has
 subordination terms, covenants, pricing and other terms which have been
 approved in writing by Required Lenders.

         SUBSIDIARY means, with respect to any Person, a corporation,
 partnership, limited liability company or other entity of which such Person
 owns, directly or indirectly, such number of outstanding shares or other equity
 interests as to have more than 50% of the ordinary voting power for the
 election of directors or other managers of such corporation, partnership,
 limited liability company or other entity. Unless the context otherwise
 requires, each reference to Subsidiaries herein shall be a reference to
 Subsidiaries of Borrower.

         SYNDICATIONS AGENT means JPMorgan in its capacity as syndications agent
for all Lenders.

         TARGET means the Person, or business or substantially all of the assets
of a Person, acquired in an Acquisition.

         TERM A LOAN COMMITMENT means $40,000,000.

         TERM A LOAN MATURITY DATE means August 2, 2009 or such earlier date on
which the Commitments terminate pursuant to SECTION 8.

         TERM A LOANS has the meaning set forth in SECTION 2.1.2.

         TERM LOANS means the Term A Loans.

         TERMINATION DATE means August 2, 2009 or such earlier date on which the
 Revolving Loan Commitment terminates pursuant to SECTION 2.9 or 8.

         TOTAL DEBT means all Funded Debt of Borrower and the Subsidiaries,
determined on a consolidated basis.

         TOTAL DEBT TO EBITDA RATIO means, as of the last day of any Fiscal
Quarter, the ratio of (a) Total Debt as of such day to (b) EBITDA for the
Computation Period ending on such day; provided that, notwithstanding anything
to the contrary, for the Computation Periods ending December 31, 2003, March 31,
2004 and June 30, 2004, EBITDA shall be deemed $3,441,000, $5,371,000 and
$6,162,000, respectively.

         TOTAL LOAN COMMITMENT means $60,000,000, as reduced by (i) any
reduction in the Revolving Loan Commitment from time to time pursuant to the
terms hereof and (ii) any reduction in principal with respect to Term A Loan.

         WHOLLY-OWNED SUBSIDIARY means, as to any Person, another Person all of
the equity interests of which (except directors' qualifying shares) are at the
time directly or indirectly owned by such Person and/or another Wholly-Owned
Subsidiary of such Person.

         1.2.     INTERPRETATION.

         In the case of this Agreement and each other Loan Document, (a) the
 meanings of defined terms are equally applicable to the singular and plural
 forms of the defined terms; (b) Annex, Exhibit, Schedule

                                      -12-
<Page>

and Section references are to such Loan Document unless otherwise specified; (c)
the term "including" is not limiting and means "including but not limited to";
(d) in the computation of periods of time from a specified date to a later
specified date, the word "from" means "from and including"; the words "to" and
"until" each mean "to but excluding", and the word "through" means "to and
including"; (e) unless otherwise expressly provided in such Loan Document, (i)
references to agreements and other contractual instruments shall be deemed to
include all subsequent amendments and other modifications thereto, but only to
the extent such amendments and other modifications are not prohibited by the
terms of any Loan Document, and (ii) references to any statute or regulation
shall be construed as including all statutory and regulatory provisions
amending, replacing, supplementing or interpreting such statute or regulation;
(f) this Agreement and the other Loan Documents may use several different
limitations, tests or measurements to regulate the same or similar matters, all
of which are cumulative and each shall be performed in accordance with its
terms; and (g) this Agreement and the other Loan Documents are the result of
negotiations among and have been reviewed by counsel to Administrative Agent,
Borrower, Lenders and the other parties thereto and are the products of all
parties; accordingly, they shall not be construed against Administrative Agent
or Lenders merely because of Administrative Agent's or Lenders' involvement in
their preparation.

Section 2.        CREDIT FACILITIES.

         2.1.     COMMITMENTS.

         On and subject to the terms and conditions of this Agreement, each
Lender, severally and for itself alone, agrees as follows:

         2.1.1.   REVOLVING LOAN COMMITMENTS.

                  Each Lender will make loans on a revolving basis ("REVOLVING
LOANS") from time to time and Borrower may repay such loans from time to time
until the Termination Date in such Lender's applicable Pro Rata Revolving Share
of such aggregate amounts as Borrower may request from all Lenders; provided
that, after giving effect to such Revolving Loans, the Revolving Outstandings
will not at any time exceed Borrowing Availability.

         2.1.2.   TERM LOAN COMMITMENTS.

                  Each Lender agrees to make a loan to Borrower (each such loan,
a "TERM A LOAN") on the Closing Date in such Lender's applicable Pro Rata Term A
Share of the Term A Loan Commitment. The Commitments of Lenders to make Term
Loans shall terminate concurrently with the making of the Term Loans on the
Closing Date. Term Loans which are repaid or prepaid by Borrower, in whole or in
part, may not be reborrowed.

         2.2.     LOAN PROCEDURES.

         2.2.1.   LOAN TYPES.

                  Each Loan shall be either a Base Rate Loan or a LIBOR Loan, as
Borrower shall specify in the related notice of borrowing or conversion pursuant
to SECTION 2.2.2 or 2.2.3; provided, that Borrower may not request that a Loan
be a LIBOR Loan if an Event of Default exists. Base Rate Loans and LIBOR Loans
may be outstanding at the same time, provided that not more than five different
Interest Periods shall exist among outstanding LIBOR Loans at any one time. All
borrowings, conversions and repayments of Revolving Loans shall be effected so
that each Lender will have a ratable share (according to its Pro Rata Revolving
Share) of all Revolving Loans and all Interest Periods of LIBOR Loans.
Notwithstanding the foregoing or any other provision of this Agreement, Borrower
may

                                      -13-
<Page>

not select any Interest Period for a LIBOR Loan which is longer than one month
prior to the earlier of (a) 90 days after the Closing Date and (b) the date that
Administrative Agent notifies Borrower that it has completed its syndication of
$30,000,000 of the Loans and the commitments.

         2.2.2.   BORROWING.

                  Borrower shall give written notice or telephonic notice
(followed immediately by written confirmation thereof) to Administrative Agent
of each proposed borrowing of a Revolving Loan not later than (a) in the case of
a Base Rate borrowing, 11:00 a.m. Chicago time on the proposed date of such
borrowing, and (b) in the case of a LIBOR borrowing, 11:00 a.m. Chicago time at
least three Business Days prior to the proposed date of such borrowing. Each
such notice shall be effective upon receipt by Administrative Agent, shall be
irrevocable, and shall specify the date, amount and type of borrowing and, in
the case of a LIBOR borrowing, the initial Interest Period therefor. Promptly
upon receipt of such notice, Administrative Agent shall advise each Lender with
a Revolving Loan Commitment thereof in writing. Not later than 1:00 p.m. Chicago
time on the date of a proposed Revolving Loan borrowing, each Lender shall
provide Administrative Agent at the office specified by Administrative Agent
with immediately available funds covering such Lender's applicable Pro Rata
Revolving Share of such borrowing and, so long as Administrative Agent has not
received written notice that the conditions precedent set forth in SECTION 4
with respect to such borrowing have not been satisfied, Administrative Agent
shall pay over the funds received by Administrative Agent to Borrower on the
requested borrowing date. Each borrowing shall be on a Business Day. Each Base
Rate borrowing shall be in an aggregate amount of at least $100,000 and an
integral multiple of $50,000, and each LIBOR borrowing shall be in an aggregate
amount of at least $100,000 and an integral multiple of at least $50,000.

         2.2.3.   CONVERSION; CONTINUATION.

                  (a)     Subject to SECTION 2.2.1, Borrower may, upon
irrevocable written notice to Administrative Agent in accordance with clause (b)
below, elect (i) as of any Business Day, to convert any Loans (or any part
thereof in an aggregate amount of not less than $100,000 or a higher integral
multiple of $50,000) into Loans of the other type or (ii) as of the last day of
the applicable Interest Period, to continue any LIBOR Loans having Interest
Periods expiring on such day (or any part thereof in an aggregate amount not
less than $100,000 or a higher integral multiple of $50,000) for a new Interest
Period; provided that any conversion of a LIBOR Loan on a day other than the
last day of an Interest Period therefor shall be subject to SECTION 3.5.

                  (b)     Borrower shall give written or telephonic notice
(followed immediately by written confirmation thereof) to Administrative Agent
of each proposed conversion or continuation not later than (i) in the case of
conversion into Base Rate Loans, 11:00 a.m. Chicago time on the proposed date of
such conversion and (ii) in the case of conversion into or continuation of LIBOR
Loans, 11:00 a.m. Chicago time at least three Business Days prior to the
proposed date of such conversion or continuation, specifying in each case: (i)
the proposed date of conversion or continuation; (ii) the aggregate amount of
Loans to be converted or continued; (iii) the type of Loans resulting from the
proposed conversion or continuation; and (iv) in the case of conversion into, or
continuation of, LIBOR Loans, the duration of the requested Interest Period
therefor.

                  (c)     If upon the expiration of any Interest Period
applicable to LIBOR Loans, Borrower has failed to select timely a new Interest
Period to be applicable to such LIBOR Loans, Borrower shall be deemed to have
elected to convert such LIBOR Loans into Base Rate Loans effective on the last
day of such Interest Period.

                                      -14-
<Page>

                  (d)     Administrative Agent will promptly notify each
applicable Lender of its receipt of a notice of conversion or continuation
pursuant to this SECTION 2.2.3 or, if no timely notice is provided by Borrower,
of the details of any automatic conversion.

         2.3.     LETTERS OF CREDIT.

         2.3.1.   COMMITMENT.

                  At the request of Borrower, Issuing Lender will issue from
time to time before the date which is 30 days prior to the Termination Date
either (at Issuing Lender's election) (a) standby letters of credit or (b)
participation agreements confirming payment to issuers (reasonably acceptable to
Issuing Lender) of standby letters of credit, in each case for the account of
Borrower or any Subsidiary and containing terms and conditions which are
consistent with this Agreement and reasonably satisfactory to Issuing Lender
(each such letter of credit or participation agreement, a "LETTER OF CREDIT").
After giving effect to each such issuance, (i) the aggregate Stated Amount of
all Letters of Credit shall not at any time exceed $2,000,000 and (ii) Revolving
Outstandings will not at any time exceed Borrowing Availability.

         2.3.2.   APPLICATION.

                  Borrower shall give notice to Administrative Agent and Issuing
Lender of the proposed issuance of each Letter of Credit on a Business Day which
is at least ten Business Days (or such lesser number of days as Administrative
Agent and Issuing Lender shall agree) prior to the proposed date of issuance of
such Letter of Credit. Each such notice shall be accompanied by a Letter of
Credit application in Issuing Lender's form (or, as the case may be, in the form
of application of the underlying letter of credit), duly executed by Borrower
and in all respects satisfactory to Administrative Agent and Issuing Lender,
together with such other documentation as Administrative Agent or Issuing Lender
may request in support thereof, it being understood that each Letter of Credit
application (or, as the case may be, form of application of underlying letter of
credit) shall specify, among other things, the date on which the proposed Letter
of Credit is to be issued, and the expiration date of such Letter of Credit
(which shall not be later than the earlier to occur of (a) one year after the
date of issuance thereof and (b) 30 days prior to the scheduled Termination
Date). So long as Issuing Lender has not received written notice that the
conditions precedent set forth in SECTION 4 with respect to the issuance of such
Letter of Credit have not been satisfied, Issuing Lender shall issue such Letter
of Credit on the requested issuance date. Issuing Lender shall promptly advise
Administrative Agent of the issuance of each Letter of Credit and of any
amendment thereto, extension thereof or event or circumstance changing the
amount available for drawing thereunder. In the event of any inconsistency
between the terms of any Letter of Credit application and the terms of this
Agreement, the terms of this Agreement shall control. Issuing Lender shall
deliver to Administrative Agent upon its request a list of all outstanding
Letters of Credit issued by Issuing Lender, together with such information
related thereto as Administrative Agent may reasonably request.

         2.3.3.   REIMBURSEMENT OBLIGATIONS.

                  (a)     Borrower hereby unconditionally and irrevocably agrees
to reimburse Issuing Lender for each payment or disbursement made by Issuing
Lender under any Letter of Credit honoring any demand for payment made
thereunder, in each case on the date that such payment or disbursement is made.
Issuing Lender shall promptly notify Borrower and Administrative Agent whenever
any demand for payment is made under any Letter of Credit; provided that the
failure of Issuing Lender to so notify Borrower shall not affect the rights of
Issuing Lender or Lenders in any manner whatsoever. Any amount not reimbursed on
the date of such payment or disbursement (whether or not through the making of a
Loan pursuant to SECTION 2.3.4) shall bear interest from the date of such
payment or disbursement to the

                                      -15-
<Page>

date that Issuing Lender is reimbursed by Borrower therefor, payable on demand,
at the interest rate per annum from time to time in effect for Revolving Loans
which are Base Rate Loans.

                  (b)     Borrower's reimbursement obligations hereunder shall
be irrevocable and unconditional under all circumstances, including (i) any lack
of validity or enforceability of any Letter of Credit, this Agreement or any
other Loan Document, (ii) the existence of any claim, set-off, defense or other
right which any Loan Party may have at any time against a beneficiary named in a
Letter of Credit, any transferee of any Letter of Credit (or any Person for whom
any such transferee may be acting), Administrative Agent, Issuing Lender, any
Lender or any other Person, whether in connection with any Letter of Credit,
this Agreement, any other Loan Document, the transactions contemplated herein or
any unrelated transactions (including any underlying transaction between any
Loan Party and the beneficiary named in any Letter of Credit), (iii) the
validity, sufficiency or genuineness of any document which Issuing Lender (or,
as applicable, the issuer of any underlying letter of credit) has determined
complies on its face with the terms of the applicable Letter of Credit (or, if
applicable, underlying letter of credit), even if such document should later
prove to have been forged, fraudulent, invalid or insufficient in any respect or
any statement therein shall have been untrue or inaccurate in any respect, or
(iv) the surrender or impairment of any security for the performance or
observance of any of the terms hereof.

         2.3.4.   PARTICIPATIONS IN LETTERS OF CREDIT.

                  (a)     Concurrently with the issuance of each Letter of
Credit, Issuing Lender shall be deemed to have sold and transferred to each
other Lender with a Revolving Loan Commitment, and each other Lender with a
Revolving Loan Commitment shall be deemed irrevocably and unconditionally to
have purchased and received from Issuing Lender, without recourse or warranty,
an undivided interest and participation, to the extent of such Lender's Pro Rata
Revolving Share, in such Letter of Credit and Borrower's reimbursement
obligations with respect thereto. If Borrower does not pay any reimbursement
obligation when due, then Borrower shall be deemed to have immediately requested
that Lenders with a Revolving Loan Commitment make a Revolving Loan which is a
Base Rate Loan in a principal amount equal to such reimbursement obligation.
Administrative Agent shall promptly notify Lenders of such deemed request and,
without the necessity of compliance with the requirements of SECTION 2.2.2 or
4.2. each Lender shall make available to Administrative Agent its Pro Rata
Revolving Share of such Loan. The proceeds of such Loan shall be paid over by
Administrative Agent to Issuing Lender for the account of Borrower in
satisfaction of such reimbursement obligations.

                  (b)     If Issuing Lender makes any payment or disbursement
under any Letter of Credit and (i) Borrower has not reimbursed Issuing Lender in
full for such payment or disbursement in accordance with SECTION 2.3.3, (ii) a
Revolving Loan may not be made pursuant to SECTION 2.3.4(a) or (iii) any
reimbursement received by Issuing Lender from Borrower is or must be returned or
rescinded upon or during any bankruptcy or reorganization of any Loan Party or
otherwise, each other Lender with a Revolving Loan Commitment shall be
irrevocably and unconditionally obligated to pay to Administrative Agent for the
account of Issuing Lender its Pro Rata Revolving Share of such payment or
disbursement (but no such payment shall diminish the Obligations of Borrower
under SECTION 2.3.3). Upon notice from Issuing Lender to Administrative Agent
that it has not received any such amount, Administrative Agent shall promptly
notify each such other Lender thereof in writing. To the extent any Lender shall
not have made such amount available to Administrative Agent by 2:00 p.m. Chicago
time on the Business Day on which such Lender receives notice from
Administrative Agent of such payment or disbursement (it being understood that
any such notice received after 12:00 noon Chicago time on any Business Day shall
be deemed to have been received on the next following Business Day), such Lender
agrees to pay interest on such amount to Administrative Agent for Issuing
Lender's account forthwith on demand, for each day from the date such amount was
to have been delivered to Administrative Agent to the date such amount is paid,
at a rate per annum equal to (x) for the first 3 days after demand, the Federal
Funds Rate from time to time in effect and (y) thereafter, the Base Rate from
time to time in effect for

                                      -16-
<Page>

Revolving Loans. Any Lender's failure to make available to Administrative Agent
its Pro Rata Revolving Share of any such payment or disbursement shall not
relieve any other Lender of its obligation hereunder to make available to
Administrative Agent such other Lender's Pro Rata Revolving Share of such
payment, but no Lender shall be responsible for the failure of any other Lender
to make available to Administrative Agent such other Lender's Pro Rata Revolving
Share of any such payment or disbursement.

         2.4.     COMMITMENTS SEVERAL.

         The failure of any Lender to make a requested Loan on any date shall
not relieve any other Lender of its obligation (if any) to make a Loan on such
date, but no Lender shall be responsible for the failure of any other Lender to
make any Loan to be made by such other Lender.

         2.5.     CERTAIN CONDITIONS.

         Notwithstanding any other provision of this Agreement, no Lender shall
have an obligation to make any Loan, or to permit the continuation of or any
conversion into any LIBOR Loan, and Issuing Lender shall not have any obligation
to issue any Letter of Credit, if (i) an Event of Default or Default exists or
(ii) the funding of such Loan or issuance of such Letter of Credit (as
applicable) would cause the Revolving Outstandings to exceed Borrowing
Availability.

         2.6.     LOAN ACCOUNTING.

         2.6.1.   RECORDKEEPING.

                  Administrative Agent, on behalf of each Lender, shall record
in its records the date and amount of each Loan made by each Lender, each
repayment or conversion thereof and, in the case of each LIBOR Loan, the dates
on which each Interest Period for such Loan shall begin and end. The aggregate
unpaid principal amount so recorded shall be rebuttably presumptive evidence of
the principal amount of the Loans owing and unpaid. The failure to so record any
such amount or any error in so recording any such amount shall not, however,
limit or otherwise affect the Obligations of Borrower hereunder or under any
Note to repay the principal amount of the Loans hereunder, together with all
interest accruing thereon.

          2.6.2.  NOTES.

                  At the request of any Lender, the Loans of such Lender shall
be evidenced by a Note, with appropriate insertions, payable to the order of
such Lender in a face principal amount equal to the sum of such Lender's Pro
Rata Share of the Total Loan Commitment.

         2.7.     INTEREST.

         2.7.1.   INTEREST RATES.

                  Borrower promises to pay interest on the unpaid principal
amount of each Loan for the period commencing on the date of such Loan until
such Loan is paid in full as follows: (a) at all times while such Loan is a Base
Rate Loan, at a rate per annum equal to the sum of the Base Rate from time to
time in effect plus the Applicable Margin from time to time in effect; and (b)
at all times while such Loan is a LIBOR Loan, at a rate per annum equal to the
sum of the LIBOR Rate applicable to each Interest Period for such Loan plus the
Applicable Margin from time to time in effect; provided that (i) at any time an
Event of Default exists, if requested by Required Lenders, the Applicable Margin
corresponding to each Loan shall be increased by 2% (and, in the case of
Obligations not subject to an Applicable Margin,

                                      -17-
<Page>

such Obligations shall bear interest at the Base Rate applicable to Revolving
Loans plus the Applicable Margin plus 2%), (ii) such increase may thereafter be
rescinded by Required Lenders, notwithstanding SECTION 10.1, and (iii) upon the
occurrence of an Event of Default under SECTION 8.1.1 or 8.1.3, such increase
shall occur automatically. In no event shall charges constituting interest
payable by Borrower to Administrative Agent and Lenders exceed the maximum
amount or the rate permitted under any applicable law or regulation, and if any
such part or provision of this Agreement is in contravention of any such law or
regulation, such part or provision shall be deemed amended to conform thereto.

         2.7.2.   INTEREST PAYMENT DATES.

                  Accrued interest on each Base Rate Loan shall be payable in
arrears on the last day of each calendar month and at maturity. Accrued interest
on each LIBOR Loan shall be payable on the last day of each Interest Period
relating to such Loan (and, in the case of a LIBOR Loan with an Interest Period
in excess of three months, on the last day of each three-month interval of such
Interest Period), upon a prepayment of such Loan in accordance with SECTION 2.10
and at maturity. After maturity and at any time an Event of Default exists,
accrued interest on all Loans shall be payable on demand.

         2.7.3.   SETTING AND NOTICE OF LIBOR RATES.

                  The applicable LIBOR Rate for each Interest Period shall be
determined by Administrative Agent, and notice thereof shall be given by
Administrative Agent promptly to Borrower and each Lender. Each determination of
the applicable LIBOR Rate by Administrative Agent shall be conclusive and
binding upon the parties hereto, in the absence of demonstrable error.
Administrative Agent shall, upon written request of Borrower or any Lender,
deliver to Borrower or such Lender a statement showing the computations used by
Administrative Agent in determining any applicable LIBOR Rate hereunder.

         2.7.4.   COMPUTATION OF INTEREST.

                  Interest shall be computed for the actual number of days
elapsed on the basis of a year of (a) 360 days for interest calculated at the
LIBOR Rate and (b) 365/366 days for interest calculated at the Base Rate. The
applicable interest rate for each Base Rate Loan shall change simultaneously
with each change in the Base Rate.

         2.8.     FEES.

         2.8.1.   COMMITMENT FEE.

                  For the period from the Closing Date to the Termination Date,
Borrower agrees to pay to Administrative Agent, for the account of each Lender
according to such Lender's Pro Rata Revolving Share (as adjusted from time to
time), a Commitment Fee equal to one-half of one percent per annum multiplied by
the amount by which the Revolving Loan Commitment exceeds the average daily
Revolving Outstandings. The Commitment Fee shall be payable in arrears on the
last day of each calendar quarter and on the Termination Date for any period
then ending for which the Commitment Fee shall not have previously been paid.
The Commitment Fee shall be computed for the actual number of days elapsed on
the basis of a year of 360 days.

         2.8.2.   LETTER OF CREDIT FEES.

                  (a)     Borrower agrees to pay to Administrative Agent, for
the account of each Lender according to such Lender's Pro Rata Revolving Share
(as adjusted from time to time), a Letter of Credit Fee equal to the Applicable
Margin in effect from time to time for Revolving Loans which are LIBOR

                                      -18-
<Page>

Loans multiplied by the Stated Amount of each Letter of Credit. Each Letter of
Credit Fee shall be payable in arrears on the last day of each calendar month
and on the Termination Date (or such later date on which such Letter of Credit
expires or is terminated) for the period from the date of the issuance of each
Letter of Credit (or the last day on which the Letter of Credit Fee was paid
with respect thereto) to the date such payment is due or, if earlier, the date
on which such Letter of Credit expired or was terminated. Each Letter of Credit
Fee shall be computed for the actual number of days elapsed on the basis of a
year of 360 days.

                  (b)     In addition, with respect to each Letter of Credit,
Borrower agrees to pay to Issuing Lender, for its own account, (i) such fees and
expenses as Issuing Lender customarily requires (or, as the case may be, is
required to pay to the issuer of the letter of credit) in connection with the
issuance, negotiation, processing and/or administration of letters of credit in
similar situations and (ii) a letter of credit fronting fee in the amount and at
the times agreed to by Borrower and Issuing Lender.

         2.8.3.   ADMINISTRATIVE AGENT'S FEES AND JPMORGAN FEES.

                  Borrower agrees to pay to Administrative Agent, on the Closing
Date pursuant to the Fee Letter described in clause (i) of the definition
thereof and as otherwise agreed to from time to time by Borrower and
Administrative Agent, fees in the amounts agreed to between Borrower and
Administrative Agent and Borrower agrees to pay to JPMorgan, on the Closing Date
pursuant to the Fee Letter described in clause (ii) of the definition thereof,
fees in the amounts agreed to between Borrower and JPMorgan.

         2.9.     COMMITMENT REDUCTION.

         2.9.1.   VOLUNTARY REDUCTION OR TERMINATION OF REVOLVING LOAN
                  COMMITMENT.

                  Borrower may from time to time on at least three Business
Days' prior written notice received by Administrative Agent (which shall
promptly advise each Lender thereof) permanently reduce the Revolving Loan
Commitment to an amount not less than the Revolving Outstandings. Any such
reduction shall be in an amount not less than $1,000,000 or a higher integral
multiple of $500,000. Concurrently with any reduction of the Revolving Loan
Commitment to zero, Borrower shall pay all interest on the Revolving Loans, all
commitment fees and all letter of credit fees and shall cash collateralize in
full all Obligations arising with respect to the Letters of Credit in a manner
reasonably acceptable to Administrative Agent.

         2.9.2.   MANDATORY REDUCTION OF REVOLVING LOAN COMMITMENT.

                  On the date of any mandatory prepayment pursuant to SECTION
2.10.2, after payment in full of the Term Loans, the Revolving Loan Commitment
shall be permanently reduced by the amount of such mandatory prepayment applied
to prepay the Revolving Loans pursuant to SECTION 2.10.2.

         2.9.3.   ALL REDUCTIONS OF REVOLVING LOAN COMMITMENT.

                  All reductions of the Revolving Loan Commitment shall reduce
the Commitments pro rata among Lenders according to their respective Pro Rata
Revolving Shares of the Revolving Loan Commitment.

                                      -19-
<Page>

         2.10.    PREPAYMENT.

         2.10.1.  VOLUNTARY PREPAYMENT.

                  Borrower may from time to time, on at least one Business Day's
written notice or telephonic notice (followed immediately by written
confirmation thereof) to Administrative Agent (which shall promptly advise each
Lender thereof) not later than 11:00 a.m. Chicago time on such day, prepay the
Term Loans in whole or in part. Such notice to Administrative Agent shall
specify the Loans to be prepaid and the date and amount of prepayment. Any such
partial prepayment shall be in an amount equal to $500,000 or a higher integral
multiple of $100,000.

         2.10.2.  MANDATORY PREPAYMENT.

                  (a)     Borrower shall (x) prepay the Term Loans until paid in
full and (y) thereafter repay the Revolving Loans in each case, at the following
times and in the following amounts:

                  (i)     concurrently with the receipt by Borrower or any
         Subsidiary of any Net Cash Proceeds from any Disposition, in an amount
         equal to such Net Cash Proceeds;

                  (ii)    concurrently with the receipt by Holdings, Borrower or
         any Subsidiary of any Net Cash Proceeds from any issuance of its equity
         securities (other than equity securities that are issued pursuant to
         SECTION 7.10) or Subordinated Debt in respect of a contribution of any
         indemnity proceeds received by the investors in Holdings with respect
         to indemnity obligations under the Acquisition Agreement, in an amount
         equal to such Net Cash Proceeds;

                  (iii)   upon the earlier to occur of (A) the ninety-second day
         after end of any Fiscal Year (commencing with Fiscal Year 2004) or (B)
         5 days prior to the date upon which any cash payment of a Contingent
         Payment is to be made and such Contingent Payment will not be made with
         the proceeds of the Acquisition Escrow, in an amount equal to the
         Excess Cash Flow Percentage multiplied by Excess Cash Flow for such
         Fiscal Year; provided, that for the Fiscal Year ending December 31,
         2004, Excess Cash Flow shall be calculated for the period from the
         Closing Date to December 31, 2004; and

                  (iv)    concurrently with the receipt by Holdings or Borrower,
         an amount equal to any amounts distributed to Holdings or Borrower
         pursuant to Section 1.15(e) of the Acquisition Agreement (which shall
         equal 28.5714% of the total amount distributed pursuant to Section
         1.15(e) of the Acquisition Agreement) from the "Company Escrow" or
         "Deposit Escrow" (as such terms are defined in the Acquisition
         Agreement.

         2.10.3.  ALL PREPAYMENTS.

                  (a)     Any prepayment of a LIBOR Loan on a day other than the
last day of an Interest Period therefor shall include interest on the principal
amount being repaid and shall be subject to SECTION 3.5. All prepayments of a
Loan shall be applied first to that portion of such Loan comprised of Base Rate
Loans and then to that portion of such Loan comprised of LIBOR Loans, in direct
order of Interest Period maturities. All prepayments of Term A Loans shall be
applied pro rata to the remaining installments thereof. Notwithstanding the
foregoing, so long as no Event of Default has occurred and is continuing, at the
option of Borrower, any prepayment received by Administrative Agent shall not be
applied to the unmatured portion of the LIBOR Loans, but shall be held in a cash
collateral account established by Borrower and maintained by Administrative
Agent, until the earlier of (i) the last day of the Interest Period therefor and
(ii) the occurrence of an Event of Default, so long as Borrower delivers to
Administrative Agent a cash collateral account agreement relating to such cash
collateral account signed

                                      -20-
<Page>

by Borrower and the respective bank at which the cash collateral account is
maintained, which such agreement shall be in form and substance satisfactory to
Administrative Agent. Borrower agrees to pay all fees, costs and expenses
relating to the cash collateral account. All of such fees, costs and expenses if
not paid by Borrower, may be paid by Administrative Agent, at its option, and in
such event, all amounts paid by Administrative Agent shall constitute
Obligations hereunder, and shall be payable to Administrative Agent upon demand.

                  (b)     Borrower shall give written notice or telephonic
notice (followed immediately by written confirmation thereof) to Administrative
Agent not later than 11:00 a.m. Chicago time at least one Business Day prior to
each mandatory prepayment pursuant to clause (a) of SECTION 2.10.2, and
Administrative Agent shall promptly notify each Lender of such notice.

         2.11.    REPAYMENT.

         2.11.1.  REVOLVING LOANS.

                  The Revolving Loans shall be paid, for the account of each
Lender according to its Pro Rata Revolving Share of the Revolving Loans, in full
on the Termination Date.

         2.11.2.  TERM A LOAN.

                  The Term A Loan shall be paid, for the account of each Lender
according to its Pro Rata Term A Share thereof, in the installments and on the
dates set forth below:

<Table>
<Caption>
                     Date                                    Installment
                     ----                                    -----------
              <S>                                          <C>
              September 30, 2004                           $    1,125,000
              December 31, 2004                            $    1,125,000
              March 31, 2005                               $    1,125,000
              June 30, 2005                                $    1,125,000
              September 30, 2005                           $    1,625,000
              December 31, 2005                            $    1,625,000
              March 31, 2006                               $    1,625,000
              June 30, 2006                                $    1,625,000
              September 30, 2006                           $    2,000,000
              December 31, 2006                            $    2,000,000
              March 31, 2007                               $    2,000,000
              June 30, 2007                                $    2,000,000
              September 30, 2007                           $    2,375,000
              December 31, 2007                            $    2,375,000
              March 31, 2008                               $    2,375,000
              June 30, 2008                                $    2,375,000
              September 30, 2008                           $    2,875,000
              December 31, 2008                            $    2,875,000
              March 31, 2009                               $    2,875,000
              June 30, 2009                                $    2,875,000
</Table>

Notwithstanding the foregoing, the outstanding principal balance of the Term A
Loan shall be paid in full on the Term A Loan Maturity Date.

                                      -21-
<Page>

         2.12.    PAYMENT.

         2.12.1.  MAKING AND SETTLEMENT OF PAYMENTS.

                  All payments of principal of or interest on the Notes, and of
all fees, shall be made by Borrower to Administrative Agent in immediately
available funds at the office specified by Administrative Agent not later than
12:00 noon Chicago time on the date due, and funds received after that hour
shall be deemed to have been received by Administrative Agent on the following
Business Day. Administrative Agent shall promptly remit to each Lender its share
of all principal payments received in collected funds by Administrative Agent
for the account of such Lender. On the first Business Day of each week or more
frequently as Administrative Agent may elect (each such day being a "SETTLEMENT
DATE"), Administrative Agent will notify each Lender with a Revolving Loan
Commitment in writing of the amount of such Lender's actual share of the
Revolving Loans as of the close of business of the Business Day immediately
preceding the Settlement Date. In the event that payments are necessary to
adjust the amount of such Lender's actual share of the Revolving Loans to equal
such Lender's Pro Rata Revolving Share of the Revolving Loans as of any
Settlement Date, such Lender will pay to Administrative Agent, or Administrative
Agent will pay to such Lender (as applicable) the amount necessary in same day
funds by wire transfer to the other's account not later than 2:00 p.m. Chicago
time on the Business Day following the Settlement Date. On the first Business
Day of each month (each, an "INTEREST SETTLEMENT DATE"), Administrative Agent
will notify each Lender in writing of the amount of such Lender's applicable (i)
Pro Rata Revolving Share of interest and fees on the Revolving Outstandings and
Revolving Loan Commitment and (ii) Pro Rata Term A Share of interest and fees on
the Term A Loan. Provided that such Lender has made all payments required to be
made by it under this Agreement, Administrative Agent will pay to such Lender,
by wire transfer to such Lender's account not later than 2:00 p.m. Chicago time
on the next Business Day following the Interest Settlement Date, such Lender's
Pro Rata Revolving Share and Pro Rata Term A Share, as applicable, of interest
and fees, in each instance, received by Administrative Agent for the immediately
preceding month. All payments under SECTION 3.2 shall be made by Borrower
directly to Lender entitled thereto.

         2.12.2.  APPLICATION OF CERTAIN PAYMENTS.

                  Except as set forth in SECTION 2.10.3, each payment of
principal shall be applied to such Loans as Borrower shall direct by notice to
be received by Administrative Agent on or before the date of such payment or, in
the absence of such notice or during a Default or an Event of Default, as
Administrative Agent shall determine in its discretion. Concurrently with each
remittance to any Lender of its share of any such payment, Administrative Agent
shall advise such Lender as to the application of such payment.

         2.12.3.  PAYMENT DATES.

                  If any payment of principal or interest with respect to any of
the Loans, or of any fees, falls due on a day which is not a Business Day, then
such due date shall be extended to the immediately following Business Day
(unless, in the case of a LIBOR Loan, such immediately following Business Day is
the first Business Day of a calendar month, in which case such due date shall be
the immediately preceding Business Day) and, in the case of principal,
additional interest shall accrue and be payable for the period of any such
extension.

         2.12.4.  SET-OFF.

                  Borrower agrees that Administrative Agent and each Lender have
all rights of set-off and bankers' lien provided by applicable law, and Borrower
agrees that at any time an Event of Default has occurred and is continuing,
Administrative Agent and each Lender may apply to the payment of any

                                      -22-
<Page>

Obligations of Borrower hereunder, whether or not then due, any and all
balances, credits, deposits, accounts or moneys of Borrower then or thereafter
with Administrative Agent or such Lender. Notwithstanding the foregoing, no
Lender shall exercise any rights described in the preceding sentence without the
prior written consent of Administrative Agent.

         2.12.5.  PRORATION OF PAYMENTS.

                  If any Lender shall obtain any payment or other recovery
(whether voluntary, involuntary, by application of set-off or otherwise, on
account of (a) principal of or interest on the Revolving Outstandings or Term A
Loan, but excluding (i) any payment pursuant to SECTION 3.1, 3.2, 3.7 or 10.8
and (ii) payments of interest on any Base Rate Loan referred to in the last
sentence of SECTION 3.4, or (b) its participation in any Letter of Credit) in
excess of its applicable Pro Rata Revolving Share or Pro Rata Term A Share,
respectively, of payments and other recoveries obtained by all Lenders on
account of principal of and interest on such Revolving Loans or Term A Loan (or
such participation) then held by them, then such Lender shall purchase from the
other Lenders such participations in the Loans or sub-participations in Letters
of Credit held by them as shall be necessary to cause such purchasing Lender to
share the excess payment or other recovery ratably with each of them; provided
that if all or any portion of the excess payment or other recovery is thereafter
recovered from such purchasing Lender, the purchase shall be rescinded and the
purchase price restored to the extent of such recovery.

 Section 3.       YIELD PROTECTION.

         3.1.     TAXES.

                  (a)     All payments of principal and interest on the Loans
and all other amounts payable hereunder shall be made free and clear of and
without deduction for any present or future income, excise, stamp, documentary,
property or franchise taxes and other taxes, fees, duties, levies, withholdings
or other charges of any nature whatsoever imposed by any taxing authority,
excluding taxes imposed on or measured by any Lender's net income by the
jurisdiction under which such Lender is organized or conducts business (all
non-excluded items being called "TAXES"). If any withholding or deduction from
any payment to be made by Borrower hereunder is required in respect of any Taxes
pursuant to any applicable law, rule or regulation, then Borrower will: (a) pay
directly to the relevant authority the full amount required to be so withheld or
deducted; (b) promptly forward to Administrative Agent an official receipt or
other documentation satisfactory to Administrative Agent evidencing such payment
to such authority; and (c) pay to Administrative Agent for the account of
Lenders such additional amount or amounts as is necessary to ensure that the net
amount actually received by each Lender will equal the full amount such Lender
would have received had no such withholding or deduction been required. If any
Taxes are directly asserted against Administrative Agent or any Lender with
respect to any payment received by Administrative Agent or such Lender
hereunder, Administrative Agent or such Lender may pay such Taxes and Borrower
will promptly pay such additional amounts (including any penalty, interest or
expense) as is necessary in order that the net amount received by such Person
after the payment of such Taxes (including any Taxes on such additional amount)
shall equal the amount such Person would have received had such Taxes not been
asserted so long as such amounts have accrued on or after the day which is 180
days prior to the date on which Administrative Agent or such Lender first made
demand therefor; provided, that if the event giving rise to such costs or
reductions has retroactive effect, such 180 day period shall be extended to
include the period of retroactive effect.

                  (b)     If Borrower fails to pay any Taxes when due to the
appropriate taxing authority or fails to remit to Administrative Agent, for the
account of the respective Lenders, the required receipts or other required
documentary evidence, Borrower shall indemnify Lenders for any incremental
Taxes, interest or penalties that may become payable by any Lender as a result
of any such failure. For purposes

                                      -23-
<Page>

of this SECTION 3.1, a distribution hereunder by Administrative Agent or any
Lender to or for the account of any Lender shall be deemed a payment by
Borrower.

                  (c)     Each Lender that (i) is organized under the laws of a
jurisdiction other than the United States of America and (ii)(A) is a party
hereto on the Closing Date or (B) becomes an assignee of an interest under this
Agreement under SECTION 10.8.1 after the Closing Date (unless such Lender was
already a Lender hereunder immediately prior to such assignment) shall execute
and deliver to Borrower and Administrative Agent one or more (as Borrower or
Administrative Agent may reasonably request) Forms W-8ECI, W-8BEN, W-8IMY (as
applicable) or other applicable form, certificate or document prescribed by the
United States Internal Revenue Service certifying as to such Lender's
entitlement to exemption from withholding or deduction of Taxes. Borrower shall
not be required to pay additional amounts to any Lender pursuant to this SECTION
3.1 to the extent that the obligation to pay such additional amounts would not
have arisen but for the failure of such Lender to comply with this paragraph.

         3.2.     INCREASED COST.

                  (a)     If, after the Closing Date, the adoption of, or any
change in, any applicable law, rule or regulation, or any change in the
interpretation or administration of any applicable law, rule or regulation by
any governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender with any
request or directive (whether or not having the force of law) of any such
authority, central bank or comparable agency: (i) shall impose, modify or deem
applicable any reserve (including any reserve imposed by the FRB, but excluding
any reserve included in the determination of the LIBOR Rate), special deposit or
similar requirement against assets of, deposits with or for the account of, or
credit extended by any Lender; or (ii) shall impose on any Lender any other
condition affecting its LIBOR Loans, its Note or its obligation to make LIBOR
Loans; and the result of anything described in clauses (i) above and (ii) is to
increase the cost to (or to impose a cost on) such Lender of making or
maintaining any LIBOR Loan, or to reduce the amount of any sum received or
receivable by such Lender under this Agreement or under its Note with respect
thereto, then upon demand by such Lender (which demand shall be accompanied by a
statement setting forth the basis for such demand and a calculation of the
amount thereof in reasonable detail, a copy of which shall be furnished to
Administrative Agent), Borrower shall pay directly to such Lender such
additional amount as will compensate such Lender for such increased cost or such
reduction, so long as such amounts have accrued on or after the day which is 180
days prior to the date on which such Lender first made demand therefor;
provided, that if the event giving rise to such costs or reductions has
retroactive effect, such 180 day period shall be extended to include the period
of retroactive effect.

                  (b)     If any Lender shall reasonably determine that any
change in, or the adoption or phase-in of, any applicable law, rule or
regulation regarding capital adequacy, or any change in the interpretation or
administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or the
compliance by any Lender or any Person controlling such Lender with any request
or directive regarding capital adequacy (whether or not having the force of law)
of any such authority, central bank or comparable agency, has or would have the
effect of reducing the rate of return on such Lender's or such controlling
Person's capital as a consequence of such Lender's obligations hereunder or
under any Letter of Credit to a level below that which such Lender or such
controlling Person could have achieved but for such change, adoption, phase-in
or compliance (taking into consideration such Lender's or such controlling
Person's policies with respect to capital adequacy) by an amount deemed by such
Lender or such controlling Person to be material, then from time to time, upon
demand by such Lender (which demand shall be accompanied by a statement setting
forth the basis for such demand and a calculation of the amount thereof in
reasonable detail, a copy of which shall be furnished to Administrative Agent),
Borrower shall pay to such Lender such additional amount as will compensate such
Lender or such controlling Person for such reduction, so long as such amounts
have accrued on or after the day which is 180 days prior to the date on which
such

                                      -24-
<Page>

Lender first made demand therefor; provided, that if the event giving rise to
such costs or reductions has retroactive effect, such 180 day period shall be
extended to include the period of retroactive effect.

         3.3.     INADEQUATE OR UNFAIR BASIS.

         If Administrative Agent reasonably determines (which determination
shall be binding and conclusive on Borrower) that, by reason of circumstances
affecting the interbank eurodollar market, adequate and reasonable means do not
exist for ascertaining the applicable LIBOR Rate, then Administrative Agent
shall promptly notify the Lenders and the Borrower thereof and, so long as such
circumstances shall continue, (a) no Lender shall be under any obligation to
make or convert any Base Rate Loans into LIBOR Loans and (b) on the last day of
the current Interest Period for each LIBOR Loan, such Loan shall, unless then
repaid in full, automatically convert to a Base Rate Loan.

         3.4.     CHANGE IN LAW.

         If any change in, or the adoption of any new, law or regulation, or any
change in the interpretation of any applicable law or regulation by any
governmental or other regulatory body charged with the administration thereof,
would make it (or in the good faith judgment of any Lender cause a substantial
question as to whether it is) unlawful for any Lender to make, maintain or fund
LIBOR Loans, then such Lender shall promptly notify each of the other parties
hereto and, so long as such circumstances shall continue, (a) such Lender shall
have no obligation to make or convert any Base Rate Loan into a LIBOR Loan (but
shall make Base Rate Loans concurrently with the making of LIBOR Loans or
conversion of Base Rate Loans into LIBOR Loans by Lenders which are not so
affected, in each case in an amount equal to the amount of LIBOR Loans which
would be made or converted into by such Lender at such time in the absence of
such circumstances) and (b) on the last day of the current Interest Period for
each LIBOR Loan of such Lender (or, in any event, on such earlier date as may be
required by the relevant law, regulation or interpretation), such LIBOR Loan
shall, unless then repaid in full, automatically convert to a Base Rate Loan.
Each Base Rate Loan made by a Lender which, but for the circumstances described
in the foregoing sentence, would be a LIBOR Loan shall remain outstanding for
the period corresponding to the Interest Period originally applicable to such
LIBOR Loan absent such circumstances.

         3.5.     FUNDING LOSSES.

         Borrower hereby agrees that upon demand by any Lender (which demand
shall be accompanied by a statement setting forth the basis for the amount being
claimed, a copy of which shall be furnished to Administrative Agent), Borrower
will indemnify such Lender against any net loss or expense which such Lender may
sustain or incur (including any net loss or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by such Lender
to fund or maintain any LIBOR Loan), as reasonably determined by such Lender, as
a result of (a) any payment, prepayment or conversion of any LIBOR Loan of such
Lender on a date other than the last day of an Interest Period for such Loan
(including any conversion pursuant to SECTION 3.3 or 3.4) or (b) any failure of
Borrower to borrow, convert or continue any Loan on a date specified therefor in
a notice of borrowing, conversion or continuation pursuant to this Agreement.
For the purposes of this SECTION 3.5, all determinations shall be made as if
such Lender had actually funded and maintained each LIBOR Loan during each
Interest Period for such Loan through the purchase of deposits having a maturity
corresponding to such Interest Period and bearing an interest rate equal to the
LIBOR Rate for such Interest Period.

         3.6.     MANNER OF FUNDING; ALTERNATE FUNDING OFFICES.

         Notwithstanding any provision of this Agreement to the contrary, each
 Lender shall be entitled to fund and maintain its funding of all or any part of
 its Loans in such manner as such Lender elects in its

                                      -25-
<Page>

sole discretion. Each Lender may, if it so elects, fulfill its commitment to
make any LIBOR Loan by causing any branch or Affiliate of such Lender to make
such Loan; provided that in such event for the purposes of this Agreement such
Loan shall be deemed to have been made by such Lender and the obligation of
Borrower to repay such Loan shall nevertheless be to such Lender and shall be
deemed held by it, to the extent of such Loan, for the account of such branch or
Affiliate.

         3.7.     MITIGATION OF CIRCUMSTANCES; REPLACEMENT OF LENDERS.

                  (a)     Each Lender shall promptly notify Borrower and
Administrative Agent of any event of which it has knowledge which will result
in, and will use reasonable commercial efforts available to it (and not, in such
Lender's sole judgment, otherwise disadvantageous to such Lender) to mitigate or
avoid, (i) any obligation by Borrower to pay any amount pursuant to SECTION 3.1
or 3.2 or (ii) the occurrence of any circumstances described in SECTION 3.3 or
3.4 (and, if any Lender has given notice of any such event described in clause
(i) or (ii) above and thereafter such event ceases to exist, such Lender shall
promptly so notify Borrower and Administrative Agent). Without limiting the
foregoing, each Lender will designate a different funding office if such
designation will avoid (or reduce the cost to Borrower of) any event described
in clause (i) or (ii) above and such designation would not, in such Lender's
sole judgment, be otherwise disadvantageous to such Lender.

                  (b)     If Borrower becomes obligated to pay additional
amounts to any Lender pursuant to SECTION 3.1 or 3.2, or any Lender gives notice
of the occurrence of any circumstances described in SECTION 3.3 or 3.4, Borrower
may within 90 days thereafter designate another bank which is acceptable to
Administrative Agent and Issuing Lender in their reasonable discretion (such
other bank being called a "REPLACEMENT LENDER") to purchase the Loans of such
Lender and such Lender's rights hereunder, without recourse to or warranty by,
or expense to, such Lender, for a purchase price equal to the outstanding
principal amount of the Loans payable to such Lender plus any accrued but unpaid
interest on such Loans and all accrued but unpaid fees owed to such Lender and
any other amounts payable to such Lender under this Agreement, and to assume all
the obligations of such Lender hereunder, and, upon such purchase and assumption
(pursuant to an Assignment Agreement), such Lender shall no longer be a party
hereto or have any rights hereunder (other than rights with respect to
indemnities and similar rights applicable to such Lender prior to the date of
such purchase and assumption) and shall be relieved from all obligations to
Borrower hereunder, and the Replacement Lender shall succeed to the rights and
obligations of such Lender hereunder.

         3.8.     CONCLUSIVENESS OF STATEMENTS; SURVIVAL.

         Determinations and statements of any Lender pursuant to SECTION 3.1,
3.2, 3.3, 3.4 or 3.5 shall be conclusive absent demonstrable error and such
Lender shall provide reasonable detail to Borrower of the calculation of such
determinations. Lenders may use reasonable averaging and attribution methods in
determining compensation under SECTIONS 3.1, 3.2 and 3.5, and the provisions of
such Sections shall survive repayment of the Loans, cancellation of the Notes,
expiration or termination of the Letters of Credit and termination of this
Agreement.

 Section 4.       CONDITIONS PRECEDENT.

         The obligation of each Lender to make its Loans and of Issuing Lender
to issue Letters of Credit is subject to the following conditions precedent:

         4.1.     INITIAL CREDIT EXTENSION.

         The obligation of Lenders to make the initial Loans and the obligation
of Issuing Lender to issue the initial Letter of Credit hereunder (whichever
first occurs) is, in addition to the conditions precedent

                                      -26-
<Page>

specified in SECTION 4.2, subject to the following conditions precedent, each of
which shall be satisfactory in all respects to Administrative Agent:

         4.1.1.   CAPITALIZATION.

                  Borrower has received cash equity contributions (which
contributions shall include the Acquisition Escrow and/or restricted cash) from
Sponsor and its Affiliates in an amount not less than $80,000,000 and net cash
proceeds of not less than $20,000,000 from the issuance of the Mezzanine
Subordinated Debt.

         4.1.2.   INITIAL LOANS; AVAILABILITY.

                  Not more than $10,000,000 in Revolving Loans shall be advanced
on the Closing Date, and after giving effect to the consummation of the Related
Transactions and funding of the initial Loans on the Closing Date, Borrowing
Availability shall exceed Revolving Outstandings by at least $5,000,000.

         4.1.3.   PRIOR DEBT.

                  The Prior Debt has been (or concurrently with the initial
borrowing will be) paid in full.

         4.1.4.   RELATED TRANSACTIONS.

                  Borrower has completed (or concurrently with the initial
credit extension hereunder will complete) the Related Transactions in accordance
with the terms of the Related Agreements (without any amendment thereto or
waiver thereunder unless consented to by Lenders).

         4.1.5.   FEES.

                  Borrower shall have paid all fees, costs and expenses due and
payable on the Closing Date.

         4.1.6.   DELIVERY OF LOAN DOCUMENTS.

                  Borrower shall have delivered the following documents in form
and substance satisfactory to Administrative Agent (and, as applicable, duly
executed and dated the Closing Date or an earlier date satisfactory to
Administrative Agent):

                  (a)     AGREEMENT. This Agreement.

                  (b)     NOTES. Notes, for each Lender requesting a Note.

                  (c)     COLLATERAL DOCUMENTS. The Guarantee and Collateral
Agreement, all other Collateral Documents, and all instruments, documents,
certificates and agreements executed or delivered pursuant thereto (including
intellectual property assignments and pledged Collateral, with undated
irrevocable transfer powers executed in blank).

                  (d)     FINANCING STATEMENTS. Properly completed Uniform
Commercial Code financing statements and other filings and documents required by
law or the Loan Documents to provide Administrative Agent first priority
perfected Liens (subject only to Liens permitted pursuant to SECTION 7.2) in the
Collateral.

                                      -27-
<Page>

                  (e)     LIEN SEARCHES. Copies of Uniform Commercial Code
search reports listing all effective financing statements filed against any Loan
Party, with copies of such financing statements.

                  (f)     COLLATERAL ACCESS AGREEMENTS. Collateral Access
Agreements reasonably requested by Administrative Agent with respect to the
Collateral.

                  (g)     PAYOFF; RELEASE. Payoff letters evidencing repayment
in full of all Prior Debt, termination of all agreements relating thereto and
the release of all Liens granted in connection therewith, with Uniform
Commercial Code or other appropriate termination statements and documents
effective to evidence the foregoing.

                  (h)     MEZZANINE SUBORDINATED DEBT DOCUMENTS. Mezzanine
Subordinated Debt Documents with respect to the Subordinated Debt.

                  (i)     AVAILABILITY CERTIFICATE. Availability Certificate
reflecting required information as of a date not more than five days prior to
the Closing Date.

                  (j)     LETTER OF DIRECTION. A letter of direction containing
funds flow information, with respect to the proceeds of the Loans on the Closing
Date.

                  (k)     AUTHORIZATION DOCUMENTS. For each Loan Party, such
Person's (i) charter (or similar formation document), certified by the
appropriate governmental authority, (ii) good standing certificates in its state
of incorporation (or formation) and in each other state requested by
Administrative Agent, (iii) bylaws (or similar governing document), (iv)
resolutions of its board of directors (or similar governing body) approving and
authorizing such Person's execution, delivery and performance of the Loan
Documents to which it is party and the transactions contemplated thereby, and
(v) signature and incumbency certificates of its officers executing any of the
Loan Documents, all certified by its secretary or an assistant secretary (or
similar officer) as being in full force and effect without modification.

                  (l)     OPINIONS OF COUNSEL. Opinions of counsel for each Loan
Party, including local counsel reasonably requested by Administrative Agent, and
all other opinions issued pursuant to the Related Transactions, and Borrower
hereby requests such counsel to deliver such opinions and authorizes
Administrative Agent and Lenders to rely thereon.

                  (m)     INSURANCE. Certificates or other evidence of insurance
in effect as required by SECTION 6.3(b), with endorsements naming Administrative
Agent as lenders' loss payee and/or additional insured, as applicable.

                  (n)     FINANCIALS. The financial statements, projections and
pro forma balance sheet of Borrower described in SECTION 5.4.

                  (o)     CONSENTS. Evidence that all necessary consents,
permits and approvals (governmental or otherwise) required for the execution,
delivery and performance by each Loan Party of the Loan Documents and the
Related Transactions have been duly obtained and are in full force and effect.

                  (p)     CERTIFIED DOCUMENTS. Copies of the Related Agreements
(including a consent to the collateral assignment of rights and indemnities
under the appropriate Related Agreements in favor of Administrative Agent and
Lenders) certified by Borrower's secretary or an assistant secretary (or similar
officer) as being in true, accurate and complete.

                                      -28-
<Page>

                  (q)     SYNDICATION. Agreement of a lender or lenders
acceptable to Administrative Agent to hold an aggregate Pro Rata Share of the
Loans of not less than $20,000,000.

                  (r)     OTHER DOCUMENTS. Such other certificates, documents
and agreements as Administrative Agent or any Lender may reasonably request.

         4.1.7.   ADJUSTED EBITDA.

                  EBITDA, as adjusted by adjustments satisfactory to
Administrative Agent, for the 12 month period ending on the Closing Date shall
not be less than $20,100,000.

         4.2.     ALL CREDIT EXTENSIONS.

         The obligation of each Lender to make each Loan and of Issuing Lender
to issue each Letter of Credit is subject to the additional conditions precedent
that, both before and after giving effect to any borrowing and the issuance of
any Letter of Credit, (a) the representations and warranties of Borrower and
each Subsidiary set forth in this Agreement and the other Loan Documents shall
be true and correct in all material respects with the same effect as if then
made (except to the extent stated to relate to a specific earlier date, in which
case such representations and warranties shall be true and correct as of such
earlier date) and (b) no Event of Default or Default shall have then occurred
and be continuing. Each request by Borrower for the making of a Loan or the
issuance of a Letter of Credit shall be deemed to constitute a representation
and warranty by Borrower that the conditions precedent set forth in SECTION 4.2
will be satisfied at the time of the making of such Loan or the issuance of such
Letter of Credit.

Section 5.        REPRESENTATIONS AND WARRANTIES.

         To induce Administrative Agent and Lenders to enter into this Agreement
and to induce Lenders to make Loans and to issue and participate in Letters of
Credit hereunder, Borrower represents and warrants to Administrative Agent and
Lenders that, both before and after giving effect to the Related Transactions:

         5.1.     ORGANIZATION.

         Borrower is a corporation validly existing and in good standing under
the laws of the State of Delaware; each other Loan Party is validly existing and
in good standing under the laws of the jurisdiction of its organization; and
each Loan Party is duly qualified to do business in each jurisdiction where,
because of the nature of its activities or properties, such qualification is
required, except for such jurisdictions where the failure to so qualify would
not have a Material Adverse Effect.

         5.2.     AUTHORIZATION; NO CONFLICT.

         Each of Borrower and each other Loan Party is duly authorized to
execute and deliver each Loan Document to which it is a party, Borrower is duly
authorized to borrow monies hereunder, and each of Borrower and each other Loan
Party is duly authorized to perform its Obligations under each Loan Document to
which it is a party. The execution, delivery and performance by Borrower of this
Agreement and by each of Borrower and each other Loan Party of each Loan
Document to which it is a party, and the borrowings by Borrower hereunder, do
not and will not (a) require any consent or approval of any governmental agency
or authority (other than any consent or approval which has been obtained and is
in full force and effect), (b) conflict with (i) any provision of law, (ii) the
charter, by-laws or other organizational documents of Borrower or any other Loan
Party or (iii) any agreement, indenture, instrument or other document, or any
judgment, order or decree, which is binding upon Borrower or any other Loan
Party or any of their respective properties or (c) require, or result in, the
creation or imposition

                                      -29-
<Page>

of any Lien on any asset of Borrower, any Subsidiary or any other Loan Party
(other than Liens in favor of Administrative Agent created pursuant to the
Collateral Documents).

         5.3.     VALIDITY; BINDING NATURE.

         Each of this Agreement and each other Loan Document to which Borrower
or any other Loan Party is a party is the legal, valid and binding obligation of
such Person, enforceable against such Person in accordance with its terms,
subject to bankruptcy, insolvency and similar laws affecting the enforceability
of creditors' rights generally and to general principles of equity.

         5.4.     FINANCIAL CONDITION.

                  (a)     The audited consolidated financial statements of
Borrower and the Subsidiaries as at its Fiscal Years ending December 31, 2002
and December 31, 2003, and the unaudited consolidated financial statements of
Borrower and the Subsidiaries as at June 30, 2004, copies of each of which have
been delivered pursuant hereto, were prepared in accordance with GAAP (subject,
in the case of such unaudited statements, to the absence of footnotes and to
normal year-end adjustments) and present fairly the consolidated financial
condition of such Persons as at such dates and the results of their operations
for the periods then ended.

                  (b)     The consolidated financial projections (including an
operating budget and a cash flow budget) of Borrower for the 3-year period
commencing January 1, 2005 delivered to Administrative Agent and Lenders on or
prior to the Closing Date (i) were prepared by Borrower in good faith and (ii)
were prepared in accordance with assumptions for which Borrower has a reasonable
basis, and the accompanying consolidated pro forma balance sheet of Borrower as
at the Closing Date, adjusted to give effect to the consummation of the Related
Transactions and the financings contemplated hereby as if such transactions had
occurred on such date, is consistent in all material respects with such
projections.

         5.5.     NO MATERIAL ADVERSE CHANGE.

         Since May 31, 2004, there has been no material adverse change in the
financial condition, operations, assets, business, properties or prospects of
the Loan Parties taken as a whole.

         5.6.     LITIGATION.

         No litigation (including derivative actions), arbitration proceeding or
 governmental investigation or proceeding is pending or, to Borrower's
 knowledge, threatened against any Loan Party which could reasonably be expected
 to have a Material Adverse Effect, except as set forth in SCHEDULE 5.6. As of
 the Closing Date, other than any liability incident to such litigation or
 proceedings, neither Borrower nor any other Loan Party has any material
 Contingent Obligations not listed on SCHEDULE 7.1.

         5.7.     OWNERSHIP OF PROPERTIES; LIENS.

         Each of Borrower and each other Loan Party owns good and, in the case
of real property, marketable title to all of its properties and assets, real and
personal, tangible and intangible, of any nature whatsoever (including patents,
trademarks, trade names, service marks and copyrights), free and clear of all
Liens, charges and claims (including infringement claims with respect to
patents, trademarks, service marks, copyrights and the like), except as
permitted by SECTION 7.2.

                                      -30-
<Page>

         5.8.     CAPITALIZATION.

         All issued and outstanding equity securities of Borrower and the other
Loan Parties are duly authorized and validly issued, fully paid, non-assessable,
and free and clear of all Liens other than those in favor of Administrative
Agent, and such securities were issued in compliance with all applicable state
and federal laws concerning the issuance of securities. SCHEDULE 5.8 sets forth
the authorized equity securities of each Loan Party as of the Closing Date. All
of the issued and outstanding equity of Holdings is owned as set forth on
SCHEDULE 5.8 as of the Closing Date, all of the issued and outstanding equity of
Borrower is owned by Holdings, and all of the issued and outstanding equity of
each Wholly-Owned Subsidiary is, directly or indirectly, owned by Borrower. As
of the Closing Date, except as set forth on SCHEDULE 5.8, there are no
pre-emptive or other outstanding rights, options, warrants, conversion rights or
other similar agreements or understandings for the purchase or acquisition of
any equity interests of Borrower or any other Loan Party.

         5.9.     PENSION PLANS.

         During the twelve-consecutive-month period prior to the Closing Date or
the making of any Loan or the issuance of any Letter of Credit, (i) no steps
have been taken to terminate any Pension Plan and (ii) no contribution failure
has occurred with respect to any Pension Plan sufficient to give rise to a Lien
under Section 302(f) of ERISA. No condition exists or event or transaction has
occurred with respect to any Pension Plan which could result in the incurrence
by Borrower or any other Loan Party of any material liability, fine or penalty.
All contributions (if any) have been made to any Multiemployer Pension Plan that
are required to be made by any Loan Party or any other member of the Controlled
Group under the terms of the plan or of any collective bargaining agreement or
by applicable law; neither any Loan Party nor any member of the Controlled Group
has withdrawn or partially withdrawn from any Multiemployer Pension Plan,
incurred any withdrawal liability with respect to any such plan or received
notice of any claim or demand for withdrawal liability or partial withdrawal
liability from any such plan, and no condition has occurred which, if continued,
could result in a withdrawal or partial withdrawal from any such plan, and
neither any Loan Party nor any member of the Controlled Group has received any
notice that any Multiemployer Pension Plan is in reorganization, that increased
contributions may be required to avoid a reduction in plan benefits or the
imposition of any excise tax, that any such plan is or has been funded at a rate
less than that required under Section 412 of the IRC, that any such plan is or
may be terminated, or that any such plan is or may become insolvent.

         5.10.    INVESTMENT COMPANY ACT.

         Neither Borrower nor any other Loan Party is an "investment company" or
a company "controlled" by an "investment company" or a "subsidiary" of an
"investment company", within the meaning of the Investment Company Act of 1940.

         5.11.    PUBLIC UTILITY HOLDING COMPANY ACT.

         Neither Borrower nor any other Loan Party is a "holding company", or a
 "subsidiary company" of a "holding company", or an "affiliate" of a "holding
 company" or of a "subsidiary company" of a "holding company", within the
 meaning of the Public Utility Holding Company Act of 1935.

         5.12.    MARGIN STOCK.

         Neither Borrower nor any other Loan Party is engaged principally, or as
one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying Margin Stock. No portion of the Obligations is
secured directly or indirectly by Margin Stock.

                                      -31-
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         5.13.    TAXES.

         Each of Borrower and each other Loan Party has filed all tax returns
and reports required by law to have been filed by it and has paid all taxes and
governmental charges thereby shown to be owing, except any such taxes or charges
which are being diligently contested in good faith by appropriate proceedings
and for which adequate reserves in accordance with GAAP shall have been set
aside on its books.

         5.14.    SOLVENCY.

         On the Closing Date, and immediately prior to and after giving effect
to the issuance of each Letter of Credit and each borrowing hereunder and the
use of the proceeds thereof, with respect to each of Borrower and each other
Loan Party, individually, (a) the fair value of its assets is greater than the
amount of its probable liabilities (including disputed, contingent and
unliquidated liabilities) as such value is established and liabilities
evaluated, (b) the present fair saleable value of its assets is not less than
the amount that will be required to pay the probable liability on its debts as
they become absolute and matured, (c) it is able to realize upon its assets and
pay its debts and other liabilities (including disputed, contingent and
unliquidated liabilities) as they mature in the normal course of business, (d)
it does not intend to, and does not believe that it will, incur debts or
liabilities beyond its ability to pay as such debts and liabilities mature and
(e) it is not engaged in business or a transaction, and is not about to engage
in business or a transaction, for which its property would constitute
unreasonably small capital.

         5.15.    ENVIRONMENTAL MATTERS.

         The on-going operations of Borrower and each other Loan Party comply in
all respects with all Environmental Laws, except such non-compliance which could
not (if enforced in accordance with applicable law) reasonably be expected to
result in a Material Adverse Effect. Borrower and each other Loan Party have
obtained, and maintained in good standing, all licenses, permits, authorizations
and registrations required under any Environmental Law and necessary for their
respective ordinary course operations, and Borrower and each other Loan Party
are in compliance with all material terms and conditions thereof, except where
the failure to do so could not reasonably be expected to result in material
liability to Borrower or any other Loan Party and could not reasonably be
expected to result in a Material Adverse Effect. None of Borrower, any other
Loan Party or any of their respective properties or operations is subject to any
outstanding written order from or agreement with any Federal, state or local
governmental authority, nor subject to any judicial or docketed administrative
proceeding, respecting any Environmental Law, Environmental Claim or Hazardous
Substance. There are no Hazardous Substances or other conditions or
circumstances existing with respect to any property, or arising from operations
prior to the Closing Date, of Borrower or any other Loan Party that would
reasonably be expected to result in a Material Adverse Effect. Neither Borrower
nor any other Loan Party has any underground storage tanks that are not properly
registered or permitted under applicable Environmental Laws or that are leaking
or disposing of Hazardous Substances.

         5.16.    INSURANCE.

         Borrower and each other Loan Party and their respective properties are
insured with financially sound and reputable insurance companies which are not
Affiliates of Borrower, in such amounts, with such deductibles and covering such
risks as are customarily carried by companies engaged in similar businesses and
owning similar properties in localities where Borrower or such other Loan Party
operates. A true and complete listing of such insurance as of the Closing Date,
including issuers, coverages and deductibles, is set forth on SCHEDULE 5.16.

                                      -32-
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         5.17.    INFORMATION.

         All information heretofore or contemporaneously herewith furnished in
writing by Borrower or any other Loan Party to Administrative Agent or any
Lender for purposes of or in connection with this Agreement and the transactions
contemplated hereby is, and all written information hereafter furnished by or on
behalf of Borrower or any Loan Party to Administrative Agent or any Lender
pursuant hereto or in connection herewith will be, true and accurate in every
material respect on the date as of which such information is dated or certified,
and none of such information is or will be incomplete by omitting to state any
material fact necessary to make such information not misleading in light of the
circumstances under which made (it being recognized by Administrative Agent and
Lenders that any projections and forecasts provided by Borrower are based on
good faith estimates and assumptions believed by Borrower to be reasonable as of
the date of the applicable projections or assumptions and that actual results
during the period or periods covered by any such projections and forecasts may
differ from projected or forecasted results).

         5.18.    INTELLECTUAL PROPERTY.

         Borrower and each other Loan Party owns and possesses or has a license
or other right to use all patents, patent rights, trademarks, trademark rights,
trade names, trade name rights, service marks, service mark rights and
copyrights as are necessary for the conduct of the business of Borrower and the
other Loan Parties, without any infringement upon rights of others which could
reasonably be expected to have a Material Adverse Effect.

         5.19.    RESTRICTIVE PROVISIONS.

         Neither Borrower nor any other Loan Party is a party to any agreement
or contract or subject to any restriction contained in its operative documents
which could reasonably be expected to have a Material Adverse Effect.

         5.20.    LABOR MATTERS.

         Except as set forth on SCHEDULE 5.20, neither Borrower nor any other
Loan Party is subject to any labor or collective bargaining agreement. There are
no existing or threatened strikes, lockouts or other labor disputes involving
Borrower or any other Loan Party that singly or in the aggregate could
reasonably be expected to have a Material Adverse Effect. Hours worked by and
payment made to employees of Borrower and the other Loan Parties are not in
violation of the Fair Labor Standards Act or any other applicable law, rule or
regulation dealing with such matters.

         5.21.    NO DEFAULT.

         No Event of Default or Default exists or would result from the
incurrence by any Loan Party of any Debt hereunder or under any other Loan
Document.

         5.22.    RELATED AGREEMENTS.

                  (a)     Borrower has furnished Administrative Agent a true and
correct copy of the Related Agreements pursuant hereto. Each of Borrower and, to
Borrower's knowledge, each other party to the Related Agreements, has duly taken
all necessary organizational action to authorize the execution, delivery and
performance of the Related Agreements and the consummation of transactions
contemplated thereby. As of the Closing Date, the Related Transactions have been
consummated in accordance with the terms of the Related Agreements. The Related
Transactions will comply with all applicable legal requirements, and all
necessary governmental, regulatory, creditor, shareholder, partner and other
material

                                      -33-
<Page>

consents, approvals and exemptions required to be obtained by Borrower and, to
Borrower's knowledge, each other party to the Related Agreements in connection
with the Related Transactions will be, prior to consummation of the Related
Transactions, duly obtained and will be in full force and effect. As of the date
of the Related Agreements, all applicable waiting periods with respect to the
Related Transactions will have expired without any action being taken by any
competent governmental authority which restrains, prevents or imposes material
adverse conditions upon the consummation of the Related Transactions. The
execution and delivery of the Related Agreements did not, and the consummation
of the Related Transactions will not, violate any statute or regulation of the
United States (including any securities law) or of any state or other applicable
jurisdiction, or any order, judgment or decree of any court or governmental body
binding on Borrower or, to Borrower's knowledge, any other party to the Related
Agreements, or result in a breach of, or constitute a default under, any
material agreement, indenture, instrument or other document, or any judgment,
order or decree, to which Borrower is a party or by which Borrower is bound or,
to Borrower's knowledge, to which any other party to the Related Agreements is a
party or by which any such party is bound. No statement or representation made
in the Related Agreements by Borrower or, to Borrower's knowledge, any other
Person, contains any untrue statement of a material fact or omits to state any
material fact required to be stated therein or necessary in order to make the
statements made therein, in light of the circumstances under which they are
made, not misleading.

                  (b)     The subordination provisions of the Subordinated Debt
are enforceable against the holders of the Subordinated Debt by Administrative
Agent and Lenders. All Obligations constitute senior Indebtedness entitled to
the benefits of the subordination provisions contained in the Mezzanine
Subordination Agreement and the Seller Subordination Agreement. Borrower
acknowledges that Administrative Agent and each Lender are entering into this
Agreement and are extending the Commitments and making the Loans in reliance
upon the subordination provisions of the Subordinated Debt and this SECTION
5.22.

Section 6.        AFFIRMATIVE COVENANTS.

         Until the expiration or termination of the Commitments and thereafter
until all Obligations (other than contingent indemnification obligations to the
extent no claim giving rise thereto has been asserted) of Borrower and the other
Loan Parties hereunder and under the other Loan Documents are paid in full and
all Letters of Credit have been terminated. Borrower agrees that, unless at any
time Required Lenders shall otherwise expressly consent in writing, it will:

         6.1.     INFORMATION.

         Furnish to Administrative Agent and each Lender:

         6.1.1.   ANNUAL REPORT.

                  Promptly when available and in any event within 90 days after
the close of each Fiscal Year: (a) a copy of the annual audit report of Borrower
and the Subsidiaries for such Fiscal Year, including therein a consolidated
balance sheet and statements of earnings and cash flows of Borrower and the
Subsidiaries as at the end of and for such Fiscal Year, certified without
qualification by independent auditors of recognized standing selected by
Borrower and reasonably acceptable to Administrative Agent, together with (i) a
written statement from such accountants to the effect that in making the
examination necessary for the signing of such annual audit report by such
accountants, nothing came to their attention that caused them to believe that
Borrower was not in compliance with any provision of SECTION 7.1, 7.3, 7.4 or
7.14 insofar as such provision relates to accounting matters or, if something
has come to their attention that caused them to believe that Borrower was not in
compliance with any such provision, describing such non-compliance in reasonable
detail and (ii) a comparison with the budget for such Fiscal

                                      -34-
<Page>

Year and a comparison with the previous Fiscal Year; and (b) a consolidating
balance sheet of Borrower and the Subsidiaries as of the end of such Fiscal Year
and consolidating statements of earnings and cash flows for Borrower and the
Subsidiaries for such Fiscal Year, certified by the chief financial officer of
Borrower.

         6.1.2.   INTERIM REPORTS.

                  Promptly when available and in any event within 30 days after
the end of each month, (i) consolidated and consolidating balance sheets of
Borrower and the Subsidiaries as of the end of such month, together with
consolidated and consolidating statements of earnings and a consolidated and
consolidating statement of cash flows for such month and for the period
beginning with the first day of such Fiscal Year and ending on the last day of
such month, together with a comparison with the corresponding period of the
previous Fiscal Year and a comparison with the budget for such period of the
current Fiscal Year, certified by the chief financial officer of Borrower, and
(ii) a written statement of Borrower's management setting forth a discussion of
Borrower's financial condition, changes in financial condition and results of
operations.

         6.1.3.   COMPLIANCE CERTIFICATE.

                  Contemporaneously with the furnishing of a copy of each annual
audit report pursuant to SECTION 6.1.1 and each set of monthly statements
delivered at the end of each Fiscal Quarter pursuant to SECTION 6.1.2 (and as
required by SECTIONS 7.4 AND 7.11) a duly completed Compliance Certificate, with
appropriate insertions, dated the date of such annual report or such quarterly
statements, and signed by the chief financial officer of Borrower, containing a
computation of each of the financial ratios and restrictions set forth in
SECTION 7.14 and to the effect that such officer has not become aware of any
Event of Default or Default that has occurred and is continuing or, if there is
any such event, describing it and the steps, if any, being taken to cure it.

         6.1.4.   REPORTS TO SEC AND SHAREHOLDERS.

                  Promptly upon the filing or sending thereof, copies of (a) all
regular, periodic or special reports of each Loan Party filed with the
Securities Exchange Commission, (b) all registration statements of each Loan
Party filed with the Securities Exchange Commission (other than on Form S-8) and
(c) all proxy statements or other communications made to security holders
generally.

         6.1.5.   NOTICE OF DEFAULT; LITIGATION; ERISA MATTERS.

                  Promptly upon becoming aware of any of the following, written
notice describing the same and the steps being taken by Borrower or the
applicable Loan Party affected thereby with respect thereto:

                  (a)     the occurrence of an Event of Default or a Default;

                  (b)     any litigation, arbitration or governmental
investigation or proceeding not previously disclosed by Borrower to Lenders
which has been instituted or, to the knowledge of Borrower, is threatened
against Borrower or any other Loan Party or to which any of the properties of
any thereof is subject which would reasonably be expected to have a Material
Adverse Effect;

                  (c)     the institution of any steps by any member of the
Controlled Group or any other Person to terminate any Pension Plan, or the
failure of any member of the Controlled Group to make a required contribution to
any Pension Plan (if such failure is sufficient to give rise to a Lien under
Section 302(f) of ERISA) or to any Multiemployer Pension Plan, or the taking of
any action with respect to a

                                      -35-
<Page>

Pension Plan which could result in the requirement that Borrower or any other
Loan Party furnish a bond or other security to the PBGC or such Pension Plan, or
the occurrence of any event with respect to any Pension Plan or Multiemployer
Pension Plan which could result in the incurrence by any member of the
Controlled Group of any material liability, fine or penalty (including any claim
or demand for withdrawal liability or partial withdrawal from any Multiemployer
Pension Plan), or any material increase in the contingent liability of Borrower
or any other Loan Party with respect to any post-retirement welfare plan
benefit, or any notice that any Multiemployer Pension Plan is in reorganization,
that increased contributions may be required to avoid a reduction in plan
benefits or the imposition of an excise tax, that any such plan is or has been
funded at a rate less than that required under Section 412 of the IRC, that any
such plan is or may be terminated, or that any such plan is or may become
insolvent;

                  (d)     any cancellation or material change in any insurance
maintained by Borrower or any other Loan Party; or

                  (e)     any other event (including (i) any violation of any
Environmental Law or the assertion of any Environmental Claim or (ii) the
enactment or effectiveness of any law, rule or regulation) which would
reasonably be expected to have a Material Adverse Effect.

         6.1.6.   AVAILABILITY CERTIFICATE.

                  Contemporaneously with the furnishing of a copy of each set of
monthly statements pursuant to SECTION 6.1.2. an Availability Certificate dated
as of the end of the most recently ended month and executed by a chief financial
officer of Borrower on behalf of Borrower; provided that at any time an Event of
Default exists, Administrative Agent may require Borrower to deliver
Availability Certificates more frequently.

         6.1.7.   MANAGEMENT REPORT.

                  Promptly upon receipt thereof, copies of all detailed
financial and management reports submitted to Borrower or any other Loan Party
by independent auditors in connection with each annual or interim audit made by
such auditors of the books of Borrower or any other Loan Party.

         6.1.8.   PROJECTIONS.

                  As soon as practicable, and in any event not later than the
last day of each Fiscal Year, financial projections for Borrower and the
Subsidiaries for the upcoming three Fiscal Years (including monthly operating
and cash flow budgets for the immediately following Fiscal Year) prepared in a
manner consistent with the projections delivered by Borrower to Lenders prior to
the Closing Date or otherwise in a manner reasonably satisfactory to
Administrative Agent, accompanied by a certificate of a chief financial officer
of Borrower on behalf of Borrower to the effect that (a) such projections were
prepared by Borrower in good faith, (b) Borrower has a reasonable basis for the
assumptions contained in such projections and (c) such projections have been
prepared in accordance with such assumptions.

         6.1.9.   SUBORDINATED DEBT NOTICES.

                  Promptly following receipt, copies of any notices (including
notices of default or acceleration) received from any holder or trustee of,
under or with respect to any Subordinated Debt.

         6.1.10.  OTHER INFORMATION.

                  Promptly from time to time, such other information concerning
Borrower and any other Loan Party as any Lender or Administrative Agent may
reasonably request.

                                      -36-
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         6.2.     BOOKS; RECORDS; INSPECTIONS.

         Keep, and cause each other Loan Party to keep, its books and records in
accordance with sound business practices sufficient to allow the preparation of
financial statements in accordance with GAAP; permit, and cause each other Loan
Party to permit, Administrative Agent (accompanied by any Lender) or any
representative thereof to inspect the properties and operations of Borrower or
such other Loan Party; and permit, and cause each other Loan Party to permit, at
any reasonable time and with reasonable notice (or at any time without notice if
an Event of Default exists), Administrative Agent (accompanied by any Lender) or
any representative thereof to visit any or all of its offices, to discuss its
financial matters with its officers and its independent auditors (and Borrower
hereby authorizes such independent auditors to discuss such financial matters
with any Lender or Administrative Agent or any representative thereof), and to
examine (and, at the expense of Borrower or the applicable Loan Party, photocopy
extracts from) any of its books or other records; and permit, and cause each
other Loan Party to permit, Administrative Agent and its representatives to
inspect the Collateral and other tangible assets of Borrower or such Subsidiary,
to perform appraisals of the equipment of Borrower or such Subsidiary, and to
inspect, audit, check and make copies of and extracts from the books, records,
computer data, computer programs, journals, orders, receipts, correspondence and
other data relating to any Collateral. All such inspections or audits by
Administrative Agent shall be at Borrower's expense, provided that so long as no
Event of Default or Default exists, (i) Borrower shall not be required to
reimburse Administrative Agent for appraisals more frequently than once each
Fiscal Year and (ii) Administrative Agent will conduct no more than two such
inspections or appraisals in any Fiscal Year.

         6.3.     MAINTENANCE OF PROPERTY; INSURANCE.

                  (a)     Keep, and cause each other Loan Party to keep, all
property useful and necessary in the business of Borrower or such other Loan
Party in good working order and condition, ordinary wear and tear excepted.

                  (b)     Maintain, and cause each other Loan Party to maintain,
with responsible insurance companies, such insurance coverage as shall be
required by all laws, governmental regulations and court decrees and orders
applicable to it and such other insurance, to such extent and against such
hazards and liabilities, as is customarily maintained by companies similarly
situated; provided that in any event, such insurance shall insure against all
risks and liabilities of the type insured against as of the Closing Date and
shall have insured amounts no less than, and deductibles no higher than, those
amounts provided for as of the Closing Date. Upon request of Administrative
Agent or any Lender, Borrower shall furnish to Administrative Agent or such
Lender a certificate setting forth in reasonable detail the nature and extent of
all insurance maintained by Borrower and each other Loan Party. Borrower shall
cause each issuer of an insurance policy to provide Administrative Agent with an
endorsement (i) showing Administrative Agent as a loss payee with respect to
each policy of property or casualty insurance and naming Administrative Agent
and each Lender as an additional insured with respect to each policy of
liability insurance, (ii) providing that 30 days' notice will be given to
Administrative Agent prior to any cancellation of, or reduction or change in
coverage provided by or other material modification to such policy and (iii)
reasonably acceptable in all other respects to Administrative Agent. Borrower
shall execute and deliver to Administrative Agent a collateral assignment, in
form and substance reasonably satisfactory to Administrative Agent, of each
business interruption insurance policy maintained by the Loan Parties. Borrower
shall maintain the existing key man life insurance policies, covering the lives
of Stephen M. Lamando, Brian E. Kramer and Peter A. Krell, and shall execute and
deliver to Administrative Agent a collateral assignment thereof, in form and
substance satisfactory to Administrative Agent.

                  (c)     Unless Borrower provides Administrative Agent with
evidence of the continuing insurance coverage required by this Agreement,
Administrative Agent may purchase insurance at

                                      -37-
<Page>

Borrower's expense to protect Administrative Agent's and Lenders' interests in
the Collateral. This insurance may, but need not, protect Borrower's and each
other Loan Party's interests. The coverage that Administrative Agent purchases
may, but need not, pay any claim that is made against Borrower or any other Loan
Party in connection with the Collateral. Administrative Agent shall provide
prior notice to Borrower of Administrative Agent's intention to purchase
insurance under this SECTION 6.3(c). Borrower may later cancel any insurance
purchased by Administrative Agent, but only after providing Administrative Agent
with evidence that Borrower has obtained the insurance coverage required by this
Agreement. If Administrative Agent purchases insurance for the Collateral, as
set forth above, Borrower will be responsible for the costs of that insurance,
including interest and any other charges that may be imposed with the placement
of the insurance, until the effective date of the cancellation or expiration of
the insurance and the costs of the insurance may be added to the principal
amount of the Loans owing hereunder.

         6.4.     COMPLIANCE WITH LAWS; PAYMENT OF TAXES AND LIABILITIES.

         (a) Comply, and cause each other Loan Party to comply, in all material
respects with all applicable laws, rules, regulations, decrees, orders,
judgments, licenses and permits, except where failure to comply would not
reasonably be expected to have a Material Adverse Effect; and (b) pay, and cause
each other Loan Party to pay, prior to delinquency, all taxes and other
governmental charges against it or any of its property, as well as claims of any
kind which, if unpaid, could become a Lien on any of its property; provided that
the foregoing shall not require Borrower or any other Loan Party to pay any such
tax or charge so long as it shall contest the validity thereof in good faith by
appropriate proceedings and shall set aside on its books adequate reserves with
respect thereto in accordance with GAAP.

         6.5.     MAINTENANCE OF EXISTENCE.

         Maintain and preserve, and (subject to SECTION 7.5) cause each other
Loan Party to maintain and preserve, (a) its existence and good standing in the
jurisdiction of its organization and (b) its qualification to do business and
good standing in each jurisdiction where the nature of its business makes such
qualification necessary, other than any such jurisdiction where the failure to
be qualified or in good standing would not reasonably be expected to have a
Material Adverse Effect.

         6.6.     EMPLOYEE BENEFIT PLANS.

         Maintain, and cause each other Loan Party to maintain, each Pension
Plan in substantial compliance with all applicable requirements of law and
regulations.

         6.7.     ENVIRONMENTAL MATTERS.

         If any release or disposal of Hazardous Substances shall occur or shall
have occurred on any real property or any other assets of Borrower or any other
Loan Party, cause, or direct the applicable Loan Party to cause, the prompt
containment and removal of such Hazardous Substances and the remediation of such
real property or other assets as is necessary to comply with all Environmental
Laws and to preserve the value of such real property or other assets, unless
such release or disposal would not reasonably be expected to have a Material
Adverse Effect. Without limiting the generality of the foregoing, Borrower
shall, and shall cause each other Loan Party to, comply with each valid Federal
or state judicial or administrative order requiring the performance at any real
property by Borrower or any other Loan Party of activities in response to the
release or threatened release of a Hazardous Substance, unless the failure to
comply with such orders would not reasonably be expected to have a Material
Adverse Effect.

                                      -38-
<Page>

         6.8.     FURTHER ASSURANCES.

         Take, and cause each other Loan Party to take, such actions as are
necessary or as Administrative Agent or the Required Lenders may reasonably
request from time to time to ensure that the Obligations of Borrower and each
other Loan Party under the Loan Documents are secured by substantially all of
the assets of Borrower and each domestic Loan Party (as well as all equity
interests of Borrower, each domestic Subsidiary and 65% of all equity interests
of each direct foreign Subsidiary) and guaranteed by each domestic Loan Party
(including, promptly upon the acquisition or creation thereof, any Subsidiary
acquired or created after the Closing Date), in each case including (a) the
execution and delivery of guaranties, security agreements, pledge agreements,
mortgages, deeds of trust, financing statements and other documents, and the
filing or recording of any of the foregoing and (b) the delivery of certificated
securities and other Collateral with respect to which perfection is obtained by
possession.

         6.9.     INTEREST RATE PROTECTION.

         Enter into, not later than 120 days after the Closing Date, an interest
rate protection mechanism with a term of at least two years on an ISDA standard
form with one or more Lenders or Affiliates thereof or with counterparties
reasonably acceptable to Administrative Agent to hedge the interest rate with
respect to not less than 50% of the principal amount of the Term Loans, in form
and substance reasonably satisfactory to Administrative Agent.

Section 7.        Negative Covenants.

         Until the expiration or termination of the Commitments and thereafter
until all Obligations (other than contingent indemnification obligations to the
extent no claim giving rise thereto has been asserted) of Borrower and the other
Loan Parties hereunder and under the other Loan Documents are paid in full and
all Letters of Credit have been terminated, Borrower agrees that, unless at any
time Required Lenders shall otherwise expressly consent in writing, it will:

         7.1.     DEBT.

         Not, and not permit any other Loan Party to, create, incur, assume or
suffer to exist any Debt, except:

                  (a)     Obligations under this Agreement and the other Loan
Documents;

                  (b)     Debt secured by Liens permitted by SECTION 7.2(d), and
extensions, renewals and refinancings thereof; provided that the aggregate
amount of all such Debt at any time outstanding shall not exceed $500,000;

                  (c)     Debt of Borrower to any domestic Wholly-Owned
Subsidiary or Debt of any domestic Wholly-Owned Subsidiary to Borrower or
another domestic Wholly-Owned Subsidiary;

                  (d)     Hedging Obligations incurred to satisfy Borrower's
obligations under SECTION 6.9;

                  (e)     Debt described on SCHEDULE 7.1 as of the Closing Date,
and any extension, renewal or refinancing thereof so long as the principal
amount thereof is not increased;

                  (f)     The Mezzanine Subordinated Debt;

                                      -39-
<Page>

                  (g)     Contingent Obligations arising with respect to
customary indemnification obligations in favor of purchasers in connection with
dispositions permitted under SECTION 7.5;

                  (h)     The Contingent Payments;

                  (i)     The Seller Subordinated Debt; and

                  (j)     other Debt, in addition to the Debt listed above, in
an aggregate outstanding amount not at any time exceeding $500,000.

         7.2.     LIENS.

         Not, and not permit any other Loan Party to, create or permit to exist
any Lien on any of its real or personal properties, assets or rights of
whatsoever nature (whether now owned or hereafter acquired), except:

                  (a)     Liens for taxes or other governmental charges not at
the time delinquent or thereafter payable without penalty or being diligently
contested in good faith by appropriate proceedings and, in each case, for which
it maintains adequate reserves in accordance with GAAP;

                  (b)     Liens arising in the ordinary course of business (such
as (i) Liens of carriers, warehousemen, mechanics, landlords and materialmen and
other similar Liens imposed by law and (ii) Liens incurred in connection with
worker's compensation, unemployment compensation and other types of social
security (excluding Liens arising under ERISA) or in connection with surety
bonds, bids, performance bonds and similar obligations) for sums not overdue or
being diligently contested in good faith by appropriate proceedings and not
involving any deposits or advances or borrowed money or the deferred purchase
price of property or services and, in each case, for which it maintains adequate
reserves in accordance with GAAP;

                  (c)     Liens described on SCHEDULE 7.2 as of the Closing
Date;

                  (d)     subject to the limitation set forth in SECTION 7.1(b),
(i) Liens arising in connection with Capital Leases (and attaching only to the
property being leased), (ii) Liens existing on property at the time of the
acquisition thereof by Borrower or any Subsidiary (and not created in
contemplation of such acquisition) and (iii) Liens that constitute purchase
money security interests on any property securing debt incurred for the purpose
of financing all or any part of the cost of acquiring such property, provided
that any such Lien attaches to such property within 60 days of the acquisition
thereof and attaches solely to the property so acquired;

                  (e)     attachments, appeal bonds, judgments and other similar
Liens, for sums not exceeding $500,000 arising in connection with court
proceedings; provided that the execution or other enforcement of such Liens is
effectively stayed and the claims secured thereby are being actively contested
in good faith and by appropriate proceedings;

                  (f)     easements, rights of way, restrictions, minor defects
or irregularities in title and other similar Liens not interfering in any
material respect with the ordinary conduct of the business of Borrower or any
Subsidiary;

                  (g)     Liens arising under the Loan Documents; and

                                      -40-
<Page>

                  (h)     the replacement, extension or renewal of any Lien
permitted by clause (c) above upon or in the same property subject thereto
arising out of the extension, renewal or replacement of the Debt secured thereby
(without increase in the amount thereof).

         7.3.     [INTENTIONALLY OMITTED]

         7.4.     RESTRICTED PAYMENTS.

         Not, and not permit any other Loan Party to, (a) make any dividend or
other distribution to any of its equity holders, (b) purchase or redeem any of
its equity interests or any warrants, options or other rights in respect
thereof, (c) pay any management fees or similar fees to any of its equity
holders or any Affiliate thereof, (d) make any redemption, prepayment (whether
mandatory or optional), defeasance, repurchase or any other payment in respect
of any Subordinated Debt or (e) set aside funds for any of the foregoing.
Notwithstanding the foregoing, (i) any Subsidiary may pay dividends or make
other distributions to Borrower or to a domestic Wholly-Owned Subsidiary; (ii)
Borrower may make distributions to Holdings to permit Holdings to pay federal
and state income taxes then due and owing by Holdings (or its equity holders),
so long as the amount of such distributions shall not be greater, nor the
receipt by Borrower of tax benefits less, than they would have been had Borrower
not filed consolidated income tax returns with such Person; (iii) Borrower may
make payments in respect of Mezzanine Subordinated Debt to the extent permitted
under the Mezzanine Subordination Agreement; (iv) Borrower may make cash
payments in respect of the Contingent Payments to the extent that such payments
are made with proceeds of the Acquisition Escrow, and (v) after the depletion of
the Acquisition Escrow, Borrower may either (A) make regularly scheduled
payments of interest in respect of Seller Subordinated Debt, in each case due
and payable on a nonaccelerated basis, to the extent permitted under the Seller
Subordination Agreement or (B) make up to $20,000,000 of cash payments in
respect of the Contingent Payments so long as (1) no Event of Default or Default
exists or would result therefrom, (2) immediately after giving effect to such
payment, Borrower is in pro forma compliance with SECTION 7.14, as reflected in
a Compliance Certificate delivered to Administrative Agent at least three
Business Days prior to the making of such payment and (3) immediately after
giving effect to such payment, Borrower, on a pro forma basis, has Borrowing
Availability of at least $2,000,000.

         7.5.     SUBSIDIARIES; MERGERS; CONSOLIDATIONS; ASSET SALES.

                  (a)     Not, and not permit any other Loan Party to, be a
party to any merger or consolidation, except for (i) any such merger or
consolidation of any Subsidiary into Borrower or any domestic Wholly-Owned
Subsidiary and (ii) Acquisitions permitted under SECTION 7.11.

                  (b)     Not, and not permit any other Loan Party to, sell,
transfer, dispose of, convey or lease any of its assets or equity interests, or
sell or assign with or without recourse any receivables, except for (i) sales
and dispositions of assets (excluding any equity interests of Borrower or any
Subsidiary) for at least fair market value (as determined by the Board of
Directors of Borrower) so long as the net book value of all assets sold or
otherwise disposed of in any Fiscal Year does not exceed $200,000 and (ii) sales
of inventory in the ordinary course of business.

                  (c)     Not, and not permit any other Loan Party to, form or
acquire any Subsidiary except in connection with, and subject to the
satisfaction of the conditions relating to, an Acquisition as set forth in
SECTION 7.11.

                                      -41-
<Page>

         7.6.     MODIFICATION OF ORGANIZATIONAL DOCUMENTS.

         Not permit the charter, by-laws or other organizational documents of
Borrower or any other Loan Party to be amended or modified in any way which
could reasonably be expected to materially adversely affect the interests of
Administrative Agent or any Lender.

         7.7.     USE OF PROCEEDS.

         Use the proceeds of the Loans, and the Letters of Credit, solely to
finance the Related Transactions, for working capital, for Acquisitions
permitted by SECTION 7.11, for Capital Expenditures and for other general
business purposes; and not use or permit any proceeds of any Loan to be used,
either directly or indirectly, for the purpose, whether immediate, incidental or
ultimate, of "purchasing or carrying" any Margin Stock.

         7.8.     TRANSACTIONS WITH AFFILIATES.

         Except as set forth on SCHEDULE 7.8, not, and not permit any other Loan
Party to, enter into, or cause, suffer or permit to exist any transaction,
arrangement or contract with any of its other Affiliates, which is on terms
which are less favorable than are obtainable from any Person which is not one of
its Affiliates.

         7.9.     INCONSISTENT AGREEMENTS.

         Not, and not permit any other Loan Party to, enter into any agreement
containing any provision which would (a) be violated or breached by any
borrowing by Borrower hereunder or by the performance by Borrower or any other
Loan Party of any of its Obligations hereunder or under any other Loan Document,
(b) prohibit Borrower or any other Loan Party from granting to Administrative
Agent and Lenders a Lien on any of its assets or (c) create or permit to exist
or become effective any encumbrance or restriction on the ability of any other
Loan Party to (i) pay dividends or make other distributions to Borrower or any
other Subsidiary, or pay any Debt owed to Borrower or any other Subsidiary, (ii)
make loans or advances to Borrower or any other Loan Party or (iii) transfer any
of its assets or properties to Borrower or any other Loan Party.

         7.10.    BUSINESS ACTIVITIES.

         Not, and not permit any other Loan Party to, engage in any line of
business other than the businesses engaged in on the Closing Date and businesses
reasonably related thereto. Not, and not permit any other Loan Party to, issue
any equity interest other than (a) any issuance of shares of Holdings' common
equity securities pursuant to any employee or director option or stock purchase
program, benefit plan or compensation program, or (b) any issuance by a
Subsidiary to Borrower or another Subsidiary in accordance with SECTION 7.4.

         7.11.    INVESTMENTS.

         Not, and not permit any other Loan Party to, make or permit to exist
any Investment in any other Person, except the following:

                  (a)     Investments constituting Debt permitted by SECTION
7.1(c);

                  (b)     Contingent Obligations constituting Debt permitted by
SECTION 7.1 or Liens permitted by SECTION 7.2;

                                      -42-
<Page>

                  (c)     Cash Equivalent Investments;

                  (d)     bank deposits in the ordinary course of business;

                  (e)     Investments in securities of Account Debtors received
pursuant to any plan of reorganization or similar arrangement upon the
bankruptcy or insolvency of such Account Debtors;

                  (f)     Investments listed on SCHEDULE 7.11 as of the Closing
Date;

                  (g)     any purchase or other acquisition by Borrower or any
domestic Wholly-Owned Subsidiary of the assets or equity interests of any
Subsidiary; and

                  (h)     any purchase or Acquisition by Borrower or any
domestic Wholly-Owned Subsidiary of the assets or equity interests of a Target
to the extent the Permitted Acquisitions Conditions Precedent attached hereto as
Exhibit E are satisfied in a manner satisfactory to Administrative Agent and
Required Lenders.

         7.12.    RESTRICTION OF AMENDMENTS TO CERTAIN DOCUMENTS.

         Not amend or otherwise modify, or waive any rights under (a) any
Related Agreement, other than immaterial amendments, modifications and waivers
not adverse to the interests of Administrative Agent or any Lender or (b) any
provisions of any Subordinated Debt (except that the terms of the Mezzanine
Subordinated Debt may be amended to the extent permitted under the Mezzanine
Subordination Agreement).

         7.13.    FISCAL YEAR.

         Not change its Fiscal Year.

         7.14.    FINANCIAL COVENANTS.

         7.14.1.  FIXED CHARGE COVERAGE RATIO.

                  Not permit the Fixed Charge Coverage Ratio for any Computation
Period to be less than the applicable ratio set forth below for such Computation
Period:

<Table>
<Caption>
                             Computation                                        Fixed Charge
                            Period Ending                                      Coverage Ratio
                            -------------                                      --------------
           <S>                                                                    <C>
           September 30, 2004                                                     1.10:1.00
           December 31, 2004                                                      1.15:1.00
           March 31, 2005                                                         1.20:1.00
           June 30, 2005 and the last day of each
           Computation Period thereafter                                          1.25:1.00
</Table>

         7.14.2.  SENIOR DEBT TO EBITDA RATIO.

                  Not permit the Senior Debt to EBITDA Ratio as of the last day
of any Computation Period to exceed the applicable ratio set forth below for
such Computation Period:

                                      -43-
<Page>

<Table>
<Caption>
                             Computation                                       Senior Debt to
                            Period Ending                                       EBITDA Ratio
                            -------------                                       ------------
           <S>                                                                    <C>
           September 30, 2004                                                     2.90:1.00
           December 31, 2004                                                      2.50:1.00
           March 31, 2005                                                         2.30:1.00
           June 30, 2005                                                          2.15:1.00
           September 30, 2005                                                     2.00:1.00
           December 31, 2005                                                      1.80:1.00
           March 31, 2006                                                         1.75:1.00
           June 30, 2006                                                          1.60:1.00
           September 30, 2006 and on the last day of each
           Computation Period thereafter                                          1.50:1.00
</Table>

         7.14.3.  TOTAL DEBT TO EBITDA RATIO.

                  Not permit the Total Debt to EBITDA Ratio as of the last day
of any Computation Period to exceed the applicable ratio set forth below for
such Computation Period:

<Table>
<Caption>
                             Computation                                       Total Debt to
                            Period Ending                                       EBITDA Ratio
                            -------------                                       ------------
           <S>                                                                    <C>
           September 30, 2004                                                     4.00:1.00
           December 31, 2004                                                      3.45:1.00
           March 31, 2005                                                         3.25:1.00
           June 30, 2005                                                          3.00:1.00
           September 30, 2005                                                     2.85:1.00
           December 31, 2005                                                      2.75:1.00
           March 31, 2006                                                         2.75:1.00
           June 30, 2006                                                          2.50:1.00
           September 30, 2006                                                     2.50:1.00
           December 31, 2006 and the last day of each
           Computation Period thereafter                                          2.25:1.00
</Table>

         7.14.4.  CAPITAL EXPENDITURES.

                  Not permit the aggregate amount of all Capital Expenditures
made by Borrower and the Subsidiaries in any Fiscal Year to exceed the
applicable amount set forth below for such Fiscal Year:

                                      -44-
<Page>

<Table>
<Caption>
                                                                                 Capital
                            Fiscal Year Ending                                 Expenditures
                            ------------------                                 ------------
           <S>                                                                 <C>
           December 31, 2004                                                   $  4,200,000
           December 31, 2005                                                   $  3,900,000
           December 31, 2006                                                   $  4,000,000
           December 31, 2007                                                   $  4,400,000
           December 31, 2008                                                   $  4,800,000
           December 31, 2009                                                   $  5,500,000
</Table>

If Borrower does not utilize the entire amount of Capital Expenditures permitted
in any Fiscal Year, so long as no Default or Event of Default exists or would be
caused thereby, Borrower may carry forward to the immediately succeeding Fiscal
Year only, 50% of such unutilized amount (with Capital Expenditures made by
Borrower in such succeeding Fiscal Year applied last to such unutilized amount).

         7.15.    BANK ACCOUNTS.

                  Not, and not permit any other Loan Party, to maintain or
establish any new bank accounts other than the bank accounts set forth on
SCHEDULE 7.15 without prior written notice to Administrative Agent and unless
Administrative Agent, Borrower or such other Loan Party and the bank at which
the account is to be opened enter into a tri-party agreement regarding such bank
account pursuant to which such bank acknowledges the security interest and
control of Administrative Agent in such bank account and agrees to limit its
set-off rights on terms satisfactory to Administrative Agent.

Section 8.        EVENTS OF DEFAULT; REMEDIES.

         8.1.     EVENTS OF DEFAULT.

         Each of the following shall constitute an Event of Default under this
Agreement:

         8.1.1.   NON-PAYMENT OF CREDIT.

                  Default in the payment when due of the principal of any Loan;
or default, and continuance thereof for three days, in the payment when due of
any interest, fee, reimbursement obligation with respect to any Letter of Credit
or other amount payable by any Loan Party hereunder or under any other Loan
Document.

         8.1.2.   DEFAULT UNDER OTHER DEBT.

                  Any default shall occur under the terms of the Mezzanine
Subordinated Debt Documents; or any default shall occur under the terms
applicable to any other Debt of any Loan Party in an aggregate amount (for all
such Debt so affected and including undrawn committed or available amounts and
amounts owing to all creditors under any combined or syndicated credit
arrangement) exceeding $500,000 and such default shall (a) consist of the
failure to pay such Debt when due, whether by acceleration or otherwise, or (b)
accelerate the maturity of such Debt or permit the holder or holders thereof, or
any trustee or agent for such holder or holders, to cause such Debt to become
due and payable (or require Borrower or any other Loan Party to purchase or
redeem such Debt or post cash collateral in respect thereof) prior to its
expressed maturity.

         8.1.3.   BANKRUPTCY; INSOLVENCY.

                  Any Loan Party becomes insolvent or generally fails to pay, or
admits in writing its inability or refusal to pay, debts as they become due; or
any Loan Party applies for, consents to, or acquiesces in the appointment of a
trustee, receiver or other custodian for such Loan Party or any property

                                      -45-
<Page>

thereof, or makes a general assignment for the benefit of creditors; or, in the
absence of such application, consent or acquiescence, a trustee, receiver or
other custodian is appointed for any Loan Party or for a substantial part of the
property of any thereof and is not discharged within 60 days; or any bankruptcy,
reorganization, debt arrangement, or other case or proceeding under any
bankruptcy or insolvency law, or any dissolution or liquidation proceeding, is
commenced in respect of any Loan Party, and if such case or proceeding is not
commenced by such Loan Party, it is consented to or acquiesced in by such Loan
Party, or remains for 60 days undismissed; or any Loan Party takes any action to
authorize, or in furtherance of, any of the foregoing.

         8.1.4.   NON-COMPLIANCE WITH LOAN DOCUMENTS.

                  (a) Failure by Borrower to comply with or to perform any
covenant set forth in SECTIONS 6.1.1, 6.1.2, 6.1.3, 6.1.4, 6.1.5(a), 6.1.6,
6.1.8, 6.3(b) and (c), 6.5, 6.7, 6.9, 6.10 and 7; or (b) failure by any Loan
Party to comply with or to perform any other provision of this Agreement or any
other Loan Document applicable to it (and not constituting an Event of Default
under any other provision of this SECTION 8) and continuance of such failure
described in this clause (b) for 30 days.

         8.1.5.   REPRESENTATIONS; WARRANTIES.

                  Any representation or warranty made by any Loan Party herein
or any other Loan Document is breached or is false or misleading in any material
respect, or any schedule, certificate, financial statement, report, notice or
other writing furnished by any Loan Party to Administrative Agent or any Lender
in connection herewith is false or misleading in any material respect on the
date as of which the facts therein set forth are stated or certified.

         8.1.6.   PENSION PLANS.

                  (a) Institution of any steps by any Person to terminate a
Pension Plan if as a result of such termination any Loan Party or any member of
the Controlled Group could be required to make a contribution to such Pension
Plan, or could incur a liability or obligation to such Pension Plan, in excess
of $100,000; (b) a contribution failure occurs with respect to any Pension Plan
sufficient to give rise to a Lien under Section 302(f) of ERISA; or (c) there
shall occur any withdrawal or partial withdrawal from a Multiemployer Pension
Plan and the withdrawal liability (without unaccrued interest) to Multiemployer
Pension Plans as a result of such withdrawal (including any outstanding
withdrawal liability that Borrower or any other Loan Party or any member of the
Controlled Group have incurred on the date of such withdrawal) exceeds $500,000.

         8.1.7.   JUDGMENTS.

                  Final judgments which exceed an aggregate of $500,000 shall be
rendered against any Loan Party and shall not have been paid, discharged or
vacated or had execution thereof stayed pending appeal within 30 days after
entry or filing of such judgments.

         8.1.8.   INVALIDITY OF COLLATERAL DOCUMENTS.

                  Any Collateral Document shall cease to be in full force and
effect; or any Loan Party (or any Person by, through or on behalf of any Loan
Party) shall contest in any manner the validity, binding nature or
enforceability of any Collateral Document.

                                      -46-
<Page>

         8.1.9.   INVALIDITY OF SUBORDINATION PROVISIONS.

                  Any subordination provision in any document or instrument
governing Subordinated Debt, or any subordination provision in any guaranty by
any Loan Party of any Subordinated Debt, shall cease to be in full force and
effect, or any Person (including the holder of any applicable Subordinated Debt)
shall contest in any manner the validity, binding nature or enforceability of
any such provision.

         8.1.10.  CHANGE OF CONTROL.

                  a) Sponsor and its Affiliates shall collectively cease to,
directly or indirectly, (i) own and control at least (x) 51% of the outstanding
equity interests of Holdings or (y) possess the right to elect (through
contract, ownership of voting securities or otherwise) a majority of the board
of directors (or similar governing body) of Holdings and to direct the
management policies and decisions of Holdings, or (ii) maintain cash invested in
Holdings in an amount of at least 80% of the amount maintained by Sponsor and
its Affiliates as of the Closing Date, (b) any Person or "group" (within the
meaning of Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934 as in
effect on the Closing Date) other than Sponsor or any of its Affiliates shall
have acquired a greater beneficial ownership in Holdings' voting equity
interests than that held collectively by Sponsor and its Affiliates, (c) a
majority of Holdings' board of directors (or similar governing body) shall cease
to consist of the directors (or similar parties) of Holdings on the Closing Date
(after giving effect to the Related Transactions) and other directors (or
similar parties) whose nomination for election to Holdings' board of directors
(or similar governing body) is recommended by at least a majority of the
foregoing described directors (or similar parties), (d) Holdings shall cease to
directly own and control 100% of each class of the outstanding equity interests
of Borrower (e) Borrower shall cease to, directly or indirectly, own and control
100% of each class of the outstanding equity interests of each Subsidiary, or
(f) a "Change of Control" or other similar event shall occur, as defined in, or
under, the Mezzanine Subordinated Debt Documents or any other documentation
evidencing or otherwise relating to Subordinated Debt.

         8.2.     REMEDIES.

         If any Event of Default described in SECTION 8.1.3 shall occur, the
Commitments shall immediately terminate and the Loans and all other Obligations
shall become immediately due and payable and Borrower shall become immediately
obligated to cash collateralize all Letters of Credit in a manner acceptable to
Administrative Agent, all without presentment, demand, protest or notice of any
kind; and, if any other Event of Default shall occur and be continuing,
Administrative Agent (upon the written request of Required Lenders) shall
declare the Commitments to be terminated in whole or in part and/or declare all
or any part of the Loans and other Obligations to be due and payable and/or
demand that Borrower immediately cash collateralize all or any Letters of Credit
in a manner acceptable to Administrative Agent, whereupon the Commitments shall
immediately terminate (or be reduced, as applicable) and/or the Loans and other
Obligations shall become immediately due and payable (in whole or in part, as
applicable) and/or Borrower shall immediately become obligated to cash
collateralize the Letters of Credit (all or any, as applicable) in a manner
acceptable to Administrative Agent, all without presentment, demand, protest or
notice of any kind. Administrative Agent shall promptly advise Borrower of any
such declaration, but failure to do so shall not impair the effect of such
declaration. Notwithstanding the foregoing, the effect as an Event of Default of
any event described in SECTION 8.1.1 may only be waived by the written
concurrence of each Lender, and the effect as an Event of Default of any other
event described in this SECTION 8 may be waived by the written concurrence of
Required Lenders. Any cash collateral delivered hereunder shall be held by
Administrative Agent (without liability for interest thereon) and applied to
Obligations arising in connection with any drawing under a Letter of Credit.
After the expiration or termination of all Letters of Credit, such cash
collateral shall be applied by Administrative Agent to any remaining Obligations
and any excess shall be delivered to Borrower or as a court of competent
jurisdiction may elect.

                                      -47-
<Page>

Section 9.        ADMINISTRATIVE AGENT.

         9.1.     APPOINTMENT; AUTHORIZATION.

                  (a)     Each Lender hereby irrevocably appoints, designates
and authorizes Administrative Agent to take such action on its behalf under the
provisions of this Agreement and each other Loan Document and to exercise such
powers and perform such duties as are expressly delegated to it by the terms of
this Agreement or any other Loan Document, together with such powers as are
reasonably incidental thereto. Notwithstanding any provision to the contrary
contained elsewhere in this Agreement or in any other Loan Document,
Administrative Agent shall not have any duty or responsibility except those
expressly set forth herein, nor shall Administrative Agent have or be deemed to
have any fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read
into this Agreement or any other Loan Document or otherwise exist against
Administrative Agent.

                  (b)     Issuing Lender shall act on behalf of Lenders
(according to their Pro Rata Revolving Share) with respect to any Letters of
Credit issued by it and the documents associated therewith. Issuing Lender shall
have all of the benefits and immunities (i) provided to Administrative Agent in
this SECTION 9 with respect to any acts taken or omissions suffered by Issuing
Lender in connection with Letters of Credit issued by it or proposed to be
issued by it and the applications and agreements for letters of credit
pertaining to such Letters of Credit as fully as if the term "Administrative
Agent", as used in this SECTION 9, included Issuing Lender with respect to such
acts or omissions and (ii) as additionally provided in this Agreement with
respect to Issuing Lender.

         9.2.     DELEGATION OF DUTIES.

         Administrative Agent may execute any of its duties under this Agreement
or any other Loan Document by or through agents, employees or attorneys-in-fact
and shall be entitled to advice of counsel concerning all matters pertaining to
such duties. Administrative Agent shall not be responsible for the negligence or
misconduct of any agent or attorney-in-fact that it selects with reasonable
care.

         9.3.     LIMITED LIABILITY.

         None of Administrative Agent or any of its directors, officers,
employees or agents shall (a) be liable for any action taken or omitted to be
taken by any of them under or in connection with this Agreement or any other
Loan Document or the transactions contemplated hereby (except to the extent
resulting from its own gross negligence or willful misconduct as determined by a
court of competent jurisdiction), or (b) be responsible in any manner to any
Lender for any recital, statement, representation or warranty made by any Loan
Party or Affiliate of any Loan Party, or any officer thereof, contained in this
Agreement or in any other Loan Document, or in any certificate, report,
statement or other document referred to or provided for in, or received by
Administrative Agent under or in connection with, this Agreement or any other
Loan Document, or the validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement or any other Loan Document (or the creation,
perfection or priority of any Lien or security interest therein), or for any
failure of any Loan Party or any other party to any Loan Document to perform its
Obligations hereunder or thereunder. Administrative Agent shall not be under any
obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this
Agreement or any other Loan Document, or to inspect the properties, books or
records of any Loan Party or Affiliate of any Loan Party.

                                      -48-
<Page>

         9.4.     RELIANCE.

         Administrative Agent shall be entitled to rely, and shall be fully
protected in relying, upon any writing, resolution, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex or telephone message,
statement or other document believed by it to be genuine and correct and to have
been signed, sent or made by the proper Person or Persons, and upon advice and
statements of legal counsel (including counsel to any Loan Party), independent
accountants and other experts selected by Administrative Agent. Administrative
Agent shall be fully justified in failing or refusing to take any action under
this Agreement or any other Loan Document unless it shall first receive such
advice or concurrence of Required Lenders (or all Lenders if expressly required
hereunder) as it deems appropriate and, if it so requests, confirmation from
Lenders of their obligation to indemnify Administrative Agent against any and
all liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. Administrative Agent shall in all cases be
fully protected in acting, or in refraining from acting, under this Agreement or
any other Loan Document in accordance with a request or consent of Required
Lenders (or all Lenders if expressly required hereunder) and such request and
any action taken or failure to act pursuant thereto shall be binding upon each
Lender.

         9.5.     NOTICE OF DEFAULT.

         Administrative Agent shall not be deemed to have knowledge or notice of
the occurrence of any Event of Default or Default except with respect to
defaults in the payment of principal, interest and fees required to be paid to
Administrative Agent for the account of Lenders, unless Administrative Agent
shall have received written notice from a Lender or Borrower referring to this
Agreement, describing such Event of Default or Default and stating that such
notice is a "notice of default". Administrative Agent will notify Lenders of its
receipt of any such notice or any such default in the payment of principal,
interest and fees required to be paid to Administrative Agent for the account of
Lenders. Administrative Agent shall take such action with respect to such Event
of Default or Default as may be requested by Required Lenders in accordance with
SECTION 8; provided that unless and until Administrative Agent has received any
such request, Administrative Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Event of
Default or Default as it shall deem advisable or in the best interest of
Lenders.

         9.6.     CREDIT DECISION.

         Each Lender acknowledges that Administrative Agent has not made any
representation or warranty to it, and that no act by Administrative Agent
hereafter taken, including any review of the affairs of Borrower and the other
Loan Parties, shall be deemed to constitute any representation or warranty by
Administrative Agent to any Lender. Each Lender represents to Administrative
Agent that it has, independently and without reliance upon Administrative Agent
and based on such documents and information as it has deemed appropriate, made
its own appraisal of and investigation into the business, prospects, operations,
property, financial and other condition and creditworthiness of Borrower and the
other Loan Parties, and made its own decision to enter into this Agreement and
to extend credit to Borrower hereunder. Each Lender also represents that it
will, independently and without reliance upon Administrative Agent and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under this Agreement and the other Loan Documents, and to make
such investigations as it deems necessary to inform itself as to the business,
prospects, operations, property, financial and other condition and
creditworthiness of the Loan Parties. Except for notices, reports and other
documents expressly herein required to be furnished to Lenders by Administrative
Agent, Administrative Agent shall not have any duty or responsibility to provide
any Lender with any credit or other information concerning the business,
prospects, operations, property, financial or other condition or
creditworthiness of any Loan Party which may come into the possession of
Administrative Agent.

                                      -49-
<Page>

         9.7.     INDEMNIFICATION.

         Whether or not the transactions contemplated hereby are consummated,
each Lender shall indemnify upon demand Administrative Agent and its directors,
officers, employees and agents (to the extent not reimbursed by or on behalf of
Borrower and without limiting the obligation of Borrower to do so), based on
such Lender's Pro Rata Share, from and against any and all actions, causes of
action, suits, losses, liabilities, damages and expenses, including Legal Costs,
except to the extent any thereof result from the applicable Person's own gross
negligence or willful misconduct, as determined by a court of competent
jurisdiction. Without limitation of the foregoing, each Lender shall reimburse
Administrative Agent upon demand for its ratable share of any costs or
out-of-pocket expenses (including Legal Costs) incurred by Administrative Agent
in connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement, any other Loan Document, or any document
contemplated by or referred to herein, to the extent that Administrative Agent
is not reimbursed for such expenses by or on behalf of Borrower. The undertaking
in this SECTION 9.7 shall survive repayment of the Loans, cancellation of the
Notes, expiration or termination of the Letters of Credit, any foreclosure
under, or modification, release or discharge of, any or all of the Collateral
Documents, termination of this Agreement and the resignation or replacement of
Administrative Agent.

         9.8.     ADMINISTRATIVE AGENT INDIVIDUALLY.

         Madison and its Affiliates may make loans to, issue letters of credit
for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting
or other business with any Loan Party and any Affiliate of any Loan Party as
though Madison were not Administrative Agent hereunder and without notice to or
consent of any Lender. Each Lender acknowledges that, pursuant to such
activities, Madison or its Affiliates may receive information regarding Loan
Parties or their Affiliates (including information that may be subject to
confidentiality obligations in favor of any such Loan Party or such Affiliate)
and acknowledge that Administrative Agent shall be under no obligation to
provide such information to them. With respect to their Loans (if any), Madison
and its Affiliates shall have the same rights and powers under this Agreement as
any other Lender and may exercise the same as though Madison were not
Administrative Agent, and the terms "Lender" and "Lenders" include Madison and
its Affiliates, to the extent applicable, in their individual capacities.

         9.9.     SUCCESSOR ADMINISTRATIVE AGENT.

         Administrative Agent may resign as Administrative Agent upon 30 days'
prior notice to Lenders. If Administrative Agent resigns under this Agreement,
Required Lenders shall, with (so long as no Event of Default exists) the consent
of Borrower (which shall not be unreasonably withheld or delayed), appoint from
among Lenders a successor agent for Lenders. If no successor agent is appointed
prior to the effective date of the resignation of Administrative Agent,
Administrative Agent may appoint, after consulting with Lenders and Borrower, a
successor agent from among Lenders. Upon the acceptance of its appointment as
successor agent hereunder, such successor agent shall succeed to all the rights,
powers and duties of the retiring Administrative Agent and the term
"Administrative Agent" shall mean such successor agent, and the retiring
Administrative Agent's appointment, powers and duties as Administrative Agent
shall be terminated. After any retiring Administrative Agent's resignation
hereunder as Administrative Agent, the provisions of this SECTION 9 and SECTIONS
10.4 and 10.5 shall continue to inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent under this
Agreement. If no successor agent has accepted appointment as Administrative
Agent by the date which is 30 days following a retiring Administrative Agent's
notice of resignation, the retiring Administrative Agent's resignation shall
nevertheless thereupon become effective

                                      -50-
<Page>

and Lenders shall perform all of the duties of Administrative Agent hereunder
until such time, if any, as Required Lenders appoint a successor agent as
provided for above.

         9.10.    COLLATERAL MATTERS.

         Lenders irrevocably authorize Administrative Agent, at its option and
in its discretion, (a) to release any Lien granted to or held by Administrative
Agent under any Collateral Document (i) upon termination of the Commitments and
payment in full of all Loans and all other Obligations and the expiration or
termination of all Letters of Credit; (ii) constituting property sold or to be
sold or disposed of as part of or in connection with any disposition permitted
hereunder; or (iii) subject to SECTION 10.1, if approved, authorized or ratified
in writing by Required Lenders; or (b) to subordinate its interest in any
Collateral to any holder of a Lien on such Collateral which is permitted by
clause (d)(i) or (d)(iii) of SECTION 7.2 (it being understood that
Administrative Agent may conclusively rely on a certificate from Borrower in
determining whether the Debt secured by any such Lien is permitted by SECTION
7.1(b)). Upon request by Administrative Agent at any time, Lenders will confirm
in writing Administrative Agent's authority to release, or subordinate its
interest in, particular types or items of Collateral pursuant to this SECTION
9.10.

         9.11.    SYNDICATIONS AGENT, DOCUMENTATION AGENT, SOLE LEAD ARRANGER
                  AND JOINT BOOKRUNNER.

         Syndications Agent, Documentation Agent, Sole Lead Arranger and Joint
Bookrunners identified in this Agreement are hereby appointed as such in such
capacities as parties to this Agreement, and in such capacity shall have no
rights, powers, duties or responsibilities nor incur any liabilities under this
Agreement or any other Loan Document and no implied rights, powers, duties or
responsibilities shall be read into this Agreement or any Loan Document or
otherwise exist on behalf or against such entity in such capacity. If
Syndications Agent, Documentation Agent, Sole Lead Arranger or a Joint
Bookrunner resigns such capacity, no successor Syndications Agent, Documentation
Agent, Sole Lead Arranger or Joint Bookrunner shall be appointed.

Section 10.       MISCELLANEOUS.

         10.1.    WAIVER; AMENDMENTS.

         No delay on the part of Administrative Agent or any Lender in the
exercise of any right, power or remedy shall operate as a waiver thereof, nor
shall any single or partial exercise by any of them of any right, power or
remedy preclude other or further exercise thereof, or the exercise of any other
right, power or remedy. No amendment, modification or waiver of, or consent with
respect to, any provision of this Agreement, the Notes or any of the other Loan
Documents (or any subordination and intercreditor agreement or other
subordination provisions relating to any Subordinated Debt) shall in any event
be effective unless the same shall be in writing and approved by Lenders having
aggregate Pro Rata Shares of not less than the aggregate Pro Rata Shares
expressly designated herein with respect thereto or, in the absence of such
designation as to any provision of this Agreement, by Required Lenders, and then
any such amendment, modification, waiver or consent shall be effective only in
the specific instance and for the specific purpose for which given. No
amendment, modification, waiver or consent shall increase any Commitment, extend
the date scheduled for payment of any principal of (except as set forth below)
or interest on the Loans or any fees or other amounts payable hereunder or under
the other Loan Documents or reduce the principal amount of any Loan, the amount
or rate of interest thereon or any fees or other amounts payable hereunder or
under the other Loan Documents, without, in each case, the consent of each
Lender affected thereby. No amendment, modification, waiver or consent shall
release any party from its guaranty under the Guarantee and Collateral Agreement
or all or any substantial part of the Collateral granted under the Collateral
Documents, the definition of Required Lenders, change any provision of this
SECTION 10.1 or reduce the aggregate Pro Rata Share required to effect any
amendment,

                                      -51-
<Page>

modification, waiver or consent, without, in each case, the consent of all
Lenders. No provision of SECTIONS 2.10.2 or 2.10.3 with respect to the timing or
application of mandatory prepayments of the Loans shall be amended, modified or
waived without the consent of Lenders having a majority of the aggregate Pro
Rata Shares of the Term Loans affected thereby. No provision of SECTION 9 or
other provision of this Agreement affecting Administrative Agent in its capacity
as such shall be amended, modified or waived without the consent of
Administrative Agent. No provision of this Agreement relating to the rights or
duties of Issuing Lender in its capacity as such shall be amended, modified or
waived without the consent of Issuing Lender.

         10.2.    NOTICES.

         Except as otherwise provided in SECTIONS 2.2.2 and 2.2.3, all notices
hereunder shall be in writing (including facsimile transmission) and shall be
sent to the applicable party at its address shown on ANNEX II or at such other
address as such party may, by written notice received by the other parties, have
designated as its address for such purpose. Notices sent by facsimile
transmission shall be deemed to have been given when sent; notices sent by mail
shall be deemed to have been given three Business Days after the date when sent
by registered or certified mail, postage prepaid; and notices sent by hand
delivery or overnight courier service shall be deemed to have been given when
received. For purposes of Sections 2.2.2 and 2.2.3, Administrative Agent shall
be entitled to rely on telephonic instructions from any person that
Administrative Agent in good faith believes is an authorized officer or employee
of Borrower, and Borrower shall hold Administrative Agent and each other Lender
harmless from any loss, cost or expense resulting from any such reliance.

         10.3.    COMPUTATIONS.

         Unless otherwise specifically provided herein, any accounting term used
in this Agreement (including in SECTION 7.14 or any related definition) shall
have the meaning customarily given such term in accordance with GAAP, and all
financial computations (including pursuant to SECTION 7.14 and the related
definitions, and with respect to the character or amount of any asset or
liability or item of income or expense, or any consolidation or other accounting
computation) hereunder shall be computed in accordance with GAAP consistently
applied; provided that if Borrower notifies Administrative Agent that Borrower
wishes to amend any covenant in SECTION 7.14 (or any related definition) to
eliminate or to take into account the effect of any change in GAAP on the
operation of such covenant (or if Administrative Agent notifies Borrower that
Required Lenders wish to amend SECTION 7.14 (or any related definition) for such
purpose), then Borrower's compliance with such covenant shall be determined on
the basis of GAAP in effect immediately before the relevant change in GAAP
became effective, until either such notice is withdrawn or such covenant (or
related definition) is amended in a manner satisfactory to Borrower and Required
Lenders. The explicit qualification of terms or computations by the phrase "in
accordance with GAAP" shall in no way be construed to limit the foregoing.

         10.4.    COSTS; EXPENSES.

         Borrower agrees to pay on demand all reasonable out-of-pocket costs and
expenses of Administrative Agent (including Legal Costs) in connection with the
preparation, execution, syndication, delivery and administration (including
perfection and protection of Collateral) of this Agreement, the other Loan
Documents and all other documents provided for herein or delivered or to be
delivered hereunder or in connection herewith (including any amendment,
supplement or waiver to any Loan Document), and all reasonable out-of-pocket
costs and expenses (including Legal Costs) incurred by Administrative Agent and
each Lender after an Event of Default in connection with the collection of the
Obligations and enforcement of this Agreement, the other Loan Documents or any
such other documents. In addition, Borrower agrees to pay, and to save
Administrative Agent and Lenders harmless from all liability for, any fees of
Borrower's auditors in connection with any reasonable exercise by Administrative

                                      -52-
<Page>

Agent and Lenders of their rights pursuant to SECTION 6.2. All Obligations
provided for in this SECTION 10.4 shall survive repayment of the Loans,
cancellation of the Notes, expiration or termination of the Letters of Credit
and termination of this Agreement).

         10.5.    INDEMNIFICATION BY BORROWER.

         In consideration of the execution and delivery of this Agreement by
Administrative Agent and Lenders and the agreement to extend the Commitments
provided hereunder, Borrower hereby agrees to indemnify, exonerate and hold
Administrative Agent, each Lender and each of the officers, directors,
employees, Affiliates and agents of Administrative Agent and each Lender (each a
"LENDER PARTY") free and harmless from and against any and all actions, causes
of action, suits, losses, liabilities, damages and expenses, including Legal
Costs (collectively, the "INDEMNIFIED LIABILITIES"), incurred by Lender Parties
or any of them as a result of, or arising out of, or relating to (a) any tender
offer, merger, purchase of equity interests, purchase of assets (including the
Related Transactions) or other similar transaction financed or proposed to be
financed in whole or in part, directly or indirectly, with the proceeds of any
of the Loans, (b) the use, handling, release, emission, discharge,
transportation, storage, treatment or disposal of any hazardous substance at any
property owned or leased by Borrower or any other Loan Party, (c) any violation
of any Environmental Laws with respect to conditions at any property owned or
leased by any Loan Party or the operations conducted thereon, (d) the
investigation, cleanup or remediation of offsite locations at which any Loan
Party or their respective predecessors are alleged to have directly or
indirectly disposed of hazardous substances or (e) the execution, delivery,
performance or enforcement of this Agreement or any other Loan Document by any
Lender Party, except to the extent any such Indemnified Liabilities result from
the applicable Lender Party's own gross negligence or willful misconduct as
determined by a court of competent jurisdiction. If and to the extent that the
foregoing undertaking may be unenforceable for any reason, Borrower hereby
agrees to make the maximum contribution to the payment and satisfaction of each
of the Indemnified Liabilities which is permissible under applicable law. All
Obligations provided for in this SECTION 10.5 shall survive repayment of the
Loans, cancellation of the Notes, expiration or termination of the Letters of
Credit, any foreclosure under, or any modification, release or discharge of, any
or all of the Collateral Documents and termination of this Agreement.

         10.6.    MARSHALING; PAYMENTS SET ASIDE.

         Neither Administrative Agent nor any Lender shall be under any
 obligation to marshal any assets in favor of Borrower or any other Person or
 against or in payment of any or all of the Obligations. To the extent that
 Borrower makes a payment or payments to Administrative Agent or any Lender, or
 Administrative Agent or any Lender enforces its Liens or exercises its rights
 of set-off, and such payment or payments or the proceeds of such enforcement or
 set-off or any part thereof are subsequently invalidated, declared to be
 fraudulent or preferential, set aside or required (including pursuant to any
 settlement entered into by Administrative Agent or any Lender in its
 discretion) to be repaid to a trustee, receiver or any other party in
 connection with any bankruptcy, insolvency or similar proceeding, or otherwise,
 then (a) to the extent of such recovery, the obligation hereunder or part
 thereof originally intended to be satisfied shall be revived and continued in
 full force and effect as if such payment had not been made or such enforcement
 or setoff had not occurred and (b) each Lender severally agrees to pay to
 Administrative Agent upon demand its ratable share of the total amount so
 recovered from or repaid by Administrative Agent to the extent paid to such
 Lender.

         10.7.    NONLIABILITY OF LENDERS.

         The relationship between Borrower on the one hand and Lenders and
Administrative Agent on the other hand shall be solely that of borrower and
lender. Neither Administrative Agent nor any Lender shall have any fiduciary
responsibility to Borrower. Neither Administrative Agent nor any Lender

                                      -53-
<Page>

undertakes any responsibility to Borrower to review or inform Borrower of any
matter in connection with any phase of Borrower's business or operations.
Execution of this Agreement by Borrower constitutes a full, complete and
irrevocable release of any and all claims which Borrower may have at law or in
equity in respect of all prior discussions and understandings, oral or written,
relating to the subject matter of this Agreement and the other Loan Documents.
Neither Administrative Agent nor any Lender shall have any liability with
respect to, and Borrower hereby waives, releases and agrees not to sue for, any
special, indirect, punitive or consequential damages or liabilities.

         10.8.    ASSIGNMENTS; PARTICIPATIONS.

         10.8.1.  ASSIGNMENTS.

                  (a)     Any Lender may at any time assign to one or more
Persons (any such Person, an "ASSIGNEE") all or any portion of such Lender's
Loans and Commitments, with the prior written consent of Administrative Agent
and Issuing Lender (for an assignment of the Revolving Loans and the Revolving
Loan Commitment) and Borrower (so long as no Event of Default exists, which
consent of Borrower shall not be unreasonably withheld or delayed), provided,
that no such consent shall be required for an assignment by a Lender to a Lender
or an Affiliate of a Lender. Except as Administrative Agent may otherwise agree,
any such assignment (other than any assignment by a Lender to a Lender or an
Affiliate or Related Fund of a Lender) shall be in a minimum aggregate amount
equal to $2,000,000 or, if less, the Commitment or the principal amount of the
Loan being assigned. Borrower and Administrative Agent shall be entitled to
continue to deal solely and directly with such Lender in connection with the
interests so assigned to an Assignee until Administrative Agent shall have
received and accepted an effective Assignment Agreement executed, delivered and
fully completed by the applicable parties thereto and a processing fee of $3,500
to be paid by the Lender to whom such interest is assigned; provided, that no
such fee shall be payable in connection with any assignment by a Lender to a
Lender or an Affiliate or Related Fund of a Lender. No assignment may be made to
any Person if at the time of such assignment Borrower would be obligated to pay
any greater amount under SECTION 3 to the Assignee than Borrower is then
obligated to pay to the assigning Lender under such Sections (and if any
assignment is made in violation of the foregoing, Borrower will not be required
to pay such greater amounts). Any attempted assignment not made in accordance
with this SECTION 10.8.1 shall be treated as the sale of a participation under
SECTION 10.8.2. Borrower shall be deemed to have granted its consent to any
assignment requiring its consent hereunder unless Borrower has expressly
objected to such assignment within five Business Days after notice thereof.

                  (b)     From and after the date on which the conditions
described above have been met, (i) such Assignee shall be deemed automatically
to have become a party hereto and, to the extent that rights and obligations
hereunder have been assigned to such Assignee pursuant to such Assignment
Agreement, shall have the rights and obligations of a Lender hereunder and (ii)
the assigning Lender, to the extent that rights and obligations hereunder have
been assigned by it pursuant to such Assignment Agreement, shall be released
from its rights (other than its indemnification rights) and obligations
hereunder. Upon the request of the Assignee (and, as applicable, the assigning
Lender) pursuant to an effective Assignment Agreement, Borrower shall execute
and deliver to Administrative Agent for delivery to the Assignee (and, as
applicable, the assigning Lender) a Note in the principal amount of the
Assignee's Pro Rata Share of the Revolving Loan Commitment plus the principal
amount of the Assignee's Term Loans (and, as applicable, a Note in the principal
amount of the Pro Rata Share of the Revolving Loan Commitment retained by the
assigning Lender plus the principal amount of the Term Loans retained by the
assigning Lender). Each such Note shall be dated the effective date of such
assignment. Upon receipt by the assigning Lender of such Note, the assigning
Lender shall return to Borrower any prior Note held by it.

                                      -54-
<Page>

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

                  (d)     Notwithstanding the foregoing provisions of this
SECTION 10.8.1 or any other provision of this Agreement, any Lender may at any
time assign all or any portion of its Loans and its Note (i) as collateral
security to a Federal Reserve Bank or, as applicable, to such Lender's trustee
for the benefit of its investors (but no such assignment shall release any
Lender from any of its obligations hereunder) and (ii) to (w) an affiliate of
such Lender which is at least 50% owned (directly or indirectly) by such Lender
or by its direct or indirect parent company, (x) its direct or indirect parent
company, (y) to one or more other Lenders or (z) to a Related Fund. For purposes
of this paragraph, a "RELATED FUND" shall mean, with respect to any Lender, a
fund or other investment vehicle that invests in commercial loans and is managed
by the same investment advisor as such Lender or by an affiliate of such
investment advisor.

         10.8.2.  PARTICIPATIONS.

                  Any Lender may at any time sell to one or more Persons
participating interests in its Loans, Commitments or other interests hereunder
(any such Person, a "PARTICIPANT"). In the event of a sale by a Lender of a
participating interest to a Participant, (a) such Lender's obligations hereunder
shall remain unchanged for all purposes, (b) Borrower and Administrative Agent
shall continue to deal solely and directly with such Lender in connection with
such Lender's rights and obligations hereunder and (c) all amounts payable by
Borrower shall be determined as if such Lender had not sold such participation
and shall be paid directly to such Lender. No Participant shall have any direct
or indirect voting rights hereunder except with respect to any event described
in SECTION 10.1 expressly requiring the unanimous vote of all Lenders or, as
applicable, all affected Lenders. Each Lender agrees to incorporate the
requirements of the preceding sentence into each participation agreement which
such Lender enters into with any Participant. Borrower agrees that if amounts
outstanding under this Agreement are due and payable (as a result of
acceleration or otherwise), each Participant shall be deemed to have the right
of set-off in respect of its participating interest in amounts owing under this
Agreement and with respect to any Letter of Credit to the same extent as if the
amount of its participating interest were owing directly to it as a Lender under
this Agreement; provided that such right of set-off shall be subject to the
obligation of each Participant to share with Lenders, and Lenders agree to share
with each Participant, as provided in SECTION 2.12.5. Borrower also agrees that
each Participant shall be entitled to the benefits of SECTION 3 as if it were a
Lender (provided that no Participant shall receive any greater compensation
pursuant to SECTION 3 than would have been paid to the participating Lender if
no participation had been sold).

         10.9.    CONFIDENTIALITY.

         Administrative Agent and each Lender agree to use commercially
reasonable efforts (equivalent to the efforts Administrative Agent or such
Lender applies to maintain the confidentiality of its own confidential
information) to maintain as confidential all non-public information provided to
them by any Loan Party, except that Administrative Agent and each Lender may
disclose such information (a) to Persons employed or engaged by Administrative
Agent or such Lender or any of their Affiliates (including without limitation
collateral managers) in evaluating, approving, structuring or administering the
Loans and the Commitments; (b) to any assignee or participant or potential
assignee or participant that has agreed to comply with the covenant contained in
this SECTION 10.9 (and any such assignee or

                                      -55-
<Page>

participant or potential assignee or participant may disclose such information
to Persons employed or engaged by them as described in clause (a) above); (c) as
required or requested by any federal or state regulatory authority or examiner,
or any insurance industry association, or as reasonably believed by
Administrative Agent or such Lender to be compelled by any court decree,
subpoena or legal or administrative order or process; (d) as, on the advice of
Administrative Agent's or such Lender's counsel, is required by law; (e) in
connection with the exercise of any right or remedy under the Loan Documents or
in connection with any litigation to which Administrative Agent or such Lender
is a party; (f) to any nationally recognized rating agency that requires access
to information about a Lender's investment portfolio in connection with ratings
issued with respect to such Lender; (g) that ceases to be confidential through
no fault of Administrative Agent or any Lender; (h) to a Person that is an
investor or prospective investor in a Securitization that agrees that its access
to information regarding Borrower and the Loans and Commitments is solely for
purposes of evaluating an investment in such Securitization and who agrees to
treat such information as confidential; or (i) to a Person that is a trustee,
collateral manager, servicer, noteholder or secured party in a Securitization in
connection with the administration, servicing and reporting on assets serving as
collateral for such Securitization. For purposes of this Section,
"SECURITIZATION" means a public or private offering by a Lender or any of its
Affiliates or their respective successors and assigns, of securities which
represent an interest in, or which are collateralized, in whole or in part, by
the Loans or the Commitments. Notwithstanding the foregoing, Borrower consents
to the publication by Administrative Agent or any Lender of a tombstone or
similar advertising material relating to the financing transactions contemplated
by this Agreement, and Administrative Agent reserves the right to provide to
industry trade organizations information necessary and customary for inclusion
in league table measurements.

         10.10.   CAPTIONS.

         Captions used in this Agreement are for convenience only and shall not
affect the construction of this Agreement.

         10.11.   NATURE OF REMEDIES.

         All Obligations of Borrower and rights of Administrative Agent and
Lenders expressed herein or in any other Loan Document shall be in addition to
and not in limitation of those provided by applicable law. No failure to
exercise and no delay in exercising, on the part of Administrative Agent or any
Lender, any right, remedy, power or privilege hereunder, shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.

         10.12.   COUNTERPARTS.

         This Agreement may be executed in any number of counterparts and by the
different parties hereto on separate counterparts and each such counterpart
shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same Agreement. Receipt by telecopy of any executed
signature page to this Agreement or any other Loan Document shall constitute
effective delivery of such signature page.

         10.13.   SEVERABILITY.

         The illegality or unenforceability of any provision of this Agreement
or any instrument or agreement required hereunder shall not in any way affect or
impair the legality or enforceability of the remaining provisions of this
Agreement or any instrument or agreement required hereunder.

                                      -56-
<Page>

         10.14.   ENTIRE AGREEMENT.

         This Agreement, together with the other Loan Documents, embodies the
entire agreement and understanding among the parties hereto and supersedes all
prior or contemporaneous agreements and understandings of such Persons, verbal
or written, relating to the subject matter hereof and thereof (except as relates
to the fees described in SECTION 2.8.3) and any prior arrangements made with
respect to the payment by Borrower of (or any indemnification for) any fees,
costs or expenses payable to or incurred (or to be incurred) by or on behalf of
Administrative Agent or Lenders.

         10.15.   SUCCESSORS; ASSIGNS.

         This Agreement shall be binding upon Borrower, Lenders and
Administrative Agent and their respective successors and assigns, and shall
inure to the benefit of Borrower, Lenders and Administrative Agent and the
successors and assigns of Lenders and Administrative Agent. No other Person
shall be a direct or indirect legal beneficiary of, or have any direct or
indirect cause of action or claim in connection with, this Agreement or any of
the other Loan Documents. Borrower may not assign or transfer any of its rights
or Obligations under this Agreement without the prior written consent of
Administrative Agent and each Lender.

         10.16.   GOVERNING LAW.

         THIS AGREEMENT AND EACH NOTE SHALL BE A CONTRACT MADE UNDER AND
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS APPLICABLE TO CONTRACTS
MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT
OF LAWS PRINCIPLES.

         10.17.   FORUM SELECTION; CONSENT TO JURISDICTION.

         ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION
WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED
EXCLUSIVELY IN THE COURTS OF THE STATE OF ILLINOIS OR IN THE UNITED STATES
DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS; PROVIDED THAT ANY SUIT
SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT
ADMINISTRATIVE AGENT'S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH
COLLATERAL OR OTHER PROPERTY MAY BE FOUND. BORROWER HEREBY EXPRESSLY AND
IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF ILLINOIS
AND OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS
FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. BORROWER FURTHER
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE
PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF ILLINOIS.
BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND
ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

         10.18.   WAIVER OF JURY TRIAL.

         EACH OF BORROWER, ADMINISTRATIVE AGENT AND EACH LENDER HEREBY WAIVES
ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND
ANY RIGHTS UNDER THIS AGREEMENT, ANY NOTE, ANY OTHER LOAN

                                      -57-
<Page>

DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH
MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING
FROM ANY LENDING RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING,
AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND
NOT BEFORE A JURY.

                            [signature pages follow]

                                      -58-
<Page>

         The parties hereto have caused this Agreement to be duly executed and
delivered by their duly authorized officers as of the date first set forth
above.

                            CLAYTON GRP, INC.

                            By: /s/ Stephen M. Lamando
                               -----------------------------------------
                            Title: Chief Executive Officer and President
                                   -------------------------------------

Credit Agreement - Signature Page

<Page>

                            MADISON CAPITAL FUNDING LLC,
                            as Administrative Agent, Sole Lead Arranger, Joint
                            Bookrunner and a Lender

                            By: /s/ K. Thomas Klimmick
                               -----------------------------------------
                            Title: Managing Director
                                   -------------------------------------

Credit Agreement - Signature Page (continued)

<Page>

                            JPMORGAN CHASE BANK,
                            as Joint Bookrunner, Syndications Agent and a Lender

                            By: /s/ Peter A. Attanasio
                               -----------------------------------------
                            Title: PETER A. ATTANASIO
                                   VICE PRESIDENT
                                   -------------------------------------

Credit Agreement - Signature Page (continued)

<Page>

                        MERRILL LYNCH CAPITAL, a division of Merrill Lynch
                        Business Financial Services Inc., as Documentation Agent
                        and a Lender

                        BY: /s/ Heidi Rinehart
                           ---------------------------------------------
                        Title: Vice President
                              ------------------------------------------<Page>

                                                                   Exhibit 10.21

                                                                  EXECUTION COPY

THIS INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE
   IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN SUBORDINATION AND
  INTERCREDITOR AGREEMENT (THE "SUBORDINATION AGREEMENT") DATED AS OF AUGUST 2,
   2004 AMONG TA SUBORDINATED DEBT FUND, L.P., TA INVESTORS II, L.P., LAMANDO
    CHARITABLE REMAINDER UNITRUST UNDER AGREEMENT DATED MAY 15, 2004, MADISON
   CAPITAL FUNDING LLC, AS SUBORDINATED CREDITOR, LIBMAN FAMILY HOLDINGS LLC,
      CLAYTON GRP, INC. (THE "COMPANY") AND MADISON CAPITAL FUNDING LLC, AS
  ADMINISTRATIVE AGENT ("ADMINISTRATIVE AGENT"), TO THE INDEBTEDNESS (INCLUDING
INTEREST) OWED BY THE COMPANY PURSUANT TO THAT CERTAIN CREDIT AGREEMENT DATED AS
   OF AUGUST 2, 2004 AMONG THE COMPANY, ADMINISTRATIVE AGENT AND THE FINANCIAL
INSTITUTIONS FROM TIME TO TIME PARTY THERETO, AS SUCH CREDIT AGREEMENT HAS BEEN
  AND HEREAFTER MAY BE AMENDED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO
  TIME AND TO INDEBTEDNESS REFINANCING THE INDEBTEDNESS UNDER THAT AGREEMENT AS
CONTEMPLATED BY THE SUBORDINATION AGREEMENT; AND EACH PARTY TO THIS INSTRUMENT,
  BY ITS ACCEPTANCE HEREOF, IRREVOCABLY AGREES TO BE BOUND BY THE PROVISIONS OF
                          THE SUBORDINATION AGREEMENT.

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

                      SUBORDINATED NOTE PURCHASE AGREEMENT

                                      Among

                                CLAYTON GRP, INC.
                                   as Borrower

                                       AND

                             CLAYTON HOLDINGS, INC.
                           CLAYTON TECHNOLOGIES, INC.
                           FMSI ACQUISITION CO., INC.
                                  as Guarantors

                                       AND

                      LAMANDO CHARITABLE REMAINDER UNITRUST
                       UNDER AGREEMENT DATED MAY 15, 2004
                         TA SUBORDINATED DEBT FUND, L.P.
                              TA INVESTORS II, L.P.
                           LIBMAN FAMILY HOLDINGS LLC
                           MADISON CAPITAL FUNDING LLC
                                 as Noteholders

                           Dated as of August 2, 2004

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

<Page>

                                CLAYTON GRP, INC.

                      Subordinated Note Purchase Agreement

                           Dated as of August 2, 2004

                                TABLE OF CONTENTS

<Table>
<S>                                                                                  <C>
ARTICLE I - DEFINITIONS...............................................................1
     1.1.   Definitions...............................................................1
     1.2.   Accounting Terms.........................................................11

ARTICLE II - AUTHORIZATION, PURCHASE, SALE AND TERMS OF NOTES; PAYMENTS..............12
     2.1.   The Notes................................................................12
     2.2.   Purchase of the Original Notes...........................................12
     2.3.   Use of Proceeds..........................................................12
     2.4.   Payments and Endorsements................................................12
     2.5.   Redemptions and Mandatory Repurchase.....................................13
     2.6.   Default Rate of Interest.................................................14
     2.7.   Maximum Legal Rate of Interest...........................................14
     2.8.   Payment on Non-Business Days.............................................14
     2.9.   Transfer and Exchange of Notes...........................................15
     2.10.  Replacement of Notes.....................................................15
     2.11.  Other Notices............................................................15
     2.12.  Liability................................................................16

ARTICLE III - CONDITIONS TO NOTEHOLDERS' OBLIGATIONS.................................16
     3.1.   Capitalization...........................................................16
     3.2.   Senior Loan Documents....................................................16
     3.3.   Prior Debt...............................................................16
     3.4.   Related Transactions.....................................................16
     3.5.   Fees.....................................................................17
     3.6.   Delivery of Documents....................................................17
     3.7.   Representations and Warranties...........................................18
     3.8.   Use of Proceeds..........................................................18
     3.9.   Compliance with this Agreement...........................................18
     3.10.  Consummation of the Transactions.........................................18

ARTICLE IV - REPRESENTATIONS AND WARRANTIES OF THE NOTEHOLDERS.......................18
     4.1.   Authorization; Enforceability............................................18
     4.2.   Own Account..............................................................19
     4.3.   Investment Intent........................................................19
     4.4.   Securities Laws..........................................................19
</Table>

                                        i
<Page>

<Table>
<S>                                                                                  <C>
     4.5.   No Broker................................................................19
     4.6.   Restrictive Legend.......................................................19

ARTICLE V - REPRESENTATIONS AND WARRANTIES OF THE BORROWER...........................20
     5.1.   Organization.............................................................20
     5.2.   Authorization; No Conflict...............................................20
     5.3.   Validity; Binding Nature.................................................20
     5.4.   Financial Condition......................................................20
     5.5.   No Material Adverse Change...............................................21
     5.6.   Litigation...............................................................21
     5.7.   Ownership of Properties; Liens...........................................21
     5.8.   Capitalization...........................................................21
     5.9.   Pension Plans............................................................21
     5.10.  Investment Company Act...................................................22
     5.11.  Public Utility Holding Company Act.......................................22
     5.12.  Margin Stock.............................................................22
     5.13.  Taxes....................................................................22
     5.14.  Solvency.................................................................22
     5.15.  Environmental Matters....................................................23
     5.16.  Insurance................................................................23
     5.17.  Information..............................................................23
     5.18.  Intellectual Property....................................................24
     5.19.  Restrictive Provisions...................................................24
     5.20.  Labor Matters............................................................24
     5.21.  No Default...............................................................24
     5.22.  Related Agreements.......................................................24

ARTICLE VI - AFFIRMATIVE COVENANTS OF THE BORROWER...................................25
     6.1.   Information..............................................................25
     6.2.   Books; Records; Inspections..............................................27
     6.3.   Maintenance of Property; Insurance.......................................28
     6.4.   Compliance with Laws; Payment of Taxes and Liabilities...................28
     6.5.   Maintenance of Existence.................................................28
     6.6.   Employee Benefit Plans...................................................29
     6.7.   Environmental Matters....................................................29

ARTICLE VII - NEGATIVE COVENANTS OF THE BORROWER.....................................29
     7.1.   Debt.....................................................................29
     7.2.   Liens....................................................................30
     7.3.   Reserved.................................................................31
     7.4.   Restricted Payments......................................................31
     7.5.   Subsidiaries; Mergers; Consolidations; Asset Sales.......................31
     7.6.   Modification of Organizational Documents.................................32
     7.7.   Use of Proceeds..........................................................32
     7.8.   Transactions with Affiliates.............................................32
     7.9.   Inconsistent Agreements..................................................32
</Table>

                                       ii
<Page>

<Table>
<S>                                                                                  <C>
     7.10.  Business Activities......................................................32
     7.11.  Investments..............................................................32
     7.12.  Restriction of Amendments to Certain Documents...........................33
     7.13.  Fiscal Year..............................................................33
     7.14.  Financial Covenants......................................................33

ARTICLE VIII - EVENTS OF DEFAULT; REMEDIES...........................................37
     8.1.   Events of Default........................................................37
     8.2.   Remedies.................................................................38
     8.3.   Nature of Remedies.......................................................39
     8.4.   Set-Off..................................................................39
     8.5.   Distribution of Proceeds.................................................39

ARTICLE IX - MISCELLANEOUS...........................................................39
     9.1.   No Waiver; Cumulative Remedies...........................................39
     9.2.   Amendments, Waivers and Consents.........................................40
     9.3.   Addresses for Notices, Etc...............................................40
     9.4.   Costs, Expenses and Taxes................................................41
     9.5.   Assignability; Binding Agreement.........................................41
     9.6.   Payments in Respect of Notes.............................................42
     9.7.   Indemnification..........................................................42
     9.8.   Survival of Representations and Warranties...............................43
     9.9.   Prior Agreements.........................................................43
     9.10.  Severability.............................................................43
     9.11.  Governing Law............................................................43
     9.12.  Jury Waiver..............................................................43
     9.13.  Counterparts.............................................................44
     9.14.  Further Assurances.......................................................44
     9.15.  Specific Performance.....................................................44
     9.16.  Actions by Noteholders...................................................44
     9.17.  Limitation of Liability..................................................44
     9.18.  Confidentiality Agreement................................................44

ARTICLE X - GUARANTEE OF THE NOTES...................................................45
</Table>

                                       iii
<Page>

                             EXHIBITS AND SCHEDULES

EXHIBITS

Exhibit A         Form of Joinder Agreement
Exhibit B         Form of Compliance Certificate
Exhibit C         Permitted Acquisitions Conditions Precedent
Exhibit 2.1       Form of Note
Exhibit 2.2       Allocation of Note Purchase Amount

SCHEDULES

Schedule 3.3      Prior Debt
Schedule 5.6      Litigation
Schedule 5.8      Capitalization
Schedule 5.16     Insurance
Schedule 5.20     Labor Matters
Schedule 7.1      Debt
Schedule 7.2      Liens
Schedule 7.8      Transactions with Affiliates
Schedule 7.11     Investments

                                       iv
<Page>

                      SUBORDINATED NOTE PURCHASE AGREEMENT

     This Subordinated Note Purchase Agreement dated as of August 2, 2004 (as
amended, restated or otherwise modified and in effect from time to time, this
"AGREEMENT") by and among Clayton GRP, Inc., a Delaware corporation
("BORROWER"), each of the Guarantors (as defined below), TA Subordinated Debt
Fund, L.P., a Delaware limited partnership ("TA DEBT FUND" or a "NOTEHOLDER"),
TA Investors II, L.P., a Delaware limited partnership ("TA INVESTORS" or a
"NOTEHOLDER"), Lamando Charitable Remainder UniTrust Under Agreement Dated May
15, 2004 (a "NOTEHOLDER"), Madison Capital Funding LLC (a "NOTEHOLDER"), and
Libman Family Holdings LLC (a "NOTEHOLDER" and, together with TA Debt Fund, TA
Investors, Lamando Charitable Remainder UniTrust Under Agreement Dated May 15,
2004, Madison Capital Funding LLC, and their successors and assigns,
"NOTEHOLDERS").

     In consideration of the mutual agreements herein contained, the parties
hereto agree as follows:

                             ARTICLE I - DEFINITIONS

     1.1.   DEFINITIONS. As used herein, the following terms shall have the
following meanings (such meanings to be equally applicable to both the singular
and plural forms of the terms defined):

     "ACCOUNT" shall have the meaning as defined in the UCC.

     "ACCOUNT DEBTOR" shall mean any Person who is obligated to any Borrower or
any Subsidiary with respect to any Account.

     "ACQUISITION" shall mean any transaction or series of related transactions
for the purpose of or resulting, directly or indirectly, in (a) the acquisition
of all or substantially all of the assets of a Person, or of all or
substantially all of any business or division of a Person, (b) the acquisition
of in excess of 50% of the capital stock, partnership interests, membership
interests or equity of any Person, or otherwise causing any Person to become a
Subsidiary, or (c) a merger or consolidation or any other combination with
another Person (other than a Person that is already a Subsidiary).

     "ACQUISITION ESCROW" shall mean collectively, the "Company Escrow" and the
"Escrow Deposit", as such terms are defined in the Contribution and Asset
Transfer Agreement as in effect on the Closing Date, in the original aggregate
amount of $20,000,000 on the Closing Date.

     "AFFILIATE" shall mean any Person that would be considered to be an
affiliate of the Borrower under Rule 144 of the Rules and Regulations of the
Securities and Exchange Commission, as in effect on the date hereof, if the
Borrower was issuing securities; PROVIDED that the term "Affiliate" shall not
include any Noteholder.

<Page>

     "AGENT" shall mean Madison Capital Funding LLC in its capacity as
administrative agent for all Senior Lenders under the Senior Credit Agreement
and any successor thereto in such capacity.

     "AGREEMENT" shall mean this Agreement as amended, restated or otherwise
modified and in effect from time to time.

     "APPLICABLE LAW" shall mean all laws, statutes and rules and regulations
thereunder and interpretations thereof by any competent court or by any
governmental or other regulatory body or official charged with the
administration or the interpretation thereof and requests, directives,
instructions and notices at any time or from time to time heretofore or
hereafter made upon or otherwise issued to any Noteholder by any central bank or
other fiscal, monetary or other authority, whether or not having the force of
law, including, without limitation, any change according to a prescribed
schedule of increasing requirements.

     "BORROWER" shall have the meaning set forth in the Preamble.

     "BUSINESS DAY" shall mean any day other than a Saturday, Sunday or public
holiday or the equivalent for banks under the laws of the Commonwealth of
Massachusetts.

     "CAPITAL EXPENDITURES" shall mean all expenditures which, in accordance
with GAAP, would be required to be capitalized and shown on the consolidated
balance sheet of the Borrower, but excluding expenditures made in connection
with the replacement, substitution or restoration of assets to the extent
financed (a) from insurance proceeds (or other similar recoveries) paid on
account of the loss of or damage to the assets being replaced or restored or (b)
with awards of compensation arising from the taking by eminent domain or
condemnation of the assets being replaced.

     "CAPITALIZED LEASE OBLIGATION" shall mean any Debt represented by the
principal portion of obligations under a lease that is required to be
capitalized for financial reporting purposes in accordance with GAAP.

     "CAPITAL LEASE" shall mean, with respect to any Person, any lease of (or
other agreement conveying the right to use) any real or personal property by
such Person that, in conformity with GAAP, is accounted for as a capital lease
on the balance sheet of such Person.

     "CASH EQUIVALENT INVESTMENT" shall mean, at any time, (a) any evidence of
Debt, maturing not more than one year after such time, issued or guaranteed by
the United States Government or any agency thereof, (b) commercial paper, or
corporate demand notes, in each case (unless issued by a Senior Lender or its
holding company) rated at least A-l by Standard & Poor's Ratings Group or P-l by
Moody's Investors Service, Inc., (c) any certificate of deposit (or time deposit
represented by a certificate of deposit) or banker's acceptance maturing not
more than one year after such time, or any overnight Federal Funds transaction
that is issued or sold by any Senior Lender (or by a commercial

                                        2
<Page>

banking institution that is a member of the Federal Reserve System and has a
combined capital and surplus and undivided profits of not less than
$500,000,000) and (d) any repurchase agreement entered into with any Senior
Lender (or commercial banking institution of the nature referred to in clause
(c) above) which (i) is secured by a fully perfected security interest in any
obligation of the type described in any of clauses (a) through (c) above and
(ii) has a market value at the time such repurchase agreement is entered into of
not less than 100% of the repurchase obligation of such Senior Lender (or other
commercial banking institution) thereunder.

     "CLOSING" shall have the meaning assigned to that term in SECTION 2.2.

     "CLOSING DATE" shall have the meaning assigned to that term in SECTION 2.2.

     "COLLATERAL" shall mean all of the personal property now owned or at any
time hereafter acquired by the Borrower or in which the Borrower now has or at
any time in the future may acquire any right, title or interest, which secures
the Liens granted to the Senior Lender pursuant to the Senior Collateral
Documents.

     "COLLATERAL ACCESS AGREEMENT" shall mean an agreement in form and substance
reasonably satisfactory to Agent pursuant to which a mortgagee or lessor of real
property on which Collateral is stored or otherwise located, or a warehouseman,
processor or other bailee of Inventory or other property owned by Borrower or
any Subsidiary, acknowledges the Liens of Agent and waives any Liens held by
such Person on such property, and, in the case of any such agreement with a
mortgagee or lessor, permits Agent reasonable access to and use of such real
property during the continuance of an Event of Default to assemble, complete and
sell any Collateral stored or otherwise located thereon.

     "COMPLIANCE CERTIFICATE" means a certificate substantially in the form of
Exhibit B.

     "COMPUTATION PERIOD" shall mean (i) with respect to SECTIONS 7.14.3 and
7.14.4, each period of four consecutive Fiscal Quarters ending on the last day
of a Fiscal Quarter and (ii) with respect to SECTIONS 7.14.1 and 7.14.6, each of
the following periods: (a) the Fiscal Quarter ending September 30, 2004; (b) the
period of two consecutive Fiscal Quarters ending December 31, 2004; (c) the
period of three consecutive Fiscal Quarters ending March 31, 2005; and (d) each
period of four consecutive Fiscal Quarters ending on the last day of a Fiscal
Quarter thereafter.

     "CONSOLIDATED" OR "CONSOLIDATED" shall mean with respect to any term
defined herein that term as applied to the accounts of the Borrower and its
Subsidiaries, consolidated in accordance with GAAP.

     "CONSOLIDATED NET INCOME" shall mean, with respect to Borrower and the
Subsidiaries for any period, the consolidated net income (or loss) of Borrower
and the Subsidiaries for such period, EXCLUDING any gains or non-cash losses
from Dispositions,

                                        3
<Page>

any extraordinary gains or extraordinary non-cash losses and any gains or
non-cash losses from discontinued operations.

     "CONTINGENT OBLIGATION" shall mean any agreement, undertaking or
arrangement by which any Person guarantees, endorses or otherwise becomes or is
contingently liable upon (by direct or indirect agreement, contingent or
otherwise, to provide funds for payment, to supply funds to or otherwise to
invest in a debtor, or otherwise to assure a creditor against loss) any
indebtedness, obligation or other liability of any other Person (other than by
endorsements of instruments in the course of collection), or guarantees the
payment of dividends or other distributions upon the shares of any other Person.
The amount of any Person's obligation in respect of any Contingent Obligation
shall (subject to any limitation set forth therein) be deemed to be the
principal amount of the debt, obligation or other liability supported thereby.

     "CONTINGENT PAYMENTS" shall mean the "Contingent Payments" as defined in
the Contribution and Asset Transfer Agreement as in effect on the Closing Date.

     "CONTRIBUTION AND ASSET TRANSFER AGREEMENT" shall mean that certain
Contribution and Asset Transfer Agreement by and among Clayton Holdings, Inc.,
the Borrower, Clayton Services, Inc., First Madison, Inc., and each of the other
corporations and the Stockholders and Investors named therein.

     "CONTROLLED GROUP" means all members of a controlled group of corporations
and all members of a controlled group of trades or businesses (whether or not
incorporated) under common control which, together with the Borrower, are
treated as a single employer under Section 414 of the IRC or Section 4001 of
ERISA.

     "DEBT" of any Person shall mean, without duplication, (a) all indebtedness
of such Person for borrowed money, whether or not evidenced by bonds,
debentures, notes or similar instruments, (b) all obligations of such Person as
lessee under Capital Leases which have been or should be recorded as liabilities
on a balance sheet of such Person in accordance with GAAP, (c) all obligations
of such Person to pay the deferred purchase price of property or services
(excluding trade accounts payable in the ordinary course of business), (d) all
indebtedness secured by a Lien on the property of such Person, whether or not
such indebtedness shall have been assumed by such Person, (e) all obligations,
contingent or otherwise, with respect to the face amount of all letters of
credit (whether or not drawn) and banker's acceptances issued for the account of
such Person (including the Letters of Credit), (f) all Hedging Obligations of
such Person, (g) all Contingent Obligations of such Person, (h) all indebtedness
of any partnership of which such Person is a general partner, and (i) all
obligations of such Person under any synthetic lease transaction, where such
obligations are considered borrowed money indebtedness for tax purposes but the
transaction is classified as an operating lease in accordance with GAAP;
provided, however, that Debt shall not include the Acquisition Escrow or the
obligations relating to the repurchase of a Loan Party's preferred stock.

     "DEFAULT" shall mean any event that, if it continues incurred, will, with
the lapse of time or the giving of notice or both, constitute an Event of
Default.

                                        4
<Page>

     "DISPOSITION" means, as to any asset or right of the Borrower or any
Subsidiary, (a) any sale, lease, assignment or other transfer (other than to the
Borrower or any Subsidiary), (b) any loss, destruction or damage thereof, or (c)
any actual or threatened condemnation, confiscation, requisition, seizure or
taking thereof, in each case excluding (i) assets subject to a Disposition which
are replaced within 180 days with assets performing the same or a similar
function, and (ii) the sale or other transfer of Inventory in the ordinary
course of business.

     "DISTRIBUTION" means (a) dividends or other distributions on any equity
interests of the Borrower, (b) the redemption, repurchase or acquisition of such
equity interests or of warrants, rights or other options to purchase such equity
interest; and (c) loans and advances made to any equity interest holder of the
Borrower.

     "EBITDA" shall mean, for any period, Consolidated Net Income for such
period plus, to the extent deducted in determining such Consolidated Net Income,
Interest Expense, income tax expense, depreciation and amortization for such
period, plus or minus any other non-cash charges or gains which have been
subtracted or added in calculating Consolidated Net Income for such period.

     "ENVIRONMENTAL CLAIMS" shall mean all claims, however, asserted, by any
governmental, regulatory or judicial authority or other Person alleging
potential liability or responsibility for violation of any Environmental Law, or
for release or injury to the environment or any Person or property.

     "ENVIRONMENTAL LAWS" shall mean all present or future federal, state or
local laws, statutes, common law duties, rules, regulations, ordinances and
codes, together with all administrative orders, directed duties, requests,
licenses, authorizations and permits of, and agreements with, any governmental
authority, in each case relating to any matter arising out of or relating to
health and safety, or pollution or protection of the environment or workplace,
including any of the foregoing relating to the presence, use, production,
generation, handling, transport, treatment, storage, disposal, distribution,
discharge, release, control or cleanup of any Hazardous Substance.

     "ERISA" shall mean part 6 subtitle B of title I of the Employee Retirement
Income Security Act of 1974, as amended.

     "EVENT OF DEFAULT" shall mean any of the events described in SECTION 8.1.

     "FEE LETTERS" shall mean (i) that certain letter agreement dated as of July
15, 2004 by Agent and acknowledged by Borrower, as amended, restated or
otherwise modified from time to time and (ii) that certain fee letter dated on
or about July 16, 2004 by JPMorgan Chase Bank and acknowledged by Borrower, as
amended, restated or otherwise modified from time to time.

     "FISCAL QUARTER" shall mean a fiscal quarter of a Fiscal Year.

                                        5
<Page>

     "FISCAL YEAR" or "FISCAL YEAR" shall mean the fiscal year of the Borrower
and its Subsidiaries, which period shall be the 12-month period ending on
December 31 of each year.

     "FIXED CHARGE COVERAGE RATIO" shall mean, for any Computation Period, the
ratio of (a) the total for such period of EBITDA minus the sum of all income
taxes and tax distributions described in SECTION 7.4 paid by Borrower and the
Subsidiaries and all Capital Expenditures TO (b) the sum for such period of (i)
Interest Expense paid in cash by Borrower and the Subsidiaries plus (ii) the sum
of (x) scheduled payments of principal of Funded Debt (including the Term Loans
but excluding the Revolving Loans) and (y) Contingent Payments to the extent
such Contingent Payments are not paid with proceeds of the Acquisition Escrow.

     "FUNDED DEBT" shall mean, as to any Person, all Debt of such Person that
matures more than one year from the date of its creation (or is renewable or
extendible, at the option of such Person, to a date more than one year from such
date).

     "GAAP" or "GENERALLY ACCEPTED ACCOUNTING PRINCIPLES" shall mean principles
that are (a) consistent with the principles promulgated or adopted by the
Financial Accounting Standards Board and its predecessors, as in effect from
time to time, and (b) consistently applied with past financial statements of the
Borrower adopting the same principles; PROVIDED that in each case referred to in
this definition of "generally accepted accounting principles" a certified public
accountant would, insofar as the use of such accounting principles is pertinent,
be in a position to deliver an unqualified opinion (other than a qualification
regarding changes in generally accepted accounting principles) as to financial
statements in which such principles have been properly applied.

     "GUARANTOR" shall mean, collectively, Clayton Holdings, Inc. and each
Subsidiary of the Borrower party to this Agreement and each other Person which
guarantees the Obligations of the Borrower under the Subordinated Notes
Documents, including through the delivery of a joinder attached hereto in the
form of Exhibit A.

     "HAZARDOUS SUBSTANCES" shall mean hazardous waste, hazardous substance,
pollutant, contaminant, toxic substance, oil, hazardous material, chemical or
other substance regulated by any Environmental Law.

     "HEDGING OBLIGATION" shall mean, with respect to any Person, any liability
of such Person under any interest rate, currency or commodity swap agreement,
cap agreement or collar agreement, and any other agreement or arrangement
designed to protect a Person against fluctuations in interest rates, currency
exchange rates or commodity prices.

     "INTELLECTUAL PROPERTY" shall mean all patent, copyright, trade secret,
trademark, trade name, service mark, Internet domain name, logo or other mark or
logo, or other proprietary rights or valid licenses thereof.

     "INVENTORY" shall have the meaning as defined in the UCC.

                                        6
<Page>

     "INTEREST EXPENSE" shall mean, for any period, the consolidated interest
expense of Borrower and the Subsidiaries for such period (including all imputed
interest on Capital Leases).

     "INVESTMENT" shall mean (a) the purchase of any debt or equity security of
any Person, (b) the making of any loan or advance to any Person, (c) becoming
obligated with respect to a Contingent Obligation in respect of obligations of
any Person (other than travel and similar advances to employees in the ordinary
course of business) or (d) the making of an Acquisition.

     "IRC" means the Internal Revenue Code of 1986, as amended.

     "LETTERS OF CREDIT" shall mean the letters of credit issued pursuant to the
Senior Credit Agreement.

     "LIEN" shall mean, with respect to any Person, any interest granted by such
Person in any real or personal property, asset or other right owned or being
purchased or acquired by such Person which secures payment or performance of any
obligation and shall include any mortgage, lien, encumbrance, charger or other
security interest of any kind, whether arising by contract, as a matter of law,
by judicial process or otherwise.

     "LOAN PARTY" shall mean Clayton Holdings, Inc., the Borrower, and each
Subsidiary.

     "LOANS" means Revolving Loans and Term Loans.

     "MANDATORY REPURCHASE EVENT" shall mean the occurrence of any one of any of
the following events: (i) any merger or consolidation of Clayton Holdings, Inc.
or the Borrower with or into another corporation in which less than a majority
of the outstanding voting power of the surviving or consolidated corporation
immediately following such event is held by persons or entities who were
stockholders of Clayton Holdings, Inc. or the Borrower, as applicable,
immediately prior to such event; (ii) any sale, license or transfer of all or
substantially all of the properties and assets of Clayton Holdings, Inc. or the
Borrower and any of their subsidiaries; (iii) any acquisition by any person (or
group of affiliated or associated persons) of beneficial ownership of a majority
of the equity of Clayton Holdings, Inc. or the Borrower (whether or not
newly-issued shares) in a single transaction or a series of related
transactions; (iv) any redemption or repurchase of shares representing a
majority of the outstanding voting power of Clayton Holdings, Inc. or the
Borrower, (with the exception of a redemption pursuant to Section A.4(b) or
A.5(a) of the Amended and Restated Certificate of Incorporation of Clayton
Holdings, Inc.); (v) any other change of control of 50% or more of the
outstanding voting power of Clayton Holdings, Inc. or the Borrower; (vi) the
initial public offering of Common Stock of Clayton Holdings, Inc. or the
Borrower pursuant to an effective registration statement under the Securities
Act in a transaction that does not constitute a QPO (as defined in Section
A.6(b) of the Amended and Restated Certificate of Incorporation of Clayton
Holdings, Inc.); or (vii) any liquidation, dissolution, or winding up of Clayton
Holdings, Inc. or the Borrower, whether voluntary or involuntary.

                                        7
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     "MARGIN STOCK" shall mean any "margin stock" as defined in Regulation T, U,
or X of the Board of Governors of the Federal Reserve System or any successor
thereof.

     "MATERIAL ADVERSE EFFECT" shall mean (a) a material adverse change in, or a
material adverse effect upon, the financial condition, operations, assets,
business, properties or prospects of Loan Parties taken as a whole or (b) a
material impairment of the ability of any Loan Party to perform any of its
Obligations under any Subordinated Notes Document.

     "MEZZANINE SUBORDINATION AGREEMENT" shall mean the Subordination and
Intercreditor Agreement dated as of even date herewith by and among TA Debt
Fund, TA Investors, Lamando Charitable Remainder UniTrust Under Agreement Dated
May 15, 2004, Madison Capital Funding LLC, Libman Family Holdings LLC, Borrower,
and Agent.

     "MULTIEMPLOYER PENSION PLAN" shall mean a multiemployer plan, as defined in
Section 4001(a)(3) of ERISA, to which Borrower or any member of the Controlled
Group may have any liability.

     "NOTEHOLDER" and "NOTEHOLDERS" shall mean a Person or Persons who hold a
Note or Notes issued pursuant to this Agreement, including successors and
assigns of such persons.

     "NOTES" shall have the meaning assigned to that term in SECTION 2.1.

     "OBLIGATIONS" means all now existing or hereafter arising debts,
obligations, covenants, and duties of payment or performance of every kind,
matured or unmatured, direct or contingent, owing, arising, due, or payable to
the Noteholders, by or from the Borrower, whether existing on the date of this
Agreement or arising thereafter, whether arising out of this Agreement or any
other Subordinated Notes Document, including, without limitation, all
obligations to repay principal of and interest on all the Loans, and to pay
interest, fees, costs, charges, expenses, professional fees, and all sums
chargeable to the Borrower, under the Subordinated Notes Documents, whether or
not evidenced by any note or other instrument.

     "PBGC" shall mean the Pension Benefit Guaranty Corporation and any entity
succeeding to any or all of the functions under ERISA.

     "PENSION PLAN" shall mean a "pension plan", as such term is defined in
Section 3(2) of ERISA, which is subject to Title IV of ERISA (other than a
Multiemployer Pension Plan), and to which the Borrower or any member of the
Controlled Group may have any liability, including any liability by reason of
having been a substantial employer within the meaning of Section 4063 of ERISA
at any time during the preceding five years, or by reason of being deemed to be
a contributing sponsor under Section 4069 of ERISA.

                                        8
<Page>

     "PERSON" shall mean any individual, corporation, partnership, limited
liability company, trust, unincorporated association, business, or other legal
entity, and any government or any governmental agency or political subdivision
thereof.

     "PRIOR DEBT" shall mean the Debt listed on SCHEDULE 3.3.

     "PRO FORMA EBITDA" shall mean, with respect to any Target acquired in an
Acquisition, EBITDA for such Target for the most recent twelve (12) month period
for which financial statements are made available to Noteholders at the time of
determination thereof, adjusted by extraordinary expenses, increased costs,
identifiable and verifiable expense reductions and excess management
compensation, if any, in each case calculated by Borrower and approved by
Noteholders.

     "PROPERTY" shall mean any interest in any kind or property or asset,
whether real, personal or mixed, or tangible or intangible.

     "REGISTRATION RIGHTS AGREEMENT" shall mean that certain Registration Rights
Agreement entered into in connection with the Contribution and Asset Transfer
Agreement.

     "RELATED AGREEMENTS" shall mean the Contribution and Asset Transfer
Agreement, Stock Purchase Agreement, the Stockholders Agreement, the
Registration Rights Agreement, and the Senior Loan Documents.

     "RELATED TRANSACTIONS" shall mean the transactions contemplated by the
Related Agreements.

     "REVOLVING LOANS" shall mean the revolving loans made under the Senior Loan
Documents.

     "SECURITIES ACT" shall mean the Securities Act of 1933, as amended, or any
similar successor federal statute, and the rules and regulations of the
Securities and Exchange Commission thereunder, all as the same shall be in
effect at the time.

     "SELLER SUBORDINATION AGREEMENT" means the Subordination and Intercreditor
Agreement dated as of even date herewith by and among Sellers, Borrower, and
Agent.

     "SELLER SUBORDINATED DEBT" means Debt in an aggregate amount not to exceed
$20,000,000 related to the "Contingent Payments" as defined in the Contribution
and Asset Transfer Agreement as in effect on the date hereof.

     "SELLERS" shall mean First Madison Services, Inc., Clayton Services, Inc.,
the "Clayton Subsidiaries" (as defined in the Contribution and Asset Transfer
Agreement), Stephen M. Lamando, Brian Kramer, Peter Krell and the "Other
Stockholders" (as defined in the Contribution and Asset Transfer Agreement).

     "SENIOR COLLATERAL DOCUMENTS" shall mean the following documents entered
into by the Borrower, as appropriate, in connection with the Senior Credit
Agreement: the

                                        9
<Page>

Guarantee and Collateral Agreement, each Mortgage, each Collateral Access
Agreement, and each other agreement or instrument pursuant to or in connection
with which the Borrower, any Subsidiary, or any other Person grants Collateral
to Agent for the benefit of the Senior Lenders, each as amended, restated or
otherwise modified from time to time.

     "SENIOR CREDIT AGREEMENT" shall mean that certain Credit Agreement by and
among the Borrower, the financial institutions party thereto from time to time,
and Madison Capital Funding LLC, as administrative agent, as amended, restated,
or modified and in effect from time to time.

     "SENIOR DEBT" shall mean all Funded Debt of the Borrower and the
Subsidiaries, determined on a consolidated basis, other than Subordinated Debt.

     "SENIOR DEBT TO EBITDA RATIO" shall mean, as of the last day of any Fiscal
Quarter, the ratio of (i) Senior Debt as of such day to (ii) EBITDA for the
Computation Period ending on such day; provided that, notwithstanding anything
to the contrary, for the Computation Periods ending December 31, 2003, March 31,
2004 and June 30, 2004, EBITDA shall be deemed $3,441,000, $5,371,000 and
$6,162,000, respectively.

     "SENIOR LENDER" shall mean the Lenders under the Senior Credit Agreement.

     "SENIOR LOAN DOCUMENTS" shall mean the Senior Credit Agreement, the Senior
Notes, the Letters of Credit, the Senior Collateral Documents, the Fee Letters,
and all documents, instruments and agreements delivered in connection with the
foregoing, all as amended, restated or otherwise modified from time to time.

     "SENIOR NOTES" shall mean the notes issued pursuant to the Senior Credit
Agreement.

     "SPONSOR" shall mean TA Associates, Inc.

     "STOCK PURCHASE AGREEMENT" shall mean that certain Stock Purchase Agreement
by and among Clayton Holdings, Inc. and the Investors named therein of even date
herewith.

     "STOCKHOLDERS AGREEMENT" shall mean that certain Stockholders Agreement
entered into in connection with the Contribution and Asset Transfer Agreement.

     "SUBORDINATED DEBT" means (a) debt or other obligations of the Borrower
under the Subordinated Note Documents, (b) the Seller Subordinated Debt and (c)
any other unsecured Debt of the Borrower which has subordination terms,
covenants, pricing and other terms which have been approved in writing by
Required Lenders under the Senior Credit Agreement.

     "SUBORDINATED NOTES DOCUMENTS" shall mean this Agreement and the Notes.

                                       10
<Page>

     "SUBSIDIARY" shall mean, with respect to any Person, a corporation,
partnership, limited liability company or other entity of which such Person
owns, directly or indirectly, such number of outstanding shares or other equity
interests as to have more than 50% of the ordinary voting power for the election
of directors or other managers of such corporation, partnership, limited
liability company or other entity. Unless the context otherwise requires, each
reference to Subsidiaries herein shall be a reference to Subsidiaries of
Borrower.

     "TARGET" shall mean the Person, or business or substantially all of the
assets of a Person, acquired in an Acquisition.

     "TERM LOANS" shall mean the Term A Loans made under the Senior Loan
Documents.

     "TOTAL DEBT" shall mean all Funded Debt of Borrower and the Subsidiaries,
determined on a consolidated basis.

     "TOTAL DEBT TO EBITDA RATIO" shall mean, as of the last day of any Fiscal
Quarter, the ratio of (a) Total Debt as of such day to (b) EBITDA for the
Computation Period ending on such day; provided that, notwithstanding anything
to the contrary, for the Computation Periods ending December 31, 2003, March 31,
2004 and June 30, 2004, EBITDA shall be deemed $3,441,000, $5,371,000 and
$6,162,000, respectively.

     "UCC" means the Uniform Commercial Code as in effect on the date hereof AND
from time to time in the Commonwealth of Massachusetts, PROVIDED that if by
reason of mandatory provisions of law, the perfection or the effect of
perfection or non-perfection of the security interests in any Collateral or the
availability of any remedy hereunder is governed by the Uniform Commercial Code
as in effect on or after the date hereof in any other jurisdiction, "UCC" means
the Uniform Commercial Code as in effect in such other jurisdiction for purposes
of the provisions hereof relating to such perfection or effect of perfection or
non-perfection or availability of such remedy.

     "WHOLLY-OWNED SUBSIDIARY" shall mean, as to any Person, another Person all
of the equity interests of which (except directors' qualifying shares) are at
the time directly or indirectly owned by such Person and/or another Wholly-Owned
Subsidiary of such Person.

     1.2.   ACCOUNTING TERMS. All accounting terms not specifically defined
herein shall be construed in accordance with GAAP, and all financial data
submitted pursuant to this Agreement and all financial tests to be calculated in
accordance with this Agreement shall be prepared and calculated in accordance
with GAAP. All financial tests relating to the Borrower or any of its
Subsidiaries shall be calculated with respect to the Borrower and its
Subsidiaries on a consolidated basis.

                                       11
<Page>

     ARTICLE II - AUTHORIZATION, PURCHASE, SALE AND TERMS OF NOTES; PAYMENTS

     2.1.   THE NOTES. The Borrower has authorized the issuance of senior
subordinated notes due August 2, 2010 in the aggregate original principal amount
of Twenty Million Dollars ($20,000,000). The senior subordinated notes shall be
in the form set forth as EXHIBIT 2.1 attached hereto and are herein referred to
individually as a "NOTE" and collectively as the "NOTES", which terms shall also
include any notes delivered in exchange or replacement therefor. The Notes shall
(a) be payable on August 2, 2010 and (b) bear interest compounded quarterly
(based on a 360-day year of twelve 30-day months) on the unpaid principal amount
thereof until due at the rate of twelve percent (12%) per annum, payable in cash
quarterly in arrears on May 15, August 15, November 15 and February 15 in each
year, commencing August 15, 2004, and at maturity or prior prepayment of the
Notes in full. The Borrower has authorized the issuance to the Noteholders of
the Notes.

     2.2.   PURCHASE OF THE ORIGINAL NOTES. Subject to and in reliance upon the
representations, warranties, terms and conditions of this Agreement, the
Noteholders agree to purchase Notes from the Borrower in the aggregate principal
amount of Twenty Million Dollars ($20,000,000), as set forth opposite each
Noteholders' name on EXHIBIT 2.2 attached hereto, at a closing (the "CLOSING")
to be held at the offices of Goodwin Procter LLP, located at Exchange Place, 53
State Street, Boston, MA, at 10:00 a.m. Boston time, or at such other time and
place as the parties hereto agree, on the date on which this Agreement is
executed and delivered and upon satisfaction of the conditions described in
Article III (the "CLOSING DATE"). At the Closing, the Borrower will issue the
Notes to the Noteholders, payable to the Noteholders or their registered
assigns, against receipt of immediately available funds by wire transfer to an
account or accounts designated by the Borrower prior to the Closing in the
amount set forth on EXHIBIT 2.2 (or in such other manner as is set forth on
EXHIBIT 2.2).

     2.3.   USE OF PROCEEDS. The Borrower agrees to use the full proceeds of the
Note to consummate the transactions contemplated by the Contribution and Asset
Transfer Agreement.

     2.4.   PAYMENTS AND ENDORSEMENTS.

                  (a)  Payments of principal, interest and premium, if any, on
the Notes shall be made without set off or counterclaim, directly by wire
transfer to an account designated in writing by each Noteholder, without any
presentment or notation of payment, except that prior to any transfer of any
Note, the holder thereof shall endorse on such Note a record of the date to
which interest has been paid and all payments made on account of principal of
such Note. All payments and prepayments of principal of, and interest on, the
Notes shall be applied (to the extent thereof) to all of the Notes PRO RATA
based on the principal amount outstanding and held by each holder thereof.

                  (b)  Anything herein to the contrary notwithstanding, if any
changes in present or future Applicable Law shall impose on the Borrower any
obligation

                                       12
<Page>

with respect to any amount payable by it hereunder or under any of the other
Related Agreements to withhold or deduct any taxes, levies, imposts, duties,
charges, fees, deductions or withholdings, the Borrower will pay to the
Noteholders, on the date on which such amount is due and payable under the
Subordinated Notes Documents, such additional amount in United States Dollars as
shall be necessary to enable the Noteholders to receive the same net amount
which the Noteholders would have received on such due date if no such obligation
had been imposed upon the Borrower.

                  (c)  The obligations of the Borrower under this SECTION 2.4
shall survive the payment in full of all amounts due hereunder or under the
Notes.

     2.5.   REDEMPTIONS AND MANDATORY REPURCHASE.

            2.5.1.  REQUIRED REDEMPTION. On the stated or accelerated maturity
of the Notes, the Borrower will pay the principal amount of the Notes then
outstanding together with all accrued and unpaid interest thereon. No redemption
of less than all of the Notes shall affect the obligation of the Borrower to
make the redemption required by this sub-section.

            2.5.2.  OPTIONAL REDEMPTIONS. In addition to the redemption of the
Notes required under SUB-SECTION 2.5.1, the Borrower may at any time voluntarily
redeem the Notes, in whole or in part (in integral multiples of Five Hundred
Thousand Dollars ($500,000)), together with all accrued and unpaid interest on
the amount so redeemed through the date of redemption, at a redemption price
equal to:

                  (a)  if such voluntary redemption, including a redemption
pursuant to SUB-SECTION 2.5.4, occurs on or prior to the first (1st) anniversary
of this Agreement, one hundred six percent (106%) of the sum of the principal
amount to be redeemed plus any accrued but unpaid interest thereon;

                  (b)  if such voluntary redemption, including a redemption
pursuant to SUB-SECTION 2.5.4, occurs after the first (1st) anniversary of this
Agreement but on or prior to the second (2nd) anniversary of this Agreement, one
hundred four percent (104%) of the sum of the principal amount to be redeemed
plus any accrued but unpaid interest thereon;

                  (c)  if such voluntary redemption, including a redemption
pursuant to SUB-SECTION 2.5.4, occurs after the second (2nd) anniversary of this
Agreement but on or prior to the third (3rd) anniversary of this Agreement, one
hundred two percent (102%) of the sum of the principal amount to be redeemed
plus any accrued but unpaid interest thereon; or

                  (d)  if such voluntary redemption, including a redemption
pursuant to SUB-SECTION 2.5.4 occurs after the third (3rd) anniversary of this
Agreement, the sum of the principal amount to be redeemed plus any accrued but
unpaid interest thereon.

                                       13
<Page>

            2.5.3.  NOTICE OF REDEMPTIONS; PRO RATA REDEMPTIONS. Written notice
of any redemption pursuant to SUB-SECTION 2.5.1 or SUB-SECTION 2.5.2 shall be
given to all holders of the Notes at least thirty (30) Business Days prior to
the date of any such redemption. Each redemption of the Notes pursuant to
SUB-SECTIONS 2.5.1 AND 2.5.2 shall be made so that the Notes then held by each
holder shall be redeemed in a principal amount which shall bear the same ratio
to the total unpaid principal amount being redeemed on all the Notes as the
unpaid principal amount of the Notes then held by such holder bears to the
aggregate unpaid principal amount of the Notes then outstanding.

            2.5.4.  MANDATORY REPURCHASE OF NOTES. As soon as possible, and in
any event within five (5) Business Days after the occurrence of a Mandatory
Repurchase Event, the Borrower shall furnish to each Noteholder written notice
setting forth in reasonable detail the facts and circumstances underlying such
Mandatory Repurchase Event. The occurrence of any such Mandatory Repurchase
Event shall constitute an irrevocable offer by the Borrower to purchase all of
the Notes held by such Noteholder at one hundred percent (100%) of the principal
amount thereof, on a date to be specified by the Borrower, which date shall be
not less than thirty (30) days nor more than ninety (90) days after the
occurrence of such Mandatory Repurchase Event, together with all accrued and
unpaid interest on the amount so purchased through the date of purchase and
together with any amounts otherwise payable pursuant to SUB-SECTION 2.5.2.
Following receipt of any offer to purchase the Notes hereunder, each Noteholder
shall advise the Borrower, by written notice, within ten (10) Business Days
after receipt of such offer, as to whether it desires to sell all or any of the
Notes, as applicable, held by it (in integral multiples of Five Hundred Thousand
Dollars ($500,000)), specifying the principal amount of the Notes to be sold by
it. If a Noteholder accepts such offer but does not specify an amount it wishes
to receive, it will be deemed to have elected to sell all of the Notes held by
it. If a Noteholder fails to respond to such offer by the Borrower within the
ten (10) Business Day acceptance period, such offer shall expire in accordance
with its terms.

     2.6.   DEFAULT RATE OF INTEREST. If an Event of Default has occurred and is
continuing, from and after the date such Event of Default has occurred the
entire outstanding unpaid principal balance of the Notes and any unpaid interest
from time to time in default shall bear interest, payable on demand in cash, at
the rate of fourteen percent (14%) per annum, compounded quarterly, or such
lower rate as then may be the maximum rate permitted by applicable law;
provided, however, that upon the cessation or cure of such Event of Default, if
no other Event of Default is then continuing, the Notes shall again bear
interest at the rate of twelve percent (12%) per annum as set forth in SECTION
2.1.

     2.7.   MAXIMUM LEGAL RATE OF INTEREST. Nothing in this Agreement or in the
Notes shall require the Borrower to pay interest at a rate in excess of the
maximum rate permitted by applicable law.

     2.8.   PAYMENT ON NON-BUSINESS DAYS. Whenever any payment to be made shall
be due on a day which is not a Business Day, such payment may be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest due.

                                       14
<Page>

     2.9.   TRANSFER AND EXCHANGE OF NOTES. The holder of any Note, as
applicable, may, prior to maturity or prepayment thereof, surrender such Note at
the principal office of a Borrower for transfer or exchange. Any holder desiring
to transfer or exchange any Note shall first notify the Borrower in writing at
least five (5) days in advance of such transfer or exchange. Within a reasonable
time after such notice to the Borrower from a holder of its intention to make
such exchange and without expense (other than transfer taxes, if any) to such
holder, the Borrower shall issue in exchange therefor another Note in
denominations of One Hundred Thousand Dollars ($100,000) and multiples thereof,
except in the case of a Note for the balance of the aggregate amount of the
Note, or Notes so transferred which shall be in a minimum denomination of One
Hundred Thousand Dollars ($100,000), all as requested by the holder, for the
same aggregate principal amount, as of the date of such issuance, as the unpaid
principal amount of the Note or Notes so surrendered and having the same
maturity and rate of interest, containing the same provisions and subject to the
same terms and conditions as the Note or Notes so surrendered (provided that no
minimum shall apply to a liquidating distribution of Notes to investors in a
Noteholder and any Notes so distributed may be subsequently transferred by such
investor and its successors in the original denomination thereof without
restriction under this sentence). Each new Note shall be made payable to such
Person or Persons, or assigns, as the holder of such surrendered Note may
designate, and such transfer or exchange shall be made in such a manner that no
gain or loss of principal or interest shall result therefrom. The Borrower shall
have no obligation hereunder or under any Note to any person other than the
registered holder of each such Note. Notwithstanding anything to the contrary
contained herein, no Noteholder shall be permitted to transfer any of its Notes
unless such Noteholder's transferee has agreed in writing to be bound by the
terms of this Agreement and the other Subordinated Notes Documents and the
Mezzanine Subordination Agreement to which such Noteholder is a party, including
the representations and warranties set forth in Article IV hereof.

     2.10.  REPLACEMENT OF NOTES. Upon receipt of evidence satisfactory to the
Borrower of the loss, theft, destruction or mutilation of any Note and, if
requested in the case of any such loss, theft or destruction, upon delivery of
an indemnity bond or other agreement or security reasonably satisfactory to the
Borrower, or, in the case of any such mutilation, upon surrender and
cancellation of such Note, the Borrower will issue a new Note of like tenor and
amount and dated the date to which interest has been paid, in lieu of such lost,
stolen, destroyed or mutilated Note; provided, however, if any Note of which a
Noteholder, its nominee, or any of its partners is the holder is lost, stolen or
destroyed, the affidavit of an authorized partner or officer of the holder
setting forth the circumstances with respect to such loss, theft or destruction
shall be accepted as satisfactory evidence thereof, and no indemnification bond
or other security shall be required as a condition to the execution and delivery
by the Borrower of a new Note in replacement of such lost, stolen or destroyed
Note other than the holders written agreement to indemnify the Borrower.

     2.11.  OTHER NOTICES. So long as any Notes are outstanding, the Borrower
shall provide written notice to each Noteholder at least thirty (30) Business
Days prior to the occurrence or closing of a Mandatory Repurchase Event or a
public offering of securities

                                       15
<Page>

by the Borrower setting forth in reasonable detail the facts and circumstances
underlying such Mandatory Repurchase Event or public offering.

     2.12.  LIABILITY. The Borrower hereby agrees that it is liable for the full
and prompt payment (whether at stated maturity, by acceleration or otherwise)
and performance of, all Obligations owed by it or hereafter owing by it to any
Noteholder. The Borrower agrees that its obligation hereunder shall not be
discharged until payment and performance, in full, of the Obligations has
occurred, and that its obligations under this SECTION 2.12 shall be absolute and
unconditional, irrespective of, and unaffected by:

            2.12.1. the genuineness, validity, regularity, enforceability or
any future amendment of, or change in, this Agreement, any other Subordinated
Notes Document or any other agreement, document or instrument to which the
Borrower is or may become a party;

            2.12.2. the absence of any action to enforce this Agreement
(including this Section 2.12) or any other Subordinated Notes Document or the
waiver or consent with respect to any of the provisions thereof;

            2.12.3. the existence, value or condition of, or failure to perfect
its Lien against, any security for the Obligations or any action, or the absence
of any action, by any Noteholder in respect thereof (including the release of
any such security);

            2.12.4. the insolvency of any Noteholder; or

            2.12.5. any other action or circumstances that might otherwise
constitute a legal or equitable discharge or defense of a surety or guarantor.

              ARTICLE III - CONDITIONS TO NOTEHOLDERS' OBLIGATIONS

     The obligation of each Noteholder to purchase its Notes hereunder is
subject to the following conditions precedent, all or any of which may be waived
by the unanimous written agreement of the Noteholders:

     3.1.   CAPITALIZATION. Borrower has received cash equity contributions
(which may include escrow and/or restricted cash) from Sponsor and its
Affiliates in an amount not less than $80,000,000.

     3.2.   SENIOR LOAN DOCUMENTS. Borrower has executed and delivered, as
appropriate, the Senior Loan Documents and has in place with the Agent the
Senior Credit Agreement under which the Borrower is able to borrow up to
$10,000,000 in Revolving Loans on the Closing Date.

     3.3.   PRIOR DEBT. The Prior Debt has been (or concurrently with the
initial borrowing will be) paid in full.

     3.4.   RELATED TRANSACTIONS. Borrower has completed (or concurrently with
the purchase of Notes hereunder will complete) the Related Transactions in
accordance with

                                       16
<Page>

the terms of the Related Agreements (without any amendment thereto or waiver
thereunder unless consented to by the Noteholders).

     3.5.   FEES. Borrower shall have paid all fees, costs and expenses due and
payable on the Closing Date.

     3.6.   DELIVERY OF DOCUMENTS. Borrower shall have delivered the following
documents in form and substance satisfactory to the Noteholders (and, as
applicable, duly executed and dated the Closing Date or an earlier date
satisfactory to Noteholders):

            3.6.1.  AGREEMENT. This Agreement.

            3.6.2.  NOTES.  Notes for each Noteholder purchasing a Note
hereunder.

            3.6.3.  SENIOR LOAN DOCUMENTS.  The Senior Loan Documents and all
instruments, documents, certificates and agreements executed or delivered
pursuant thereto (including intellectual property assignments and pledged
Collateral, with undated irrevocable transfer powers executed in blank).

            3.6.4.  LIEN SEARCHES.  Copies of Uniform Commercial Code search
reports listing all effective financing statements filed against any Loan Party,
with copies of such financing statements.

            3.6.5.  PAYOFF; RELEASE. Payoff letters evidencing repayment in full
of all Prior Debt, termination of all agreements relating thereto and the
release of all Liens granted in connection therewith, with Uniform Commercial
Code or other appropriate termination statements and documents effective to
evidence the foregoing.

            3.6.6.  LETTER OF DIRECTION.  A letter of direction containing funds
flow information, with respect to the proceeds of the Notes on the Closing Date.

            3.6.7.  AUTHORIZATION DOCUMENTS. For each Loan Party, such Person's
(i) charter (or similar formation document), certified by the appropriate
governmental authority, (ii) good standing certificates in its state of
incorporation (or formation) and in each other state requested by Agent, (iii)
bylaws (or similar governing document), (iv) resolutions of its board of
directors (or similar governing body) approving and authorizing such Person's
execution, delivery and performance of the Subordinated Notes Documents to which
it is party and the transactions contemplated thereby, and (v) signature and
incumbency certificates of its officers executing any of the Subordinated Notes
Documents, all certified by its secretary or an assistant secretary (or similar
officer) as being in full force and effect without modification.

            3.6.8.  INSURANCE.  Certificates or other evidence of insurance in
effect as required by SECTION 6.3(b).

            3.6.9.  FINANCIALS.  The financial statements, projections and pro
forma balance sheet of Borrower described in SECTION 5.4.

                                       17
<Page>

            3.6.10. CONSENTS.  Evidence that all necessary consents, permits and
approvals (governmental or otherwise) required for the execution, delivery and
performance by Borrower of the Subordinated Notes Documents and the Related
Transactions have been duly obtained and are in full force and effect.

           3.6.11.  CERTIFIED DOCUMENTS. Copies of the Related Agreements
(including a consent to the collateral assignment of rights and indemnities
under the appropriate Related Agreements in favor of Agent and Senior Lenders)
certified by Borrower's secretary or an assistant secretary (or similar officer)
as being in true, accurate and complete.

            3.6.12. OTHER DOCUMENTS.  Such other certificates, documents and
agreements as any Noteholder may reasonably request.

     3.7.   REPRESENTATIONS AND WARRANTIES. Each of the representations and
warranties of the Borrower and its Subsidiaries set forth in Article V hereof
shall be true and correct in all respects at the time of, and immediately after
giving effect to, the purchase of the Notes.

     3.8.   USE OF PROCEEDS. The Borrower shall have used, or simultaneously
with the Closing shall use, funds from the sale of the Notes for the purposes
described in SECTION 2.3.

     3.9.   COMPLIANCE WITH THIS AGREEMENT. The Borrower shall have performed
and complied with all of their agreements and satisfied the conditions set forth
or contemplated herein that are required to be performed or complied with or
satisfied by it on or before the Closing Date.

     3.10.  CONSUMMATION OF THE TRANSACTIONS. The transactions contemplated by
the Related Agreements shall have been consummated.

         ARTICLE IV - REPRESENTATIONS AND WARRANTIES OF THE NOTEHOLDERS

     Each Noteholder, for itself only, hereby represents and warrants, which
representations and warranties shall survive the closing, that:

     4.1.   AUTHORIZATION; ENFORCEABILITY. Noteholder has duly authorized,
executed and delivered this Agreement and such of the Related Agreements as
require execution by such Noteholder, and each constitutes the valid and binding
obligation of such Noteholder enforceable in accordance with its terms, except
as the enforceability thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other laws relating to or affecting generally the
enforcement of creditors' rights and except to the extent that availability of
the remedy of specific performance or injunctive relief is subject to the
discretion of the court before which any proceeding therefor may be brought.

                                       18
<Page>

     4.2.   OWN ACCOUNT. Such Noteholder is acquiring the Notes for its own
account, and not as nominee or agent.

     4.3.   INVESTMENT INTENT. The Notes are being and will be acquired for the
purpose of investment and not with a view to distribution or resale thereof;
subject, nevertheless, to the condition that, except as otherwise provided
herein and subject to compliance with applicable securities laws, the
disposition of the property of such Noteholder shall at all times be within its
control. Such Noteholder was not formed solely for the purpose of making an
investment in the Borrower or its Subsidiaries.

     4.4.   SECURITIES LAWS. Such Noteholder understands that it must bear the
economic risk of its investment for an indefinite period of time because the
Notes are not, and will not be, registered under the Securities Act or any
applicable state securities laws, except as may be provided in this Agreement,
and may not be resold unless subsequently registered under the Securities Act
and such other laws or unless an exemption from such registration is available.
Such Noteholder acknowledges that, in issuing the Notes, the Borrower is relying
on the representations and warranties of such Noteholder in this ARTICLE IV.

     4.5.   NO BROKER. No Person has or will have, as a result of the
transactions contemplated by this Agreement, any rights, interest or valid claim
against or upon the Borrower or any of its Subsidiaries for any commission, fee
or other compensation as a finder or broker because of any act or omission by
such Noteholder or any agent of such Noteholder.

     4.6.   RESTRICTIVE LEGEND. Such Noteholder hereby acknowledges that the
Notes (unless no longer required in the opinion of counsel, which opinion and
counsel shall be reasonably satisfactory to the Borrower, it being agreed that
Goodwin Procter LLP shall be satisfactory) shall bear a legend substantially in
the following form (in addition to any other legend required by the Subordinated
Notes Documents):

            THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
            SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE
            SECURITIES OR BLUE SKY LAWS AND MAY NOT BE OFFERED, SOLD,
            TRANSFERRED, HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT (1) PURSUANT
            TO A REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES WHICH IS
            EFFECTIVE UNDER THE ACT OR (2) PURSUANT TO AN AVAILABLE EXEMPTION
            FROM REGISTRATION UNDER THE ACT RELATING TO THE DISPOSITION OF
            SECURITIES AND (3) IN ACCORDANCE WITH APPLICABLE STATE SECURITIES
            AND BLUE SKY LAWS.

     The acquisition by such Noteholder of the Notes shall constitute a
confirmation by it of the foregoing representations.

                                       19
<Page>

           ARTICLE V - REPRESENTATIONS AND WARRANTIES OF THE BORROWER

     To induce the Noteholders to enter into this Agreement, the Borrower
represents and warrants to the Noteholders that, both before and after giving
effect to the Related Transactions:

     5.1.   ORGANIZATION. Borrower is a corporation validly existing and in good
standing under the laws of the State of Delaware; each other Loan Party is
validly existing and in good standing under the laws of the jurisdiction of its
organization; and each Loan Party is duly qualified to do business in each
jurisdiction where, because of the nature of its activities or properties, such
qualification is required, except for such jurisdictions where the failure to so
qualify would not have a Material Adverse Effect.

     5.2.   AUTHORIZATION; NO CONFLICT. Each of Borrower and each other Loan
Party is duly authorized to execute and deliver each Subordinated Notes Document
to which it is a party, Borrower is duly authorized to borrow monies hereunder,
and each of Borrower and each other Loan Party is duly authorized to perform its
Obligations under each Subordinated Notes Document to which it is a party. The
execution, delivery and performance by Borrower of this Agreement and by each of
Borrower and each other Loan Party of each Subordinated Notes Document to which
it is a party, and the borrowings by Borrower hereunder, do not and will not (a)
require any consent or approval of any governmental agency or authority (other
than any consent or approval which has been obtained and is in full force and
effect), (b) conflict with (i) any provision of law, (ii) the charter, by-laws
or other organizational documents of Borrower or any other Loan Party or (iii)
any agreement, indenture, instrument or other document, or any judgment, order
or decree, which is binding upon Borrower or any other Loan Party or any of
their respective properties or (c) require, or result in, the creation or
imposition of any Lien on any asset of Borrower, any Subsidiary or any other
Loan Party.

     5.3.   VALIDITY; BINDING NATURE. Each of this Agreement and each other
Subordinated Notes Document to which Borrower or any other Loan Party is a party
is the legal, valid and binding obligation of such Person, enforceable against
such Person in accordance with its terms, subject to bankruptcy, insolvency and
similar laws affecting the enforceability of creditors' rights generally and to
general principles of equity.

     5.4.   FINANCIAL CONDITION.

                  (a)  The audited consolidated financial statements of Borrower
and the Subsidiaries as at its Fiscal Years ending December 31, 2002 and
December 31, 2003, and the unaudited consolidated financial statements of
Borrower and the Subsidiaries as at June 30, 2004, copies of each of which have
been delivered pursuant hereto, were prepared in accordance with GAAP (subject,
in the case of such unaudited statements, to the absence of footnotes and to
normal year-end adjustments) and present fairly the consolidated financial
condition of such Persons as at such dates and the results of their operations
for the periods then ended.

                                       20
<Page>

                (b)    The consolidated financial projections (including an
operating budget and a cash flow budget) of Borrower for the 3- year period
commencing January 1, 2005 delivered to the Noteholders on or prior to the
Closing Date (i) were prepared by Borrower in good faith and (ii) were prepared
in accordance with assumptions for which Borrower has a reasonable basis, and
the accompanying consolidated pro forma balance sheet of Borrower as at the
Closing Date, adjusted to give effect to the consummation of the Related
Transactions and the financings contemplated hereby as if such transactions had
occurred on such date, is consistent in all material respects with such
projections.

     5.5.   NO MATERIAL ADVERSE CHANGE. Since May 31, 2004, there has been no
material adverse change in the financial condition, operations, assets,
business, properties or prospects of the Loan Parties taken as a whole.

     5.6.   LITIGATION. No litigation (including derivative actions),
arbitration proceeding or governmental investigation or proceeding is pending
or, to Borrower's knowledge, threatened against any Loan Party which could
reasonably be expected to have a Material Adverse Effect, except as set forth in
SCHEDULE 5.6. As of the Closing Date, other than any liability incident to such
litigation or proceedings, neither Borrower nor any other Loan Party has any
material Contingent Obligations not listed on SCHEDULE 7.1.

     5.7.   OWNERSHIP OF PROPERTIES; LIENS. Each of Borrower and each other Loan
Party owns good and, in the case of real property, marketable title to all of
its properties and assets, real and personal, tangible and intangible, of any
nature whatsoever (including patents, trademarks, trade names, service marks and
copyrights), free and clear of all Liens, charges and claims (including
infringement claims with respect to patents, trademarks, service marks,
copyrights and the like), except as permitted by SECTION 7.2.

     5.8.   CAPITALIZATION. All issued and outstanding equity securities of
Borrower and the other Loan Parties are duly authorized and validly issued,
fully paid, non-assessable, and free and clear of all Liens other than those in
favor of Agent, and such securities were issued in compliance with all
applicable state and federal laws concerning the issuance of securities.
SCHEDULE 5.8 sets forth the authorized equity securities of each Loan Party as
of the Closing Date. All of the issued and outstanding equity of Clayton
Holdings, Inc. is owned as set forth on SCHEDULE 5.8 as of the Closing Date, all
of the issued and outstanding equity of Borrower is owned by Clayton Holdings,
Inc., and all of the issued and outstanding equity of each Wholly-Owned
Subsidiary is, directly or indirectly, owned by Borrower. As of the Closing
Date, except as set forth on SCHEDULE 5.8, there are no pre-emptive or other
outstanding rights, options, warrants, conversion rights or other similar
agreements or understandings for the purchase or acquisition of any equity
interests of Borrower or any other Loan Party.

     5.9.   PENSION PLANS. During the twelve-consecutive-month period prior to
the Closing Date or the purchase of any Notes hereunder, (i) no steps have been
taken to terminate any Pension Plan and (ii) no contribution failure has
occurred with respect to any Pension Plan sufficient to give rise to a Lien
under Section 302(f) of ERISA. No

                                       21
<Page>

condition exists or event or transaction has occurred with respect to any
Pension Plan which could result in the incurrence by Borrower or any other Loan
Party of any material liability, fine or penalty. All contributions (if any)
have been made to any Multiemployer Pension Plan that are required to be made by
any Loan Party or any other member of the Controlled Group under the terms of
the plan or of any collective bargaining agreement or by applicable law; neither
any Loan Party nor any member of the Controlled Group has withdrawn or partially
withdrawn from any Multiemployer Pension Plan, incurred any withdrawal liability
with respect to any such plan or received notice of any claim or demand for
withdrawal liability or partial withdrawal liability from any such plan, and no
condition has occurred which, if continued, could result in a withdrawal or
partial withdrawal from any such plan, and neither any Loan Party nor any member
of the Controlled Group has received any notice that any Multiemployer Pension
Plan is in reorganization, that increased contributions may be required to avoid
a reduction in plan benefits or the imposition of any excise tax, that any such
plan is or has been funded at a rate less than that required under Section 412
of the IRC, that any such plan is or may be terminated, or that any such plan is
or may become insolvent.

     5.10.  INVESTMENT COMPANY ACT. Neither Borrower nor any other Loan Party is
an "investment company" or a company "controlled" by an "investment company" or
a "subsidiary" of an "investment company", within the meaning of the Investment
Company Act of 1940.

     5.11.  PUBLIC UTILITY HOLDING COMPANY ACT. Neither Borrower nor any other
Loan Party is a "holding company", or a "subsidiary company" of a "holding
company", or an "affiliate" of a "holding company" or of a "subsidiary company"
of a "holding company", within the meaning of the Public Utility Holding Company
Act of 1935.

     5.12.  MARGIN STOCK. Neither Borrower nor any other Loan Party is engaged
principally, or as one of its important activities, in the business of extending
credit for the purpose of purchasing or carrying Margin Stock. No portion of the
Obligations is secured directly or indirectly by Margin Stock.

     5.13.  TAXES. Each of Borrower and each other Loan Party has filed all tax
returns and reports required by law to have been filed by it and has paid all
taxes and governmental charges thereby shown to be owing, except any such taxes
or charges which are being diligently contested in good faith by appropriate
proceedings and for which adequate reserves in accordance with GAAP shall have
been set aside on its books.

     5.14.        SOLVENCY. On the Closing Date, and immediately prior to and
after giving effect to the purchase of each Note hereunder and the use of the
proceeds thereof, with respect to each of Borrower and each other Loan Party,
individually, (a) the fair value of its assets is greater than the amount of its
probable liabilities (including disputed, contingent and unliquidated
liabilities) as such value is established and liabilities evaluated, (b) the
present fair saleable value of its assets is not less than the amount that will
be required to pay the probable liability on its debts as they become absolute
and matured, (c) it is able to realize upon its assets and pay its debts and
other liabilities (including disputed, contingent and unliquidated liabilities)
as they mature in the normal

                                       22
<Page>

course of business, (d) it does not intend to, and does not believe that it
will, incur debts or liabilities beyond its ability to pay as such debts and
liabilities mature and (e) it is not engaged in business or a transaction, and
is not about to engage in business or a transaction, for which its property
would constitute unreasonably small capital.

     5.15.  ENVIRONMENTAL MATTERS. The on-going operations of Borrower and each
other Loan Party comply in all respects with all Environmental Laws, except such
non-compliance which could not (if enforced in accordance with applicable law)
reasonably be expected to result in a Material Adverse Effect. Borrower and each
other Loan Party have obtained, and maintained in good standing, all licenses,
permits, authorizations and registrations required under any Environmental Law
and necessary for their respective ordinary course operations, and Borrower and
each other Loan Party are in compliance with all material terms and conditions
thereof, except where the failure to do so could not reasonably be expected to
result in material liability to Borrower or any other Loan Party and could not
reasonably be expected to result in a Material Adverse Effect. None of Borrower,
any other Loan Party or any of their respective properties or operations is
subject to any outstanding written order from or agreement with any Federal,
state or local governmental authority, nor subject to any judicial or docketed
administrative proceeding, respecting any Environmental Law, Environmental Claim
or Hazardous Substance. There are no Hazardous Substances or other conditions or
circumstances existing with respect to any property, or arising from operations
prior to the Closing Date, of Borrower or any other Loan Party that would
reasonably be expected to result in a Material Adverse Effect. Neither Borrower
nor any other Loan Party has any underground storage tanks that are not properly
registered or permitted under applicable Environmental Laws or that are leaking
or disposing of Hazardous Substances.

     5.16.  INSURANCE. Borrower and each other Loan Party and their respective
properties are insured with financially sound and reputable insurance companies
which are not Affiliates of Borrower, in such amounts, with such deductibles and
covering such risks as are customarily carried by companies engaged in similar
businesses and owning similar properties in localities where Borrower or such
other Loan Party operates. A true and complete listing of such insurance as of
the Closing Date, including issuers, coverages and deductibles, is set forth on
SCHEDULE 5.16.

     5.17.  INFORMATION. All information heretofore or contemporaneously
herewith furnished in writing by Borrower or any other Loan Party to Noteholders
for purposes of or in connection with this Agreement and the transactions
contemplated hereby is, and all written information hereafter furnished by or on
behalf of Borrower or any Loan Party to Noteholders pursuant hereto or in
connection herewith will be, to its knowledge, true and accurate in every
material respect on the date as of which such information is dated or certified,
and none of such information is or, to its knowledge, will be incomplete by
omitting to state any material fact necessary to make such information not
misleading in light of the circumstances under which made (it being recognized
by Noteholders that any projections and forecasts provided by Borrower are based
on good faith estimates and assumptions believed by Borrower to be reasonable as
of the date of the applicable projections or assumptions and that actual results
during the period or periods covered by any such projections and forecasts may
differ from projected or forecasted results).

                                       23
<Page>

     5.18.  INTELLECTUAL PROPERTY. Borrower and each other Loan Party owns and
possesses or has a license or other right to use all patents, patent rights,
trademarks, trademark rights, trade names, trade name rights, service marks,
service mark rights and copyrights as are necessary for the conduct of the
business of Borrower and the other Loan Parties, without any infringement upon
rights of others which could reasonably be expected to have a Material Adverse
Effect.

     5.19.  RESTRICTIVE PROVISIONS. Neither Borrower nor any other Loan Party is
a party to any agreement or contract or subject to any restriction contained in
its operative documents which could reasonably be expected to have a Material
Adverse Effect.

     5.20.  LABOR MATTERS. Except as set forth on SCHEDULE 5.20, neither
Borrower nor any other Loan Party is subject to any labor or collective
bargaining agreement. There are no existing or threatened strikes, lockouts or
other labor disputes involving Borrower or any other Loan Party that singly or
in the aggregate could reasonably be expected to have a Material Adverse Effect.
Hours worked by and payment made to employees of Borrower and the other Loan
Parties are not in violation of the Fair Labor Standards Act or any other
applicable law, rule or regulation dealing with such matters.

     5.21.  NO DEFAULT. No Event of Default or Default exists or would result
from the incurrence by any Loan Party of any Debt hereunder or under any other
Subordinated Notes Document.

     5.22.  RELATED AGREEMENTS. Borrower has furnished Noteholders a true and
correct copy of the Related Agreements pursuant hereto. Each of Borrower and, to
Borrower's knowledge, each other party to the Related Agreements, has duly taken
all necessary organizational action to authorize the execution, delivery and
performance of the Related Agreements and the consummation of transactions
contemplated thereby. As of the Closing Date, the Related Transactions have been
consummated in accordance with the terms of the Related Agreements. To its
knowledge, the Related Transactions will comply with all applicable legal
requirements, and all necessary governmental, regulatory, creditor, shareholder,
partner and other material consents, approvals and exemptions required to be
obtained by Borrower and, to Borrower's knowledge, each other party to the
Related Agreements in connection with the Related Transactions will be, prior to
consummation of the Related Transactions, duly obtained and will be in full
force and effect. As of the date of the Related Agreements, all applicable
waiting periods with respect to the Related Transactions will have expired
without any action being taken by any competent governmental authority which
restrains, prevents or imposes material adverse conditions upon the consummation
of the Related Transactions. The execution and delivery of the Related
Agreements did not, and the consummation of the Related Transactions will not,
violate any statute or regulation of the United States (including any securities
law) or of any state or other applicable jurisdiction, or any order, judgment or
decree of any court or governmental body binding on Borrower or, to Borrower's
knowledge, any other party to the Related Agreements, or result in a breach of,
or constitute a default under, any material agreement, indenture, instrument or
other document, or any judgment, order or decree, to which Borrower is a party
or by which Borrower is bound or, to Borrower's knowledge, to which any other
party to the Related
                                       24
<Page>

Agreements is a party or by which any such party is bound. No statement or
representation made in the Related Agreements by Borrower or, to Borrower's
knowledge, any other Person, contains any untrue statement of a material fact or
omits to state any material fact required to be stated therein or necessary in
order to make the statements made therein, in light of the circumstances under
which they are made, not misleading.

               ARTICLE VI - AFFIRMATIVE COVENANTS OF THE BORROWER

     The Borrower covenants and agrees that so long as any of the Notes are
outstanding it will:

     6.1.   INFORMATION. Furnish to Noteholders:

            6.1.1.  ANNUAL REPORT. Promptly when available and in any event
within 90 days after the close of each Fiscal Year: (a) a copy of the annual
audit report of Borrower and the Subsidiaries for such Fiscal Year, including
therein a consolidated balance sheet and statements of earnings and cash flows
of Borrower and the Subsidiaries as at the end of and for such Fiscal Year,
certified without qualification by independent auditors of recognized standing
selected by Borrower and reasonably acceptable to Noteholders, together with a
comparison with the budget for such Fiscal Year and a comparison with the
previous Fiscal Year; and (b) a consolidating balance sheet of Borrower and the
Subsidiaries as of the end of such Fiscal Year and consolidating statements of
earnings and cash flows for Borrower and the Subsidiaries for such Fiscal Year,
certified by the chief financial officer of Borrower.

            6.1.2.  INTERIM REPORTS. Promptly when available and in any event
within 30 days after the end of each month, (i) consolidated and consolidating
balance sheets of Borrower and the Subsidiaries as of the end of such month,
together with consolidated and consolidating statements of earnings and a
consolidated and consolidating statement of cash flows for such month and for
the period beginning with the first day of such Fiscal Year and ending on the
last day of such month, together with a comparison with the corresponding period
of the previous Fiscal Year and a comparison with the budget for such period of
the current Fiscal Year, certified by the chief financial officer of Borrower,
and (ii) a written statement of Borrower's management setting forth a discussion
of Borrower's financial condition, changes in financial condition and results of
operations.

            6.1.3.  COMPLIANCE CERTIFICATE. Contemporaneously with the
furnishing of a copy of each annual audit report pursuant to SECTION 6.1.1 and
each set of monthly statements delivered at the end of each Fiscal Quarter
pursuant to SECTION 6.1.2 (and as required by SECTIONS 7.4 AND 7.11) a duly
completed Compliance Certificate, with appropriate insertions, dated the date of
such annual report or such quarterly statements, and signed by the chief
financial officer of Borrower, containing a computation of each of the financial
ratios and restrictions set forth in SECTION 7.14 and to the effect that such
officer has not become aware of any Event of Default or Default that has
occurred and is

                                       25
<Page>

continuing or, if there is any such event, describing it and the steps, if any,
being taken to cure it.

            6.1.4.  REPORTS TO SEC AND SHAREHOLDERS. Promptly upon the filing or
sending thereof, copies of (a) all regular, periodic or special reports of each
Loan Party filed with the Securities Exchange Commission, (b) all registration
statements of each Loan Party filed with the Securities Exchange Commission
(other than on Form S-8) and (c) all proxy statements or other material
communications made to security holders generally.

            6.1.5.  NOTICE OF DEFAULT; LITIGATION; ERISA MATTERS. Promptly upon
becoming aware of any of the following, written notice describing the same and
the steps being taken by Borrower or the applicable Loan Party affected thereby
with respect thereto:

                  (a)  the occurrence of an Event of Default or a Default;

                  (b)  any litigation, arbitration or governmental investigation
or proceeding not previously disclosed by Borrower to Noteholders which has been
instituted or, to the knowledge of Borrower, is threatened against Borrower or
any other Loan Party or to which any of the properties of any thereof is subject
which would reasonably be expected to have a Material Adverse Effect;

                  (c)  the institution of any steps by any member of the
Controlled Group or any other Person to terminate any Pension Plan, or the
failure of any member of the Controlled Group to make a required contribution to
any Pension Plan (if such failure is sufficient to give rise to a Lien under
Section 302(f) of ERISA) or to any Multiemployer Pension Plan, or the taking of
any action with respect to a Pension Plan which could result in the requirement
that Borrower or any other Loan Party furnish a bond or other security to the
PBGC or such Pension Plan, or the occurrence of any event with respect to any
Pension Plan or Multiemployer Pension Plan which could result in the incurrence
by any member of the Controlled Group of any material liability, fine or penalty
(including any claim or demand for withdrawal liability or partial withdrawal
from any Multiemployer Pension Plan), or any material increase in the contingent
liability of Borrower or any other Loan Party with respect to any
post-retirement welfare plan benefit, or any notice that any Multiemployer
Pension Plan is in reorganization, that increased contributions may be required
to avoid a reduction in plan benefits or the imposition of an excise tax, that
any such plan is or has been funded at a rate less than that required under
Section 412 of the IRC, that any such plan is or may be terminated, or that any
such plan is or may become insolvent;

                  (d)  any cancellation or material adverse change in any
insurance maintained by Borrower or any other Loan Party; or

                  (e)  any other event (including (i) any violation of any
Environmental Law or the assertion of any Environmental Claim or (ii) the
enactment or

                                       26
<Page>

effectiveness of any law, rule or regulation) which would reasonably be expected
to have a Material Adverse Effect.

            6.1.6.  RESERVED.

            6.1.7.  MANAGEMENT REPORT. Promptly upon receipt thereof, copies of
all detailed financial and management reports submitted to Borrower or any other
Loan Party by independent auditors in connection with each annual or interim
audit made by such auditors of the books of Borrower or any other Loan Party.

            6.1.8.  PROJECTIONS. As soon as practicable, and in any event not
later than 30 days after the commencement of each Fiscal Year, financial
projections for Borrower and the Subsidiaries for the upcoming three Fiscal
Years (including monthly operating and cash flow budgets for the immediately
following Fiscal Year) prepared in a manner consistent with the projections
delivered by Borrower to Noteholders prior to the Closing Date or otherwise in a
manner reasonably satisfactory to them, accompanied by a certificate of a chief
financial officer of Borrower on behalf of Borrower to the effect that (a) such
projections were prepared by Borrower in good faith, (b) Borrower has a
reasonable basis for the assumptions contained in such projections and (c) such
projections have been prepared in accordance with such assumptions.

            6.1.9.  SENIOR CREDIT AGREEMENT NOTICES. Promptly following receipt,
copies of any material notices (including notices of default or acceleration)
received from any holder or trustee of, under or with respect to any Senior
Debt. The Borrower shall also deliver to each Noteholder a copy of all reports,
certificates, documents and other information delivered to the Senior Lender
and/or Agent, as applicable, pursuant to the terms of the Senior Credit
Agreement contemporaneously with the delivery of such reports, certificates,
documents and other information to the Senior Lenders and/or Agent, as
applicable.

            6.1.10. OTHER INFORMATION.  Promptly from time to time, such other
information concerning Borrower and any other Loan Party as any Noteholder may
reasonably request.

     6.2.   BOOKS; RECORDS; INSPECTIONS. Keep, and cause each other Loan Party
to keep, its books and records in accordance with sound business practices
sufficient to allow the preparation of financial statements in accordance with
GAAP; permit, and cause each other Loan Party to permit, Noteholders or any
representatives thereof to inspect the properties and operations of Borrower or
such other Loan Party; and permit, and cause each other Loan Party to permit, at
any reasonable time and with reasonable notice (or at any time without notice if
an Event of Default exists), Noteholders or any representatives thereof to visit
any or all of its offices, to discuss its financial matters with its officers
and its independent auditors (and Borrower hereby authorizes such independent
auditors to discuss such financial matters with any Noteholder or any
representative thereof), and to examine (and, at the expense of Borrower or the
applicable Loan Party, photocopy extracts from) any of its books or other
records; and permit, and cause each other Loan Party to permit, Noteholders and
their representatives to inspect

                                       27
<Page>

the Collateral and other tangible assets of Borrower or such Subsidiary, to
perform appraisals of the equipment of Borrower or such Subsidiary, and to
inspect, audit, check and make copies of and extracts from the books, records,
computer data, computer programs, journals, orders, receipts, correspondence and
other data relating to any Collateral. All such inspections or audits by
Noteholders shall be at Borrower's expense, provided that so long as no Event of
Default or Default exists, Borrower shall not be required to (i) reimburse
Noteholder for appraisals more frequently than once each Fiscal Year or (ii)
permit inspections and appraisals more than two (2) times per year in total.

     6.3.   MAINTENANCE OF PROPERTY; INSURANCE.

                  (a)  Keep, and cause each other Loan Party to keep, all
property useful and necessary in the business of Borrower or such other Loan
Party in good working order and condition, ordinary wear and tear excepted.

                  (b)  Maintain, and cause each other Loan Party to maintain,
with responsible insurance companies, such insurance coverage as shall be
required by all laws, governmental regulations and court decrees and orders
applicable to it and such other insurance, to such extent and against such
hazards and liabilities, as is customarily maintained by companies similarly
situated; provided that in any event, such insurance shall insure against all
risks and liabilities of the type insured against as of the Closing Date and
shall have insured amounts no less than, and deductibles no higher than, those
amounts provided for as of the Closing Date. Upon request of any Noteholder,
Borrower shall furnish to such Noteholder a certificate setting forth in
reasonable detail the nature and extent of all insurance maintained by Borrower
and each other Loan Party. Borrower shall cause each issuer of an insurance
policy to provide Noteholders with an endorsement providing that 30 days' notice
will be given to Noteholders prior to any cancellation of, or reduction or
change in coverage provided by such policy.

     6.4.   COMPLIANCE WITH LAWS; PAYMENT OF TAXES AND LIABILITIES.

                  (a)  Comply, and cause each other Loan Party to comply, in all
material respects with all applicable laws, rules, regulations, decrees, orders,
judgments, licenses and permits, except where failure to comply would not
reasonably be expected to have a Material Adverse Effect; and (b) pay, and cause
each other Loan Party to pay, prior to delinquency, all taxes and other
governmental charges against it or any of its property, as well as claims of any
kind which, if unpaid, could become a Lien on any of its property; provided that
the foregoing shall not require Borrower or any other Loan Party to pay any such
tax or charge so long as it shall contest the validity thereof in good faith by
appropriate proceedings and shall set aside on its books adequate reserves with
respect thereto in accordance with GAAP.

     6.5.   MAINTENANCE OF EXISTENCE. Maintain and preserve, and (subject to
SECTION 7.5) cause each other Loan Party to maintain and preserve, (a) its
existence and good standing in the jurisdiction of its organization and (b) its
qualification to do business and good standing in each jurisdiction where the
nature of its business makes such

                                       28
<Page>

qualification necessary, other than any such jurisdiction where the failure to
be qualified or in good standing would not reasonably be expected to have a
Material Adverse Effect.

     6.6.   EMPLOYEE BENEFIT PLANS. Maintain, and cause each other Loan Party to
maintain, each Pension Plan in substantial compliance with all applicable
requirements of law and regulations.

     6.7.   ENVIRONMENTAL MATTERS. If any release or disposal of Hazardous
Substances shall occur or shall have occurred on any real property or any other
assets of Borrower or any other Loan Party, cause, or direct the applicable Loan
Party to cause, the prompt containment and removal of such Hazardous Substances
and the remediation of such real property or other assets as is necessary to
comply with all Environmental Laws and to preserve the value of such real
property or other assets, except where failure to cause such containment or
removal would not reasonably be expected to have a Material Adverse Effect.
Without limiting the generality of the foregoing, Borrower shall, and shall
cause each other Loan Party to, comply with each valid Federal or state judicial
or administrative order requiring the performance at any real property by
Borrower or any other Loan Party of activities in response to the release or
threatened release of a Hazardous Substance, unless the failure to comply with
such orders would not reasonably be expected to have a Material Adverse Effect.

                ARTICLE VII - NEGATIVE COVENANTS OF THE BORROWER

     The Borrower hereby agrees that, until all Obligations (other than
contingent indemnification obligations to the extent no claim giving rise
thereto has been asserted) of the Borrower and the other Loan Parties hereunder
to the Noteholders are indefeasibly paid in full and all Notes have been
terminated or cancelled, it will:

     7.1.   DEBT. Not, and not permit any other Loan Party to, create, incur,
assume or suffer to exist any Debt, except:

                  (a)  Obligations under this Agreement and the other
Subordinated Notes Documents;

                  (b)  Debt secured by Liens permitted by SECTION 7.2(d), and
extensions, renewals and refinancings thereof; provided that the aggregate
amount of all such Debt at any time outstanding shall not exceed $550,000;

                  (c)  Debt of Borrower to any domestic Wholly-Owned Subsidiary
or Debt of any domestic Wholly-Owned Subsidiary to Borrower or another domestic
Wholly-Owned Subsidiary;

                  (d)  The Contingent Payments;

                  (e)  Debt described on SCHEDULE 7.1 as of the Closing Date,
and any extension, renewal or refinancing thereof so long as the principal
amount thereof is not increased;

                                       29
<Page>

                  (f)  Debt incurred under the Senior Loan Documents;

                  (g)  Contingent Obligations arising with respect to customary
indemnification obligations in favor of purchasers in connection with
dispositions permitted under SECTION 7.5;

                  (h)  The Seller Subordinated Debt;

                  (i)  Hedging Obligations incurred to satisfy Borrower's
obligations under Section 6.9 of the Senior Credit Agreement; and

                  (j)  other Debt, in addition to the Debt listed above, in an
aggregate outstanding amount not at any time exceeding $550,000.

     7.2.   LIENS. Not, and not permit any other Loan Party to, create or permit
to exist any Lien on any of its real or personal properties, assets or rights of
whatsoever nature (whether now owned or hereafter acquired), except:

                  (a)  Liens for taxes or other governmental charges not at the
time delinquent or thereafter payable without penalty or being diligently
contested in good faith by appropriate proceedings and, in each case, for which
it maintains adequate reserves in accordance with GAAP;

                  (b)  Liens arising in the ordinary course of business (such as
(i) Liens of carriers, warehousemen, mechanics, landlords and materialmen and
other similar Liens imposed by law and (ii) Liens incurred in connection with
worker's compensation, unemployment compensation and other types of social
security (excluding Liens arising under ERISA) or in connection with surety
bonds, bids, performance bonds and similar obligations) for sums not overdue or
being diligently contested in good faith by appropriate proceedings and not
involving any deposits or advances or borrowed money or the deferred purchase
price of property or services and, in each case, for which it maintains adequate
reserves in accordance with GAAP;

                  (c)  Liens described on SCHEDULE 7.2 as of the Closing Date;

                  (d)  subject to the limitation set forth in SECTION 7.1(b),
(i) Liens arising in connection with Capital Leases (and attaching only to the
property being leased), (ii) Liens existing on property at the time of the
acquisition thereof by Borrower or any Subsidiary (and not created in
contemplation of such acquisition) and (iii) Liens that constitute purchase
money security interests on any property securing debt incurred for the purpose
of financing all or any part of the cost of acquiring such property, provided
that any such Lien attaches to such property within 60 days of the acquisition
thereof and attaches solely to the property so acquired;

                  (e)  attachments, appeal bonds, judgments and other similar
Liens, for sums not exceeding $550,000 arising in connection with court
proceedings; provided that the execution or other enforcement of such Liens is
effectively stayed and

                                       30
<Page>

the claims secured thereby are being actively contested in good faith and by
appropriate proceedings;

                  (f)  easements, rights of way, restrictions, minor defects or
irregularities in title and other similar Liens not interfering in any material
respect with the ordinary conduct of the business of Borrower or any Subsidiary;

                  (g)  Liens arising under the Senior Loan Documents; and

                  (h)  the replacement, extension or renewal of any Lien
permitted by clause (c) above upon or in the same property subject thereto
arising out of the extension, renewal or replacement of the Debt secured thereby
(without increase in the amount thereof).

     7.3.   RESERVED.

     7.4.   RESTRICTED PAYMENTS. Not, and not permit any other Loan Party to,
(a) make any dividend or other distribution to any of its equity holders, (b)
purchase or redeem any of its equity interests or any warrants, options or other
rights in respect thereof, (c) pay any management fees or similar fees to any of
its equity holders or any Affiliate thereof, (d) make any redemption, prepayment
(whether mandatory or optional), defeasance, repurchase or any other payment in
respect of any Seller Subordinated Debt other than pursuant to the Seller
Subordination Agreement or (e) set aside funds for any of the foregoing.
Notwithstanding the foregoing, (i) any Subsidiary may pay dividends or make
other distributions to Borrower or to a domestic Wholly-Owned Subsidiary and
(ii) Borrower may make distributions to Clayton Holdings, Inc. to permit Clayton
Holdings, Inc. to pay federal and state income taxes then due and owing by
Holdings (or its equity holders), so long as the amount of such distributions
shall not be greater, nor the receipt by Borrower of tax benefits less, than
they would have been had Borrower not filed consolidated income tax returns with
such Person.

     7.5.   SUBSIDIARIES; MERGERS; CONSOLIDATIONS; ASSET SALES.

                  (a)  Not, and not permit any other Loan Party to, be a party
to any merger or consolidation, except for (i) any such merger or consolidation
of any Subsidiary into Borrower or any domestic Wholly-Owned Subsidiary and (ii)
Acquisitions permitted under SECTION 7.11.

                  (b)  Not, and not permit any other Loan Party to, sell,
transfer, dispose of, convey or lease any of its assets or equity interests, or
sell or assign with or without recourse any receivables, except for (i) sales
and dispositions of assets (excluding any equity interests of Borrower or any
Subsidiary) for at least fair market value (as determined by the Board of
Directors of Borrower) so long as the net book value of all assets sold or
otherwise disposed of in any Fiscal Year does not exceed $550,000 and (ii) sales
of inventory in the ordinary course of business.

                                       31
<Page>

                  (c)  Not, and not permit any other Loan Party to, form or
acquire any Subsidiary except in connection with, and subject to the
satisfaction of the conditions relating to, an Acquisition as set forth in
SECTION 7.11.

     7.6.   MODIFICATION OF ORGANIZATIONAL DOCUMENTS. Not permit the charter,
by-laws or other organizational documents of Borrower or any other Loan Party to
be amended or modified in any way which could reasonably be expected to
materially adversely affect the interests of Noteholders.

     7.7.   USE OF PROCEEDS. Use the proceeds of the Notes, solely to finance
the Related Transactions, for working capital, for Acquisitions permitted by
SECTION 7.11, for Capital Expenditures and for other general business purposes;
and not use or permit any proceeds of any Note to be used, either directly or
indirectly, for the purpose, whether immediate, incidental or ultimate, of
"purchasing or carrying" any Margin Stock.

     7.8.   TRANSACTIONS WITH AFFILIATES. Except as set forth on SCHEDULE 7.8,
not, and not permit any other Loan Party to, enter into, or cause, suffer or
permit to exist any transaction, arrangement or contract with any of its other
Affiliates, which is on terms which are less favorable than are obtainable from
any Person which is not one of its Affiliates.

     7.9.   INCONSISTENT AGREEMENTS. Not, and not permit any other Loan Party
to, enter into any agreement containing any provision which would (a) be
violated or breached by any borrowing by Borrower hereunder or by the
performance by Borrower or any other Loan Party of any of its Obligations
hereunder or under any other Subordinated Notes Document, (b) prohibit Borrower
or any other Loan Party from granting to Noteholders a Lien on any of its
assets, or (c) create or permit to exist or become effective any encumbrance or
restriction on the ability of any other Loan Party to (i) pay dividends or make
other distributions to Borrower or any other Subsidiary, or pay any Debt owed to
Borrower or any other Subsidiary, (ii) make loans or advances to Borrower or any
other Loan Party, or (iii) transfer any of its assets or properties to Borrower
or any other Loan Party.

     7.10.  BUSINESS ACTIVITIES. Not, and not permit any other Loan Party to,
engage in any line of business other than the businesses engaged in on the
Closing Date and businesses reasonably related thereto. Not, and not permit any
other Loan Party to, issue any equity interest other than (a) any issuance of
shares of the common equity securities of Clayton Holdings, Inc. pursuant to any
employee or director option or stock purchase program, benefit plan or
compensation program, or (b) any issuance by a Subsidiary to Borrower or another
Subsidiary in accordance with SECTION 7.4.

     7.11.  INVESTMENTS. Not, and not permit any other Loan Party to, make or
permit to exist any Investment in any other Person, except the following:

                  (a)  Investments constituting Debt permitted by
SECTION 7.1(c);

                                       32
<Page>

                  (b)  Contingent Obligations constituting Debt permitted by
SECTION 7.1 or Liens permitted by SECTION 7.2;

                  (c)  Cash Equivalent Investments;

                  (d)  bank deposits in the ordinary course of business;

                  (e)  Investments in securities of Account Debtors received
pursuant to any plan of reorganization or similar arrangement upon the
bankruptcy or insolvency of such Account Debtors;

                  (f)  Investments listed on SCHEDULE 7.11 as of the Closing
Date;

                  (g)  any purchase or other acquisition by Borrower or any
domestic Wholly-Owned Subsidiary of the assets or equity interests of any
Subsidiary; and

                  (h)  any purchase or Acquisition by Borrower or any domestic
Wholly-Owned Subsidiary of the assets or equity interests of a Target to the
extent the Permitted Acquisitions Conditions Precedent attached hereto as
Exhibit C are satisfied in a manner satisfactory to Noteholders.

     7.12.  RESTRICTION OF AMENDMENTS TO CERTAIN DOCUMENTS. Not amend or
otherwise modify, or waive any rights under (a) any Related Agreement (other
than the Senior Loan Documents, except as restricted pursuant to the Mezzanine
Subordination Agreement), other than immaterial amendments, modifications and
waivers not adverse to the interests of Noteholders or (b) any provisions of any
Subordinated Debt (except that the terms of the obligations of the Loan Parties
under the Subordinated Notes Documents may be amended to the extent permitted
under the Mezzanine Subordination Agreement).

     7.13.  FISCAL YEAR. Not change its Fiscal Year.

     7.14.  FINANCIAL COVENANTS.

            7.14.1. FIXED CHARGE COVERAGE RATIO.

            Not permit the Fixed Charge Coverage Ratio for any Computation
Period to be less than the applicable ratio set forth below for such Computation
Period:

<Table>
<Caption>
                   Computation                                  Fixed Charge
                  Period Ending                                Coverage Ratio
                  -------------                                --------------
                     <S>                                        <C>
                     9/30/04                                    0.85 to 1.00
                     12/31/04                                   0.90 to 1.00
                     3/31/05                                    0.95 to 1.00
</Table>

                                       33
<Page>

<Table>
                     <S>                                        <C>
                     6/30/05                                    1.00 to 1.00
                     9/30/05                                    1.00 to 1.00
                     12/31/05                                   1.00 to 1.00
                     3/31/06                                    1.10 to 1.00
                     6/30/06                                    1.10 to 1.00
                     9/30/06                                    1.10 to 1.00
                     12/31/06                                   1.10 to 1.00
                     3/31/07                                    1.10 to 1.00
                     6/30/07                                    1.10 to 1.00
                     9/30/07                                    1.10 to 1.00
                     12/31/07                                   1.10 to 1.00
                     3/30/08                                    1.10 to 1.00
                     6/29/08                                    1.10 to 1.00
                     9/29/08                                    1.10 to 1.00
                     12/30/08                                   1.10 to 1.00
                     3/30/09                                    1.10 to 1.00
                     6/29/09                                    1.10 to 1.00
                     9/29/09                                    1.10 to 1.00
                     12/30/09                                   1.10 to 1.00
</Table>

            7.14.2. RESERVED.

            7.14.3. SENIOR DEBT TO EBITDA RATIO.

            Not permit the Senior Debt to EBITDA Ratio as of the last day of any
Computation Period to exceed the applicable ratio set forth below for such
Computation Period:

<Table>
<Caption>
                   Computation                              Senior Debt to
                  Period Ending                              EBITDA Ratio
                  -------------                              ------------
                     <S>                                     <C>
                     9/30/04                                 3.40 to 1.00
                     12/31/04                                3.00 to 1.00
                     3/31/05                                 2.80 to 1.00
                     6/30/05                                 2.65 to 1.00
                     9/30/05                                 2.50 to 1.00
</Table>

                                       34
<Page>

<Table>
                     <S>                                     <C>
                     12/31/05                                2.30 to 1.00
                     3/31/06                                 2.25 to 1.00
                     6/30/06                                 2.10 to 1.00
                     9/30/06                                 2.00 to 1.00
                     12/31/06                                2.00 to 1.00
                     3/31/07                                 2.00 to 1.00
                     6/30/07                                 2.00 to 1.00
                     9/30/07                                 2.00 to 1.00
                     12/31/07                                2.00 to 1.00
                     3/30/08                                 2.00 to 1.00
                     6/29/08                                 2.00 to 1.00
                     9/29/08                                 2.00 to 1.00
                     12/30/08                                2.00 to 1.00
                     3/30/09                                 2.00 to 1.00
                     6/29/09                                 2.00 to 1.00
                     9/29/09                                 2.00 to 1.00
                     12/30/09                                2.00 to 1.00
</Table>

            7.14.4. TOTAL DEBT TO EBITDA RATIO.

            Not permit the Total Debt to EBITDA Ratio as of the last day of any
Computation Period to exceed the applicable ratio set forth below for such
Computation Period:

<Table>
<Caption>
                   Computation                              Total Debt to
                  Period Ending                              EBITDA Ratio
                  -------------                              ------------
                     <S>                                     <C>
                     9/30/04                                 4.50 to 1.00
                     12/31/04                                3.95 to 1.00
                     3/31/05                                 3.75 to 1.00
                     6/30/05                                 3.50 to 1.00
                     9/30/05                                 3.35 to 1.00
                     12/31/05                                3.25 to 1.00
                     3/31/06                                 3.25 to 1.00
                     6/30/06                                 3.00 to 1.00
                     9/30/06                                 3.00 to 1.00
</Table>

                                       35
<Page>

<Table>
                     <S>                                     <C>
                     12/31/06                                2.75 to 1.00
                     3/31/07                                 2.75 to 1.00
                     6/30/07                                 2.75 to 1.00
                     9/30/07                                 2.75 to 1.00
                     12/31/07                                2.75 to 1.00
                     3/30/08                                 2.75 to 1.00
                     6/29/08                                 2.75 to 1.00
                     9/29/08                                 2.75 to 1.00
                     12/30/08                                2.75 to 1.00
                     3/30/09                                 2.75 to 1.00
                     6/29/09                                 2.75 to 1.00
                     9/29/09                                 2.75 to 1.00
                     12/30/09                                2.75 to 1.00
</Table>

            7.14.5. RESERVED.

            7.14.6. CAPITAL EXPENDITURES.

            Not permit the aggregate amount of all Capital Expenditures made by
Borrower and the Subsidiaries in any Fiscal Year to exceed the applicable amount
set forth below for such Fiscal Year:

<Table>
<Caption>
                                                                Capital
                  Fiscal Year Ending                         Expenditures
                  ------------------                         ------------
                       <S>                                   <C>
                       12/31/04                              $  5,000,000
                       12/31/05                              $  5,000,000
                       12/31/06                              $  5,500,000
                       12/31/07                              $  6,000,000
                       12/30/08                              $  6,500,000
                       12/30/09                              $  7,000,000
</Table>

If Borrower does not utilize the entire amount of Capital Expenditures permitted
in any Fiscal Year, so long as no Default or Event of Default exists or would be
caused thereby, Borrower may carry forward to the immediately succeeding Fiscal
Year only, 50% of such unutilized amount (with Capital Expenditures made by
Borrower in such succeeding Fiscal Year applied last to such unutilized amount).

                                       36
<Page>

                   ARTICLE VIII - EVENTS OF DEFAULT; REMEDIES

     8.1.   EVENTS OF DEFAULT. Each of the following shall constitute an Event
of Default under this Agreement:

            8.1.1.  NON-PAYMENT OF CREDIT. Default in the payment when due of
the principal of any Note; or default, and continuance thereof for three days,
in the payment when due of any interest, fee, reimbursement obligation with
respect to any Note or other amount payable by any Loan Party hereunder or under
any other Subordinated Notes Document.

            8.1.2.  DEFAULT UNDER OTHER DEBT. Any default shall occur under the
terms applicable to any Debt of any Loan Party in an aggregate amount (for all
such Debt so affected and including undrawn committed or available amounts and
amounts owing to all creditors under any combined or syndicated credit
arrangement) exceeding $500,000 and such default shall accelerate the maturity
of such Debt prior to its expressed maturity.

            8.1.3.  BANKRUPTCY; INSOLVENCY. Any Loan Party becomes insolvent or
generally fails to pay, or admits in writing its inability or refusal to pay,
debts as they become due; or any Loan Party applies for, consents to, or
acquiesces in the appointment of a trustee, receiver or other custodian for such
Loan Party or any property thereof, or makes a general assignment for the
benefit of creditors; or, in the absence of such application, consent or
acquiescence, a trustee, receiver or other custodian is appointed for any Loan
Party or for a substantial part of the property of any thereof and is not
discharged within 60 days; or any bankruptcy, reorganization, debt arrangement,
or other case or proceeding under any bankruptcy or insolvency law, or any
dissolution or liquidation proceeding, is commenced in respect of any Loan
Party, and if such case or proceeding is not commenced by such Loan Party, it is
consented to or acquiesced in by such Loan Party, or remains for 60 days
undismissed; or any Loan Party takes any action to authorize, or in furtherance
of, any of the foregoing.

            8.1.4.  NON-COMPLIANCE WITH SUBORDINATED NOTES DOCUMENTS. (a)
Failure by Borrower to comply with or to perform any covenant set forth in
SECTIONS 6.1.1, 6.1.2, 6.1.3, 6.1.4, 6.1.5(a), 6.1.8, 6.3(b), 6.5, 6.7, and 7;
or (b) failure by any Loan Party to comply with or to perform any other
provision of this Agreement or any other Subordinated Notes Document applicable
to it (and not constituting an Event of Default under any other provision of
this SECTION 8) and continuance of such failure described in this clause (b) for
30 days.

            8.1.5.  REPRESENTATIONS; WARRANTIES. Any representation or warranty
made by any Loan Party herein or any other Subordinated Notes Document is
breached or is false or misleading in any material respect, or any schedule,
certificate, financial statement, report, notice or other writing furnished by
any Loan Party to Noteholders in connection herewith is false or misleading in
any material respect on the date as of which the facts therein set forth are
stated or certified.

                                       37
<Page>

            8.1.6.  PENSION PLANS. (a) Institution of any steps by any Person to
terminate a Pension Plan if as a result of such termination any Loan Party or
any member of the Controlled Group could be required to make a contribution to
such Pension Plan, or could incur a liability or obligation to such Pension
Plan, in excess of $100,000; (b) a contribution failure occurs with respect to
any Pension Plan sufficient to give rise to a Lien under Section 302(f) of
ERISA; or (c) there shall occur any withdrawal or partial withdrawal from a
Multiemployer Pension Plan and the withdrawal liability (without unaccrued
interest) to Multiemployer Pension Plans as a result of such withdrawal
(including any outstanding withdrawal liability that Borrower or any other Loan
Party or any member of the Controlled Group have incurred on the date of such
withdrawal) exceeds $550,000.

            8.1.7.  JUDGMENTS. Final judgments which exceed an aggregate of
$550,000 shall be rendered against any Loan Party and shall not have been paid,
discharged or vacated or had execution thereof stayed pending appeal within 60
days after entry or filing of such judgments.

            8.1.8.  CHANGE OF CONTROL. (a) Sponsor and its Affiliates shall
collectively cease to, directly or indirectly, own and control at least (x) 51%
of the outstanding equity interests of Clayton Holdings, Inc. or (y) possess the
right to elect (through contract, ownership of voting securities or otherwise) a
majority of the board of directors (or similar governing body) of Clayton
Holdings, Inc. and to direct the management policies and decisions of Clayton
Holdings, Inc., (b) any Person or "group" (within the meaning of Rules 13d-3 and
13d-5 under the Securities Exchange Act of 1934 as in effect on the Closing
Date) other than Sponsor or any of its Affiliates shall have acquired a greater
beneficial ownership in the voting equity interests of Clayton Holdings, Inc.
than that held collectively by Sponsor and its Affiliates, (c) a majority of the
board of directors of Clayton Holdings, Inc. (or similar governing body) shall
cease to consist of the directors (or similar parties) of Clayton Holdings, Inc.
on the Closing Date (after giving effect to the Related Transactions) and other
directors (or similar parties) whose nomination for election to the board of
directors (or similar governing body) of Clayton Holdings, Inc. is recommended
by at least a majority of the foregoing described directors (or similar
parties), (d) Clayton Holdings, Inc. shall cease to directly own and control
100% of each class of the outstanding equity interests of Borrower, (e) Borrower
shall cease to, directly or indirectly, own and control 100% of each class of
the outstanding equity interests of each Subsidiary, or (f) a Mandatory
Repurchase Event shall occur.

     8.2.   REMEDIES. If any Event of Default described in SECTION 8.1.3 shall
occur, the Notes and all other Obligations shall become immediately due and
payable, all without presentment, demand, protest or notice of any kind; and, if
any other Event of Default shall occur and be continuing, Noteholders (upon the
written request Noteholders holding greater than fifty percent (50%), voting
together as a single class, in principal amount of the Notes) shall declare all
or any part of the Notes and other Obligations to be due and payable, whereupon
the Notes and other Obligations shall become immediately due and payable (in
whole or in part, as applicable), all without presentment, demand, protest or
notice of any kind. Noteholders shall promptly advise Borrower of any such

                                       38
<Page>

declaration, but failure to do so shall not impair the effect of such
declaration. Notwithstanding the foregoing, the effect as an Event of Default of
any event described in SECTION 8.1.1 may only be waived by the written
concurrence of each Noteholder, and the effect as an Event of Default of any
other event described in this SECTION 8 may be waived by the written concurrence
of Noteholders holding greater than fifty percent (50%), voting together as a
single class, in principal amount of the Notes.

     8.3.   NATURE OF REMEDIES. All rights and remedies granted to the
Noteholders hereunder and under the Related Agreements, or otherwise available
at law or in equity, shall be deemed concurrent and cumulative, and not
alternative remedies, and the Noteholders may proceed with any number of
remedies at the same time until all Obligations are satisfied in full. The
exercise of any one right or remedy shall not be deemed a waiver or release of
any other right or remedy, and the Noteholders, upon or at any time after the
occurrence of an Event of Default, may proceed against the Borrower at any time,
under any agreement, with any available remedy and in any order.

     8.4.   SET-OFF. If any bank account or other Property held by or with the
Noteholders, or any Affiliate of the Noteholders, or any participant is attached
or otherwise liened or levied upon by any third party, the Noteholders (and such
participant) shall have and be deemed to have, without notice to the Borrower,
the immediate right of set-off and may apply the funds or other amounts or
property thus set off against any of the Obligations hereunder then due and
payable.

     8.5.   DISTRIBUTION OF PROCEEDS. In the event that following the occurrence
or during the continuance of any Event of Default, any Noteholder receives any
monies with respect to the amounts due hereunder, such monies shall be
distributed for application as follows:

            8.5.1.  First, to the payment of, or (as the case may be) the
reimbursement of the Noteholders for or in respect of all reasonable costs,
expenses, disbursements and losses which shall have been incurred or sustained
by the Noteholders in connection with the collection of such monies by the
Noteholders, for the exercise, protection or enforcement by the Noteholders of
all or any of the rights, remedies, powers and privileges of the Noteholders
under this Agreement or any of the other Subordinated Notes Documents pro rata
based on the relative amount so incurred or sustained;

            8.5.2.  Second, to all other Obligations in such order or preference
as the Noteholders may determine; provided, however, that distributions shall be
made among the Noteholders pro rata; and

            8.5.3.  Third, the excess, if any, shall be returned to the Borrower
or to such other Persons as are entitled thereto.

                           ARTICLE IX - MISCELLANEOUS

     9.1.   NO WAIVER; CUMULATIVE REMEDIES. No failure or delay on the part of
any Noteholder, in exercising any right, power or remedy hereunder shall operate
as a

                                       39
<Page>

waiver thereof; nor shall any single or partial exercise of any such right,
power or remedy preclude any other or further exercise thereof or the exercise
of any other right, power or remedy hereunder. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

     9.2.   AMENDMENTS, WAIVERS AND CONSENTS. Any provision in this Agreement or
the Notes or the other Subordinated Notes Documents to the contrary
notwithstanding, changes in or additions to this Agreement may be made, and
compliance with any covenant or provision herein set forth may be omitted or
waived, if the Borrower shall, as long as any Notes are outstanding, obtain
consent thereto in writing from the holder or holders of at least greater than
fifty percent (50%), voting together as a single class, in principal amount of
all Notes then outstanding, and shall, in any case, deliver copies of such
consent in writing to all other holders of Notes; provided that no such consent
shall be effective to reduce or to postpone the date fixed for the payment of
the principal (including any required redemption) or interest payable on any
Note without the consent of the holder thereof, or to alter or amend any
provisions relating to prepayments, mandatory purchase or the terms of
subordination, or to alter or amend the consent mechanism provided for under
this SECTION 9.2.

     9.3.   ADDRESSES FOR NOTICES, ETC. All notices, requests, demands and other
communications provided for hereunder shall be in writing and mailed (by first
class registered or certified mail, postage prepaid), sent by express overnight
courier service or electronic facsimile transmission with a copy by mail, or
delivered to the applicable party at the addresses indicated below:

            If to the Borrower:

            Clayton GRP, Inc.
            2 Corporation Drive
            Shelton, CT 06484
            Attention: Stephen M. Lamando

            If to the Noteholders:

            TA Associates, Inc.
            125 High Street Tower
            Suite 2500
            Boston, MA
            Attention: Roger B. Kafker and Todd R. Crockett

                                       40
<Page>

            Lamando Charitable Remainder UniTrust Under Agreement Dated May 15,
            2004
            8 Bermuda Road
            Westport, CT 06880

            Madison Capital Funding LLC
            30 South Wacker
            Suite 3700
            Chicago, IL 60606
            Attention: Clayton Account Manager

            Libman Family Holdings LLC
            1065 Weed Street
            New Canaan, CT 06840

            If to any other holder of the Notes:

            at such holder's address for notice as set forth in the transfer
            records of the Borrower

or, as to each of the foregoing, at such other address as shall be designated by
such Person in a written notice to the other party complying as to delivery with
the terms of this Section. All such notices, requests, demands and other
communications shall, when mailed or sent, respectively, be effective (i) three
(3) days after being deposited in the mails or (ii) one Business Day after being
deposited with the express overnight courier service or sent by electronic
facsimile transmission (with receipt confirmed), respectively, addressed as
aforesaid.

     9.4.   COSTS, EXPENSES AND TAXES. The Borrower agrees to pay on demand all
reasonable costs and expenses of the Noteholders in connection with the
preparation, execution and delivery of this Agreement, the Notes, the other
Subordinated Notes Documents and other instruments and documents to be delivered
hereunder, and in connection with the consummation of the transactions
contemplated hereby and thereby, as well as all reasonable costs and expenses of
the Noteholders in connection with the amendment, waiver (whether or not such
amendment or waiver becomes effective) or enforcement of this Agreement, the
Notes, the other Subordinated Notes Documents, and other instruments and
documents to be delivered hereunder and thereunder, including without limitation
the expenses of the Noteholders under SUB-SECTION 6.3 hereof at any time after a
Default has occurred and is continuing.

     9.5.   ASSIGNABILITY; BINDING AGREEMENT. This Agreement may not be assigned
by any party hereto without the prior written consent of each other party
hereto; provided, however, that any Noteholder may assign this Agreement freely
without consent to any transferee permitted under SECTION 2.9 and, provided
further, that, (i) Lamando Charitable Remainder UniTrust Under Agreement Dated
May 15, 2004 shall not be permitted to acquire greater than fifty percent (50%)
of the principal amount of the Notes outstanding at any time without the consent
of the Agent and (ii) no Noteholder

                                       41
<Page>

shall assign its interest to Stephen M. Lamando without the consent of the
Agent. Any assignment of this Agreement shall only become effective upon the
assignee's agreement to be subject to the terms and conditions of the Mezzanine
Subordination Agreement. This Agreement shall be binding upon and enforceable
by, and shall inure to the benefit of, the parties hereto and their respective
successors and permitted assigns, and no others. Notwithstanding the foregoing,
nothing in this Agreement is intended to give any Person not named herein the
benefit of any legal or equitable right, remedy or claim under this Agreement.

     9.6.   PAYMENTS IN RESPECT OF NOTES. Each Noteholder and any successor
holder of the Notes, by their acceptance thereof, agree that, with respect to
all sums received by them applicable to the payment of principal of or interest
on the Notes, equitable adjustment will be made among them so that, in effect,
all such sums shall be shared ratably by all of the holders of the Notes,
whether received by voluntary payment, by the exercise of the right of set off,
by counterclaim or cross-action or by the enforcement of any or all of the
Notes. If any holder of the Notes receives any payment on its Notes in excess of
its pro rata portion, then such holder receiving such excess payment shall
purchase for cash from the other holders an interest in their Notes in such
amounts as shall result in a ratable participation by all of the holders in the
aggregate unpaid amount of Notes then outstanding. The Borrower shall not have
any obligation to any Person under this SECTION 9.6.

     9.7.   INDEMNIFICATION. In addition to the payment of expenses otherwise
pursuant to this Agreement, whether or not the transactions contemplated hereby
shall be consummated, the Borrower agrees to indemnify, pay and hold each
Noteholder and the partners, members, officers, directors, employees and agents
of each Noteholder (collectively, the "INDEMNITEES") harmless from and against,
any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, claims, costs, expenses and disbursements of any kind or
nature whatsoever (including, without limitation, the reasonable fees and
disbursements of counsel for such Indemnitees in connection with any
investigative, administrative or judicial proceedings, whether or not such
Indemnitees shall be designated a party thereto), which may be imposed on,
incurred by, or asserted against such Indemnitee, in any manner relating to or
arising out of (i) this Agreement, the Notes, and the other Subordinated Notes
Documents and all other matters related thereto in connection therewith, (ii)
the Noteholders' agreement to purchase the Notes, or the use or intended use of
the proceeds of the Notes hereunder, (iii) the violation of any securities law
by the Borrower or any of its Subsidiaries, or (iv) the failure of any of the
parties (other than the Noteholders) to the Subordinated Notes Documents to
comply with any law, rule or regulation applicable to the transactions
contemplated thereby (the "INDEMNIFIED LIABILITIES"); provided that the Borrower
shall have no obligation to an Indemnitee hereunder with respect to Indemnified
Liabilities which are determined by a final court decision to have resulted from
the gross negligence or willful misconduct of that Indemnitee. To the extent
that the undertaking to indemnify, pay and hold harmless set forth in the
preceding sentence may be unenforceable because it is violative of any law or
public policy, the Borrower shall contribute the maximum portion which it is
permitted to pay and satisfy under applicable law, to the payment and
satisfaction of all Indemnified Liabilities incurred by the Indemnitees or any
of them.

                                       42
<Page>

     9.8.   SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations and
warranties made to the Noteholders in this Agreement, the Notes, the
Subordinated Notes Documents or any other instrument or document delivered in
connection herewith or therewith, shall survive the execution and delivery
hereof and thereof, regardless of any investigation made by the Noteholders or
on behalf of the Noteholders.

     9.9.   PRIOR AGREEMENTS. This Agreement and the Subordinated Notes
Documents constitute the entire agreement between the parties and supersedes any
prior understandings or agreements concerning the subject matter hereof or
thereof.

     9.10.  SEVERABILITY. The invalidity or unenforceability of any provision
hereof shall in no way affect the validity or enforceability of any other
provision.

     9.11.  GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts applied to
contracts to be performed wholly within the Commonwealth of Massachusetts. Any
judicial proceeding brought by or against the Borrower with respect to any of
the Obligations, this Agreement, the other Subordinated Note Documents or any
related agreement may be brought in any court of competent jurisdiction in the
Commonwealth of Massachusetts, United States of America, and, by execution and
delivery of this Agreement, the Borrower accepts for itself and in connection
with its properties, generally and unconditionally, the non-exclusive
jurisdiction of the aforesaid courts, and irrevocably agrees to be bound by any
judgment rendered thereby in connection with this Agreement. The Borrower hereby
waives personal service of any and all process upon it and consents that all
such service of process may be made by registered mail (return receipt
requested) directed to the Borrower at its address set forth in SECTION 9.3 and
service so made shall be deemed completed five (5) days after the same shall
have been so deposited in the mails of the United States of America. Nothing
herein shall affect the right to serve process in any manner permitted by law or
shall limit the right of any Noteholder to bring proceedings against the
Borrower in the courts of any other jurisdiction. The Borrower waives any
objection to jurisdiction and venue of any action instituted hereunder and shall
not assert any defense based on lack of jurisdiction or venue or based upon
forum non conveniens. The Borrower waives the right to remove any judicial
proceeding brought against the Borrower in any state court to any federal court.
Any judicial proceeding by the Borrower against any Noteholder involving,
directly or indirectly, any matter or claim in any way arising out of, related
to or connected with this Agreement or any related agreement, shall be brought
only in a federal or state court located in the Suffolk County, Commonwealth of
Massachusetts.

     9.12.  JURY WAIVER. EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES
ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (A)
ARISING UNDER THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT
EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR (B) IN ANY WAY CONNECTED WITH
OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM
WITH RESPECT TO THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT

                                       43
<Page>

EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO
OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER
SOUNDING IN CONTRACT OR TORT OR OTHERWISE AND EACH PARTY HEREBY CONSENTS THAT
ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT
TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE
CONSENTS OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

     9.13.  COUNTERPARTS. This Agreement may be executed simultaneously in any
number of counterparts, each of which when so executed and delivered shall be
taken to be an original; but such counterparts shall together constitute but one
and the same document.

     9.14.  FURTHER ASSURANCES. From and after the date of this Agreement, upon
the request of the Noteholders, the Borrower and its Subsidiaries shall execute
and deliver such instruments, documents and other writings as may be reasonably
necessary or desirable to confirm and carry out and to effectuate fully the
intent and purposes of the Subordinated Notes Documents.

     9.15.  SPECIFIC PERFORMANCE. Upon breach or default by the Borrower with
respect to any obligation hereunder or under the Notes, each Noteholder shall be
entitled to protect and enforce its rights at law, or in equity or by other
appropriate proceedings for specific performance of such obligation, or for an
injunction against such breach or default, or in aid of the exercise of any
power or remedy granted hereby or thereby or by law.

     9.16.  ACTIONS BY NOTEHOLDERS. Except as provided in SECTION 9.2, wherever
in this Agreement action is required or permitted to be taken by, or consent is
required of, or a matter requires the satisfaction of, the Noteholders, such
action may be taken by, and/or such consent may be obtained from, and/or such
satisfaction may be expressed by, the holders of greater than fifty percent
(50%), voting together as a single class, of the principal amount of all Notes
then outstanding.

     9.17.  LIMITATION OF LIABILITY. No Noteholder shall have any liability to
the Borrower or the Borrower's Subsidiaries (whether sounding in tort, contract,
or otherwise) for consequential damages suffered by the Borrower and its
Subsidiaries in connection with, arising out of, or in any way related to the
transactions or relationships contemplated by the Subordinated Notes Documents,
or any act, omission or event occurring in connection therewith, or for any
special exemplary or punitive damages, and the Borrower and its Subsidiaries
hereby waive, to the maximum extent not prohibited by law, any right they may
have to claim or recover any of the foregoing.

     9.18.  CONFIDENTIALITY AGREEMENT. Each Noteholder shall hold all financial
information of the Borrower and their Subsidiaries and other non-public
information

                                       44
<Page>

obtained from the Borrower pursuant to the requirements of this Agreement in
accordance with such Noteholder's customary procedures for handling confidential
information of this nature; provided, however, any Noteholder may disclose such
confidential information (a) to its examiners, affiliates, outside auditors,
counsel and other professional advisors, (b) or to any prospective transferees
and assignees, (c) in connection with any proceeding or action to enforce such
Noteholder's rights hereunder or in connection herewith or with the Related
Transactions, and (d) as required or requested by any Governmental Authority or
representative thereof or pursuant to legal process; provided, further that in
no event shall any Noteholder be obligated to return any materials furnished by
the Borrower or any Subsidiary. For the purposes of this SECTION 9.18, the term
"GOVERNMENTAL AUTHORITY" shall mean the government of any nation, state, city,
locality or other political subdivision of any thereof, any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government, and any corporation or other entity owned or
controlled, through stock or capital ownership or otherwise, by any of the
foregoing.

                       ARTICLE X - GUARANTEE OF THE NOTES

     Each Guarantor unconditionally guarantees, as a primary obligor and not
merely as a surety, jointly and severally with each other Guarantor, the due and
punctual payment of the principal of, and interest on, each of the Notes when
and as due, whether at maturity, by acceleration, by notice of prepayment or
otherwise and the due and punctual payment and performance of all other
Obligations of the Borrower with respect to the Notes (the "GUARANTEED
OBLIGATIONS"). Each Guarantor further agrees that the Guaranteed Obligations may
be extended and renewed, in whole or in part, without notice to or further
assent from it, and that it will remain bound upon its guarantee notwithstanding
any extension or renewal of any Guaranteed Obligations.

     Each Guarantor waives presentment to, demand of payment from and protest to
the Borrower of any of the Guaranteed Obligations, and also waives notice of
acceptance of its guarantee and notice of protest for nonpayment. The
obligations of a Guarantor hereunder shall not be affected by (a) the failure of
any Noteholder to assert any claim or demand or to enforce any right or remedy
against the Borrower, as the case may be, or any other Guarantor under the
provisions of this Agreement, the Notes or any of the other Subordinated Notes
Documents or otherwise; (b) any rescission, waiver, amendment or modification of
any of the terms or provisions of this Agreement, the Notes, any guarantee or
any other agreement; (c) the failure of any Noteholder to exercise any right or
remedy against any other Guarantor of any obligations hereunder; or (d) the
failure of any Noteholder to take, register, perfect or preserve any security
for any of the obligations hereunder.

     The obligations of each Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason, including,
without limitation, any claim of waiver, release, surrender, alteration or
compromise, and shall not be subject to any defense or set off, counterclaim,
recoupment or termination whatsoever by reason of the invalidity, illegality or
unenforceability of the Guaranteed Obligations or otherwise.

                                       45
<Page>

Without limiting the generality of the foregoing, the obligations of each
Guarantor hereunder shall not be discharged or impaired or otherwise affected by
the failure of any Noteholder to assert any claim or demand or to enforce any
remedy under this Agreement, the Notes, or under any other guarantee or any
other agreement, by any waiver or modification of any provision thereof, by any
default, failure or delay, willful or otherwise, in the performance of any
Guaranteed Obligations, or by any other act or omission which may or might
otherwise in any manner or to any extent vary the risk or reduce or extinguish
the liability of such Guarantor or otherwise operate as a discharge of such
Guarantor as a matter of law or equity.

     Each Guarantor further agrees that its guarantee shall be a continuing
guarantee and shall stand as a guarantee of full and final payment and
performance of all Guaranteed Obligations hereunder from time to time and shall
continue to be effective or be reinstated, as the case may be, if at any time
payment, or any part thereof, of principal or interest on any obligation
hereunder is rescinded or must otherwise be returned by the Noteholders upon the
bankruptcy or reorganization of the Borrower or otherwise.

     Each Guarantor hereby waives and releases in favor of the Noteholders all
rights of subrogation against or in respect of the Borrower and its property and
all rights of indemnification, contribution and reimbursement from the Borrower
and its property, in each case in connection with this guarantee and any
payments made hereunder, and regardless of whether such rights arise by
operation of law, pursuant to contract or otherwise until such time as the
obligations hereunder have been fully and finally performed and paid.

     If, in any action to enforce this guaranty or any proceeding to allow or
adjudicate a claim under this guaranty, a court of competent jurisdiction
determined that enforcement of this guaranty against any Guarantor for the full
amount of the obligations hereunder is not lawful under, or would be subject to
avoidance under, Section 548 of the United States Bankruptcy Code or any
applicable provision of comparable state law, the liability of such Guarantor
under this guaranty shall be limited to the maximum amount lawful and not
subject to avoidance under such law.

         [THE REMAINDER OF THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY]

                                       46
<Page>

     IN WITNESS WHEREOF, the parties hereto have executed this Note Purchase
Agreement as of the date first above written.

BORROWER:              CLAYTON GRP, INC.

                       By: /s/ Stephen M. Lamando
                           -----------------------------------------------------
                           Name: Stephen M. Lamando
                           Its:

NOTEHOLDER:            TA INVESTORS II, L.P.
                       By:  TA Associates, Inc., its General Partner

                       By:/s/ Roger B. Kafker
                          ------------------------------------------------------
                           Name: Roger Kafker
                           Its: Managing Director

NOTEHOLDER:            TA SUBORDINATED DEBT FUND, L.P.
                       By:  TA Associates SDF LLC, its General Partner
                            By: TA Associates, Inc., its Manager

                       By:/s/ Roger B. Kafker
                          ------------------------------------------------------
                           Name: Roger Kafker
                           Its: Managing Director

                                            SUBORDINATED NOTE PURCHASE AGREEMENT

<Page>

NOTEHOLDER:            LAMANDO CHARITABLE REMAINDER
                       UNITRUST UNDER AGREEMENT DATED
                       MAY 15, 2004

                       By:/s/ Stephen M. Lamando
                          ------------------------------------------------------
                           Name: Stephen M. Lamando
                           Title:

NOTEHOLDER:            MADISON CAPITAL FUNDING LLC

                       By:/s/ K. Thomas Klimmick
                          ------------------------------------------------------
                           Name: K. Thomas Klimmick
                           Its:  Managing Director

NOTEHOLDER:            LIBMAN FAMILY HOLDINGS LLC

                       By:/s/ Brian Libman
                          ------------------------------------------------------
                        Name: Brian Libman
                        Its:  Member

GUARANTOR:             CLAYTON HOLDINGS, INC.

                       By:/s/ Brian Newman
                          ------------------------------------------------------
                           Name: Brian Newman
                           Its:

GUARANTOR:             CLAYTON TECHNOLOGIES, INC.

                       By:/s/ Stephen M. Lamando
                          ------------------------------------------------------
                           Name: Stephen M. Lamando
                           Title:

                                            SUBORDINATED NOTE PURCHASE AGREEMENT

<Page>

GUARANTOR:             FMSI ACQUISITION CO., INC.

                       By:/s/ Stephen M. Lamando
                          ------------------------------------------------------
                          Name: Stephen M. Lamando
                          Title:

                                            SUBORDINATED NOTE PURCHASE AGREEMENT

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