Document:

<PAGE>

                                                                     EXHIBIT 4.1

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                      AMENDED AND RESTATED CREDIT AGREEMENT

                                   $90,000,000

                                      among

                                BWAY CORPORATION,
                            BWAY MANUFACTURING, INC.
                                       and
                           ARMSTRONG CONTAINERS, INC.
                                  as Borrowers

                                      with

                                BWAY CORPORATION,
                             as Funds Administrator,

                                   the Lenders

                                       and

                      DEUTSCHE BANK TRUST COMPANY AMERICAS,
                                    as Agent

                          Dated as of February 7, 2003

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                PAGE
                                                                                ----
<S>                                                                               <C>
ARTICLE 1 DEFINITIONS...........................................................   1

   1.1    General Definitions...................................................   1
   1.2    Amendment and Restatement of Original Credit Agreement; No Novation...  34
   1.3    Reaffirmation of Original Credit Documents............................  35
   1.4    Accounting Terms and Determinations...................................  35
   1.5    Other Interpretive Provisions.........................................  36

ARTICLE 2 LOANS.................................................................  36

   2.1    Commitments; Delivery of Notes........................................  36
   2.2    Borrowing Mechanics...................................................  37
   2.3    Settlements Among the Agents and the Lenders..........................  39
   2.4    Mandatory Repayments: Mandatory Reduction of Commitments..............  40
   2.5    Payments and Computations.............................................  41
   2.6    Maintenance of Account................................................  42
   2.7    Statement of Account..................................................  43
   2.8    Withholding and Other Taxes...........................................  43
   2.9    Affected Lenders......................................................  46
   2.10   Sharing of Payments...................................................  47
   2.11   Allocation of Loans and Expenses......................................  48

ARTICLE 3 LETTERS OF CREDIT.....................................................  49

   3.1    Letters of Credit.....................................................  49
   3.2    Maximum Letter of Credit Outstandings; Final Maturities...............  50
   3.3    Letter of Credit Requests; Minimum Stated Amount......................  50
   3.4    Letter of Credit Participations.......................................  51
   3.5    Agreement to Repay Letter of Credit Drawings..........................  53
   3.6    Increased Costs.......................................................  53

ARTICLE 4 INTEREST, FEES AND EXPENSES...........................................  54

   4.1    Interest on LIBOR Rate Loans..........................................  54
   4.2    Interest on Prime Rate Loans..........................................  55
   4.3    Notice of Continuation and Notice of Conversion.......................  55
   4.4    Interest After Event of Default.......................................  57
   4.5    Unused Line Fee.......................................................  57
   4.6    Letter of Credit Fees.................................................  57
   4.7    Reimbursement of Expenses.............................................  58
   4.8    Authorization to Charge Borrowers' Account............................  58
</TABLE>

                                      - i -

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<TABLE>
<S>                                                                               <C>
   4.9    Indemnification in Certain Events.....................................  59
   4.10   Calculations and Determinations.......................................  59
   4.11   Mitigation............................................................  60

ARTICLE 5 CONDITIONS PRECEDENT..................................................  60

   5.1    Conditions to Initial Credit Event....................................  60
   5.2    Conditions to Each Credit Event.......................................  62

ARTICLE 6 REPRESENTATIONS AND WARRANTIES........................................  62

   6.1    Organization and Qualification........................................  62
   6.2    Solvency..............................................................  62
   6.3    Priority of Liens.....................................................  63
   6.4    No Conflict...........................................................  63
   6.5    Enforceability........................................................  63
   6.6    Consents..............................................................  63
   6.7    Financial Data........................................................  63
   6.8    Jurisdictions of Organization; Locations of Collateral................  64
   6.9    Fictitious Business Names.............................................  64
   6.10   Subsidiaries..........................................................  64
   6.11   No Judgments or Litigation............................................  64
   6.12   No Defaults...........................................................  64
   6.13   Labor Matters.........................................................  65
   6.14   Compliance with Laws..................................................  65
   6.15   ERISA.................................................................  66
   6.16   Intellectual Property.................................................  66
   6.17   Licenses and Permits..................................................  66
   6.18   Title to Collateral...................................................  66
   6.19   Investment Company....................................................  66
   6.20   Borrowers' Taxes and Tax Returns......................................  66
   6.21   Status of Accounts....................................................  67
   6.22   Material Contracts....................................................  67
   6.23   Affiliate Transactions................................................  67
   6.24   Accuracy and Completeness of Information..............................  68
   6.25   No Adverse Change or Event............................................  68

ARTICLE 7 AFFIRMATIVE COVENANTS.................................................  68

   7.1    Financial Information.................................................  68
   7.2    Certain Collateral....................................................  71
   7.3    Corporate Existence...................................................  71
   7.4    ERISA.................................................................  71
   7.5    Books and Records.....................................................  72
   7.6    Collateral Records....................................................  72
   7.7    Security Interests....................................................  72
   7.8    Insurance; Casualty Loss..............................................  73
</TABLE>

                                     - ii -

<PAGE>

<TABLE>
<S>                                                                               <C>
   7.9    Taxes.................................................................  74
   7.10   Compliance With Laws..................................................  74
   7.11   Use of Proceeds.......................................................  75
   7.12   Fiscal Year...........................................................  75
   7.13   Notification of Certain Events........................................  75
   7.14   Intellectual Property.................................................  76
   7.15   Maintenance of Property...............................................  76
   7.16   Further Assurances....................................................  76

ARTICLE 8 NEGATIVE COVENANTS....................................................  77

   8.1    Consolidated Fixed Charge Coverage Ratio..............................  77
   8.2    Capital Expenditures..................................................  77
   8.3    No Additional Indebtedness............................................  77
   8.4    No Liens; Judgments...................................................  79
   8.5    No Sale of Assets.....................................................  81
   8.6    No Corporate Changes..................................................  82
   8.7    No Guaranties.........................................................  82
   8.8    No Restricted Payments................................................  83
   8.9    No Investments........................................................  84
   8.10   No Affiliate Transactions.............................................  86
   8.11   Limitation on Transactions Under ERISA................................  87
   8.12   No Additional Bank Accounts...........................................  87
   8.13   Amendments of Related Transactions Documents..........................  87
   8.14   Additional Restrictive Covenants......................................  87
   8.15   No Additional Subsidiaries............................................  88
   8.16   Designated Senior Debt................................................  88
   8.17   Limitation on Derivative Transactions.................................  88

ARTICLE 9 EVENTS OF DEFAULT AND REMEDIES........................................  88

   9.1    Events of Default.....................................................  88
   9.2    Acceleration and Cash Collateralization...............................  90
   9.3    Remedies..............................................................  91

ARTICLE 10 THE AGENT............................................................  92

   10.1   Appointment of Agent..................................................  92
   10.2   Nature of Duties of Agent.............................................  93
   10.3   Lack of Reliance on the Agent.........................................  93
   10.4   Certain Rights of the Agent...........................................  93
   10.5   Reliance by the Agent.................................................  94
   10.6   Indemnification of Agent..............................................  94
   10.7   The Agent in its Individual Capacity..................................  94
   10.8   Holders of Notes......................................................  95
   10.9   Successor Agent.......................................................  95
   10.10  Collateral Matters....................................................  95
</TABLE>

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<TABLE>
<S>                                                                              <C>
   10.11  Actions with Respect to Defaults......................................  97
   10.12  Delivery of Information...............................................  97

ARTICLE 11 MISCELLANEOUS........................................................  97

   11.1   SUBMISSION TO JURISDICTION............................................  97
   11.2   JURY TRIAL............................................................  98
   11.3   GOVERNING LAW.........................................................  98
   11.4   Delays; Partial Exercise of Remedies..................................  98
   11.5   Notices...............................................................  98
   11.6   Assignability.........................................................  99
   11.7   Confidentiality....................................................... 102
   11.8   Indemnification....................................................... 102
   11.9   Entire Agreement; Successors and Assigns.............................. 103
   11.10  Amendments, Etc....................................................... 103
   11.11  Nonliability of Agent and Lenders..................................... 104
   11.12  Counterparts.......................................................... 104
   11.13  Effectiveness......................................................... 105
   11.14  Severability.......................................................... 105
   11.15  Headings Descriptive.................................................. 105
   11.16  Maximum Rate.......................................................... 105
   11.17  Right of Setoff....................................................... 105
   11.18  Defaulting Lender..................................................... 106
   11.19  Rights Cumulative..................................................... 107
   11.20  Third Party Beneficiaries............................................. 107
   11.21  Joint and Several Liability of Borrowers.............................. 107
   11.22  Appointment and Authorization of Funds Administrator.................. 108
</TABLE>

                                     - iv -

<PAGE>

                                     ANNEXES

ANNEX I                    Closing Document List
ANNEX II                   Lenders; Commitments; Lending Offices

                                    EXHIBITS

EXHIBIT A                  Form of Assignment and Assumption Agreement
EXHIBIT B                  Form of Note
EXHIBIT C                  Form of Notice of Borrowing
EXHIBIT C-1                Form of Notice of Continuation
EXHIBIT C-2                Form of Notice of Conversion
EXHIBIT D                  Form of Letter of Credit Request
EXHIBIT E                  Form of Compliance Certificate
EXHIBIT F                  Form of Borrowing Base Certificate

                                    SCHEDULES

SCHEDULE B, PART 1.1-A     Additional BCO Acquisition Merger Documents
SCHEDULE B, PART 1.1-B     Additional BWAY Finance Merger Documents
SCHEDULE B, PART 1.1-C     Employment Agreements
SCHEDULE B, PART 1.1-D     Equity Financing Documents
SCHEDULE B, PART 1.1-E     Existing Note Repurchase Documents
SCHEDULE B, PART 1.1-F     Kelso Agreements
SCHEDULE B, PART 1.1-G     Management Agreements
SCHEDULE B, PART 1.1-H     Additional Permitted Dispositions
SCHEDULE B, PART 1.1-I     Additional Permitted Restrictive Covenants
SCHEDULE B, PART 1.1-J     Additional Subordinated Note Documents
SCHEDULE B, PART 1.2(b)    Existing Letters of Credit
SCHEDULE B, PART 6.1       Jurisdictions Qualified to Do Business
SCHEDULE B, PART 6.4       Conflicts
SCHEDULE B, PART 6.6       Consents
SCHEDULE B, PART 6.8       Jurisdictions of Organization; Locations of
                           Collateral
SCHEDULE B, PART 6.9       Fictitious Names
SCHEDULE B, PART 6.10      Subsidiaries
SCHEDULE B, PART 6.11      Outstanding Judgments; Orders; Waivers
SCHEDULE B, PART 6.12      Existing Defaults
SCHEDULE B, PART 6.13      Labor Matters
SCHEDULE B, PART 6.14      Violations and Failures to Comply with Requirements
                           of Law; Environmental Matters
SCHEDULE B, PART 6.15      ERISA Matters
SCHEDULE B, PART 6.18      Real Estate
SCHEDULE B, PART 6.20      Tax Matters
SCHEDULE B, PART 6.22      Material Contracts
SCHEDULE B, PART 6.23      Affiliate Transactions
SCHEDULE B, PART 8.3(e)    Existing Indebtedness

                                      - v -

<PAGE>

SCHEDULE B, PART 8.4(b)    Existing Liens
SCHEDULE B, PART 8.9       Existing Investments
SCHEDULE B, PART 8.10      Existing Affiliate Transactions
SCHEDULE B, PART 8.12      Payroll and Petty Cash Accounts

                                     - vi -

<PAGE>

                      AMENDED AND RESTATED CREDIT AGREEMENT

                          DATED AS OF FEBRUARY 7, 2003

        The Borrowers, the Funds Administrator, the Lenders and the Agent, agree
as follows (with certain terms used herein having the respective meanings
ascribed thereto in Article 1):

                             PRELIMINARY STATEMENTS:

        1.      The Borrowers, the Funds Administrator, the Lenders and the
Agent are parties to that certain Credit Agreement dated as of May 22, 2001, as
amended (such Credit Agreement, as amended prior to the date hereof, being
hereinafter referred to as the "Original Credit Agreement").

        2.      The Borrowers, the Funds Administrator, the Lenders and the
Agent have agreed to enter into this Credit Agreement in order to, among other
things, (a) amend and restate the Original Credit Agreement in its entirety; (b)
re-evidence, ratify and reaffirm the "Original Obligations" (as such term is
defined in Section 1.2(b) herein below); (c) reflect the consummation of the
Related Transactions; and (d) set forth the terms and conditions under which the
Agent and the Lenders will from time to time hereafter make further loans and
other extensions of credit to or for the account of the Borrowers.

        3.      The Borrowers, the Funds Administrator, the Lenders and the
Agent do not intend that this Credit Agreement shall constitute a novation of
the Original Credit Agreement.

        4.      Accordingly, in consideration of the mutual agreements set forth
herein, and subject to the terms and provisions hereof, the parties hereto
hereby agree as follows:

                                    ARTICLE 1

                                   DEFINITIONS

        1.1     GENERAL DEFINITIONS.

        As used herein, the following terms shall have the meanings herein
specified:

        "ACI" shall mean Armstrong Containers, Inc., a Delaware corporation and
a Wholly-Owned Subsidiary of BMI.

        "Acceptance Date" shall have the meaning ascribed to that term in
Section 11.6(c).

        "Account Debtor Act of Bankruptcy" shall have the meaning ascribed to
that term in clause (g) of the definition of the term "Eligible Accounts
Receivable."

<PAGE>

        "Accounts" shall have the meaning ascribed to that term in the Borrower
Security Agreement.

        "Accumulated Funding Deficiency" shall have the meaning ascribed to that
term in Section 302 of ERISA.

        "Acquisition" shall mean, with respect to any Borrower, any transaction
or series of related transactions resulting in (a) the acquisition by such
Borrower of all or substantially all of the assets of any other Person, or of
any business or division of any other Person, (b) the acquisition by such
Borrower of all of the issued and outstanding Capital Securities of any other
Person, including, without limitation, by means of a merger of such other Person
with and into such Borrower (or a Wholly-Owned Subsidiary of such or any other
Borrower formed solely for the purpose of consummating such acquisition) or
otherwise causing any Person (other than any Person that is at such time a
Borrower) to become a Wholly-Owned Subsidiary of such Borrower, or (c) a merger,
consolidation or any other combination of such Borrower with any other Person
(other than any Person that is at such time a Borrower), provided that such
Borrower is the surviving Person.

        "Acquisition Target" shall mean a Person whose Capital Securities or
assets, as the case may be, are acquired in an Acquisition permitted under
Section 8.9(d).

        "Adjusted LIBOR Rate" shall mean, for any Interest Period, the rate
obtained by dividing (a) the LIBOR Rate for such Interest Period by (b) a
percentage equal to 1 minus the stated maximum rate (stated as a decimal) of all
reserves, if any, required to be maintained against "Eurocurrency liabilities"
as specified in Regulation D (or any successor category of liabilities under
Regulation D).

        "Affiliate" shall mean, with respect to any Person, any Person which
directly or indirectly through one or more intermediaries Controls, is
Controlled by, or is under common Control with, such Person, or any Person who
is a director or executive officer of such Person or any Subsidiary of such
Person.

        "Agent" shall mean DBTCo, acting in its capacity as contractual
representative for the Lenders hereunder and any successor Agent appointed
pursuant to Section 10.9.

        "Applicable Lending Office" shall mean, with respect to each Lender,
such Lender's LIBOR Lending Office in the case of a LIBOR Rate Loan, and such
Lender's Domestic Lending Office in the case of a Prime Rate Loan.

        "Applicable Margin" shall mean, at any time with respect to any LIBOR
Rate Loan or Prime Rate Loan, as the case may be, a percentage per annum equal
to the applicable percentage amount set forth below for such Loan with respect
to Level II, provided that from and after any Start Date to and including the
corresponding End Date, the Applicable Margin with respect to LIBOR Rate Loans
and Prime Rate Loans, respectively, shall be a percentage per annum equal to the
applicable percentage per annum set forth below if, in each case as determined
as of the Test Date for such Start Date, the Consolidated Entity shall have the
applicable ratio set forth

                                      - 2 -

<PAGE>

below of (x) Consolidated Total Indebtedness to (y)Consolidated EBITDA for the
twelve (12) Fiscal Month period ending on such Test Date:

<TABLE>
<CAPTION>
                                                                       APPLICABLE
                                                                        MARGIN
----------------------------------------------------------------------------------------------
                   RATIO OF CONSOLIDATED TOTAL                    PRIME             LIBOR
               INDEBTEDNESS TO CONSOLIDATED EBITDA             RATE LOANS         RATE LOANS
----------------------------------------------------------------------------------------------
<S>     <C>                                                       <C>               <C>
  I     Equal to or greater than 4.50 to 1.00                     1.25%             3.00%
 II     Equal to or greater than 3.25 to 1.00
         but less than 4.50 to 1.00                               1.25%             2.75%
 III    Equal to or greater than 2.50 to 1.00
         but less than 3.25 to 1.00                               1.25%             2.50%
 IV     Less than 2.50 to 1.00                                    1.25%             2.25%
----------------------------------------------------------------------------------------------
</TABLE>

Notwithstanding the foregoing, if the Borrowers shall fail to deliver the
Financial Statements that are required to be delivered pursuant to Section
7.1(b), and the Agent in its sole discretion shall so elect, from the date which
is three (3) Business Days after the date on which such Financial Statements
were so required to be delivered until the date of actual delivery thereof, the
Applicable Margin shall be a percentage per annum equal to the applicable
percentage amount set forth above with respect to Level I.

        "Applicable Margin Period" shall mean each period which shall commence
on a date on which the Financial Statements are delivered pursuant to Section
7.1(b) and which shall end on the earlier of (i) the date of actual delivery of
the next Financial Statements pursuant to Section 7.1(b) and (ii) the latest
date on which the next Financial Statements are required to be delivered
pursuant to Section 7.1(b), provided that the first Applicable Margin Period
shall commence with the delivery of the Financial Statements in respect of the
Test Period ending on the last day of the third Fiscal Quarter of Fiscal Year
2003.

        "Approved Secured Derivative Transaction Liabilities" shall mean, with
respect to any Lender, Liabilities of the Borrowers to such Lender in respect of
a Derivative Transaction permitted pursuant to Section 8.3(f); provided, that,
prior to entering into any such Derivative Transaction, (a) such Lender shall
have delivered written notice thereof to the Agent stating the maximum amount of
the Borrowers' Liabilities in respect thereof which are to constitute secured
Obligations of the Borrowers to such Lender hereunder, and (b) such Lender shall
have received written approval from the Agent confirming such amount; provided,
further, that, in no event shall the Agent be required to approve at any time as
secured Obligations hereunder aggregate Liabilities of the Borrowers in respect
of Derivative Transactions with Lenders in an amount greater than $3,000,000 for
all such Derivative Transactions combined.

                                      - 3 -

<PAGE>

        "Assignment and Assumption Agreement" shall mean an assignment and
assumption agreement entered into by an assigning Lender and an assignee Lender,
and accepted by the Agent, in accordance with Section 11.6, substantially in the
form of Exhibit A.

        "Assumption Agreement" shall mean that certain Assumption Agreement
dated as of February 7, 2003, among BWAY Finance, BWAY and BMI, as the same may
be modified, amended, extended, restated, amended and restated or supplemented
from time to time, to the extent permitted hereunder.

        "Auditors" shall mean a nationally-recognized firm of independent
certified public accountants selected by the Borrowers and reasonably
satisfactory to the Agent. For purposes of this Credit Agreement, the Borrowers'
current firm of independent certified public accountants, Deloitte & Touche LLP,
shall be deemed to be satisfactory to the Agent.

        "BCO Acquisition" shall mean BCO Acquisition, Inc., a Delaware
corporation and, prior to consummation of the BCO Acquisition Merger, a
Wholly-Owned Subsidiary of BCO Holding.

        "BCO Acquisition Merger" shall mean the merger of BCO Acquisition with
and into BWAY, with BWAY as the surviving corporation, pursuant to the BCO
Acquisition Merger Agreement.

        "BCO Acquisition Merger Agreement" shall mean that certain Agreement and
Plan of Merger dated as of September 30, 2002, among BCO Holding, BCO
Acquisition and BWAY, as the same may be modified, amended, extended, restated,
amended and restated or supplemented from time to time, to the extent permitted
hereunder.

        "BCO Acquisition Merger Documents" shall mean, collectively, the BCO
Acquisition Merger Agreement and all of the other agreements, instruments and
documents set forth on Schedule B, Part 1.1-A, as the same may be modified,
amended, extended, restated, amended and restated or supplemented from time to
time, to the extent permitted hereunder.

        "BCO Holding" shall mean BCO Holding Company, a Delaware corporation.

        "BCO Holding Guaranty" shall mean the Guaranty of even date herewith,
executed by BCO Holding in favor of the Agent for the benefit of the Agent and
Lenders.

        "BCO Holding Pledge Agreement" shall mean the Stock Pledge Agreement of
even date herewith, executed by BCO Holding in favor of the Agent for the
benefit of the Agent and Lenders, evidencing the pledge by BCO Holding to the
Agent of one hundred percent (100%) of the issued and outstanding Capital
Securities of BWAY.

        "BCO Holding Related Taxes" shall mean (a) any taxes, charges or
assessments, including but not limited to sales, use, transfer, rental, ad
valorem, value-added, stamp, property, consumption, franchise, license, capital,
net worth, gross receipts, excise, occupancy, intangibles or similar taxes,
charges or assessments (other than federal, state or local taxes measured by
income and federal, state or local withholding imposed on payments made by BCO
Holding), required to be paid by BCO Holding by virtue of its being incorporated
or having Capital

                                      - 4 -

<PAGE>

Securities outstanding (but not by virtue of owning stock or other equity
interests of any corporation or other entity other than BWAY Finance, BWAY or
any of its Subsidiaries), or being a holding company parent of BWAY Finance or
BWAY or receiving dividends from or other distributions in respect of the
Capital Securities of BWAY Finance or BWAY, or having guaranteed any obligations
of BWAY Finance, BWAY or any Subsidiary thereof, or having made any payment in
respect of any of the items for which BWAY Finance or BWAY is permitted to make
payments to BCO Holding pursuant to Section 8.8, or (b) any other federal,
state, foreign, provincial or local taxes measured by income for which BCO
Holding is liable up to an amount not to exceed with respect to any such taxes
the total amount of such taxes that BWAY and BWAY Finance would have each been
required to pay on a separate company basis or on a consolidated basis if BWAY
had filed a consolidated return on behalf of an affiliated group (as defined in
Section 1504 of the Code, or an analogous provision of state, local or foreign
law) of which it were the common parent and that included BWAY Finance, or with
respect to state and local taxes, on a combined basis if BWAY had filed a
combined return on behalf of an affiliated group consisting only of BWAY
Finance, BWAY and its Subsidiaries.

        "BMI" shall mean BWAY Manufacturing, Inc., a Delaware corporation, a
successor by merger to Milton Can Company, Inc., a Delaware corporation, and a
Wholly-Owed Subsidiary of BWAY.

        "BMI Pledge Agreement" shall mean the Stock Pledge Agreement dated May
22, 2001, executed by BMI in favor of the Agent for the benefit of the Agent and
Lenders, evidencing the pledge by BMI to the Agent of one hundred percent (100%)
of the issued and outstanding Capital Securities of ACI.

        "Bankruptcy Default" shall mean a Default which is such by virtue of
Section 9.1(e).

        "Benefit Plan" shall mean an employee pension benefit plan as defined in
Section 3(2) of ERISA (other than a Multiemployer Plan) for which the funding
requirements under Section 412 of the Code or Section 302 of ERISA is, or within
the immediately preceding six (6) years was, in whole or in part, the
responsibility of any Credit Party, any Subsidiary of any Credit Party or any
ERISA Affiliate.

        "Borrowers" shall mean ACI, BMI and BWAY, and all other Persons joined
as parties hereto pursuant to Section 8.15.

        "Borrowers' Account" shall have the meaning ascribed to that term in
Section 2.6.

        "Borrower Security Agreement" shall mean the Amended and Restated
General Security Agreement of even date herewith, executed by each of the
Borrowers in favor of the Agent for the benefit of the Agent and Lenders.

        "Borrowing" shall mean a borrowing consisting of Loans of the same Type
made on the same day by the Lenders.

        "Borrowing Base" shall mean:

        (a)     Subject to clause (b) below, at any time, the amount equal at
such time to:

                                      - 5 -

<PAGE>

                (i)     the Fixed Asset Sublimit, plus

                (ii)    eighty-five percent (85%) of the Eligible Accounts
Receivable, plus

                (iii)   the lesser of $25,000,000 or sixty percent (60%) of the
Eligible Inventory consisting of raw materials and finished goods, including,
without limitation, Eligible Inventory consisting of slit steel and blank steel,
plus

                (iv)    the lesser of $6,000,000 or fifty percent (50%) of the
Eligible Inventory consisting of work-in-progress; minus

                (v)     the aggregate amount of all Approved Secured Derivative
Transaction Liabilities; minus

                (vi)    the amount of any reserves established by the Agent
pursuant to clause (b) below or any other term or provision of this Credit
Agreement, including, without limitation, reserves in connection with Net
Disposition Proceeds established pursuant to Section 7.8(b) and clause (c) of
the definition of the term Fixed Asset Sublimit; minus

                (vii)   one hundred five percent (105.125%) of the aggregate
outstanding principal amount of Indebtedness permitted pursuant to Section
8.3(d) in excess of $200,000,000, the repurchase or redemption of which is
permitted pursuant to Section 8.8(d).

        (b)     The Agent at any time in its discretion (which discretion shall
be exercised in a commercially reasonable manner in accordance with the
customary business and credit practices of asset based lenders in comparable
asset based transactions) shall be entitled to (i) establish and increase or
decrease reserves against Eligible Accounts Receivable, Eligible Inventory and
the Fixed Asset Sublimit; (ii) reduce the advance rates under clauses (a)(ii),
(iii) and (iv) above or, following any such reduction, restore such advance
rates to any level equal to or below the advance rates stated in clauses
(a)(ii), (iii) and (iv) above; (iii) impose additional restrictions (or
eliminate the same) to the standards of eligibility set forth in the respective
definitions of "Eligible Accounts Receivable" and "Eligible Inventory"; and (iv)
establish and increase or decrease a reserve in the amount of interest payable
by the Borrowers hereunder, including interest on Loans and Unpaid Drawings,
provided, that the Agent shall provide notice to the Funds Administrator in
general terms concurrently with (and advise the Funds Administrator in general
terms as to the reasons for) any action taken pursuant to this clause (b), to
the extent that such action results in a material reduction in the Borrowing
Base. The Agent may but shall not be required to rely on each Borrowing Base
Certificate and any other schedules or reports delivered to it in connection
herewith in determining the then eligibility of Accounts and Inventory. Reliance
thereon by the Agent from time to time shall not be deemed to limit the right of
the Agent to revise advance rates or standards of eligibility as provided herein
above in this clause (b).

        "Borrowing Base Certificate" shall have the meaning ascribed to that
term in Section 7.1(f).

        "Business Day" shall mean any day other than a Saturday, Sunday or legal
holiday on which commercial banks in Chicago, Illinois or New York, New York,
are generally closed or

                                      - 6 -

<PAGE>

are authorized to close. When used in connection with LIBOR Rate Loans, this
definition will also exclude any day on which commercial banks are not open for
dealing in Dollar deposits in the London (England, U.K.) interbank market. When
used in connection with any Letter of Credit, this definition will also exclude
any day on which the applicable Issuing Lender is not open for the general
conduct of its business.

        "BWAY" shall mean BWAY Corporation, a Delaware corporation and, after
giving effect to the Mergers, a Wholly-Owed Subsidiary of BCO Holding and the
successor by merger to BCO Acquisition and BWAY Finance, respectively.

        "BWAY Finance" shall mean BWAY Finance Corp., a Delaware corporation and
a Wholly-Owned Subsidiary of BCO Holding.

        "BWAY Finance Merger" shall mean the merger of BWAY Finance with and
into BWAY, with BWAY as the surviving corporation.

        "BWAY Finance Merger Documents" shall mean all of the agreements,
instruments and documents set forth on Schedule B, Part 1.1-B, as the same may
be modified, amended, extended, restated, amended and restated or supplemented
from time to time, to the extent permitted hereunder.

        "BWAY Pledge Agreement" shall mean the Stock Pledge Agreement dated May
22, 2001, executed by BWAY in favor of the Agent for the benefit of the Agent
and Lenders, evidencing the pledge by BWAY to the Agent of one hundred percent
(100%) of the issued and outstanding Capital Securities of BMI.

        "Capital Expenditures" shall mean, of any Person for any period, the
aggregate of all expenditures by such Person during such period (whether paid in
cash or accrued as liabilities and including in any event Capital Lease
Obligations) which are or are required to be included in the property, plant or
equipment reflected in the balance of such Person in accordance with GAAP;
provided that (a) Capital Expenditures of any Borrower shall not include the
purchase price paid by such Person in connection with any Acquisition permitted
pursuant to Section 8.9(d), to the extent allocable to property, plant or
equipment; and (b) Capital Expenditures of any Borrower made with Net
Disposition Proceeds shall not constitute Capital Expenditures of such Borrower
for any purposes of this Credit Agreement, to the extent (but only for so long
as) the Fixed Asset Sublimit (pursuant to clause (c) or (d) of the definition
thereof) is not required to be reduced by the amount of such Net Disposition
Proceeds.

        "Capital Lease" shall mean, with respect to any Person, any lease that
is capitalized by such Person for financial statement purposes in accordance
with GAAP.

        "Capital Lease Obligations" shall mean, with respect to any Person, the
obligations under Capital Leases of such Person, in each case taken at the
capitalized amount thereof for financial statement purposes in accordance with
GAAP.

        "Capital Security" shall mean, with respect to any Person, (a) any share
of capital stock of or any membership, partnership or other unit of ownership
interest in such Person and (b) any

                                      - 7 -

<PAGE>

security convertible into, or any option, warrant or other right to acquire, any
share of capital stock of or other unit of ownership interest in such Person.

        "Cash Equivalents" shall mean (a) securities issued, guarantied or
insured by the United States or any of its agencies with maturities of not more
than one year from the date acquired, (b) certificates of deposit, time deposits
and bankers' acceptances with maturities of not more than one year from the date
acquired issued or guaranteed by a U.S. federal or state chartered commercial
bank of recognized standing, which has capital and unimpaired surplus in excess
of $500,000,000 or which bank or its holding company has a short-term commercial
paper rating of at least A-1 or the equivalent by Standard & Poor's Corporation,
or any successor rating agency, or at least P-1 or the equivalent by Moody's
Investors Services, Inc., or any successor rating agency (or, if at such time
neither of such Persons is issuing ratings, then a comparable rating of such
other nationally recognized rating agency as shall be approved by the Agent in
its reasonable judgment), (c) reverse repurchase agreements with terms of not
more than seven days from the date acquired, for securities of the type
described in clause (a) above and entered into only with commercial banks having
one of the requisite qualifications described in clause (b) above, (d)
commercial paper, other than commercial paper issued by any Borrower or any
Affiliate of any Borrower, issued by any Person incorporated under the laws of
the United States or any state thereof and rated at least A-1 or the equivalent
by Standard & Poor's Corporation, or any successor rating agency, or at least
P-1 or the equivalent by Moody's Investors Services, Inc., or any successor
rating agency (or, if at such time neither of such Persons is issuing ratings,
then a comparable rating of such other nationally recognized rating agency as
shall be approved by the Agent in its reasonable judgment), in each case with
maturities of not more than one year from the date acquired, and (e) investments
in money market funds which have net assets of at least $200,000,000 and at
least eighty-five percent (85%) of whose assets consist of securities and other
obligations of the type described in clauses (a) through (d) above.

        "Casualty Loss" shall mean the theft, loss, physical destruction,
damage, condemnation, taking or any other similar event with respect to any
property or assets of any Borrower or any Subsidiary of any Borrower.

        "Change of Control" shall mean one or more of the following events
(except to the extent occurring as a result of any of the Mergers):

                (a)     less than a majority of the members of the Board of
        Directors of BCO Holding shall be persons who either (i) were serving as
        directors on the Closing Date or (ii) were nominated as directors and
        approved by the vote of either (x) the majority of the Permitted Holders
        or (y) the majority of the directors who are directors referred to in
        clause (i) above or this clause (ii); or

                (b)     a "person" (as such term is used in Sections 13(d) and
        14(d) of the Exchange Act) shall, as a result of a tender or exchange
        offer, open market purchases, privately negotiated purchases or
        otherwise, have become the direct or indirect beneficial owner (within
        the meaning of Rule 13d-3 under the Exchange Act) of Capital Securities
        of BCO Holding representing more than thirty percent (30%) of the
        combined ordinary voting power of the Capital Securities of BCO Holding,
        unless and for so long as the Permitted Holders beneficially own (within
        the meaning of Rule 13d-3 under the

                                      - 8 -

<PAGE>

        Exchange Act), directly or indirectly, in the aggregate at least
        fifty-one percent (51%) of the combined ordinary voting power of the
        Capital Securities of BCO Holding; or

                (c)     at any time when any principal amount of Indebtedness is
        outstanding under the Subordinated Note Indenture, the occurrence of a
        "Change of Control" (as such term defined in the Subordinated Note
        Indenture, as in effect from time to time); or

                (d)     at any time when any principal amount of Indebtedness is
        outstanding under the Existing Note Indenture, the occurrence of a
        "Change of Control" (as such term defined in the Existing Note
        Indenture, as in effect from time to time); or

                (e)     BCO Holding shall cease for any reason to be the legal
        and beneficial owner of one hundred percent (100%) of the Capital
        Securities of BWAY.

        "Closing Date" shall mean the date on which the Initial Credit Event
occurs.

        "Closing Document List" shall mean the Closing Document List attached
hereto as Annex I.

        "Code" shall mean the Internal Revenue Code of 1986, as amended.

        "Collateral" shall mean any and all assets and rights and interests in
or to property of each of the Borrowers and each of the other Credit Parties,
whether real or personal, tangible or intangible, on which a Lien is granted or
purported to be granted pursuant to the Collateral Documents.

        "Collateral Access Agreements" shall mean any landlord waivers,
mortgagee waivers, bailee letters and any similar acknowledgment agreements of
any Person, such as a warehouseman or processor, in possession of Inventory of
any Borrower, in each case in form and substance reasonably satisfactory to the
Agent.

        "Collateral Documents" shall mean the Security Agreements, the Pledge
Agreements and all other contracts, instruments and other documents now or
hereafter executed and delivered in connection with this Credit Agreement,
pursuant to which Liens are granted or are purported to be granted to the Agent
in the Collateral for the benefit of some or all of the Agent, the Lenders and
the Issuing Lenders.

        "Commitment" of any Lender shall, subject to Section 11.18(c)(ii), mean
the amount set forth below such Lender's name on Annex II, under the heading
"Commitment," as such amount may be reduced from time to time or terminated
pursuant to the terms of this Credit Agreement.

        "Consolidated EBITDA" shall mean, for any fiscal period of the
Consolidated Entity, (a) Consolidated Net Income (other than extraordinary
items) for such period; plus (b) all of the following, in each case as
determined without duplication in accordance with GAAP and to the extent
deducted in calculating Consolidated Net Income for such period: (i) Interest
Expense, income tax expense, depreciation and amortization, including
amortization of any goodwill or other intangibles, (ii) expenses attributable to
the exercise of employee options vesting upon consummation of the BCO
Acquisition Merger, (iii) non-cash compensation expense resulting

                                      - 9 -

<PAGE>

from the issuance of Capital Securities of BCO Holding to employees of BCO
Holding or any Borrower, (iv) (A) non-cash compensation expense resulting from
the repurchase of any Capital Securities of BCO Holding from employees of BCO
Holding or any Borrower and (B) cash compensation expense resulting from the
repurchase of any Capital Securities of BCO Holding from employees of BCO
Holding or any Borrower, in an amount not exceeding $2,000,000 in the aggregate
for any Fiscal Year ending after the Closing Date, and, in the case of each of
the foregoing clauses (A) and (B), to the extent such repurchase is permitted
pursuant to Section 8.8(b)(i), (v) payments to Kelso, in each case to the extent
permitted to paid during such period pursuant to Sections 8.8(b)(iii) and (vi)
and Section 8.10(b)(vii), (vi) fees and expenses (including underwriting
commissions and discounts) incurred in connection with the execution and
delivery of the Credit Documents and the consummation of the Related
Transactions in an amount not exceeding $34,000,000, in the aggregate for all
periods ending after the Closing Date combined; and plus or minus (as the case
may be) (c) all of the following, in each case as determined without duplication
in accordance with GAAP and to the extent deducted or added in calculating
Consolidated Net Income for such period: (i) adjustments resulting from foreign
currency translations, (ii) non-cash provisions for reserves for discontinued
operations, (iii) (A) non-cash restructuring charges (which may include non-cash
write-downs of any assets made during such period) and (B) cash restructuring
charges in an amount not exceeding $5,000,000 in the aggregate for all periods
ending after the Closing Date combined and $3,000,000 in any Fiscal Year, (iv)
gains and losses attributable to asset sales, (v) payments required under any
Management Change of Control Agreement, and (vi) all other non-cash charges;
provided, that, notwithstanding the foregoing, (1) to the extent that any
non-cash charge added back to Consolidated Net Income pursuant to the foregoing
for any period shall become a cash event during any subsequent period, the
amount thereof shall be deducted from Consolidated Net Income in determining
Consolidated EBITDA for such subsequent period, except, (x) in the case of
compensation expense resulting from the repurchase of any Capital Securities of
BCO Holding from employees of BCO Holding or any Borrower, to the extent
permitted to be added to Consolidated Net Income in determining Consolidated
EBITDA pursuant to the foregoing clause (b)(iv)(B), and (y) in the case of
restructuring charges, to the extent permitted to be added to Consolidated Net
Income in determining Consolidated EBITDA pursuant to the foregoing clause
(c)(iii)(B); and (2) upon consummation of any Acquisition, Consolidated EBITDA
shall be determined for all purposes of this Credit Agreement for the four
consecutive Fiscal Quarters ending on the last day of the last completed Fiscal
Quarter immediately preceding the date of such consummation on a pro forma basis
on the assumption that such Acquisition occurred on the first day of such four
Fiscal Quarter period and using historical results of the Consolidated Entity
and the related Acquisition Target for such period after giving effect to any
Permitted Pro Forma Acquisition Adjustments.

        "Consolidated Entity" shall mean BWAY and each of its Subsidiaries which
are such by virtue of clause (a) of the definition thereof but shall mean and
include, in any event, each Borrower.

        "Consolidated Fixed Charge Coverage Ratio" shall mean, as determined as
of any date for any period ending on such date, the ratio of (a) Consolidated
EBITDA for such period, to (b) the sum of the following, in each case of the
Consolidated Entity, as determined without duplication in accordance with GAAP
for such period, (i) income tax expense paid in cash, (ii) Interest Expense paid
or payable in cash, (iii) Capital Expenditures (except for Capital

                                     - 10 -

<PAGE>

Expenditures financed with the proceeds of Indebtedness other than the Loans, to
the extent permitted pursuant to Section 8.3), (iv) payments of principal on
Indebtedness (other than repayments in the ordinary course of the Loans which do
not permanently reduce the Total Commitments); (v) reductions in the Fixed Asset
Sublimit pursuant to clause (a) of the definition thereof, and (vi) any
Restricted Payment made by BWAY pursuant to Section 8.8(b)(ii) hereof during
such period; provided, that, notwithstanding the foregoing, upon consummation of
any Acquisition, all items described in the foregoing clauses (b)(i) through
(vi) shall be determined for all purposes of this Credit Agreement for the four
consecutive Fiscal Quarters ending on the last day of the last completed Fiscal
Quarter immediately preceding the date of such consummation on a pro forma basis
on the assumption that such Acquisition occurred on the first day of such four
Fiscal Quarter period and using historical results of the Consolidated Entity
and the related Acquisition Target for such period.

        "Consolidated Net Income" shall mean for any period the consolidated net
income of the Consolidated Entity as determined in accordance with GAAP for such
period.

        "Consolidated Total Indebtedness" shall mean, as determined as of any
Test Date, the sum, without duplication, of (a) all Indebtedness of the
Consolidated Entity as of such Test Date, and (b) the increase, if any, in the
aggregate unpaid trade accounts payable of the Borrowers as of such Test Date
over the aggregate unpaid trade accounts payable of the Borrowers as of the last
day of the Fiscal Month immediately preceding the Fiscal Month in which such
Test Date occurs, to the extent the Agent determines in its sole discretion that
such increase has not occurred in the ordinary course of the respective
businesses of the Borrowers; provided, that, notwithstanding the foregoing, upon
consummation of any Acquisition, Consolidated Total Indebtedness shall be
determined for all purposes of this Credit Agreement for the four consecutive
Fiscal Quarters ending on the last day of the last completed Fiscal Quarter
immediately preceding the date of such consummation on a pro forma basis on the
assumption that such Acquisition occurred on the first day of such four Fiscal
Quarter period and using historical results of the Consolidated Entity and the
related Acquisition Target for such period.

        "Continuation" shall have the meaning ascribed to that term in Section
4.3(a).

        "Control" shall mean, with respect to any Person, the possession,
directly or indirectly, of the power to (a) vote ten percent (10%) or more of
the securities having ordinary voting power for the election of directors of
such Person or (b) direct or cause the direction of management and policies of
such Person, whether through the ownership of voting securities, by contract or
otherwise either alone or in conjunction with others or any group. The words
"Controlling" and "Controlled" have correlative meanings.

        "Convert," "Conversion" and "Converted" each shall refer to a conversion
of Loans of one Type into Loans of another Type pursuant to Section 4.3.

        "Covered Taxes" shall have the meaning ascribed to that term in Section
2.8(a).

        "Credit Agreement" shall mean this credit agreement, dated as of the
date hereof, as the same may be modified, amended, extended, restated, amended
and restated or supplemented from time to time.

                                     - 11 -

<PAGE>

        "Credit Documents" shall mean, collectively, this Credit Agreement, the
Notes, the Letters of Credit, the BCO Holding Guaranty, each of the Collateral
Documents and all other documents, agreements and instruments now or hereafter
executed and delivered in connection herewith or therewith, as the same may be
modified, amended, extended, restated, amended and restated or supplemented from
time to time.

        "Credit Event" shall mean (a) the making of a Loan and (b) the issuance
of any Letter of Credit.

        "Credit Parties" shall mean, collectively, BWAY, the other Borrowers,
the Funds Administrator and all other Persons (other than the Lenders, the Agent
and the Issuing Lenders) parties to the Credit Documents (other than any
Collateral Access Agreements and any opinions of counsel delivered to the Agent,
any Lender or any Issuing Lender in connection with any Credit Document).

        "Credit Party Taxes" shall have the meaning ascribed to that term in
Section 6.20(b).

        "DBTCo" shall mean Deutsche Bank Trust Company Americas, a New York
banking corporation, formerly known as Bankers Trust Company, acting in its
individual capacity.

        "DBTCo Account" shall have the meaning ascribed to that term in Section
2.5(c).

        "Default" shall mean an event, condition or default which with the
giving of notice, the passage of time or both would be an Event of Default.

        "Defaulting Lender" shall have the meaning ascribed to that term in
Section 11.18(b).

        "Depositary Account" shall have the meaning ascribed to that term in
Section 2.5(b)(ii).

        "Depositary Account Agreement" shall have the meaning ascribed to that
term in Section 2.5(b)(ii).

        "Depositary Account Bank" shall have the meaning ascribed to that term
in Section 2.5(b)(ii).

        "Derivative Contract" shall mean an agreement, whether or not in writing
and including any master agreement, documenting, evidencing or relating to any
Derivative Transaction between any Borrower, or any Subsidiary of any Borrower,
and another Person.

        "Derivative Transaction" shall mean (a) an interest-rate transaction,
including an interest-rate swap, basis swap, forward rate agreement, interest
rate option (including a cap, collar, and floor), and any other instrument
linked to interest rates that gives rise to similar credit risks (including
when-issued securities and forward deposits accepted), (b) an exchange-rate
transaction, including a cross-currency interest-rate swap, a forward
foreign-exchange contract, a currency option, and any other instrument linked to
exchange rates that gives rise to similar credit risks, (c) an equity derivative
transaction, including an equity-linked swap, an equity-linked option, a forward
equity-linked contract, and any other instrument linked to equities that gives
rise to similar credit risk and (d) a commodity (including precious metal)
derivative

                                     - 12 -

<PAGE>

transaction, including a commodity-linked swap, a commodity-linked option, a
forward commodity-linked contract, and any other instrument linked to
commodities that gives rise to similar credit risks.

        "Disbursement Account" shall mean the operating account of the Funds
Administrator maintained with the Disbursement Account Bank.

        "Disbursement Account Bank" shall mean DBTCo, Deutsche Bank AG, New York
Branch, or any other bank selected from time to time by the Funds Administrator
and reasonably acceptable to the Agent.

        "DOL" shall mean the United States Department of Labor and any successor
department or agency.

        "Dollars" and the sign "$" shall each mean freely transferable lawful
money of the United States of America.

        "Domestic Lending Office" shall mean, with respect to any Lender, the
office of such Lender specified as its "Domestic Lending Office" below its name
on Annex II, as such annex may be amended from time to time.

        "Domestic Subsidiary" shall mean each Subsidiary of a Borrower
incorporated or otherwise organized in the United States or any State thereof.

        "Drawing" shall have the meaning ascribed to that term in Section
3.5(b).

        "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
and all final or temporary regulations promulgated thereunder and all published,
generally applicable rulings with respect thereto entitled to precedential
effect.

        "ERISA Affiliate" shall mean any Person required at any relevant time to
be aggregated with any Credit Party or any Subsidiary of any Credit Party under
Sections 414(b), (c), (m) or (o) of the Code.

        "Eligible Accounts Receivable" shall mean Accounts of a Borrower payable
in Dollars and deemed by the Agent in its discretion (which discretion shall be
exercised in a commercially reasonable manner in accordance with the customary
business and credit practices of asset based lenders in comparable asset based
transactions) to be eligible for inclusion in the calculation of the Borrowing
Base. In determining the amount to be so included, the face amount of such
Accounts shall be reduced by the amount of all returns, discounts, claims,
credits, charges, or other allowances and by the aggregate amount of all
reserves, limits and deductions provided for in this definition and elsewhere in
this Credit Agreement, including any reserves established by the Agent pursuant
to the definition of the term "Borrowing Base" set forth herein, and there shall
be excluded any such Accounts that the Agent determines to be ineligible
pursuant to the definition of the term "Borrowing Base" set forth herein. Unless
otherwise approved in writing by the Agent, no Account of any Borrower shall be
deemed to be an Eligible Account Receivable if:

                                     - 13 -

<PAGE>

        (a)     it arises out of a sale made by such Borrower to an Affiliate of
such or any other Borrower; or

        (b)     its payment terms are longer than 61 days from date of invoice;
or

        (c)     it is unpaid more than 60 days after the original payment due
date; or

        (d)     it is from the same account debtor (or any Affiliate thereof)
and fifty percent (50%) or more, in face amount, of all Accounts from such
account debtor (or any Affiliate thereof) are ineligible pursuant to clause (c)
above; or

        (e)     the Account, when aggregated with all other Accounts of such
account debtor, exceeds twelve and one-half percent (12.50%) in face value of
all Accounts of the Borrowers combined then outstanding, to the extent of such
excess; provided that Accounts supported or secured by an irrevocable letter of
credit in form and substance reasonably satisfactory to the Agent, issued by a
financial institution reasonably satisfactory to the Agent, and duly transferred
to the Agent (together with sufficient documentation to permit direct draws by
the Agent) shall be excluded to the extent of the face amount of such letter of
credit for the purposes of such calculation; or

        (f)     (i) the account debtor is also a creditor of such Borrower, (ii)
the account debtor has disputed its liability on, or the account debtor has made
any claim with respect to, such Account or any other Account due from such
account debtor to such Borrower, which has not been resolved or (iii) the
Account otherwise is or may become subject to any right of setoff by the account
debtor; provided that any Account deemed ineligible pursuant to this clause (f)
shall only be ineligible to the extent of the amount owed by such Borrower to
the account debtor, the amount of such dispute or claim, or the amount of such
setoff, as applicable; or

        (g)     the account debtor has commenced a voluntary case under the
federal bankruptcy laws, as now constituted or hereafter amended, or made an
assignment for the benefit of creditors, or if a decree or order for relief has
been entered by a court having jurisdiction over the account debtor in an
involuntary case under the federal bankruptcy laws, as now constituted or
hereafter amended, or if any other petition or other application for relief
under the federal bankruptcy laws has been filed by or against the account
debtor, or if the account debtor has filed a certificate of dissolution under
applicable state law or shall be liquidated, dissolved or wound-up, or shall
authorize or commence any action or proceeding for dissolution, winding-up or
liquidation, or if the account debtor has failed, suspended business, declared
itself to be insolvent, is generally not paying its debts as they become due or
has consented to or suffered a receiver, trustee, liquidator or custodian to be
appointed for it or for all or a significant portion of its assets or affairs
(any such act or event an "Account Debtor Act of Bankruptcy") and, such Account
Debtor Act of Bankruptcy is continuing, unless (i) the payment of Accounts from
such account debtor is secured by assets of, or guaranteed by, in either case in
a manner reasonably satisfactory to the Agent, a Person with respect to which an
Account Debtor Act of Bankruptcy has not occurred or is not continuing and that
is reasonably acceptable to the Agent or, (ii) the Account from such account
debtor arises

                                     - 14 -

<PAGE>

subsequent to a decree or order for relief with respect to such account debtor
under the federal bankruptcy laws, as now or hereafter in effect and the Agent
shall have determined in its discretion, exercised in a commercially reasonable
manner in accordance with the customary business and credit practices of
asset-based lenders in comparable asset-based transactions, that the timely
payment and collection of such Account will not be impaired; or

        (h)     the sale is to an account debtor outside of the United States,
Puerto Rico and Canada, unless (x) such account debtor has supplied such
Borrower with an irrevocable letter of credit in form and substance reasonably
satisfactory to the Agent, issued by a financial institution reasonably
satisfactory to the Agent and which has been duly transferred to the Agent
(together with sufficient documentation to permit direct draws by the Agent) or
(y) the relevant Account is guaranteed by a guarantor reasonably acceptable to
the Agent; or

        (i)     the sale to the account debtor is on a bill-and-hold, guarantied
sale, sale-and-return, sale on approval or consignment basis or made pursuant to
any other written agreement providing for repurchase or return, provided that no
amount owing in respect of the relevant Account shall be excluded solely as a
result of customary quality warranties or the general right to return goods
extended in the ordinary course by such Borrower to its customers; or

        (j)     the account debtor is the United States of America or any
department, agency or instrumentality thereof, unless such Borrower duly assigns
its rights to payment of such Account to the Agent pursuant to the Assignment of
Claims Act of 1940 (31 U.S.C. Section 3727 et seq.); or

        (k)     the goods giving rise to such Account have not been shipped and
delivered to and accepted by the account debtor or the services giving rise to
such Account have not been performed by such Borrower and accepted by the
account debtor or the Account otherwise does not represent a final sale; or

        (l)     the Account does not comply in any material respect with all
applicable legal requirements, including, where applicable, the Federal Consumer
Credit Protection Act, the Federal Truth in Lending Act and Regulation Z of the
Board of Governors of the Federal Reserve System; or

        (m)     the Agent does not have a valid and perfected first priority
security interest in such Account or the Account does not otherwise conform to
the representations and warranties contained in this Credit Agreement, any
Security Agreement or any of the other Collateral Documents; or

        (n)     the Accounts are subject to any adverse security deposit,
progress payment or other similar advance made by or for the benefit of the
applicable account debtor; provided that any Account deemed ineligible pursuant
to this clause (n) shall only be ineligible to the extent of such security
deposit, progress payment or other similar advance, as applicable.

                                     - 15 -

<PAGE>

        "Eligible Inventory" shall mean Inventory of a Borrower that consists of
raw materials, work in progress and finished goods deemed by the Agent in its
discretion (which discretion shall be exercised in a commercially reasonable
manner in accordance with the customary business and credit practices of asset
based lenders in comparable asset based transactions) to be eligible for
inclusion in the calculation of the Borrowing Base. In determining the amount to
be so included, the amount of such Inventory shall be valued at the lower of
cost or market on a basis consistent with such Borrower's current and historical
accounting practice, and shall exclude (i) any goods returned or rejected by
such Borrower's customers and goods in transit to third parties (other than to
such Borrower's agents and warehouses that are not excluded pursuant to clause
(b)(B) of the next succeeding sentence), (ii) any Inventory that the Agent
determines to be ineligible pursuant to the definition of the term "Borrowing
Base" set forth herein, and (iii) any reserves established by the Agent pursuant
to the definition of the term "Borrowing Base" set forth herein. Unless
otherwise approved in writing by the Agent, no Inventory of any Borrower shall
be deemed Eligible Inventory if:

        (a)     the Inventory is not owned solely by such Borrower or such
Borrower does not have good, valid and marketable title thereto; or

        (b)     the Inventory is not stored on property that is either (A) owned
or leased by such or any other Borrower or (B) owned or leased by a warehouseman
that has contracted with such Borrower to store Inventory on such warehouseman's
property (provided that, with respect to Inventory of any Borrower stored on
property leased by a Borrower, such Borrower shall have delivered to the Agent a
Collateral Access Agreement executed by the lessor of such property, and, with
respect to Inventory of any Borrower stored on property owned or leased by a
warehouseman, such Borrower shall have delivered to the Agent a Collateral
Access Agreement executed by such warehouseman); or

        (c)     the Inventory is not subject to a valid and perfected first
priority security interest in favor of the Agent except, with respect to
Eligible Inventory stored at sites described in clause (b)(B) of this sentence,
for Liens for normal and customary warehousing charges; or

        (d)     the Inventory is obsolete or slow moving (in each case as
determined by the Agent in its discretion, exercised in a commercially
reasonable manner in accordance with the customary business and credit practices
of asset-based lenders in comparable asset-based transactions) or the Inventory
does not otherwise conform in any material respect to the representations and
warranties contained in this Credit Agreement, the Borrower Security Agreement
or any of the other Collateral Documents; or

        (e)     the Inventory was not manufactured in accordance with and does
not meet in any material respect all standards imposed by all Requirements of
Law or by any government agency, or department or division thereof, having
regulatory authority over such goods or their manufacture, use or sale.

        "Employment Agreements" shall mean, collectively, the agreements,
instruments and documents set forth on Schedule B, Part 1.1-C, as the same may
be modified, amended, extended, restated, amended and restated or supplemented
from time to time, to the extent permitted hereunder.

                                     - 16 -

<PAGE>

        "End Date" shall mean, for any Applicable Margin Period, the last day of
such Applicable Margin Period.

        "Equipment" shall have the meaning ascribed to that term in the Borrower
Security Agreement.

        "Equity Financing" shall mean (i) the gross equity contribution to BCO
Holding on or prior to the Closing Date in an aggregate amount not less than
100,000,000, of which not less than $79,900,000 shall be made in immediately
available Dollars and $20,300,000 shall consist of a rollover of existing equity
in BWAY by certain of BWAY's existing shareholders; and (ii) the subsequent
contribution to the capital of BCO Acquisition of the cash portion of such gross
equity contribution.

        "Equity Financing Documents" shall mean all of the agreements,
instruments and documents set forth on Schedule B, Part 1.1-D, as the same may
be modified, amended, extended, restated, amended and restated or supplemented
from time to time, to the extent permitted hereunder.

        "Event(s) of Default" shall have the meaning ascribed to that term in
Article 9 of this Credit Agreement.

        "Excess Cash Flow" shall mean, for any fiscal period of the Consolidated
Entity, (a) Consolidated EBITDA for such period, minus (b) the sum of (i)
Interest Expense, (ii) income taxes paid or payable in cash, (iii) principal
payments on or mandatory redemptions of Indebtedness (other than repayments of
Loans in the ordinary course of business which do not permanently reduce the
Commitments), to the extent permitted hereunder, (iv) Capital Expenditures, to
the extent permitted hereunder, and (v) scheduled mandatory reductions of the
Fixed Asset Sublimit pursuant to clause (a) of the definition thereof, and plus
or minus (as the case may be) (c) other non-recurring items reasonably
acceptable to the Agent, all determined in accordance with GAAP.

        "Excess Cash Flow Allowance" shall mean an amount equal to zero,
provided, that (a) the Excess Cash Flow Allowance shall be increased on the date
which is ninety (90) days after the end of the 2003 Fiscal Year, and further
increased on the date which is ninety (90) days after the end of each
consecutive Fiscal Year ending thereafter, in each case by an amount equal to
fifty percent (50%) of Excess Cash Flow for such Fiscal Year; and (b) the Excess
Cash Flow Allowance shall be automatically and permanently decreased by an
amount equal to any portion thereof allocated from time to time by the Funds
Administrator to the making of any Capital Expenditure or to the consummation of
any Acquisition.

        "Exchange Act" shall mean the Securities Exchange Act of 1934, and all
final or temporary regulations promulgated thereunder and published, generally
applicable rulings entitled to precedential effect.

        "Existing Letters of Credit" shall have the meaning ascribed to that
term in Section 1.2(b).

                                     - 17 -

<PAGE>

        "Existing Note Indenture" shall mean that certain Indenture dated as of
April 11, 1997, among the Credit Parties and Harris Trust and Savings Bank, as
trustee thereunder, as the same may be modified, amended, extended, restated,
amended and restated or supplemented from time to time, to the extent permitted
hereunder, including, without limitation, pursuant to the Existing Note
Supplemental Indenture.

        "Existing Note Repurchase" shall mean the repurchase by BWAY of the
Existing Notes in an aggregate face amount not less than $50,000,000, pursuant
to the Existing Note Repurchase Documents.

        "Existing Note Repurchase Documents" shall mean all of the agreements,
instruments and documents set forth on Schedule B, Part 1.1-E, as the same may
be modified, amended, extended, restated, amended and restated or supplemented
from time to time, to the extent permitted hereunder.

        "Existing Note Supplemental Indenture" shall mean that certain
Supplemental Indenture dated as of February 7, 2003, among BWAY, BMI, ACI and
the trustee under the Existing Note Indenture, as the same may be modified,
amended, extended, restated, amended and restated or supplemented from time to
time, to the extent permitted hereunder.

        "Existing Notes" shall have the meaning ascribed to the term "Notes" in
the Existing Note Indenture.

        "Expenses" shall mean all present and future expenses actually incurred
by or on behalf of the Agent, in its capacity as Agent, in connection with this
Credit Agreement, any other Credit Document, the Related Transactions or
otherwise, whether incurred heretofore or hereafter, which expenses shall
include, without being limited to, the cost of record searches, the reasonable
fees and reasonable expenses of attorneys (including the allocated cost of
internal counsel) and paralegals, all customary costs and expenses incurred by
the Agent in opening bank accounts and lockboxes, depositing checks, receiving
and transferring funds, and any charges imposed on the Agent due to insufficient
funds of deposited checks and the Agent's standard fee relating thereto,
collateral examination fees and expenses, fees and expenses of accountants,
appraisers, field examiners or other consultants, experts or advisors employed
or retained by the Agent, fees and expenses incurred by the Agent in connection
with the assignments of or sales of participations in the Loans, title insurance
premiums, real estate survey costs, fees and taxes relative to the filing of
financing statements, costs of preparing and recording any Mortgages or any
other Collateral Documents, all expenses and costs referred to in Article 4 of
this Credit Agreement, all other fees and expenses required to be paid pursuant
to the Fee Letter and all fees and expenses incurred in connection with
releasing Collateral and the amendment or termination of any of the Credit
Documents.

        "Expiration Date" shall mean the earlier of (a) February 7, 2008 and (b)
the termination or reduction to zero (0) of the Commitments.

        "Exposure" shall mean, with respect to any Lender, the aggregate amount
of such Lender's outstanding Loans plus such Lender's Proportionate Share of the
Letter of Credit Outstandings.

                                     - 18 -

<PAGE>

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

        "Fee Letter" shall mean that certain fee letter agreement dated as of
the date hereof between the Agent and the Borrowers providing for the payment of
certain fees in connection with this Credit Agreement.

        "Fees" shall mean the Unused Line Fee, the Letter of Credit Fee and the
Issuing Lender Fees, and, without duplication, all fees payable by the Borrowers
under the Fee Letter.

        "Financial Statements" shall mean the consolidated and, unless otherwise
specified, consolidating, balance sheets, statements of operations, statements
of cash flows and statements of changes in shareholder's equity of the
Consolidated Entity for the period specified.

        "Fiscal Month" shall mean any of the monthly accounting periods of the
Consolidated Entity.

        "Fiscal Quarter" shall mean any of the quarterly accounting periods of
the Consolidated Entity.

        "Fiscal Year" shall mean any of the annual accounting periods of the
Consolidated Entity.

        "Fixed Asset Sublimit" shall mean an amount equal to $25,000,000;
provided that the Fixed Asset Sublimit shall be automatically and permanently
reduced:

                (a)     on the first Business Day of each consecutive Fiscal
        Quarter commencing with the third Fiscal Quarter of Fiscal Year 2003, by
        an amount equal to $892,850;

                (b)     if the ratio of Consolidated Total Indebtedness as of
        the last day of such Fiscal Year, to Consolidated EBITDA for such Fiscal
        Year, is equal to or greater than 3.75 to 1.00, on the date which is
        ninety (90) days after the end of the 2003 Fiscal Year, and ninety (90)
        days after the end of each Fiscal Year ending thereafter, in each case
        by an amount equal to thirty percent (30%) of Excess Cash Flow for such
        Fiscal Year;

                (c)     on each date on or after the Closing Date upon which any
        Borrower or any Subsidiary of any Borrower receives Net Disposition
        Proceeds (other than Net Disposition Proceeds in respect of Casualty
        Losses, Sale-Leaseback Transactions or sales, leases, assignments,
        transfers or other dispositions permitted pursuant to clauses (g), (h)
        or (i) of Section 8.5), in each case by an amount equal to the greater
        of (i) such Net Disposition Proceeds or (ii) the orderly liquidation
        value of the Equipment or other fixed assets in respect of which such
        Net Disposition Proceeds were received, as determined by the Agent in
        its sole discretion; provided, that, with respect to no more

                                     - 19 -

<PAGE>

        than $2,500,000 of such Net Disposition Proceeds received in cash in any
        Fiscal Year, so long as an Event of Default shall not then have occurred
        and be continuing, within 30 days following receipt by the Agent of such
        Net Disposition Proceeds, the Funds Administrator may deliver to the
        Agent a certificate of a Responsible Officer of BWAY setting forth (x)
        that portion of such Net Disposition Proceeds that the applicable
        Borrower or Subsidiary, as the case may be, intends to reinvest in the
        purchase of Equipment or other fixed assets used in the business of the
        Borrowers within 365 days of such date of receipt, and (y) the proposed
        use of such portion of such Net Disposition Proceeds (and, in connection
        therewith, shall thereafter promptly provide such other information with
        respect to such reinvestment as the Agent may from time to time
        reasonably request) and, pending such reinvestment, the Agent shall
        maintain a reserve against unused availability under the Borrowing Base
        in the amount of such Net Disposition Proceeds (which reserve shall
        remain in effect until reduced from time to time at the written request
        of the Funds Administrator upon the Agent's receipt of evidence
        reasonably satisfactory to the Agent of the purchase of such Equipment
        or other fixed assets) and shall not reduce the Fixed Asset Sublimit in
        the amount thereof (although an immediate reduction in the Fixed Asset
        Sublimit shall occur in any event to the extent that such Net
        Disposition Proceeds are less than the orderly liquidation value of the
        Equipment or other fixed assets in respect of which such Net Disposition
        Proceeds were received, as determined by the Agent in its sole
        discretion); provided, further, that if (A) within 180 days after the
        date of receipt by the Agent of such Net Disposition Proceeds, the
        Borrowers have not so used such Net Disposition Proceeds, or in the
        alternative have not delivered to the Agent evidence reasonably
        satisfactory to the Agent that one or more of the Borrowers has entered
        into one or more binding contractual commitments to so use such Net
        Disposition Proceeds, or, in any event (B) within 365 days after the
        date of the Agent's receipt of such Net Disposition Proceeds, the
        Borrowers have not so used all or any portion of such Net Disposition
        Proceeds not required to be applied to reduce the Fixed Asset Sublimit
        pursuant to the preceding proviso, or pursuant to clause (A) of this
        proviso, the Fixed Asset Sublimit shall be promptly reduced by an amount
        equal to such remaining portion on the last day of such 180 day period
        or 365 day period, as the case may be;

                (d)     on each date on or after the Closing Date upon which the
        Fixed Asset Sublimit is required to be reduced by the amount of any Net
        Disposition Proceeds in respect of a Casualty Loss pursuant to Section
        7.8(b), by an amount equal to such Net Disposition Proceeds; and

                (e)     on each date on or after the Closing Date upon which any
        Borrower or any Subsidiary of any Borrower receives Net Disposition
        Proceeds in respect of any Sale-Leaseback Transaction, by an amount
        equal to (i) to the extent such Net Disposition Proceeds are
        attributable to Equipment (as determined by the Agent in its sole
        discretion), the greater of (x) one hundred percent (100%) of such Net
        Disposition Proceeds or (y) the orderly liquidation value of the
        Equipment in respect of which such Net Disposition Proceeds were
        received, as determined by the Agent in its sole discretion, and (ii) to
        the extent such Net Disposition Proceeds are attributable to real
        property or improvements thereon (as determined by the Agent in its sole
        discretion), twenty-five percent (25%) of such Net Disposition Proceeds.

                                     - 20 -

<PAGE>

        "Foreign Lender" shall mean any Lender or Serving Affiliate that is not
a "United States person" within the meaning of Section 7701(a)(30) of the Code.

        "Foreign Subsidiary" shall mean each Subsidiary of a Borrower that is
not a Domestic Subsidiary.

        "Funding Bank" shall have the meaning ascribed to that term in Section
4.9.

        "Funds Administrator" shall mean BWAY, acting in its capacity as
borrowing agent and funds administrator for itself and the other Borrowers
hereunder and under each of the other Credit Documents.

        "GAAP" shall mean generally accepted accounting principles in the United
States as in effect from time to time.

        "Governing Documents" shall mean, as to any Person, the certificate or
articles of incorporation and by-laws or other organizational or governing
documents of such Person.

        "Governmental Authority" shall mean any nation or government, any state
or other political subdivision thereof and any entity exercising executive,
legislative, judicial, regulatory or administrative functions of or pertaining
to government.

        "Guaranty" of any Person shall mean any Liability, contingent or
otherwise, of such Person (other than an endorsement for collection or deposit
in the ordinary course of business) to pay any Liability of any other Person or
to otherwise protect, or having the practical effect of protecting, the holder
of any such Liability against loss (whether such obligation arises by virtue of
such Person being a partner of a partnership or participant in a joint venture
or by agreement to pay, to keep well, to maintain solvency, assets, level of
income or other financial condition, to purchase assets, goods, securities or
services or to take or pay, or otherwise). The word "Guarantee" when used as a
verb has the correlative meaning.

        "Highest Lawful Rate" shall mean, at any time when any Obligations shall
be outstanding hereunder (other than contingent indemnification Obligations to
the extent that no claim giving rise thereto has been asserted and remains
unresolved or unsatisfied), the maximum nonusurious interest rate, that then may
be contracted for, taken, reserved, charged or received on the Obligations owing
under this Credit Agreement or any of the other Credit Documents, under (a) the
laws of the State of New York (or the law of any other jurisdiction whose laws
may be mandatorily applicable notwithstanding other provisions of this Credit
Agreement and the other Credit Documents) or (b) if higher, applicable federal
laws, in any case after taking into account, to the extent permitted by
applicable law, any and all relevant payments or charges under this Credit
Agreement and any other Credit Documents executed in connection herewith, and
any available exemptions, exceptions and exclusions.

        "Indebtedness" of any Person shall mean (in each case, whether such
obligation is with full or limited recourse) (a) any obligation of such Person
for borrowed money, (b) any obligation of such Person evidenced by a bond,
debenture, note or other similar instrument, (c) any obligation of such Person
to pay the deferred purchase price of property or services, except a trade
account payable that arises in the ordinary course of business but only if and
so long as the

                                     - 21 -

<PAGE>

same is payable on customary trade terms, (d) any Capital Lease Obligations of
such Person, (e) any Mandatorily Redeemable Obligation of such Person owned by
any Person other than such Person or a Subsidiary of such Person (the amount of
such Mandatorily Redeemable Obligation to be determined for this purpose as the
maximum amount payable upon redemption of such Mandatorily Redeemable
Obligation), (f) any non-contingent obligation of such Person to reimburse any
other Person in respect of amounts paid under a letter of credit or other
Guaranty issued by such other Person to the extent that such reimbursement
obligation remains outstanding after it becomes non-contingent, (g) all
obligations of such Person under Derivative Contracts, except that if any
agreement relating to such obligation provides for the netting of amounts
payable by and to such Person thereunder or if any such agreement provides for
the simultaneous payment of amounts by and to such Person, then in each such
case, the amount of such obligation shall be the net amount thereof, (i) any
Indebtedness of others secured by a Lien on any asset of such Person and (j) any
Indebtedness of others Guaranteed by such Person.

        "Initial Credit Event" shall mean the initial Credit Event made under
this Credit Agreement, after giving effect to its amendment and restatement
pursuant to the terms hereof.

        "Insolvency Event" shall mean, with respect to any Person, the
occurrence of any of the following: (a) such Person shall be adjudicated
insolvent or bankrupt, or generally fail to pay, or admit in writing its
inability to pay, its debts as they become due, (b) the voluntary commencement
by such Person of any proceeding or the filing of any petition by such Person
under any bankruptcy, insolvency or similar law, (c) the seeking by such Person
of dissolution or reorganization or the application by such Person for, or the
consent by such Person to, appointment of a receiver, trustee, custodian or
liquidator for it or a substantial portion of its property, assets or business
or to effect a plan or other arrangement with its creditors, (d) the filing by
such Person of any answer admitting the jurisdiction of the court and the
material allegations of an involuntary petition filed against it in any
bankruptcy, insolvency or similar proceeding, (e) the making by such Person of a
general assignment for the benefit of its creditors, or the consent to, or
acquiescence by such Person in the appointment of, a receiver, trustee,
custodian or liquidator for a substantial portion of such Person's property,
assets or business. "Insolvency Event" shall also mean, with respect to any
Person, the occurrence of any of the following: an involuntary proceeding or
involuntary petition shall be commenced or filed against such Person under any
bankruptcy, insolvency or similar law seeking the dissolution or reorganization
of it or the appointment of a receiver, trustee, custodian or liquidator for it
or of a substantial part of its property, assets or business, and such
proceedings or petitions shall not be dismissed within sixty (60) days after
commencement or filing, as the case may be, or any order for relief shall be
entered in any such proceeding.

        "Interest Expense" shall mean the aggregate consolidated interest
expense (net of interest income) of the Consolidated Entity in respect of
Indebtedness determined on a consolidated basis in accordance with GAAP,
including amortization of original issue discount on any Indebtedness and of all
fees payable in connection with the incurrence of such Indebtedness, including,
without limitation, aggregate fees payable in respect of Letters of Credit
pursuant to Section 4.6 (in each case, to the extent included in interest
expense), the interest portion of any deferred payment obligation and the
interest component of any Capital Lease Obligations.

                                     - 22 -

<PAGE>

        "Interest Period" shall mean a period, commencing, in the case of the
first Interest Period applicable to a LIBOR Rate Loan, on the date of the making
of, or conversion into, such Loan, and, in the case of each subsequent,
successive Interest Period applicable thereto, on the last day of the
immediately preceding Interest Period. The duration of each such Interest Period
shall be one, two, three or six months, in each case as the Funds Administrator
may, in an appropriate Notice of Borrowing, Notice of Continuation or Notice of
Conversion, select; provided that the Funds Administrator may not select any
Interest Period that ends after the Expiration Date. Whenever the last day of
any Interest Period would otherwise occur on a day other than a Business Day,
the last day of such Interest Period shall be extended to occur on the next
succeeding Business Day, provided that if such extension would cause the last
day of such Interest Period to occur in the next following calendar month, the
last day of such Interest Period shall occur on the next preceding Business Day.

        "Interim Advance" shall mean a Loan made by the Agent to a Borrower
pursuant to Section 2.2(b)(i).

        "Interim Advance Period" shall have the meaning ascribed to that term in
Section 2.2(b)(i).

        "Internal Revenue Service" or "IRS" shall mean the United States
Internal Revenue Service and any successor agency.

        "Inventory" shall have the meaning ascribed to that term in the Borrower
Security Agreement.

        "Investment" by any Person in any other Person shall mean any direct or
indirect loan or other extension of credit or capital contribution to such other
Person (by means of any transfer of cash or other property to others or any
payment for property or services for the account or use of others), any purchase
or acquisition by such Person of any Capital Securities, bonds, notes,
debentures or other securities or evidences of Indebtedness issued by, such
other Person, or any purchase or acquisition of any assets of such other Person
constituting a business unit. "Investment" shall exclude extensions of trade
credit by any Borrower or any Subsidiary of any Borrower on commercially
reasonable terms in accordance with normal trade practices of such Borrower or
such Subsidiary, as the case may be. In determining the aggregate amount of
Investments outstanding at any particular time, (a) there shall be deducted in
respect of each such Investment any amount received on such investment, whether
as a return of capital or as dividends, interest or any other form of earnings
thereon; and (b) there shall not be deducted from the original amount of any
Investment, and such Investment shall be deemed to continue to be "outstanding"
in such original amount notwithstanding, any (i) decrease in the market value
thereof or (ii) amount thereof that may have been forgiven, released, cancelled
or otherwise nullified or held to be invalid.

        "Issuing Lender" shall mean DBTCo (which, for purposes of this
definition, also shall include any banking affiliate of DBTCo, including but not
limited to Deutsche Bank AG, New York Branch, which has agreed to issue Letters
of Credit for the account of the Borrowers under this Credit Agreement) or any
other Lender acceptable to Agent which has agreed to issue Letters of Credit for
the account of the Borrowers under this Credit Agreement.

                                     - 23 -

<PAGE>

        "Issuing Lender Fees" shall have the meaning ascribed to that term in
Section 4.6(b).

        "Joint Venture" shall mean a corporation, partnership or other business
entity, other than a Borrower or a Subsidiary of a Borrower, engaged or proposed
to be engaged in the same or a similar line of business as the Borrowers in
which a Borrower or a Subsidiary of a Borrower owns, directly or indirectly, no
less than thirty percent (30%) of the total voting power of Capital Securities
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, management or trustees thereof (or Persons having similar
functions with respect thereto), with the balance of the ownership interests
being held by one or more third parties.

        "Kelso" shall mean Kelso & Company, a Delaware limited partnership, and
its Affiliates.

        "Kelso Agreements" shall mean all of the agreements, instruments and
documents set forth on Schedule B, Part 1.1-F, as the same may be modified,
amended, extended, restated, amended and restated or supplemented from time to
time, to the extent permitted hereunder.

        "Kelso Associates" shall have the meaning ascribed to that term in the
definition of Permitted Transferees.

        "Kelso Designees" shall mean Marquard Family Partnership Ltd., John F.
McGillicuddy, David M. Roderick, George L. Shinn, Prof. Dr. Dieter Spethmann,
Louis and Patricia Kelso Trust, Coinvestment I, LLC, MMI Investments, LLC, U.
Bertram Ellis, Jr., James S. Altenbach, Edward G.R. Bennett, Adelaida U. Bennett
Exempt Family Trust, Charles P. Bloome, Clifford Eisler, Frank O'Keefe, Paul
Thompson III (Tim), Robert Grien and John Rutledge.

        "LC Interest Rate" shall mean, at any time, a rate per annum equal to
the rate per annum applicable at such time to Prime Rate Loans.

        "LC Participant" shall have the meaning ascribed to that term in Section
3.4.

        "LC Supportable Obligations" shall mean (a) obligations of any Borrower
with respect to workers' compensation, surety bonds and other similar statutory
obligations and (b) other ordinary course obligations of any Borrower.

        "Lender" shall, subject to Section 11.18(c)(ii), mean (a) each Person
listed as a "Lender" on the signature pages hereof and (b) each Person that has
been assigned any or all of the rights and obligations of a Lender pursuant to
and in accordance with Section 11.6.

        "Letter of Credit" shall have the meaning ascribed in that term in
Section 3.1(a).

        "Letter of Credit Fee" shall have the meaning ascribed to that term in
Section 4.6(a).

        "Letter of Credit Outstandings" shall mean, at any time, the sum of (a)
the Stated Amounts of all outstanding Letters of Credit, and (b) the aggregate
amount of all unpaid Drawings in respect of Letters of Credit.

        "Letter of Credit Request" shall have the meaning ascribed to that term
in Section 3.3(a).

                                     - 24 -

<PAGE>

        "Liability" of any Person shall mean (in each case, whether with full or
limited recourse) any indebtedness, liability, obligation, covenant or duty of
or binding upon, or any term or condition to be observed by or binding upon,
such Person or any of its assets, of any kind, nature or description, direct or
indirect, absolute or contingent, due or not due, contractual or tortious,
liquidated or unliquidated, whether arising under contract, Requirement of Law,
or otherwise, whether now existing or hereafter arising, and whether for the
payment of money or the performance or non-performance of any act.

        "LIBOR Lending Office" shall mean, with respect to any Lender, the
office of such Lender specified as its "LIBOR Lending Office" below its name on
Annex II (or, if no such office is specified, its Domestic Lending Office), or
such other office or Affiliate of such Lender as such Lender may from time to
time specify to the Funds Administrator and the Agent.

        "LIBOR Rate" shall mean, with respect to any Interest Period, (a) the
rate per annum for Dollar deposits approximately equal to the principal amount
of the LIBOR Rate Loans for which the LIBOR Rate is being determined and with
maturities comparable to the Interest Period for which such LIBOR Rate would
apply, which appears on the Telerate Page 3750 at approximately 11:00 A.M.,
London time, on the day that is two (2) Business Days prior to the first day of
such Interest Period and (b) if no such rate so appears on the Telerate Page
3750, an interest rate per annum equal to the rate (rounded upward to the
nearest whole multiple of one-sixteenth (1/16) of one percent (1.00%) per annum,
if such rate is not such a multiple) of the offered quotation, if any, to first
class banks in the London (U.K.) interbank market by Deutsche Bank AG, New York
Branch, for Dollar deposits of amounts in immediately available funds comparable
to the principal amount of the LIBOR Rate Loans for which the LIBOR Rate is
being determined with maturities comparable to the Interest Period for which
such LIBOR Rate will apply as of approximately 10:00 A.M. two (2) Business Days
prior to the commencement of such Interest Period. The term "Telerate Page 3750"
shall mean the display designated as Page 3750 on the Telerate Services (or such
other page as may replace such page on such service for the purpose of
displaying a comparable rate).

        "LIBOR Rate Loan" shall mean a Loan that bears, or is to bear, interest
by reference to the LIBOR Rate.

        "Lien(s)" shall mean any lien, claim, charge, pledge, security interest,
deed of trust, mortgage, other encumbrance or other arrangement having the
practical effect of the foregoing or other preferential arrangement of any other
kind and shall include the interest of a vendor or lessor under any conditional
sale agreement, Capital Lease or other title retention agreement.

        "Line of Credit" shall mean, at any time, an amount equal to the
aggregate amount, at such time, of the Commitments, which shall not exceed
$90,000,000, as such amount may be reduced from time to time in accordance with
Section 2.

        "Loans" shall mean amounts advanced by the Agent or any Lender pursuant
to Section 2.1, 2.2(b) or 2.3(b), and, without duplication, all amounts charged
to the Borrowers' Account by the Agent pursuant to Section 4.8.

        "Lockboxes" shall have the meaning ascribed to that term in Section
2.5(b)(i).

                                     - 25 -

<PAGE>

        "Majority Lenders" shall mean, at any time, those Lenders having more
than fifty percent (50%) of the aggregate amount of the Commitments or, if the
Commitments shall have expired or been terminated, Lenders having more than
fifty percent (50%) of the aggregate amount of the outstanding Exposures.

        "Management Agreements" shall mean all of the agreements, instruments
and documents set forth on Schedule B, Part 1.1-G, as the same may be modified,
amended, extended, restated, amended and restated or supplemented from time to
time, to the extent permitted hereunder.

        "Management Change of Control Agreements" shall mean those certain
Change of Control Agreements (a) dated as of August 30, 2001, between BWAY and
Jean-Pierre M. Ergas, as the same may be modified, amended, extended, restated,
amended and restated or supplemented from time to time, and (b) dated as of
August 9, 2001, between BWAY and Messrs. Kevin C. Kern, Thomas N. Eagleson,
Kenneth M. Roessler and Jeffrey M. O'Connell, respectively, as the same may be
modified, amended, extended, restated, amended and restated or supplemented from
time to time, to the extent permitted hereunder.

        "Management Investors" shall mean the officers and employees (including
current and former officers and employees) of BCO Holding, or any Borrower or
any Subsidiary of any Borrower at any time when Kelso beneficially owns (within
the meaning of Rule 13d-3 under the Exchange Act) (a) at least fifty-one percent
(51%) of the total ordinary voting power of the Capital Securities of BCO
Holding and (b) a greater percentage of the total ordinary voting power of the
Capital Securities of BCO Holding than is then beneficially owned in the
aggregate by the officers and employees of BCO Holding, any Borrower, or any
Subsidiary of any Borrower.

        "Management Note" shall mean a promissory note issued by BWAY to a
holder of the Capital Securities of BCO Holding in accordance with the
Securityholders' Agreement to fund all or a portion of the purchase price paid
in connection with the repurchase by BCO Holding of its Capital Securities from
such holder; provided, that each such promissory note (a) shall not require any
payment of principal to be made thereunder prior to one hundred eighty (180)
days after the Expiration Date, and (b) shall be subordinated at all times in
right to and time of payment to the prior payment and performance in full of all
Obligations (other than contingent indemnification Obligations to the extent
that no claim giving rise thereto has been asserted and remains unresolved or
unsatisfied) and termination of the Commitments and this Credit Agreement, in
each case pursuant to the respective terms hereof, pursuant to subordination
provisions no less favorable to the Agent and Lenders than the subordination
provisions set forth in the Subordinated Note Indenture or, at the request of
the Borrowers, such other subordination provisions as shall be acceptable to the
Agent; and, provided, further, that each such repurchase is occasioned by the
death, disability, retirement or termination of employment or service as a
director of such holder (or any predecessor in interest of such holder).

        "Mandatorily Redeemable Obligations" of any Person shall mean all
obligations of such Person, contingent or otherwise, to purchase, redeem, retire
or otherwise acquire for value any Capital Securities of such or any other
Person which is mandatorily redeemable or otherwise required to be purchased,
retired or otherwise acquired prior to the Expiration Date.

                                     - 26 -

<PAGE>

        "Material Adverse Effect" shall mean a material adverse effect on (a)
the business, operations, results of operations or condition (financial or
otherwise) of the Credit Parties taken as a whole, (b) the value of the
Collateral or the amount which the Agent, the Lenders or any Issuing Lender
would be likely to receive (after giving consideration to delays in payment and
costs of enforcement) in the liquidation of such Collateral, (c) any Credit
Party's ability to perform its obligations under the Credit Documents to which
it is a party or (d) the rights and remedies of the Agent, the Lenders or any
Issuing Lender under any of the Credit Documents taken as a whole.

        "Material Contract" shall mean any contract or other arrangement (other
than any Credit Document or any Related Transactions Document), whether written
or oral, to which any Borrower or any Subsidiary of any Borrower is a party with
respect to which breaches, nonperformances, cancellations or failures to renew
by any party thereto could reasonably be expected to have a Material Adverse
Effect.

        "Merger Documents" shall mean the BCO Acquisition Merger Documents and
BWAY Finance Merger Documents.

        "Mergers" shall mean the BCO Acquisition Merger and the BWAY Finance
Merger.

        "Mortgages" shall mean the mortgage(s), deeds of trust, leasehold
mortgages and leasehold deeds of trust, if any, granted by the respective Credit
Parties to or for the benefit of the Agent, as the case may be.

        "Multiemployer Plan" shall mean a "multiemployer plan" as defined in
Section 4001(a)(3) of ERISA and which is, or within the immediately preceding
six (6) years was, contributed to by any Credit Party, any Subsidiary of any
Credit Party or any ERISA Affiliate.

        "NAIC" shall mean the National Association of Insurance Commissioners.

        "Net Disposition Proceeds" shall mean proceeds (including, without
limitation, but only as and when paid, any cash received by way of deferred
payment pursuant to a promissory note or similar instrument, receivable or
otherwise) received by or for the account of any Borrower or any Subsidiary of
any Borrower from the sale, lease, transfer or other disposition (including,
without limitation, as a result of any Casualty Loss) of any Equipment or other
fixed asset of such Person, net of (a) the costs of such sale, lease, transfer
or other disposition, including reasonable professional fees, taxes payable as a
result thereof and reasonable reserves associated therewith; and (b) amounts
applied to the repayment of indebtedness (other than the Obligations) secured by
a Lien on the applicable Equipment or other fixed asset; provided, that,
notwithstanding the foregoing, such net proceeds of Permitted Dispositions shall
not constitute Net Disposition Proceeds, unless and solely to the extent that
such net proceeds exceed (i) in the case of a Permitted Disposition described in
clause (a) of the definition of the term "Permitted Disposition," $1,000,000 and
(ii) in the case of a Permitted Disposition described in clause (b) of the
definition of the term "Permitted Disposition," $1,500,000; and, provided,
further, that proceeds of business interruption insurance shall not constitute
Net Disposition Proceeds.

                                     - 27 -

<PAGE>

        "Net Equity Proceeds" shall mean, with respect to each issuance or sale
of any equity by any Person or any capital contribution to such Person, the cash
proceeds (net of underwriting discounts and commissions and all other costs,
fees and expenses associated therewith) received by such Person from the
respective sale or issuance of its equity or from the respective capital
contribution.

        "Note" shall mean a promissory note of the Borrowers payable to the
order of any Lender, in the form of Exhibit B, evidencing the aggregate
Indebtedness of the Borrowers to such Lender resulting from the Loans made by
such Lender or acquired by such Lender pursuant to Section 11.6.

        "Notice of Borrowing" shall have the meaning ascribed to that term in
Section 2.2(a)(i).

        "Notice of Continuation" shall have the meaning ascribed to that term in
Section 4.3(a).

        "Notice of Conversion" shall have the meaning ascribed to that term in
Section 4.3(b).

        "Obligations" shall mean (a) the unpaid principal of and interest on the
Loans and the Notes, (b) the obligation of the Borrowers to pay to an Issuing
Lender the amounts of all Unpaid Drawings together with interest accrued thereon
at the LC Interest Rate, made under Letters of Credit of such Issuing Lender,
(c) the Fees, (d) the Expenses, (e) all other Liabilities of the respective
Borrowers to the Agent and any Lender (in its capacity as such and not in its
capacity as an Issuing Lender), which may arise under, out of, or in connection
with, this Credit Agreement, the Notes or any other Credit Document, including,
without limitation, the Original Obligations, (f) all other Liabilities of the
respective Borrowers to an Issuing Lender in respect of its Letters of Credit,
and (g) all other Liabilities of the respective Borrowers to a Lender in respect
of Derivative Transactions, to the extent that such Liabilities constitute
Approved Secured Derivative Transactions Liabilities. As used in clauses (a),
(b) and (c) and wherever else the determination of the amount of "interest" is
relevant, "interest" shall include interest accruing on or after the filing of,
or what would have accrued but for the filing of, any petition in bankruptcy, or
the commencement of any insolvency, reorganization, or like proceeding, relating
to any Borrower, whether or not a claim for post-filing or post-petition
interest is allowed in such proceeding.

        "Other Taxes" shall have the meaning ascribed to that term in Section
2.8(b).

        "PBGC" shall mean the Pension Benefit Guaranty Corporation and any
Person succeeding to the functions thereof.

        "Payment" shall have the meaning ascribed to that term in Section 2.10.

        "Payment Office" shall mean the office of the Agent located at 31 West
52nd Street, New York, New York 10019, or such other office of the Agent as
shall be specified by Agent from time to time in a notice to the other parties
hereto.

        "Permitted Dispositions" shall mean the sale of (a) certain real
property of BMI located in Thompson, Dallas County, Texas, and commonly known as
13401 Denton Drive, Farmers Branch, (b) the surplus equipment of the Borrowers
set forth on Schedule B, Part 1.1-H;

                                     - 28 -

<PAGE>

provided, that in the case of each of such sales, one hundred percent (100%) of
the consideration therefor is received by the applicable Borrower in the form of
cash.

        "Permitted Holders" shall mean Kelso, the Kelso Designees, Magnetite
Asset Investors, L.L.C., the Management Investors and any employee stock
ownership plan established by BCO Holding or any Borrower for the benefit of the
employees of BCO Holding, any Borrower or any of their Subsidiaries, and their
respective Permitted Transferees.

        "Permitted Liens" shall have the meaning ascribed to that term in
Section 8.4.

        "Permitted Management Fees" shall mean all fees payable by BCO Holding
or any Borrower or any Subsidiary of any Borrower to Kelso, for the rendering of
investment banking, management consulting, financial advisory or other services,
including, without limitation, all fees payable by BWAY to Kelso pursuant to the
Kelso Agreements in respect of consulting and advisory services provided by
Kelso to BWAY after the Closing Date.

        "Permitted Pro Forma Acquisition Adjustments" shall mean, with respect
to any Acquisition, pro forma adjustments to the Financial Statements made as a
result of such Acquisition in accordance with the requirements therefor set
forth in Regulation S-X of the Securities and Exchange Commission (whether or
not the computation of such adjustments would otherwise be subject to such
requirements), and all final or temporary regulations promulgated thereunder and
published, generally applicable rulings entitled to precedential effect.

        "Permitted Restrictive Covenant" shall mean (a) any covenant or
restriction contained in any Credit Document, (b) any covenant or restriction
binding upon any Person at the time such Person becomes a Subsidiary of any
Borrower if the same is not created in contemplation thereof, (c) any covenant
or restriction of the type permitted by Section 8.4 that is contained in any
contract evidencing or providing for the creation of or concerning Indebtedness
so long as such covenant or restriction is limited to assets purchased with the
proceeds thereof, (d) any covenant or restriction described in Schedule B, Part
1.1-I, but only to the extent such covenant or restriction is there identified
by specific reference to the provision of the contract in which such covenant or
restriction is contained or (e) any covenant or restriction that (i) is not more
burdensome than an existing Permitted Restrictive Covenant that is such by
virtue of clause (b), (c), (d) or (e); (ii) is contained in a contract
constituting a renewal, extension or replacement of the contract in which such
existing Permitted Restrictive Covenant is contained; and (iii) is binding only
on the Person or Persons bound by such existing Permitted Restrictive Covenant.

        "Permitted Transferees" shall mean (a) in the case of Kelso, (i) any
Kelso Designee, (ii) any managing director, general partner, limited partner,
director, officer or employee of Kelso or any Kelso Designee (collectively, the
"Kelso Associates"), (iii) the heirs, executors, administrators, testamentary
trustees, legatees or beneficiaries of any Kelso Associate and (iv) any trust,
the beneficiaries of which, or a corporation or partnership, the stockholders or
partners of which, include only a Kelso Associate, his or her spouse, parents,
siblings, members of his or her immediate family (including adopted children)
and/or direct lineal descendants; and (b) in the case of any Management
Investors, (i) his or her executor, administrator, testamentary trustee, legatee
or beneficiaries, (ii), his or her spouse, parents, siblings, members of his or
her

                                     - 29 -

<PAGE>

immediate family (including adopted children) and/or direct lineal descendants
or (iii) a trust, the beneficiaries of which, or a corporation or partnership,
the stockholders or partners of which, include only the Management Investor, as
the case may be, and his or her spouse, parents, siblings, members of his or her
immediate family (including adopted children) and/or direct lineal descendants.

        "Person" shall mean any individual, sole proprietorship, partnership,
joint venture, trust, unincorporated organization, association, corporation,
limited liability company, institution, entity, party or government (including
any division, agency or department thereof), and, as applicable, the successors,
heirs and assigns of each.

        "Pledge Agreements" shall mean the BCO Pledge Agreement, the BWAY Pledge
Agreement and the BMI Pledge Agreement, and any other pledge agreements executed
by any Borrower and delivered to the Agent pursuant to Section 8.15.

        "Prime Lending Rate" shall mean the rate that Deutsche Bank AG, New York
Branch announces from time to time in New York, New York as its prime lending
rate in the United States, as in effect from time to time. The Prime Lending
Rate is a reference rate and does not necessarily represent the lowest or best
rate actually charged to any customer. Deutsche Bank AG, New York Branch, DBTCo
and each of the other Lenders may make commercial loans or other loans at rates
of interest at, above or below the Prime Lending Rate.

        "Prime Rate Loan" shall mean a Loan that bears, or is to bear, interest
by reference to the Prime Lending Rate.

        "Prohibited Transaction" shall mean any transaction that is prohibited
under Code Section 4975 or ERISA Section 406 and not exempt under Code Section
4975 or ERISA Section 408.

        "Projections" shall mean all projections furnished to the Agent or any
Lender after the Closing Date pursuant to Section 7.1(d).

        "Proportionate Share" shall, subject to Section 11.18(c), mean, with
respect to any Lender, a fraction (expressed as a percentage), the numerator of
which shall be the amount of such Lender's Commitment and the denominator of
which shall be the Total Commitments or, if the Commitments have been
terminated, a fraction the numerator of which shall be the principal amount of
such Lender's Exposure and the denominator of which shall be the aggregate
amount of all Exposures of all Lenders then outstanding.

        "Purchase Money Liens" shall mean Liens on any fixed or capital asset of
any Borrower, including, without limitation, real property and improvements
thereon, to secure the purchase price thereof, provided that: (a) each such Lien
shall attach only to the property or improvements to be acquired; (b) a
description is furnished to the Agent for any property or improvements so
acquired, the purchase price of which is greater than $500,000; and (c) the debt
incurred in connection with such acquisitions shall not exceed one hundred
percent (100%) of the amount of the purchase price of the fixed or capital
assets then being financed.

                                     - 30 -

<PAGE>

        "Real Estate" shall mean all real property owned or leased by any Credit
Party or any Subsidiary of any Credit Party, together with all fixtures,
improvements and other structures thereon.

        "Reduced Rate" shall have the meaning ascribed to that term in Section
2.8(e), relating to backup withholding tax.

        "Register" shall have the meaning ascribed to that term in Section
11.6(e).

        "Regulation D" shall mean Regulation D of the Board of Governors of the
Federal Reserve System as from time to time in effect and any successor thereto.

        "Related Transactions" shall mean, collectively, the transactions
provided for in the respective Related Transactions Documents and the
transactions contemplated thereby.

        "Related Transactions Documents" shall mean, collectively, the Merger
Documents, the Equity Financing Documents, the Existing Note Repurchase
Documents, the Subordinated Note Documents, the Employment Agreements, the Kelso
Agreements, the Management Agreements, the Management Change of Control
Agreements and the Securityholders' Agreement.

        "Reportable Event" shall mean any of the events described in Section
4043 of ERISA with respect to a Benefit Plan or Multiemployer Plan as to which
the 30-day notice requirement has not been waived.

        "Requirement of Law" shall mean, as to any Person, the Governing
Documents of such Person, and any law, treaty, rule, regulation or ordinance, or
determination of a court or other Governmental Authority or determination of an
arbitrator, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject.

        "Responsible Officer" shall mean, as to any Person, the duly-appointed
chief executive officer, chief financial officer or treasurer, or a vice
president or any other duly-appointed officer, in each case of such Person.

        "Restricted Payment" shall mean, with respect to any Person, (a) any
payment with respect to or on account of any of the Capital Securities of such
Person, including any dividend or other distribution on, any payment of interest
on or principal of, and any payment on account of any purchase, redemption,
retirement, exchange, defeasance or conversion of, any such Capital Securities
and (b) any optional payment or prepayment on or optional redemption, retirement
(including by making payments to a sinking or analogous fund), repurchase,
defeasance or other acquisition of, any (i) Indebtedness in respect of the
Subordinated Notes, (ii) except to the extent permitted pursuant to Section
8.8(d), Indebtedness in respect of the Existing Notes, (iii) Indebtedness in
respect of Management Notes, and (iv) Indebtedness permitted pursuant to Section
8.3(h)(ii), Section 8.3(n) or Section 8.3(o), respectively. For the purposes of
this definition, a "payment" shall include the transfer of any asset or the
incurrence of any Indebtedness or other Liability (the amount of any such
payment to be the fair market value of such asset or the amount of such
obligation, respectively) but shall not include the issuance by such Person to
the holders of a class or series of a class of its Capital Securities of the
same class

                                     - 31 -

<PAGE>

and, if applicable, series, other than, in the case of any Borrower or any
Subsidiary of any Borrower, Mandatorily Redeemable Obligations.

        "Sale-Leaseback Transaction" shall mean any arrangement, directly or
indirectly, whereby any Borrower or any Subsidiary of any Borrower leases any
property from a Person (whether owned by such Borrower or such Subsidiary on the
Closing Date or later acquired), which has been or is to be sold or transferred
by such Borrower or such Subsidiary to such Person or to any other Person from
whom funds have been or are to be advanced on the security of such property.

        "Security Agreements" shall mean the Borrower Security Agreement and any
other security agreements executed by any Borrower and delivered to the Agent
pursuant to Section 8.15.

        "Securityholders' Agreement" shall mean the Securityholders' Agreement
dated as of the Closing Date among BCO Holding and the other parties thereto, as
the same may be modified, amended, extended, restated, amended and restated or
supplemented from time to time, to the extent permitted hereunder.

        "Serving Affiliate" shall mean an Affiliate that is an Issuing Lender.

        "Settlement Date" shall have the meaning ascribed to that term in
Section 2.3(b)(i).

        "Start Date" shall mean, with respect to any Applicable Margin Period,
the first day of such Applicable Margin Period.

        "Stated Amount" of each Letter of Credit shall mean, at any time, the
maximum amount available to be drawn thereunder at such time (in each case
determined without regard to whether any conditions to drawing could then be
met).

        "Subordinated Note Documents" shall mean, collectively, the Subordinated
Note Indenture, the Subordinated Notes, the Assumption Agreement, the
Supplemental Indenture and all of the other agreements, instruments and
documents set forth on Schedule B, Part 1.1-J, as the same may be modified,
amended, extended, restated, amended and restated or supplemented from time to
time, to the extent permitted hereunder.

        "Subordinated Note Indenture" shall mean that certain Indenture dated as
of November 27, 2002, among the Subordinated Note Trustee, BWAY Finance and,
upon the execution and delivery of the Supplemental Indenture by each of the
parties thereto, BWAY and, for purposes of the guarantee provisions therein,
BMI, as the same may be modified, amended, extended, restated, amended and
restated or supplemented from time to time, to the extent permitted hereunder,
including, without limitation, pursuant to the Supplemental Indenture.

        "Subordinated Note Trustee" shall mean The Bank of New York, acting in
its capacity as trustee under the Subordinated Indenture, and all Persons
succeeding thereto in such capacity pursuant to the terms of thereof.

                                     - 32 -

<PAGE>

        "Subordinated Notes" shall have the meaning ascribed to the term "Notes"
in the Subordinated Note Indenture.

        "Subsidiary" shall mean, with respect to any Person at any time (a) any
other Person the accounts of which would be consolidated with those of such
first Person in its consolidated financial statements as of such time, and (b)
any other Person the Capital Securities of which having ordinary voting power to
elect a majority of the board of directors (or other persons having similar
functions), or other ownership interests of which ordinarily constituting a
majority voting interest, are at such time, directly or indirectly, owned by
such first Person, or by one or more of its Subsidiaries, or by such first
Person and one or more of its Subsidiaries.

        "Supplemental Indenture" shall mean that certain Supplemental Indenture
dated as of February 7, 2003, among BWAY Finance, BWAY, BMI and the Subordinated
Note Trustee, as the same may be modified, amended, extended, restated, amended
and restated or supplemented from time to time, to the extent permitted
hereunder.

        "Tax Transferee" shall have the meaning ascribed to that term in Section
2.8(a).

        "Taxes" shall have the meaning ascribed to that term in Section 2.8(a).

        "Termination Event" shall mean (a) a Reportable Event with respect to
any Benefit Plan or Multiemployer Plan; (b) the withdrawal of any Credit Party,
any Subsidiary of any Credit Party or any ERISA Affiliate from a Benefit Plan
during a plan year in which such entity was a "substantial employer" as defined
in Section 4001(a) (2) of ERISA; (c) the providing of notice of intent to
terminate a Benefit Plan under Section 4041 of ERISA; (d) the institution by the
PBGC of proceedings to terminate or appoint a trustee to administer a Benefit
Plan or Multiemployer Plan; (e) any event or condition (i) that could reasonably
be expected to constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Benefit Plan
or, to the knowledge of any Credit Party or any Subsidiary of a Credit Party,
that could reasonably be expected to constitute grounds under Section 4042 of
ERISA for the termination of, or the appointment of a trustee to administer, any
Multiemployer Plan or (ii) to the knowledge of any Credit Party or any
Subsidiary of a Credit Party, that could reasonably be expected to result in the
termination of a Multiemployer Plan pursuant to Section 4041A of ERISA; or (f)
the partial or complete withdrawal within the meaning of Sections 4203 and 4205
of ERISA, of any Credit Party, any Subsidiary of any Credit Party or any ERISA
Affiliate from a Multiemployer Plan.

        "Test Date" shall mean, with respect to any Start Date, the last day of
the most recent Fiscal Quarter ended immediately prior to such Start Date.

        "Test Period" shall mean each period of four consecutive Fiscal Quarters
then last ended (in each case taken as one accounting period).

        "Total Commitments" shall mean the aggregate of the Commitments of all
the Lenders, which in the aggregate shall not exceed $90,000,000.

                                     - 33 -

<PAGE>

        "Total Exposure" shall mean, at any time, an amount equal to the sum at
such time of (a) the Letter of Credit Outstandings and (b) the aggregate
principal amount of outstanding Loans.

        "Trigger Event" shall mean (a) availability under the Borrowing Base is
less than $20,000,000 for any period of five (5) consecutive Business Days (and
the Agent agrees to give prompt notice to the Funds Administrator if
availability under the Borrowing Base is less than $20,000,000 on any Business
Day); or (b) the Borrowers permit the Consolidated Fixed Charge Coverage Ratio,
as determined as of the last day of four (4) consecutive Fiscal Quarters, in
each case for the twelve (12) Fiscal Months ending on such date, to be less than
1:00 to 1:00.

        "Type" shall mean, with respect to any Loan, whether such Loan is a
LIBOR Rate Loan or a Prime Rate Loan.

        "UCC" shall mean the Uniform Commercial Code as in effect from time to
time in the State of New York; provided that if, with respect to any financing
statement or by reason of any provisions of law, the perfection or the effect of
perfection or non-perfection of the Liens granted to the Agent pursuant to the
applicable Credit Document is governed by the Uniform Commercial Code as in
effect in a jurisdiction of the United States other than the State of New York,
"UCC" shall mean the Uniform Commercial Code as in effect from time to time in
such other jurisdiction for purposes of the provisions of this Credit Agreement,
each Credit Document and any financing statement relating to such perfection or
effect of perfection or non-perfection.

        "Unpaid Drawing" shall have the meaning ascribed to such term in Section
3.5(a).

        "Unused Line Fee" shall have the meaning ascribed to that term in
Section 4.5.

        "Wholly-Owned Subsidiary" shall mean, with respect to any Person, any
Subsidiary of such Person all of the Capital Securities of which (except
directors' qualifying shares) are, directly or indirectly, owned by such Person
or one or more Wholly Owned Subsidiaries of such Person or by such Person and
one or more of such Wholly-Owned Subsidiaries.

        1.2     AMENDMENT AND RESTATEMENT OF ORIGINAL CREDIT AGREEMENT; NO
NOVATION.

        (a)     Subject to the terms and conditions set forth in this Credit
Agreement, and in reliance upon the representations and warranties of the
respective Credit Parties set forth herein and in the other Credit Documents,
effective as of the date hereof, the Original Credit Agreement is hereby amended
and restated in its entirety.

        (b)     It is expressly understood and agreed by each of the parties
hereto that (i) the "Obligations" (as such term is defined in this Credit
Agreement) mean and include all "Obligations" (as such term is defined in the
Original Credit Agreement) outstanding or otherwise existing on and as of the
date hereof (such Obligations being herein referred to as the "Original
Obligations"); (ii) the Original Obligations shall be payable hereafter in
accordance with the respective terms and provisions hereof; and (iii) this
Credit Agreement and any Notes issued hereunder (1) merely re-evidence, ratify
and confirm the Original Obligations, (2) in the case of any such Notes, are
given in substitution for and not in repayment of any Notes issued

                                     - 34 -

<PAGE>

under the Original Credit Agreement, and (3) are in no way intended and shall
not be deemed or construed to constitute a novation of the Original Credit
Agreement or any Notes issued thereunder. All letters of credit outstanding
under the Original Credit Agreement and set forth on Schedule B, Part 1.2(b)
(collectively, the "Existing Letters of Credit") shall for all purposes of this
Credit Agreement and each of the other Credit Documents be deemed issued and
outstanding under, and otherwise governed in all respects by, the applicable
terms and provisions of, this Credit Agreement.

        1.3     REAFFIRMATION OF ORIGINAL CREDIT DOCUMENTS. Each Borrower, in
the respective capacities of such Borrower (and any predecessor in interest to
such Borrower) under the Original Credit Agreement and each of the other "Credit
Documents" (as such term is defined in the Original Credit Agreement, and herein
referred to as the "Original Credit Documents") to which such Borrower (or any
predecessor in interest to such Borrower) is a party (including the respective
capacities of accommodation party, assignor, grantor, guarantor, indemnitor,
mortgagor, obligor and pledgor, as applicable, and each other similar capacity,
if any, in which such Borrower (or any predecessor in interest to such Borrower)
granted Liens on all or any part of its properties and assets, or otherwise
acted as an accommodation party, guarantor, indemnitor or surety with respect to
all or any part of the Original Obligations), hereby (a) agrees that, except as
otherwise expressly set forth herein, the terms and provisions hereof shall not
affect in any way any payment, performance, observance or other obligations or
liabilities of such Borrower hereunder or under any of the other Original Credit
Documents, all of which obligations and liabilities are hereby ratified,
confirmed and reaffirmed in all respects, and (b) to the extent such Borrower
has granted Liens on any of its properties or assets pursuant to any of the
Original Credit Documents to secure the payment, performance and/or observance
of all or any part of the Original Obligations, acknowledges, ratifies, confirms
and reaffirms such grant of Liens, and acknowledges and agrees that all of such
Liens are intended and shall be deemed and construed to secure to the fullest
extent set forth therein all now existing and hereafter arising Obligations
under and as defined in this Credit Agreement, as hereafter amended, restated,
supplemented and otherwise modified and in effect from time to time.

        1.4     ACCOUNTING TERMS AND DETERMINATIONS. Unless otherwise defined or
specified herein, all accounting terms used herein shall have the meanings
customarily given in accordance with GAAP, and all financial computations to be
made under this Credit Agreement shall, unless otherwise specifically provided
herein, be made in accordance with GAAP applied on a basis consistent in all
material respects with the Financial Statements delivered to the Agent and the
Lenders on the Closing Date. All accounting determinations for purposes of
determining compliance with Section 8.1 shall be made in accordance with GAAP as
in effect on the Closing Date and applied on a basis consistent in all material
respects with the Financial Statements delivered to the Agent and the Lenders on
the Closing Date. The Financial Statements required to be delivered hereunder
from and after the Closing Date and all financial records shall be maintained in
accordance with GAAP as in effect as of the date of the Financial Statements
delivered to the Agent and the Lenders on the Closing Date or, if GAAP shall
change from the basis used in preparing the Financial Statements delivered to
the Agent and the Lenders on the Closing Date, the certificates required to be
delivered pursuant to Section 7.1 demonstrating compliance with the covenants
contained herein shall include calculations setting forth the adjustments
necessary to demonstrate how the Borrowers are in compliance with the financial

                                     - 35 -

<PAGE>

covenants based upon GAAP as in effect on the Closing Date. If any Borrower
shall change its method of inventory accounting from the first-in-first-out
method to the last-in-last-out method, all calculations necessary to determine
compliance with the covenants contained herein shall be made as if such method
of inventory accounting had not been so changed.

        1.5     OTHER INTERPRETIVE PROVISIONS. Terms not otherwise defined
herein which are defined in the UCC shall have the meanings given them in the
UCC. The words "hereof," "herein" and "hereunder" and words of similar import
when used in this Credit Agreement shall refer to this Credit Agreement as a
whole and not to any particular provision of this Credit Agreement, and
references to Article, Section, Annex, Schedule, Exhibit and like references are
references to this Credit Agreement unless otherwise specified. Any item or list
of items set forth following the word "including," "include" or "includes" is
set forth only for the purpose of indicating that, regardless of whatever other
items are in the category in which such item or items are "included," such item
or items are in such category, and shall not be construed as indicating that the
items in the category are limited to such items or to items similar to such
items. An Event of Default shall "continue" or be "continuing" until such Event
of Default has been waived in accordance with Section 11.10. Except as otherwise
specified herein, all references herein (a) to any Person shall be deemed to
include such Person's successors and permitted assigns, (b) to any Requirement
of Law defined or referred to herein shall be deemed references to such
Requirement of Law or any successor Requirement of Law as the same may have been
or may be amended or supplemented from time to time and (c) to any Credit
Document shall be deemed references to such Credit Document (and, in the case of
any Note or any other instrument, any instrument issued in replacement thereof
or substitution therefor) as the terms thereof may have been or may be amended,
supplemented, waived or otherwise modified from time to time, provided that, in
the case of any Letter of Credit, any such amendment, supplement, waiver or
other modification shall have been approved in writing by the Agent. Whenever
the context so requires, the neuter gender includes the masculine or feminine,
the masculine gender includes the feminine, and the singular number includes the
plural, and vice versa. Except as otherwise specified herein, all references to
the time of day shall be deemed to be to New York City time as then in effect.

                                    ARTICLE 2

                                      LOANS

        2.1     COMMITMENTS; DELIVERY OF NOTES.

        (a)     (a) Subject to the terms and conditions set forth in this Credit
Agreement, each of the Lenders severally agrees (i) to continue as Loans
hereunder all of the "Loans" (as such term is defined in the Original Credit
Agreement) outstanding on the Closing Date, and (ii) on and after the Closing
Date and to and excluding the Expiration Date, to make from time to time loans
and advances to the Borrowers hereunder on a joint and several basis (the
"Loans"); provided that no Loan shall be made if, after giving effect to the
making of such Loan and the simultaneous application of the proceeds thereof,
(i) the aggregate amount of the Exposure of such Lender would exceed the
Commitment of such Lender or (ii) Total Exposure would exceed the lesser of (A)
the Total Commitments and (B) subject to Section 2.2(b), the Borrowing Base.

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<PAGE>

        (b)     At the request of any Lender made through the Agent, the
Borrowers hereby agree to execute and deliver to such Lender a Note to evidence
the Loans made to the Borrowers by such Lender.

        2.2     BORROWING MECHANICS.

        (a)     Except as provided in Sections 2.2(b), 2.3(b) and 4.8,
Borrowings shall be made on notice from the Funds Administrator to the Agent,
given not later than 12:00 noon on the Business Day on which a proposed
Borrowing consisting of Prime Rate Loans is requested to be made and on the
third Business Day prior to the date of any proposed Borrowing consisting of
LIBOR Rate Loans is requested to be made.

                (i)     Each Notice of Borrowing shall be given by,
alternatively, telephone, facsimile or electronic E-mail transmission, and, if
by telephone or electronic E-mail transmission, confirmed in writing,
substantially in the form of Exhibit C (the "Notice of Borrowing"). Each Notice
of Borrowing shall be irrevocable by and binding on the Funds Administrator and
the Borrowers.

                (ii)    The Funds Administrator shall notify the Agent in
writing of the names of the employees of the Funds Administrator authorized to
request Loans on behalf of the Borrowers and specifying which of those employees
are also, or, if none are, the employees that are, authorized to direct the
disbursement of Loans in a manner contrary to standing disbursement
instructions, and shall provide the Agent with a specimen signature of each such
employee, it being understood that until further notice from the Funds
Administrator, those employees authorized, respectively, to request Loans and
direct the disbursement of Loans on the date hereof under the Original Credit
Agreement continue to be so authorized. In the absence of a specification of
those employees who are authorized to vary standing disbursement instructions,
the Agent may assume that each employee authorized to request Loans also has
such authority. The Agent shall be entitled to rely conclusively on the
authority of such employees of the Funds Administrator to request Loans on
behalf of the Borrowers, or to vary standing disbursement instructions, until
the Agent receives written notice to the contrary. The Agent shall have no duty
to verify the authenticity of the signature appearing on any Notice of Borrowing
or other writing delivered pursuant to this Section 2.2(a) and, with respect to
an oral or electronic E-mail request for Loans, the Agent shall have no duty to
verify the identity of any individual representing himself as one of the
employees of the Funds Administrator authorized to make such request on behalf
of the Borrowers. Neither the Agent nor any of the Lenders shall incur any
liability to the Funds Administrator or any of the Borrowers as a result of (a)
acting upon any telephonic or electronic E-mail notice referred to in this
Section 2.2(a) if the Agent believes in good faith such notice to have been
given by a duly authorized employee of the Funds Administrator or other
individual authorized to request Loans on behalf of the Borrowers or to direct
the disbursement thereof in a manner contrary to standing disbursement
instructions, or (b) otherwise acting in good faith under this Section 2.2(a)
and an advance made and disbursed pursuant to any such telephonic or electronic
E-mail notice in accordance with this Credit Agreement shall be deemed to be a
Loan for all purposes of this Credit Agreement.

                (iii)   In its Notice of Borrowing, the Funds Administrator may
request one or more Borrowings on a single day. Each such Borrowing shall,
unless otherwise specifically

                                     - 37 -

<PAGE>

provided herein, consist entirely of Loans of the same Type and shall, in the
case of a Borrowing of LIBOR Rate Loans, be in an aggregate amount for all
Lenders of not less than $2,000,000 or an integral multiple of $1,000,000 in
excess thereof. The right of the Funds Administrator to choose LIBOR Rate Loans
is subject to the provisions of Section 4.3(c).

        (b)     (i)     In the event the Borrowers are unable to comply with (A)
the Borrowing Base limitation set forth in clause (ii)(B) of the proviso to
Section 2.1(a) or (B) the conditions precedent set forth in Section 5.2 to a
Credit Event, the Lenders authorize the Agent, in its sole discretion, to make
Loans ("Interim Advances") to the Borrowers during the period commencing on the
date the Agent first receives a Notice of Borrowing requesting an Interim
Advance until the earliest of (1) the twentieth (20th) Business Day after such
date, (2) the date the Borrowers are again able to comply with such Borrowing
Base limitation and conditions precedent, or obtains an amendment or waiver with
respect thereto and (3) the date the Majority Lenders instruct the Agent, or the
Agent determines, to cease making Interim Advances (in each case, the "Interim
Advance Period").

                (ii)    The Agent shall not, in any event, (A) make any Interim
Advance during any Interim Advance Period if, after giving effect to such
Interim Advance, Total Exposure would exceed one hundred ten percent (110%) of
Total Exposure on the first day of such Interim Advance Period (calculated
without giving effect to Interim Advances made on such day) and (B) make any
Interim Advance if, after giving effect to such Interim Advance, Total Exposure
would exceed the Line of Credit.

                (iii)   All amounts received by the Agent during an Interim
Advance Period on account of the Obligations, whether in the form of payments
from any Borrower, collections on the Collateral or otherwise, shall, so long as
any Interim Advances made during such Interim Advance Period are outstanding, be
applied by the Agent, first, to the repayment of such Interim Advances and,
second , in accordance with Section 2.5(d).

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

        (d)     In addition to being evidenced, as provided in Section 2.6, by
the Borrowers' Account, each Lender's Loans and the Borrowers' joint and several
obligations to repay such Loans with interest in accordance with the terms of
this Credit Agreement shall be evidenced by this Credit Agreement, the records
of such Lender and such Lender's Note. The Borrowers' Account and the Register
shall be prima facie evidence of each Lender's Loans and accrued interest
thereon and of all payments made in respect thereof.

        (e)     Each Lender shall be entitled to earn interest at the then
applicable rate of interest, calculated in accordance with Article 4, on
outstanding Loans which it has funded to the Agent; provided that in the case of
interest accrued but unpaid at the time of a Bankruptcy Default and interest
accruing thereafter and during a Bankruptcy Default, such Lender shall be
entitled to receive only its Proportionate Share of amounts actually received by
the Agent in respect of such interest; further provided that if any amount
received by the Agent in respect of such interest

                                     - 38 -

<PAGE>

and distributed by it is thereafter recovered from the Agent, such Lender shall,
upon request, repay to the Agent its Proportionate Share of the amount so
recovered to the extent received by it, but without interest (unless the Agent
is required to pay interest on the amount recovered, in which case such Lender
shall be required to pay interest at a like rate).

        (f)     Notwithstanding the obligation of the Funds Administrator to
send written confirmation of a Notice of Borrowing made by the Funds
Administrator by telephone or electronic E-mail transmission if and when
requested by the Agent, in the event that the Agent agrees to accept a Notice of
Borrowing made by the Funds Administrator by telephone or electronic E-mail
transmission, such Notice of Borrowing shall be binding on the Funds
Administrator and each Borrower whether or not written confirmation is sent by
the Funds Administrator or requested by the Agent. The Agent may act prior to
the receipt of any requested written confirmation, without any liability
whatsoever, based upon telephonic or electronic E-mail notice believed by the
Agent in good faith to be from the Funds Administrator or its agents. The
Agent's records of the terms of any telephonic or electronic E-mail transmission
Notices of Borrowing shall absent manifest error be conclusive on the Funds
Administrator and each Borrower and Lender in the absence of gross negligence or
willful misconduct on the part of the Agent in connection therewith.

        2.3     SETTLEMENTS AMONG THE AGENTS AND THE LENDERS.

        (a)     Except as provided in Section 2.3(b), the Agent shall give to
each Lender prompt notice of each Notice of Borrowing by telecopy or facsimile
transmission. No later than 3:00 P.M. on the date of receipt of each Notice of
Borrowing (unless such Notice of Borrowing specifies the Closing Date as the
date of Borrowing, in which case no later than 12:00 noon on the Closing Date),
each Lender will make available for the account of its Applicable Lending
Office, to the Agent at the address of the Agent set forth on Annex II, in
immediately available funds, its Proportionate Share of such Borrowing requested
to be made. Unless the Agent shall have been notified by any Lender prior to the
date of Borrowing that such Lender does not intend to make available to the
Agent its portion of the Borrowing to be made on such date, the Agent may assume
that such Lender will make such amount available to the Agent on the Settlement
Date and the Agent, in reliance upon such assumption, may but shall not be
obligated to make available the amount of the Borrowing to be provided by such
Lender. If and to the extent such Lender shall not have so made available to the
Agent its Proportionate Share on such date and the Agent shall have so made
available to the Borrowers a corresponding amount on behalf of such Lender, the
Agent may recover such amount on demand from such Lender in accordance with
Section 11.18. If such Lender does not pay such corresponding amount promptly
upon the Agent's demand therefor, the Agent may promptly notify the Funds
Administrator and the Borrowers shall immediately repay such corresponding
amount to the Agent together with accrued interest thereon at the applicable
rate or rates provided in Sections 4.1, 4.2, and 4.4.

        (b)     Unless the Majority Lenders have instructed the Agent to the
contrary, the Agent on behalf of the Lenders may but shall not be obligated to
make Prime Rate Loans under Section 2.2 without prior notice of the proposed
Borrowing to the Lenders, subject to the following settlement arrangements:

                                     - 39 -

<PAGE>

                (i)     The amount of each Lender's Proportionate Share of Loans
shall be computed weekly (or more frequently in the Agent's discretion) and
shall be adjusted upward or downward on the basis of the amount of outstanding
Loans as of 5:00 P.M. on the last Business Day of the period specified by the
Agent (such date, the "Settlement Date"). The Agent shall deliver to each of the
Lenders promptly after the Settlement Date a summary statement of the amount of
outstanding Loans for such period. The Lenders shall transfer to the Agent, or,
subject to Section 11.18(c)(i), the Agent shall transfer to the Lenders, such
amounts as are necessary so that (after giving effect to all such transfers) the
amount of Loans made by each Lender shall be equal to such Lender's
Proportionate Share of the aggregate amount of Loans outstanding as of such
Settlement Date. During a Bankruptcy Default, amounts required to be transferred
by the Lenders to the Agent shall, instead of constituting Loans to the
Borrowers, be in the form of participations purchased by the Lenders in the
outstanding Loans of DBTCo. If the summary statement is received by the Lenders
prior to 12:00 noon on any Business Day, each Lender shall make the transfers
described above in immediately available funds no later than 3:00 P.M. on the
day such summary statement was received; and if such summary statement is
received by the Lenders after 12:00 noon on such day, each Lender shall make
such transfers no later than 3:00 P.M. on the next succeeding Business Day. The
obligation of each of the Lenders to transfer such funds shall be irrevocable
and unconditional and without recourse to or warranty by the Agent. Each of the
Agent and the Lenders agrees to mark its books and records on the Settlement
Date to show at all times the dollar amount of its Proportionate Share of the
outstanding Loans.

                (ii)    To the extent that the settlement described above shall
not yet have occurred, upon repayment of Loans by the Borrowers, the Agent may
first apply such amounts repaid directly to the amounts made available by the
Agent pursuant to this Section 2.3(b).

                (iii)   Because the Agent on behalf of the Lenders may be
advancing and/or may be repaid Loans prior to the time when the Lenders will
actually advance and/or be repaid Loans, interest with respect to Loans shall be
allocated by the Agent to each Lender and the Agent in accordance with the
amount of Loans actually advanced by and repaid to each Lender and the Agent and
shall accrue from and including the date such Loans are so advanced to but
excluding the date such Loans are either repaid by the Borrowers in accordance
with Section 2.4 or actually settled by the applicable Lender as described in
this Section 2.3(b).

        2.4     MANDATORY REPAYMENTS: MANDATORY REDUCTION OF COMMITMENTS.

        (a)     Except during an Interim Advance Period, the amount by which
Total Exposure exceeds the Borrowing Base at any time shall be immediately due
and payable without the necessity of any demand. Repayments of such excess
amounts shall be applied, first, to the repayment of Loans, second, to the
payment of outstanding reimbursement obligations with respect to Letters of
Credit, and, third, to the securing, with cash or Cash Equivalents as provided
in the second paragraph of Section 9.2 (but without the requirement of any
demand provided for in such paragraph), of the Letter of Credit Outstandings (in
each case to the extent the same are such by virtue of clause (a) of the
definition thereof).

        (b)     (i)     On the Expiration Date, the Commitment of each Lender
shall automatically reduce to zero and may not be reinstated.

                                     - 40 -

<PAGE>

                (ii)    The Borrowers may reduce or terminate the Line of Credit
at any time and from time to time in whole or in part, without premium or
penalty, by reducing or terminating the Commitments, any such reduction or
termination to be pro rata on the amounts at the time of the Commitments;
provided that each such reduction must be in an amount not less than $5,000,000
(and in increments of $1,000,000); and provided further that (A) if the
Borrowers seek to reduce the Line of Credit to an amount less than $25,000,000,
then the Line of Credit shall be reduced to zero and this Credit Agreement shall
be terminated and (B) once reduced the amount of any such reductions in the Line
of Credit may not be reinstated.

                (iii)   The amount by which Total Exposure exceeds the aggregate
amount of the Commitments at any time shall be immediately due and payable
without the necessity of any notice or demand. Repayments of such excess amounts
shall be applied, first, to the repayment of Loans, second, to the payment of
Unpaid Drawings, and, third, to the securing, with cash or Cash Equivalents as
provided in the second paragraph of Section 9.2 (but without the requirement of
any demand provided for in such paragraph), of the Letter of Credit Outstandings
(in each case to the extent the same are such by virtue of clause (a) of the
definition thereof).

        2.5     PAYMENTS AND COMPUTATIONS.

        (a)     (i)     The Borrowers shall, subject, in the case of payments in
respect of Letters of Credit, to Section 3.5, make each payment under the Credit
Documents and under the Notes not later than 2:00 P.M. on the day when due and
payable in Dollars to the Agent at the Payment Office in immediately available
funds. The obligations of the Borrowers to the Lenders with respect to such
payments shall be discharged by making such payments to the Agent pursuant to
this Section 2.5 or by the Agent, in its discretion, adding such payments to the
principal amount of the Loans outstanding by charging such payments to the
Borrowers' Account pursuant to Section 2.6.

                (ii)    Amounts payable by the Borrowers in respect of any
Letter of Credit should be made by the Funds Administrator to the Agent.

        (b)     (i)     On or prior to the Closing Date, BMI (and, after the
Closing Date, any other Borrower requested from time to time by the Agent) shall
establish and shall maintain one or more Lockboxes (with respect to each such
Borrower, such Borrower's "Lockboxes") and shall instruct all account debtors on
the Accounts of such Borrower to remit all payments to such Borrower's
Lockboxes. All amounts received by any Borrower from any account debtor, in
addition to all other cash received from any other source (including, without
limitation, Net Disposition Proceeds, as and when received in cash, but
excluding Net Equity Proceeds, to the extent the use or proposed use of such Net
Equity Proceeds could not reasonably be expected to result in a Default or an
Event of Default), shall upon receipt be deposited into a Depositary Account.

                (ii)    Each Borrower required to establish and maintain
Lockboxes pursuant to Section 2.5(b)(i), the Agent and one or more financial
institutions selected by such Borrower and reasonably acceptable to the Agent
(each a "Depositary Account Bank") shall enter into agreements in form and
substance satisfactory to the Agent (each a "Depositary Account Agreement"),
providing, among other things, that (A) the Agent will open an account at each

                                     - 41 -

<PAGE>

Depositary Account Bank (each a "Depositary Account") and (B) all receipts
received in the Lockboxes of each Borrower shall be transferred at the end of
each day to the appropriate Depositary Account.

                (iii)   The closing of any Lockbox or Depositary Account and the
termination of any Depositary Account Agreement shall require in each case the
prior written consent of the Agent.

        (c)     Upon the terms and subject to the conditions set forth in the
applicable Depositary Account Agreement, all available amounts held in each
Depositary Account shall be wired each Business Day into an account (the "DBTCo
Account") maintained by the Agent at DBTCo.

        (d)     (i)     All amounts received by the Agent for distribution
hereunder shall, subject to Section 2.2(b)(iii), be distributed in the following
order:

                        first, to the payment of any Fees, Expenses or other
                Obligations then due and payable to the Agent under any of the
                Credit Documents, including amounts advanced by the Agent on
                behalf of the Lenders pursuant to Section 2.3(b);

                        second, during a Bankruptcy Default, to the payment of
                the unpaid principal amounts of all Unpaid Drawings payable to
                each Issuing Lender, together with accrued but unpaid interest
                thereon at the LC Interest Rate;

                        third, to the ratable payment of any Fees and other
                Obligations then due and payable to the Lenders under any of the
                Credit Documents, other than to a Lender in its capacity as an
                Issuing Lender and other than those Obligations specifically
                referred to in this Section 2.5(d)(i);

                        fourth, to the ratable payment of interest due and
                payable on the Loans;

                        fifth, to the ratable payment of principal due and
                payable on the Loans; and

                        sixth, to the ratable payment of other Liabilities not
                specifically referred to in this Section 2.5(d) then due and
                payable to the Issuing Lenders with respect to Letters of
                Credit.

                (ii)    Each Person receiving a payment from the Agent pursuant
to Section 2.5(d)(i) shall, for all purposes of this Credit Agreement and other
Credit Documents, be deemed to have applied that payment in the order specified
in Section 2.5(d)(i).

        2.6     MAINTENANCE OF ACCOUNT. The Agent shall maintain an account
("Borrowers' Account") on its books in the name of the Borrowers in which the
Borrowers will be charged with all loans and advances made by the Lenders to the
Borrowers or for the Borrowers' account, including the Loans, the Fees, the
Expenses and any other Obligations. The Borrowers will be credited, in
accordance with Section 2.5 above, with all amounts received by the Agent or the
Lenders from the Borrowers or from others for the Borrowers' account, including,
as set forth above, all amounts received by the Agent in payment of Accounts. In
no event shall prior

                                     - 42 -

<PAGE>

recourse to any Accounts or other Collateral be a prerequisite to the Agent's
right to demand payment of any Obligation upon its maturity. Further, the Agent
shall have no obligation whatsoever to perform in any respect any of the
contracts or obligations relating to the Accounts.

        2.7     STATEMENT OF ACCOUNT. After the end of each month, the Agent
shall send the Funds Administrator a statement accounting for the charges,
loans, advances and other transactions occurring among and between the Agent,
the Lenders, the Funds Administrator and the Borrowers during that month. In the
event that the Funds Administrator does not object in writing to any information
reflected in any such monthly statement within thirty (30) days of its receipt
thereof, such statement shall, absent manifest error, be an account stated,
which is final, conclusive and binding on the Borrowers.

        2.8     WITHHOLDING AND OTHER TAXES.

        (a)     Any and all payments by the Borrowers hereunder, under the Notes
or in respect of Letters of Credit which are made, to or for the benefit of any
Lender (whether in its capacity as a Lender or an Issuing Lender, and as used in
Section 2.8, the term "Lender" shall mean a Lender in each such capacity, and
shall also include each Serving Affiliate of such Lender) or the Agent shall,
except as may be required by law, be made, free and clear of and without
deduction for any and all present or future taxes, levies, imposts, deductions,
charges or withholdings and penalties, interests and all other liabilities with
respect thereto ("Taxes"), excluding, (i) in the case of each such Lender, or
the Agent, Taxes imposed on, or measured by, its net income (including any Taxes
imposed on branch profits) and franchise Taxes, Taxes on capital and other
"doing business" Taxes imposed on it by the United States or the jurisdiction
under the laws of which such Lender, or the Agent (as the case may be), is
organized or any political subdivision thereof, (ii) in the case of each such
Lender, Taxes imposed on, or measured by, its net income (including any Taxes
imposed on branch profits), and franchise Taxes, Taxes on capital and other
"doing business" Taxes imposed on it, by the jurisdiction of such Lender's
Applicable Lending Office or any political subdivision thereof, (iii) in the
case of each such Lender, or the Agent, Taxes that would not have been imposed
if the only connection between such Person and the jurisdiction imposing such
Taxes was the activities of such Person pursuant to or in respect of this Credit
Agreement, (iv) in the case of each such Lender, Taxes that would not been
imposed but for the sale of a participation pursuant to Section 11.6(g), (v) in
the case of any Lender or Tax Transferee, as the case may be, Taxes that would
not have been imposed if such Lender or Tax Transferee, as the case may be, had
complied with the provisions of Section 2.8(e) or (f), as applicable, (vi) in
the case of each such Lender, and the Agent, any Taxes that are in effect and
that would apply to a payment to or for the benefit of such Lender, or Agent, as
applicable, as of the Closing Date, and (vii) if any Person acquires any
interest in this Credit Agreement, any Note or any participation interest in any
Letter of Credit pursuant to the provisions of Section 3.4, or a Lender or the
Agent changes the office in which any Loan or any participation interest in any
Letter of Credit is made, accounted for or booked, or a Lender or an Issuing
Lender changes the office at which any Letter of Credit is maintained (any such
Person, or such Lender or the Agent in that event, being referred to as a "Tax
Transferee"), any Taxes to the extent that they are in effect and would apply to
a payment to or for the benefit of such Tax Transferee as of the date of the
acquisition of such interest or change in office, as the case may be (all such
nonexcluded Taxes being hereinafter referred to as "Covered Taxes"). If any
Borrower shall be required by law to deduct any Covered Taxes from or in respect
of any sum payable hereunder, under any

                                     - 43 -

<PAGE>

Note or in respect of any Letter of Credit to or for the benefit of any Lender,
the Agent or any Tax Transferee, (A) the sum payable shall be increased as may
be necessary so that after making all required deductions of Covered Taxes
(including deductions of Covered Taxes applicable to additional sums payable
under this Section 2.8) such Lender, the Agent or such Tax Transferee, as the
case may be, receives an amount equal to the sum it would have received had no
such deductions been made, (B) such Borrower shall make such deductions and (C)
such Borrower shall pay the full amount so deducted to the relevant taxation
authority or other authority in accordance with applicable law.

        (b)     In addition, each Borrower agrees to pay any present or future
stamp, documentary, excise, privilege, intangible or similar levies that arise
at any time or from time to time (i) from any payment made under any and all
Credit Documents, or (ii) from the execution or delivery by any Credit Party of,
or from the filing or recording or maintenance of, or otherwise with respect to
the exercise by the Agent or the Lenders of their rights under, any and all
Credit Documents (hereinafter referred to as "Other Taxes").

        (c)     The Borrowers will jointly and severally indemnify each Lender,
the Agent, and any Tax Transferee for the full amount of (i) Covered Taxes
imposed on or with respect to amounts payable hereunder under any Note or in
respect of any Letter of Credit, and (ii) Other Taxes. Payment of this
indemnification shall be made within thirty (30) days from the date such Lender,
the Agent or such Tax Transferee certifies and sets forth in writing and in
reasonable detail the calculation thereof as to the amount and type of such
Taxes. Any such certificate submitted by such Lender, the Agent or such Tax
Transferee in good faith to Borrowers shall, absent manifest error, be final,
conclusive and binding on all parties.

        (d)     Within 30 days after having received a receipt for Covered Taxes
or Other Taxes, the Funds Administrator will furnish to the Agent, at its
address referred to in Section 11.5, the original or a certified copy of a
receipt evidencing payment thereof.

        (e)     On or before the Closing Date, (i) each Lender that is a Foreign
Lender shall deliver to the Agent and the Funds Administrator two valid, duly
completed copies of either IRS Form W-8BEN or W-8ECI or successor applicable
form, as the case may be, and any other required form, and (ii) at the request
of the Funds Administrator, each Lender that is not a Foreign Lender shall
deliver to the Agent and the Funds Administrator two valid, duly completed
copies of IRS Form W-9 or successor applicable form, as the case may be, and any
other required form, certifying in each case that such Lender is entitled to
receive payments under this Credit Agreement, the Notes or any Letter of Credit
payable to it without deduction or withholding of any United States federal
income taxes. Each Lender that is a Foreign Lender and, at the request of the
Funds Administrator, each Lender that is not a Foreign Lender shall also deliver
to the Agent and the Funds Administrator two further copies of said Form W-8BEN,
W-8ECI or W-9, as applicable, or successor applicable forms, or other manner of
required certification, as the case may be, on or before the date that any such
form expires or becomes obsolete or otherwise is required to be resubmitted as a
condition to obtaining an exemption from a required withholding of United States
federal income tax or after the occurrence of any event requiring a change in
the most recent form previously delivered by it to the Funds Administrator and
the Agent, and such extensions or renewals thereof as may reasonably be
requested by the Funds Administrator and the Agent, certifying that such Lender
is entitled to receive payments

                                     - 44 -

<PAGE>

under this Credit Agreement, the Notes or any Letter of Credit payable to it
without deduction or withholding of any United States federal income taxes
unless in any such case any change in a tax treaty to which the United States is
a party, or any change in law or regulation of the United States or official
interpretation thereof has occurred after the Closing Date and prior to the date
on which any such delivery would otherwise be required that renders all such
forms inapplicable or that would prevent such Lender from duly completing and
delivering any such form with respect to it, and such Lender advises the Funds
Administrator and the Agent that it is not capable of receiving payments without
any deduction or withholding of United States federal income tax.

        (f)     If a Tax Transferee that is not a "United States person" within
the meaning of Section 7701(a)(30) of the Code acquires an interest in this
Credit Agreement, any Note, any participation interest in any Letter of Credit
or any of the other Credit Documents or a Foreign Lender changes the office
through which Loans or any other obligations are made, accounted for or booked,
or a Foreign Lender if an Issuing Lender, changes the office at which any Letter
of Credit is maintained, the transferor, or the applicable Foreign Lender, in
the case of a change of office, shall cause such Tax Transferee to agree that,
on or prior to the effective date of such acquisition or change, as the case may
be, it will deliver to the Funds Administrator and the Agent two valid, duly
completed copies of IRS Form W-8BEN or W-8ECI or successor applicable form, as
the case may be, and any other required form, certifying in each case that such
Tax Transferee is entitled to receive payments under this Credit Agreement, the
Notes, each Letter of Credit and each of the other Credit Documents payable to
it without deduction or withholding of United States federal income tax. If a
Tax Transferee that is a "United States person" within the meaning of Section
7701(a)(30) of the Code acquires an interest in this Credit Agreement, any Note,
any participation interest in any Letter of Credit or any of the other Credit
Documents, at the request of the Funds Administrator, on the effective date of
such acquisition it will deliver to the Funds Administrator and the Agent two
valid, duly completed copies of IRS Form W-9 or successor applicable form, as
the case may be, and any other required form, certifying in each case that such
Tax Transferee is entitled to receive payments under this Credit Agreement, the
Notes, each Letter of Credit and each of the other Credit Documents payable to
it without deduction or withholding of United States federal income tax. At the
request of the Funds Administrator, each Tax Transferee that delivers to the
Funds Administrator and the Agent a Form W-8BEN, W-8ECI or W-9 and any other
required form, pursuant to the next two preceding sentences, further undertakes
to deliver two further copies of the said forms, or successor applicable forms,
or other manner of required certification, as the case may be, on or before the
date that any such form expires or becomes obsolete or otherwise is required to
be resubmitted as a condition to obtaining an exemption from a required
withholding of United States federal income tax or after the occurrence of any
event requiring a change in the most recent form previously delivered by it to
the Funds Administrator and the Agent, and such extensions or renewals thereof
as may reasonably be requested by the Funds Administrator and the Agent,
certifying that such Tax Transferee is entitled to receive payments under this
Credit Agreement, the Notes and any Letter of Credit without deduction or
withholding of any United States federal income taxes, unless any change in a
tax treaty to which the United States is a party, or any change in law or
regulation or official interpretation thereof has occurred after the effective
date of such acquisition or change and prior to the date on which any such
delivery would otherwise be required that renders all such forms inapplicable or
that would prevent such

                                     - 45 -

<PAGE>

Tax Transferee from duly completing and delivering any such form with respect to
it, and such Tax Transferee advises the Funds Administrator and the Agent that
it is not capable of receiving payments without any deduction or withholding of
United States federal income tax.

        (g)     If any Taxes for which any Borrower would be required to make
payment under this Section 2.8 are imposed, the applicable Lender or the Agent,
as the case may be, shall (A) at the request of the Funds Administrator deliver
such validly executed forms or certificates as may be necessary to claim a
reduction in the rate of withholding or deduction to which the Lender or Agent,
as the case may be, is entitled and (B) use its best efforts to avoid or reduce
such Taxes by taking any other appropriate action (including assigning its
rights hereunder to a related entity or a different office) which would not in
the sole opinion of such Lender or the Agent be otherwise disadvantageous to
such Lender or the Agent, as the case may be.

        (h)     If any Lender, Agent or Tax Transferee receiving an
indemnification payment hereunder with respect to Taxes shall subsequently
receive a refund from any taxing authority which is attributable to such
indemnification payment, such Person shall promptly pay such refund (together
with any interest paid with respect to such refund) to the Borrowers.

        (i)     Without prejudice to the survival of any other agreement of the
Borrowers hereunder, the agreements and obligations of the Borrowers contained
in this Section 2.8 shall survive the payment in full of the Obligations.

        (j)     Each Lender shall cause each of its Serving Affiliates that is a
Foreign Lender to take the actions required to be taken by such Serving
Affiliate as a Foreign Lender under Section 2.8(e), (f), (g) and (h).

        2.9     AFFECTED LENDERS. If any Borrower is obligated to pay to any
Lender (whether in its capacity as a Lender or an Issuing Lender) or any Serving
Affiliate of such Lender any amount under Sections 2.8 or 4.9, or if any Lender
is a Defaulting Lender, the Borrowers may, if no Default or Event of Default
then exists, replace such Lender or Serving Affiliate with another lender
reasonably acceptable to the Agent, and such Lender hereby agrees to be so
replaced or to cause such Serving Affiliate to be replaced, subject to the
following:

        (a)     (i)     The Obligations of the Borrowers hereunder then due to
the Lender to be replaced (in its capacity as a Lender, and including such
increased or additional costs incurred from the date of notice to the Funds
Administrator of such increase or additional costs through the date such Lender
is replaced hereunder) shall be paid in full to such Lender concurrently with
such replacement; and

                (ii)    the Obligations of the Borrowers hereunder to the Lender
to be replaced in its capacity as an Issuing Lender, or to its Serving Affiliate
in such capacity, shall continue until (A) each Letter of Credit issued by that
Person has expired or been drawn in full, (B) all outstanding reimbursement
obligations with respect to such Letters of Credit, together with interest
thereon at the LC Interest Rate, shall have been paid in full, and (C) all other
Obligations in respect of Letters of Credit (other than contingent
indemnification Obligations to the extent that no claim giving rise thereto has
been asserted and remains unresolved or unsatisfied), to the

                                     - 46 -

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extent then due and payable, have been paid in full and, to the extent not then
due and payable, been secured to the satisfaction of such Person.

        (b)     If such replacement is a result of increased costs under
Sections 2.8 or 4.9, the replacement Lender shall be a bank or other financial
institution that is not subject to such increased costs which caused the
Borrowers' election to replace any Lender hereunder, and each such replacement
Lender shall execute and deliver to the Agent such documentation satisfactory to
the Agent pursuant to which such replacement Lender is to become a party hereto,
conforming to the provisions of Section 11.6, with a Commitment equal to that of
the Lender being replaced and shall make Loans in the aggregate principal amount
equal to the aggregate outstanding principal amount of the Loans of the Lender
being replaced;

        (c)     Upon such execution of such documents referred to in clause (b)
and repayment of the amounts referred to in clause (a), the replacement lender
shall be a "Lender" with a Commitment as specified herein above and the Lender
being replaced shall cease to be a "Lender" hereunder, except with respect to
Sections 2.9(c), 3.6, 4.9, 11.7 and 11.8 of this Credit Agreement, which shall
survive as to such replaced Lender and except to the extent such Lender
continues to be an Issuing Lender pursuant to Section 2.9(a)(ii);

        (d)     The Agent shall reasonably cooperate in effectuating the
replacement of any Lender under this Section 2.9, but at no time shall the Agent
be obligated to initiate any such replacement;

        (e)     Any Lender replaced under this Section 2.9 shall be replaced at
the Borrowers' sole cost and expense and at no cost or expense to the Agent or
any of the Lenders; and

        (f)     If the Borrowers propose to replace any Lender pursuant to this
Section 2.9 because the Lender seeks reimbursement under either Section 2.8 or
4.9, then it must also use reasonable efforts to replace any other Lender who
seeks similar levels of reimbursement (as a percentage of such Lender's
Commitment) under such Sections.

        2.10    SHARING OF PAYMENTS. (a) (i) If any Lender (including a
Lender in its capacity as an Issuing Lender) shall obtain any payment (whether
voluntary, involuntary, and whether through the exercise of any right of set-off
by virtue of its claim in any applicable bankruptcy, insolvency or other similar
proceeding being deemed secured by a Liability owed by it to any Credit Party,
including a claim deemed secured under Section 506 of the Bankruptcy Code, or
otherwise) (each a "Payment"), on account of (A) the Loans made by it, (B) its
participation interests in Letters of Credit; or (C) any of the other
Obligations due and payable to it in excess of its Proportionate Share of
payments on account of the Loans or participation interests in Letters of Credit
or such other Obligations obtained by all the Lenders, such Lender shall
forthwith purchase from the other Lenders such participations in the Loans made
by them, in their participation in Letters of Credit or their other such
Obligations as shall be then due and payable as shall be necessary to cause such
purchasing Lender to share the excess payment ratably with each of them;
however, provided that if all or any portion of such excess payment is
thereafter recovered from such purchasing Lender, such purchase from each Lender
shall be rescinded and each such Lender shall repay to the purchasing Lender the
purchase price to the extent of such recovery together with an amount equal to
such Lender's ratable share (according

                                     - 47 -

<PAGE>

to the proportion of (1) the amount of such Lender's required repayment to (2)
the total amount so recovered from the purchasing Lender) of any interest or
other amount paid or payable by the purchasing Lender in respect to the total
amount so recovered. Each Borrower agrees that any Lender so purchasing a
participation from another Lender pursuant to this Section 2.10 may, to the
fullest extent permitted by law, exercise all of its rights of payment
(including the right of set-off) with respect to such participation as fully as
if such Lender were the direct creditor of such Borrower in the amount of such
participation.

                (ii)    For purposes of this Section 2.10, all Unpaid Drawings
due and payable to any Issuing Lender shall be deemed to constitute "Loans" made
by such Issuing Lender, and such Issuing Lender agrees that it shall apply all
Payments received by it in its capacity as an Issuing Lender to the payment or
the collateralization of the Obligations that then constitute Unpaid Drawings
payable to such Issuing Lender before applying them to any other Obligations due
it.

        (b)     If an Issuing Lender is an Affiliate of a Lender, such Lender
shall cause such Affiliate to comply with the provisions of subsection (a)(i) of
Section 2.10 as fully as though such Affiliate were a Lender subject to such
subsection.

        2.11    ALLOCATION OF LOANS AND EXPENSES.

        (a)     The Borrowers maintain an integrated cash management system
reflecting their interdependence on one another and the mutual benefits shared
among them as a result of their respective operations. In order to efficiently
fund and operate their respective businesses and minimize the number of
Borrowings which they will make under this Credit Agreement and thereby reduce
the administrative costs and record keeping required in connection therewith,
including the necessity to enter into and maintain separately identified and
monitored borrowing facilities, the Borrowers have requested, and the Agent and
the Lenders have agreed that, subject to Section 11.21, (i) all Loans will be
advanced to and for the account of the Borrowers on a joint and several basis to
the Disbursement Account and (ii) all Letters of Credit will be issued pursuant
to an LC Application executed by the Funds Administrator on behalf and for the
account of the Borrower or Borrowers specified by the Funds Administrator in
such application. Each Borrower hereby acknowledges that it will be receiving a
direct benefit from each Loan made and each Letter of Credit issued pursuant to
this Credit Agreement.

        (b)     In order to track more precisely the respective recipients of
the proceeds of each Loan and the Borrower or Borrowers receiving the primary
benefit from the issuance of each Letter of Credit, and to assist the Funds
Administrator, the Borrowers, the Agent and the Lenders in administering the
Loans and the Letters of Credit, each Borrower has agreed with the Agent and the
Lenders to cause the Funds Administrator to establish and maintain, and the
Funds Administrator hereby agrees to establish and maintain, accounts with
respect to each Borrower (each Borrower's "Allocation Account") in which the
Funds Administrator shall record its good faith allocation to each of the
Borrowers of (w) the proceeds, if any, of each Loan received by or for the
account of such Borrower, (x) payments made to the Agent on account of the
Obligations of such Borrower, (y) the aggregate face amount of all outstanding
Letters of Credit issued for the benefit of such Borrower, and (z) all
previously unallocated Expenses.

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<PAGE>

        (c)     At the request of the Agent, as soon as available, but not later
than fifteen (15) Business Days after the last Business Day of each month ending
after the Closing Date, the Funds Administrator shall deliver to the Agent and
each Borrower a report prepared by or under the supervision of a Responsible
Officer of the Funds Administrator, and certified by such Responsible Officer,
setting forth with respect to each Borrower the balance of the Allocation
Account of such Borrower as of the end of, and all activity occurring in such
Allocation Account during, such month. Absent manifest error, each such monthly
statement shall be final, conclusive and binding on the respective Borrowers.

                                    ARTICLE 3

                                LETTERS OF CREDIT

        3.1     LETTERS OF CREDIT.

        (a)     Subject to and upon the terms and conditions set forth herein,
the Funds Administrator may, at any time and from time to time on and after the
Closing Date and prior to the 30th day prior to the Expiration Date, request the
Agent to (and upon receipt of the applicable Letter of Credit Request, the Agent
shall): (i) cause an Issuing Lender to issue for the joint and several account
of the Borrowers and for the benefit of (A) any holder (or any trustee, agent or
other similar representative for any such holders) of LC Supportable
Obligations, an irrevocable standby letter of credit, in a form customarily used
by the Issuing Lender or in such other form as has been approved by the Issuing
Lender, and (B) sellers of goods to a Borrower, an irrevocable trade letter of
credit, or (ii) approve the issuance by an Issuing Lender of an irrevocable
trade letter of credit upon application made by the Funds Administrator directly
to such Issuing Lender pursuant to an application procedure approved by Agent in
advance, in each case in a form customarily used by the Issuing Lender or in
such other form as has been approved by the Issuing Lender, (each such letter of
credit, a "Letter of Credit" and, collectively, the "Letters of Credit"). All
Letters of Credit shall be denominated in Dollars and shall be issued on a sight
basis only.

        (b)     Notwithstanding anything to the contrary set forth in this
Credit Agreement, the Agent shall not be under any obligation to cause an
Issuing Lender to issue any Letter of Credit, or to approve the issuance by an
Issuing Lender of any Letter of Credit, if at the time of such issuance or
approval, any order, judgment or decree of any governmental authority or
arbitrator shall purport by its terms to enjoin or restrain such Issuing Lender
from issuing such Letter of Credit or any Requirement of Law applicable to such
Issuing Lender or any request or directive (whether or not having the force of
law) from any Governmental Authority with jurisdiction over such Issuing Lender
shall prohibit, or request that such Issuing Lender refrain from, the issuance
of letters of credit generally or such Letter of Credit in particular or shall
impose upon such Issuing Lender with respect to such Letter of Credit any
restriction or reserve or capital requirement (for which such Issuing Lender is
not otherwise compensated hereunder) not in effect with respect to such Issuing
Lender on the date hereof, or any unreimbursed loss, cost or expense which was
not applicable or in effect with respect to such Issuing Lender as of the date
hereof and which such Issuing Lender reasonably and in good faith deems material
to it.

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        3.2     MAXIMUM LETTER OF CREDIT OUTSTANDINGS; FINAL MATURITIES.
Notwithstanding anything to the contrary contained in this Credit Agreement, (a)
no Letter of Credit shall be issued if (x) the Stated Amount thereof, when added
to the Letter of Credit Outstandings (exclusive of Unpaid Drawings which are
repaid on the date of, and prior to the issuance of, the respective Letter of
Credit) at such time would exceed $10,000,000, or (y) after giving effect to
such issuance, the Total Exposure would exceed the lesser of (I) the Total
Commitments and (II) the Borrowing Base; and (b) each Letter of Credit shall by
its terms terminate on or before (x) in the case of standby Letters of Credit,
the date which occurs 12 months after the date of the issuance thereof (although
any such standby Letter of Credit may be extendible for successive periods of up
to 12 months on terms reasonably acceptable to the Agent and the applicable
Issuing Lender), but in no event later than ten (10) Business Days prior to
Expiration Date, and (y) in the case of trade Letters of Credit, on or before
the date which occurs 180 days after the date of issuance thereof, but in no
event later than the thirtieth (30th) day prior to the Expiration Date.

        3.3     LETTER OF CREDIT REQUESTS; MINIMUM STATED AMOUNT.

        (a)     Whenever the Funds Administrator desires the Agent to cause or
approve the issuance of a Letter of Credit for the account of the Borrowers (or
to amend or modify any existing Letter of Credit), the Funds Administrator shall
give the Agent at least five Business Days' (or such shorter period as is
acceptable to the Agent) written notice thereof (including by way of facsimile
transmission). Each such notice shall be given to Agent in the form attached
hereto as Exhibit D (each a "Letter of Credit Request").

        (b)     The making of each Letter of Credit Request shall be deemed to
be a representation and warranty by the Funds Administrator and each of the
Borrowers to the Agent and the Lenders that such Letter of Credit may be issued
in accordance with, and will not violate the requirements of, Section 3.2. Upon
receipt by the Agent of a Letter of Credit Request, the Agent shall, subject to
the terms and conditions of this Credit Agreement, either cause the applicable
Issuing Lender to issue (or amend or modify, as the case may be), or approve the
issuance of, the requested Letter of Credit for the account of the Borrowers in
accordance with such Issuing Lender's usual and customary practices. Upon the
issuance or modification of, or amendment to, any standby Letter of Credit, the
applicable Issuing Lender shall promptly provide written confirmation of such
issuance, amendment or modification, as the case may be, to the Funds
Administrator and the Agent, and such notice shall be accompanied by a copy of
such issuance, modification or amendment, as the case may be. Upon receipt of
such notice, the Agent shall promptly provide written notice to the LC
Participants of such issuance, modification or amendment, and if requested, the
Agent shall provide each such LC Participant with copies of any such issuance,
modification or amendment. With regard to trade Letters of Credit, the
applicable Issuing Lender shall, on the first Business Day of each week, provide
the Agent with a report, by facsimile transmission, of the daily aggregate
outstanding trade Letters of Credit during the previous week. Upon receipt of
such report, the Agent shall provide the LC Participants with the contents of
such report. Notwithstanding anything to the contrary contained in this Credit
Agreement, in the event that any Lender is a Defaulting Lender, no Issuing
Lender shall be required to issue any Letter of Credit unless such Issuing
Lender has entered into arrangements satisfactory to it and the Borrowers to
eliminate such Issuing Lender's risk with respect to the participation in
Letters of Credit by such Defaulting Lender, including by cash

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collateralizing such Defaulting Lender's Proportionate Share of the Letter of
Credit Outstandings.

        3.4     LETTER OF CREDIT PARTICIPATIONS.

        (a)     Immediately upon the issuance by an Issuing Lender of any Letter
of Credit, such Issuing Lender shall be deemed to have sold and transferred to
each Lender (other than such Issuing Lender in its capacity (if any) as a
Lender) and each such Lender (in its capacity under this Section 3.4, an "LC
Participant"), shall be deemed irrevocably and unconditionally to have purchased
and received from such Issuing Lender, without recourse or warranty, an
undivided interest and participation, to the extent of such LC Participant's
Proportionate Share, in such Letter of Credit, each drawing or payment made
thereunder and the joint and several obligations of the Borrowers under this
Credit Agreement with respect thereto, and any security therefor or guaranty
pertaining thereto. Upon any change in the Commitments or Proportionate Shares
of the respective Lenders pursuant to Section 2.9 or Section 11.6, it is hereby
agreed that, with respect to all outstanding Letters of Credit and Unpaid
Drawings relating thereto, there shall be an automatic adjustment to the
participations pursuant to this Section 3.4 to reflect the new Proportionate
Shares of the assignor and assignee Lender, as the case may be.

        (b)     In determining whether to pay under any Letter of Credit, no
Issuing Lender shall have any obligation relative to the other Lenders other
than to confirm that any documents required to be delivered under such Letter of
Credit appear to have been delivered and that they appear to substantially
comply on their face with the requirements of such Letter of Credit. Any action
taken or omitted to be taken by any Issuing Lender under or in connection with
any Letter of Credit issued by it, if taken or omitted to be taken by it in good
faith, shall not create for such Issuing Lender any resulting liability to any
of the Borrowers, any other Credit Party, any Lender or any other Person unless
such action is taken or omitted to be taken with gross negligence or willful
misconduct (as determined by a court of competent jurisdiction in a final and
non-appealable decision).

        (c)     In the event that any Issuing Lender makes any payment under any
Letter of Credit issued by it and the Borrowers shall not have reimbursed such
amount in full to such Issuing Lender pursuant to Section 3.5(a), such Issuing
Lender shall promptly notify the Agent, which shall promptly notify each LC
Participant of such failure, and each LC Participant shall promptly and
unconditionally pay to such Issuing Lender the amount of such LC Participant's
Proportionate Share of such unreimbursed payment in Dollars and in same day
funds. If the Agent so notifies, prior to 12:00 Noon on any Business Day, any LC
Participant required to fund a payment under a Letter of Credit, such LC
Participant shall make available to the applicable Issuing Lender in Dollars
such LC Participant's Proportionate Share of the amount of such payment on such
Business Day in same day funds. If and to the extent such LC Participant shall
not have so made its Proportionate Share of the amount of such payment available
to the applicable Issuing Lender, such LC Participant agrees to pay to such
Issuing Lender, forthwith on demand such amount, together with interest thereon,
for each day from such date until the date such amount is paid to such Issuing
Lender at the overnight Federal Funds Rate for the first three days and at the
interest rate applicable to Loans that are maintained as Prime Rate Loans for
each day thereafter. The failure of any LC Participant to make available to any
Issuing Lender its Proportionate Share of any payment under any Letter of Credit
shall not relieve any

                                     - 51 -

<PAGE>

other LC Participant of its obligation hereunder to make available to such
Issuing Lender its Proportionate Share of any payment under such Letter of
Credit on the date required, as specified above, but no LC Participant shall be
responsible for the failure of any other LC Participant to make available to
such Issuing Lender such other LC Participant's Proportionate Share of any such
payment.

        (d)     Whenever any Issuing Lender receives a payment of a
reimbursement obligation as to which it has received any payments from the LC
Participants pursuant to clause (c) above, such Issuing Lender shall pay to each
such LC Participant which has paid its Proportionate Share thereof, in Dollars
and in same day funds, an amount equal to such LC Participant's share (based
upon the proportionate aggregate amount originally handed by such LC Participant
to the aggregate amount funded by all LC Participants) of the principal amount
of such reimbursement obligation and interest thereon accruing after the
purchase of the respective participations.

        (e)     Upon the request of any LC Participant, each Issuing Lender
shall furnish to such LC Participant copies of any Letter of Credit issued by it
and such other documentation with respect thereto as may reasonably be requested
by such LC Participant.

        (f)     The obligations of the LC Participants to make payments to an
Issuing Lender with respect to Letters of Credit issued by it shall be
irrevocable and not subject to any qualification or exception whatsoever and
shall be made in accordance with the terms and conditions of this Credit
Agreement under all circumstances, including, without limitation, any of the
following circumstances:

                (i)     any lack of validity or enforceability of this Credit
Agreement or any of the other Credit Documents;

                (ii)    the existence of any claim, setoff, defense or other
right which any Credit Party or any Subsidiary of any Credit 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),
the Agent, any LC Participant, or any other Person, whether in connection with
this Credit Agreement, any Letter of Credit, the transactions contemplated
herein or any unrelated transactions (including any underlying transaction
between any Credit Party or any Subsidiary of any Credit Party and the
beneficiary named in any such Letter of Credit);

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

                (iv)    the surrender or impairment of any security for the
performance or observance of any of the terms of any of the Credit Documents; or

                (v)     the occurrence of any Default or Event of Default.

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        3.5     AGREEMENT TO REPAY LETTER OF CREDIT DRAWINGS.

        (a)     The Borrowers jointly and severally agree to reimburse each
Issuing Lender, by making payment to the Agent in immediately available funds at
the Payment Office, for any payment or disbursement made by such Issuing Lender
under any Letter of Credit issued by it (each such amount so paid, until
reimbursed, an "Unpaid Drawing"), not later than one Business Day following
receipt by the Funds Administrator of notice of such payment or disbursement
(provided that no such notice shall be required to be given if an Event of
Default under Section 9.1(e) shall have occurred and be continuing, in which
case the Unpaid Drawing shall be due and payable immediately without
presentment, demand, protest or notice of any kind (all of which are hereby
waived by the Funds Administrator and each of the Borrowers, to the extent such
waiver is permitted pursuant to applicable law)), with interest on the amount so
paid or disbursed by such Issuing Lender, to the extent not reimbursed prior to
12:00 Noon on the date of such payment or disbursement, from and including the
date paid or disbursed to but excluding the date such Issuing Lender was
reimbursed by the Borrowers therefor at a rate per annum equal to the Prime
Lending Rate in effect from time to time plus one percent (1.00%); provided,
that, to the extent such amounts are not reimbursed prior to 12:00 Noon on the
third Business Day following the receipt by the Funds Administrator of notice of
such payment or disbursement or following the occurrence and during the
continuance of a Default or an Event of Default, interest shall thereafter
accrue on the amounts so paid or disbursed by the applicable Issuing Lender (and
until reimbursed by the Borrowers) at a rate per annum equal to the Prime
Lending Rate in effect from time to time plus three percent (3.0%), with such
interest to be payable on demand. Each Issuing Lender shall give the Funds
Administrator prompt written notice of each Drawing under any Letter of Credit
issued by it, provided that the failure to give any such notice shall in no way
affect, impair or diminish the obligations of the Borrowers hereunder (except to
the extent otherwise expressly provided herein).

        (b)     The obligations of the Borrowers under this Section 3.5 to
reimburse each Issuing Lender with respect to Drawings under Letters of Credit
issued by it (each a "Drawing") (including, in each case, interest thereon)
shall be absolute and unconditional under any and all circumstances and
irrespective of any setoff, counterclaim or defense to payment which any
Borrower, any Subsidiary of any Borrower or any other Credit Party may have or
have had against any Lender (including in its capacity as an Issuing Lender or
as a LC Participant), including, without limitation, any defense based upon the
failure of any Drawing under a Letter of Credit to conform to the terms of the
Letter of Credit or any nonapplication or misapplication by the beneficiary of
the proceeds of such Drawing; provided that the Borrowers shall not be obligated
to reimburse any Issuing Lender for any wrongful payment made by such Issuing
Lender under a Letter of Credit issued by it as a result of acts or omissions
constituting willful misconduct or gross negligence on the part of such Issuing
Lender (as determined by a court of competent jurisdiction in a final and
non-appealable decision).

        3.6     INCREASED COSTS. If at any time after the Closing Date, the
introduction of or any change in any applicable law, rule, regulation, order,
guideline or request or in the interpretation or administration thereof by the
NAIC or any Governmental Authority charged with the interpretation or
administration thereof, or compliance by any Issuing Lender or any LC
Participant with any request or directive by the NAIC or by any such
Governmental Authority (whether or not having the force of law), shall either
(i) impose, modify or make applicable any

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reserve, deposit, capital adequacy or similar requirement (excluding imposition
of Taxes, which shall be governed by Section 2.8, and excluding any reserve
requirement reflected in the Adjusted LIBOR Rate) against letters of credit
issued by such Issuing Lender or participated in by such LC Participant, or (ii)
impose on such Issuing Lender or such LC Participant any other conditions
relating, directly or indirectly, to this Credit Agreement or any Letter of
Credit (excluding imposition of Taxes, which shall be governed by Section 2.8,
and excluding any reserve requirement reflected in the Adjusted LIBOR Rate); and
the result of any of the foregoing is to increase the cost to such Issuing
Lender or such LC Participant of issuing, maintaining or participating in any
Letter of Credit, or reduce the amount of any sum received or receivable by such
Issuing Lender or such LC Participant hereunder or reduce the rate of return on
such Person's capital with respect to Letters of Credit (except for changes in
the rate of tax on, or determined by reference to, the net income or profits of
such Issuing Lender or such LC Participant pursuant to the laws of the
jurisdiction in which it is organized or in which its principal office or
applicable lending office is located or any subdivision thereof or therein),
then, upon the delivery of the certificate referred to below to the Funds
Administrator by such Issuing Lender or such LC Participant within ninety days
after an officer of such Issuing Lender or such LC Participant, as the case may
be, responsible for overseeing the transactions contemplated by this Credit
Agreement knows or had reason to know that such amount is payable by the
Borrowers pursuant to this Section 3.6 (a copy of which certificate shall be
sent by such Issuing Lender or such LC Participant to the Agent), the Borrowers
jointly and severally agree to pay to such Issuing Lender or such LC
Participant, as the case may be, such additional amount or amounts as will
compensate such Issuing Lender or LC Participant for such increased cost or
reduction in the amount receivable or reduction on the rate of return on its
capital. Any Issuing Lender or LC Participant, upon determining that any
additional amounts will be payable to such Person pursuant to this Section 3.6,
will give prompt written notice thereof to the Funds Administrator, which notice
shall include a certificate submitted to the Funds Administrator by such Issuing
Lender or LC Participant (a copy of which certificate shall be sent by such
Issuing Lender or such LC Participant, as the case may be, to the Agent),
setting forth in reasonable detail the basis for the calculation of such
additional amount or amounts necessary to compensate such Person. The
certificate required to be delivered pursuant to this Section 3.6 shall, absent
manifest error, be final and conclusive and binding on the Funds Administrator
and each of the Borrowers.

                                   ARTICLE 4

                           INTEREST, FEES AND EXPENSES

        4.1     INTEREST ON LIBOR RATE LOANS. Subject to the provisions of
Section 4.4, each LIBOR Rate Loan shall bear interest on its unpaid principal
amount at a rate per annum equal to the applicable Adjusted LIBOR Rate plus the
Applicable Margin, as the same may be adjusted pursuant to the provisions of the
definition of Applicable Margin. Such interest shall be payable on the last day
of each Interest Period with respect to such LIBOR Rate Loan (or, in the case of
Interest Periods in excess of three months on each of the ninetieth (90th) day
and the last day of such Interest Period), at the date of Conversion of such
LIBOR Rate Loan (or a portion thereof) to a Prime Rate Loan and at maturity of
such LIBOR Rate Loan, and after maturity of such LIBOR Rate Loan (whether by
acceleration or otherwise), upon demand. The Agent upon

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<PAGE>

determining the Adjusted LIBOR Rate for any Interest Period shall promptly
notify the Funds Administrator and the Lenders by telephone (confirmed promptly
in writing) or in writing thereof. Each determination by the Agent of an
interest rate hereunder shall be conclusive and binding for all purposes, absent
manifest error.

        4.2     INTEREST ON PRIME RATE LOANS. Subject to the provisions of
Section 4.4, each Prime Rate Loan shall bear interest on its unpaid principal
amount at a rate per annum equal to the Prime Lending Rate plus the Applicable
Margin, as the same may be adjusted pursuant to the provisions of the definition
of Applicable Margin. Such interest shall be payable in arrears on the first day
of each calendar quarter and at maturity of such Prime Rate Loan, and after
maturity of such Prime Rate Loan (whether by acceleration or otherwise), upon
demand. In the event of any change in said Prime Lending Rate, the rate
hereunder shall change, effective as of the day the Prime Lending Rate changes.
Each determination by the Agent of any interest rate hereunder shall be
conclusive and binding for all purposes, absent manifest error.

        4.3     NOTICE OF CONTINUATION AND NOTICE OF CONVERSION.

        (a)     With respect to any Borrowing consisting of LIBOR Rate Loans,
the Borrowers may (so long as no Default or Event of Default has occurred and is
continuing, subject to the provisions of Section 4.3(c)), elect to maintain such
Borrowing or any portion thereof as consisting of LIBOR Rate Loans by selecting
a new Interest Period for such Borrowing, which new Interest Period shall
commence on the last day of the immediately preceding Interest Period. Each
selection of a new Interest Period (a "Continuation") shall be made by notice
given not later than 12:00 noon on the third Business Day prior to the date of
any such Continuation relating to LIBOR Rate Loans, by the Funds Administrator
to the Agent. Such notice by the Funds Administrator of a Continuation (a
"Notice of Continuation") shall be in substantially the form of Exhibit C-1,
specifying (i) the date of such Continuation, (ii) the type of Loans subject to
such Continuation, (iii) the aggregate amount of Loans subject to such
Continuation and (iv) the duration of the selected Interest Period, all of which
shall be specified in such manner as is necessary to comply with all limitations
on Loans outstanding hereunder. The Borrowers may elect to maintain more than
one Borrowing consisting of LIBOR Rate Loans by combining such Borrowings into
one Borrowing and selecting a new Interest Period pursuant to this Section
4.3(a); provided that each of the Borrowings so combined shall consist of Loans
having Interest Periods ending on the same date. If the Borrowers shall fail to
select a new Interest Period for any Borrowing consisting of LIBOR Rate Loans in
accordance with this Section 4.3(a), such Loans will automatically, on the last
day of the then existing Interest Period therefor, Convert into Prime Rate
Loans.

        (b)     The Borrowers may on any Business Day (so long as no Default or
Event of Default has occurred and is continuing), upon notice (each such notice,
a "Notice of Conversion") given by the Funds Administrator to the Agent, and
subject to the provisions of Section 4.3(c), Convert the entire amount of or a
portion of all Loans of one Type comprising the same Borrowing into Loans of
another Type; however, provided that any Conversion of any LIBOR Rate Loans into
Loans of another Type shall be made on, and only on, the last day of an Interest
Period for such LIBOR Rate Loans and, upon Conversion of any Loans into Loans of
another Type, the Borrowers shall pay accrued interest to the date of Conversion
on the principal amount Converted. Each such Notice of Conversion shall be given
not later than 12:00 noon on

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<PAGE>

the Business Day prior to the date of any proposed Conversion into Prime Rate
Loans and on the third Business Day prior to the date of any proposed Conversion
into LIBOR Rate Loans. Subject to the restrictions specified above, each Notice
of Conversion shall be in substantially the form of Exhibit C-2 hereto
specifying (i) the requested date of such Conversion, (ii) the Type of Loans to
be Converted, (iii) the portion of such Type of Loan to be Converted, (iv) the
Type of Loan such Loans are to be Converted into and (v) if such Conversion is
into LIBOR Rate Loans, the duration of the respective Interest Periods of each
of such Loans. Each Conversion shall be in an aggregate amount for the Loans of
all Lenders of not less than $2,000,000 or any integral multiple of $1,000,000
in excess thereof. The Borrowers may elect to Convert the entire amount of or a
portion of all Loans of one Type comprising more than one Borrowing into Loans
of another Type by combining such Borrowings into one or more Borrowings
consisting of Loans of another Type; provided that if the Borrowings so combined
consist of LIBOR Rate Loans, each of such Loans so combined shall have Interest
Periods ending on the same date.

        (c)     Notwithstanding anything contained in subsections (a) and (b)
above or elsewhere in this Credit Agreement to the contrary,

                (i)     (A)     if the Agent is unable to determine the LIBOR
                                Rate for LIBOR Rate Loans comprising any
                                requested Borrowing, Continuation or Conversion,
                                the right of the Borrowers to select or maintain
                                LIBOR Rate Loans for such Borrowing or any
                                subsequent Borrowing shall be suspended until
                                the Agent shall notify the Funds Administrator
                                and the Lenders that the circumstances causing
                                such suspension no longer exist, and each Loan
                                comprising such Borrowing shall be a loan of a
                                Type that is unaffected by such circumstances,
                                as selected by the Borrowers pursuant to this
                                Credit Agreement;

                        (B)     if a Lender shall, at any time, notify the
                                Agent that, because of a change in applicable
                                law after the date such Lender became a Lender,
                                it has become unlawful for such Lender to
                                participate in any requested Borrowing,
                                Continuation or Conversion of LIBOR Rate Loans,
                                to continue its LIBOR Rate Loans, or to comply
                                with its obligations hereunder in respect
                                thereof, that Lender's obligation to participate
                                in any such requested Borrowing, Continuation or
                                Conversion shall be discharged by such Lender's
                                making its participation therein in the form of
                                a Prime Rate Loan, and any of such Lender's
                                LIBOR Rate Loans not otherwise being converted
                                shall be converted into Prime Rate Loans on the
                                earlier of (1) the last day of the applicable
                                Interest Period and (2) the last day such Lender
                                may lawfully continue to maintain LIBOR Rate
                                Loans, provided that any Prime Rate Loan that,
                                but for this clause (B), would have been a LIBOR
                                Rate Loan shall constitute part of the Borrowing
                                of which any such LIBOR Rate Loan was or would
                                have been a part;

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<PAGE>

                (ii)    if the Majority Lenders shall, at least one Business Day
before the date of any requested Borrowing, Continuation or Conversion, notify
the Agent that the Adjusted LIBOR Rate for Loans comprising such Borrowing will
not adequately reflect the cost to such Lenders of making or funding their
respective Loans for such Borrowing, the right of the Borrowers to select LIBOR
Rate Loans for such Borrowing shall be suspended until the Agent shall notify
the Funds Administrator and the Lenders that the circumstances causing such
suspension no longer exist, and each Loan comprising such Borrowing shall be a
Loan of a Type that is unaffected by such circumstances, as selected by the
Borrowers pursuant to this Credit Agreement; and

                (iii)   the Borrowers shall borrow, prepay, convert and continue
Loans in a manner such that (A) the aggregate principal amount of LIBOR Rate
Loans having the same Interest Period shall at all times be not less than
$2,000,000, (B) there shall not be, at any one time, more than five Interest
Periods in effect with respect to LIBOR Rate Loans and (C) no payment of LIBOR
Rate Loans will have to be made prior to the last day of an applicable Interest
Period in order to repay the Loans in the amounts and on the date specified in
Section 2.4(b)(i).

        (d)     Each Notice of Continuation and Notice of Conversion shall be
irrevocable by and binding on the Borrowers.

        4.4     INTEREST AFTER EVENT OF DEFAULT. Interest on any amount of
overdue interest on or overdue principal of the Loans, and interest on the
amount of principal under the Loans outstanding as of the date an Event of
Default occurs, and at all times thereafter until the earlier of the date upon
which (a) all Obligations (other than contingent indemnification Obligations to
the extent that no claim giving rise thereto has been asserted and remains
unresolved or unsatisfied) have been paid and satisfied in full or (b) such
Event of Default shall not be continuing, shall be payable on demand at a rate
per annum equal to the rate at which the Loans are bearing interest pursuant to
Sections 4.1 and 4.2 above, plus two percent (2.0%). In the event of any change
in said applicable interest rate, the rate hereunder shall change, effective as
of the day the applicable interest rate changes, so as to remain two percent
(2.0%) per annum above the then applicable interest rate.

        4.5     UNUSED LINE FEE. The Borrowers shall pay to the Agent, for the
ratable benefit of the Lenders, a non-refundable fee (the "Unused Line Fee")
equal to one-half of one percent (0.50%) per annum of the unused portion of the
Line of Credit (with any outstanding Letters of Credit constituting usage of the
Line of Credit). The Unused Line Fee shall accrue daily from the Closing Date
until the Expiration Date, and shall be due and payable quarterly in arrears, on
the first Business Day of calendar quarter and on the Expiration Date.

        4.6     LETTER OF CREDIT FEES.

        (a)     The Agent shall be entitled to charge for the account of the
Funds Administrator on the first Business Day of each calendar quarter, a fee
payable by the Borrowers for the ratable benefit of the Lenders, in an amount
equal to the Applicable Margin with respect to LIBOR Rate Loans in effect from
time to time of the Stated Amount of all Letters of Credit outstanding during
the immediately preceding calendar quarter (the "Letter of Credit Fee").

                                     - 57 -

<PAGE>

        (b)     The Agent shall also be entitled to charge to the account of the
Funds Administrator as and when incurred by the Agent or any Lender, the
customary charges, fees, costs and expenses charged to the Agent or any Lender
for the Funds Administrator's account by any Issuing Lender (the "Issuing Lender
Fees") in connection with the issuance, transfer, drawing, amendment or
negotiation of any Letters of Credit by the Issuing Lender thereof. Each
determination by the Agent of Letter of Credit Fees and Issuing Lender Fees
shall be conclusive and binding for all purposes, absent manifest error.

        (c)     Agent shall also be entitled to charge for the account of the
Funds Administrator the applicable fee with respect to each Letter of Credit set
forth in the Fee Letter.

        (d)     Upon notice from Agent, after the occurrence of an Event of
Default until the earlier of the date upon which (i) all Obligations shall have
been paid and satisfied in full or (ii) such Event of Default shall not be
continuing, the Letter of Credit Fee payable with respect to Letters of Credit
shall be payable on demand at a rate per annum equal to the Letter of Credit Fee
then in effect pursuant to clause (a) above plus two percent (2.0%). In the
event of any change in such Letter of Credit Fee, the Letter of Credit Fee
hereunder shall change, effective as of the date of such change so as to remain
two percent (2.0%) per annum above the then applicable Letter of Credit Fee.

        4.7     REIMBURSEMENT OF EXPENSES.

        (a)     From and after the Closing Date, the Borrowers shall promptly
reimburse the Agent for all Expenses of the Agent as the same are incurred by
the Agent and upon receipt of invoices therefor and, if requested by the Funds
Administrator, such reasonable backup materials and information as any Borrower
shall reasonably request.

        (b)     The Borrowers shall pay to each Lender, upon request, such
amount or amounts as such Lender determines in good faith are necessary to
compensate it for any loss, cost or expense incurred by it as a result of (i)
any payment, prepayment or conversion of a LIBOR Rate Loan on a date other than
the last day of an Interest Period for such LIBOR Rate Loan or (ii) a LIBOR Rate
Loan for any reason not being made or converted, or any payment of principal
thereof or interest thereon not being made, on the date therefor determined in
accordance with the applicable provisions of this Credit Agreement. At the
election of such Lender, and without limiting the generality of the foregoing,
but without duplication, such compensation on account of losses may include an
amount equal to the excess of (A) the interest that would have been received
from the Borrowers under and in accordance with the terms of this Credit
Agreement on any amounts to be reemployed during an Interest Period or its
remaining portion, as the case may be, over (B) the interest component of the
return that such Lender reasonably determines it could have obtained had it
placed such amount on deposit with DBTCo in the interbank Dollar market for a
period equal to such Interest Period or its remaining portion, as the case may
be.

        4.8     AUTHORIZATION TO CHARGE BORROWERS' ACCOUNT. Each Borrower hereby
authorizes the Agent to charge the Borrowers' Account with the amount of all
principal, interest, Fees, Expenses and other amounts to be paid hereunder,
under the Fee Letter and under the other Credit Documents as and when such
payments become due and payable (without giving effect to any grace period
applicable thereto pursuant to Section 9.1(a)(ii)), including, without
limitation,

                                     - 58 -

<PAGE>

all Unpaid Drawings. Each Borrower confirms that any charges which the Agent may
so make to the Borrowers' Account as herein provided will be made as an
accommodation to the Borrowers and solely at the Agent's discretion.

        4.9     INDEMNIFICATION IN CERTAIN EVENTS. If after the Closing Date,
either (a) any change in or in the interpretation of any law or regulation is
introduced, including with respect to reserve requirements, applicable to DBTCo,
Deutsche Bank AG or any other banking or financial institution from whom any of
the Lenders borrows funds or obtains credit (a "Funding Bank"), the Agent or any
of the Lenders (excluding imposition of Taxes, which shall be governed by
Section 2.8, and excluding any reserve requirement reflected in the Adjusted
LIBOR Rate), or (b) the Agent, a Funding Bank or any of the Lenders complies
with any future guideline or request from any central bank or other Governmental
Authority (excluding imposition of Taxes, which shall be governed by Section
2.8, and excluding any reserve requirement reflected in the Adjusted LIBOR Rate)
or (c) the Agent, a Funding Bank or any of the Lenders determines that the
adoption of any applicable law, rule or regulation regarding capital adequacy,
or any change therein, 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 has or would have the effect
described below, or the Agent, a Funding Bank or any of the Lenders complies
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, and
in the case of any event set forth in this clause (c), such adoption, change or
compliance has or would have the direct or indirect effect of reducing the rate
of return on any of the Lenders' capital as a consequence of its obligations
hereunder or with respect to any participation interest in any Letter of Credit
(excluding imposition of Taxes, which shall be governed by Section 2.8, and
excluding any reserve requirement reflected in the Adjusted LIBOR Rate) to a
level below that which such Lender could have achieved but for such adoption,
change or compliance (taking into consideration the Agent's or such Funding
Bank's or Lender's policies as the case may be with respect to capital adequacy)
by an amount deemed by such Lender to be material, or any of the foregoing
events described in clauses (a), (b) or (c) increases the cost to the Agent, or
any of the Lenders of (i) funding or maintaining the Line of Credit; or (ii)
acquiring or maintaining any participation interest in any Letter of Credit, or
reduces the amount receivable in respect thereof, or in respect of such Letter
of Credit, by the Agent or any Lender, then the Borrowers shall promptly upon
receipt from the Agent of the certificate referred to in the following sentence,
pay to the Agent, for the account of each applicable Lender or, as applicable, a
Funding Bank, additional amounts sufficient to indemnify such Person against
such increase in cost or reduction in amount receivable. A certificate as to the
amount of such increased cost and setting forth in reasonable detail the
calculation thereof shall be submitted to the Funds Administrator by the Person
making such claim, and shall be conclusive absent manifest error.

        4.10    CALCULATIONS AND DETERMINATIONS.

        (a)     All calculations of (i) interest hereunder and (ii) Fees, shall
be made by the Agent, on the basis of a year of 360 days, or, if such
computation would cause the interest and fees chargeable hereunder to exceed the
Highest Lawful Rate, 365/366 days, in each case to the extent applicable for the
actual number of days elapsed (including the first day but excluding the last
day) occurring in the period for which such interest or fees are payable.

                                     - 59 -

<PAGE>

        (b)     In making the determinations contemplated by Sections 4.7, 4.8
and 4.9, the Agent and each Lender, as the case may be, may make such estimates,
assumptions, allocations and the like that such Person in good faith determines
to be appropriate.

        (c)     Each determination by the Agent of an interest rate or payment
hereunder shall be conclusive and binding for all purposes, absent manifest
error.

        4.11    MITIGATION. If a condition or event occurs which requires the
payment of any additional amounts or increased costs with respect to any Lender
or Issuing Lender pursuant to Sections 2.8 or 4.9, such Lender or Issuing
Lender, as the case may be, shall promptly take such steps as may reasonably be
available to it to mitigate the effects of such condition or event; provided,
that no Lender or Issuing Lender (as the case may be) shall be required to take
any step that, in its reasonable judgment, would be disadvantageous to it in any
material respect or would require it to incur material additional costs.

                                    ARTICLE 5

                              CONDITIONS PRECEDENT

        5.1     CONDITIONS TO INITIAL CREDIT EVENT. The Initial Credit Event is
subject to the satisfaction or waiver, immediately prior thereto or concurrently
therewith, of the following conditions precedent:

        (a)     Closing Document List. The Agent shall have received each of the
agreements, opinions, reports, approvals, consents, certificates and other
documents set forth on the Closing Document List attached hereto as Annex I,
including, without limitation, a copy of the solvency letter provided for in
Section 5.13 of the BCO Acquisition Merger Agreement (on which the Agent and the
Lenders shall be entitled to rely).

        (b)     Fees and Expenses. The Agent and each of the Lenders shall have
received payment in full of those Fees and Expenses referred to in the Fee
Letter and in Article 4 payable to them concurrently with or prior to the
Initial Credit Event (or an irrevocable authorization to pay such Fees or
Expenses out of the proceeds of the initial Loans).

        (c)     Changes in Market. There shall not have occurred and be
continuing a material adverse change in the market for syndicated bank credit
facilities, or a material disruption of, or material adverse change in,
financial, banking or capital market conditions, in each case since September
30, 2002, as reasonably determined by the Agent.

        (d)     Borrowing Base; Unused Availability. After giving pro forma
effect to the funding of the initial Loans, the issuance of the initial Letters
of Credit, if any, and the payment of all costs, fees and expenses incurred by
or for the account of the Borrowers in connection with the execution and
delivery of this Credit Agreement, the other Credit Documents and the Related
Transactions which are due and payable on the Closing Date, there shall be
unused availability under the Borrowing Base of at least $35,000,000.

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        (e)     Related Transactions Documents. There shall have been delivered
to the Agent true, correct and complete copies of the following documents:

                (i)     all Merger Documents;

                (ii)    all Equity Financing Documents;

                (iii)   all Existing Note Repurchase Documents;

                (iv)    all Subordinated Note Documents;

                (v)     the Securityholders' Agreement;

                (vi)    all Management Agreements;

                (vii)   all Employment Agreements;

                (viii)  all Management Change of Control Agreements; and

                (ix)    all Kelso Agreements;

all of which Merger Documents, Equity Financing Documents, Existing Note
Repurchase Documents, Subordinated Note Documents, Management Agreements,
Management Change of Control Agreements, Employment Agreements and Kelso
Agreements, together with the Securityholders' Agreement, shall be in form and
substance reasonably satisfactory to the Agent and shall be in full force and
effect (it being understood and agreed that each of the foregoing agreements,
instruments and documents are satisfactory to the Agent).

        (f)     Consummation of Certain Related Transactions. The Agent shall be
reasonably satisfied that the Mergers, the Equity Financing and the Existing
Note Repurchase shall have been in each case consummated in accordance with the
Merger Documents, the Equity Financing Documents and the Existing Note
Repurchase Documents, respectively, and all material applicable Requirements of
Law, and each of the material conditions precedent to the consummation of the
Mergers, the Equity Financing and the Existing Note Repurchase, respectively,
shall have been satisfied in all material respects and not waived, except with
the consent of the Agent (each of which consents shall not be unreasonably
withheld or delayed).

        (g)     Payment of Indebtedness Under BCO Holding Promissory Note. BWAY
shall have received in immediately available Dollars payment in full of the
aggregate outstanding principal balance under that certain Promissory Note dated
November 27, 2002, executed by BCO Holding and payable to BWAY.

        (h)     Issuance of Subordinated Notes. BWAY shall have assumed the
obligations of BWAY Finance with respect to the Subordinated Notes pursuant to
and in accordance with the Supplemental Indenture and gross proceeds thereof in
an aggregate amount not less than $200,000,000 shall be available in immediately
available funds for the account of BWAY.

                                     - 61 -

<PAGE>

The occurrence of the Initial Credit Event shall be deemed to constitute an
acknowledgement by the Agent and each Lender that each of the conditions
precedent thereto set forth in this Section 5.1 have been satisfied.

        5.2     CONDITIONS TO EACH CREDIT EVENT. On the date of each Credit
Event (including the Initial Credit Event), both immediately before and
immediately after giving effect thereto and to the application of the proceeds
therefrom, the following statements shall be true to the reasonable satisfaction
of the Agent (and each request for a Credit Event, shall constitute a
representation and warranty by each Borrower that on the date of such Credit
Event, immediately before and immediately after giving effect thereto and to the
application of the proceeds therefrom, such statements are true):

                (a)     The representations and warranties contained in this
        Credit Agreement and in each other Credit Document are true and correct
        in all material respects on and as of the date of such Credit Event as
        though made on and as of such date, except to the extent that such
        representations and warranties expressly relate solely to an earlier
        date (in which case such representations and warranties shall have been
        true and correct in all material respects on and as of such earlier
        date); and

                (b)     No Default or Event of Default has occurred and is
        continuing, or could reasonably be expected to result from such Credit
        Event or the application of the proceeds thereof.

                                    ARTICLE 6

                         REPRESENTATIONS AND WARRANTIES

        To induce the Agent and the Lenders to enter into this Credit Agreement
and each Issuing Lender to issue Letters of Credit, each Borrower, with respect
to itself, each of the other Borrowers and each of their respective
Subsidiaries, hereby represents and warrants to the Agent, the Lenders and each
Issuing Lender:

        6.1     ORGANIZATION AND QUALIFICATION. Each Credit Party and each
Subsidiary of each Credit Party: (a) is duly organized, validly existing and in
good standing under the laws of the jurisdiction of its organization, (b) has
the corporate or other organizational power and authority to own its properties
and assets and to transact the businesses in which it presently is, or proposes
to be, engaged and (c) is duly qualified and is authorized to do business and is
in good standing in each jurisdiction where it presently is, or proposes to be,
engaged in business, except for any failures to be so qualified, authorized or
in good standing which singly or in the aggregate could not reasonably be
expected to have a Material Adverse Effect. Schedule B, Part 6.1 lists all
jurisdictions in which each Credit Party and each Subsidiary of each Credit
Party are qualified to do business as foreign corporations.

        6.2     SOLVENCY. The fair saleable value of the assets of each Credit
Party and each Subsidiary of each Credit Party exceeds all its probable
liabilities, including those to be incurred pursuant to this Credit Agreement
and the other Credit Documents. Each Credit Party and each Subsidiary of each
Credit Party: (a) does not have unreasonably small capital with which to

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conduct the business in which it is engaged and (b) has not incurred, and does
not believe that it will incur after giving effect to the transactions
contemplated by this Credit Agreement and the other Credit Documents, debts
beyond its ability to pay such debts as they become due.

        6.3     PRIORITY OF LIENS. The Liens granted pursuant to the Credit
Documents constitute the valid and enforceable first priority and perfected
Liens on Collateral of the type in which a security interest may be perfected by
filing, except, in the case of priorities, for Permitted Liens, and except as
may be limited by applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting
creditors' rights generally and general principles of equity (whether considered
in a proceeding in equity or law).

        6.4     NO CONFLICT. The execution, delivery and performance by each
Credit Party and each Subsidiary of each Credit Party of each Credit Document or
Related Transactions Document to which it is a party: (a) are within its
corporate or other organizational power; (b) have been duly authorized by all
necessary corporate or other organizational action; (c) except as set forth on
Schedule B, Part 6.4, are not in contravention in any material respect of any
material Requirement of Law or any Related Transaction Document or Material
Contract, and do not require any Credit Party to obtain any consent of any other
Person thereto under any Related Transaction Document or Material Contract; and
(d) will not, except as contemplated herein, result in the imposition of any
Liens upon any of its properties (except for Permitted Liens).

        6.5     ENFORCEABILITY. This Credit Agreement, each other Credit
Document and each Related Transactions Document to which any Credit Party or any
Subsidiary of any Credit Party is a party are the legal, valid and binding
obligations of such Credit Party or Subsidiary, as the case may be, and are
enforceable against such Credit Party or Subsidiary, as the case may be, in
accordance with their terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors' rights
generally and general principles of equity (whether considered in a proceeding
in equity or law).

        6.6     CONSENTS. Except as set forth on Schedule B, Part 6.6, no
consent or authorization of or filing or registration with any Governmental
Authority is required to be obtained or made by any Credit Party in connection
with any Credit Event hereunder, the grant of the Liens pursuant to the Credit
Documents, or the execution, delivery or performance by any Credit Party of this
Credit Agreement, the Notes, the other Credit Documents or the Related
Transactions Documents, except for (a) authorizations which have been duly
obtained or filings which have been duly made and which, in each case, are in
full force and effect, (b) filings to perfect the Liens created by the
Collateral Documents, and (c) filings pursuant to the Assignment of Claims Act
of 1940 (31 U.S.C. Section 3727 et seq.).

        6.7     FINANCIAL DATA. The Borrowers have furnished or caused to be
furnished to the Lenders the following Financial Statements, which have been
prepared in accordance with GAAP consistently applied throughout the periods
involved, except as otherwise noted therein (and, with respect to the Financial
Statements referred to in clause (b) below, except for the absence of footnotes
and subject to normal year-end adjustments): (a) balance sheets as of, and
statements of operations, shareholder's equity and cash flows for the 2002
Fiscal Year, audited by independent certified public accountants and accompanied
by an unqualified opinion thereof;

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and (b) an unaudited balance sheet as of, and unaudited statements of
operations, shareholder's equity and cash flows for the Fiscal Quarter ending in
December, 2002.

        6.8     JURISDICTIONS OF ORGANIZATION; LOCATIONS OF COLLATERAL. The
jurisdiction of incorporation or other organization of each Borrower and each
Subsidiary of each Borrower is set forth on Schedule B, Part 6.8. There is no
location at which any Borrower or any Subsidiary of any Borrower has any
Collateral (except for vehicles and Inventory in transit for processing in the
ordinary course of business) other than those locations identified on Schedule
B, Part 6.8. Schedule B, Part 6.8 also contains a complete list of the legal
names and addresses of each warehouse at which Inventory of any Borrower is
stored. None of the receipts received by any Borrower from any warehouseman
states that the goods covered thereby are to be delivered to bearer or to the
order of a named person or to a named person and such named person's assigns.
Except as set forth on Schedule B, Part 6.8, no Borrower nor any of its
Subsidiaries sells any Inventory on consignment (as such term is defined in
Section 9-102(a) of the UCC).

        6.9     FICTITIOUS BUSINESS NAMES. Except as set forth on Schedule B,
Part 6.9, no Borrower and no Subsidiary of any Borrower has used any corporate
or fictitious name (including d/b/a's, tradenames or the like) during the five
(5) years preceding the date hereof, other than the corporate name under which
it has executed this Credit Agreement.

        6.10    SUBSIDIARIES. The only Subsidiaries of each Credit Party are
those listed on Schedule B, Part 6.10. Upon consummation of the Related
Transactions, BCO Holding will be the record and beneficial owner of all of the
issued and outstanding Capital Securities of BWAY, and a Borrower or a
Wholly-Owned Subsidiary of a Borrower will be the record and beneficial owner of
all of the issued and outstanding Capital Securities of each of the other
Subsidiaries, in each case listed on Schedule B, Part 6.10. Upon consummation of
the Related Transactions, there will be no proxies, irrevocable or otherwise,
with respect to such Capital Securities, and no Capital Securities of any
Borrower or any Subsidiary of any Borrower will be, or may become, required to
be issued by reason of any options, warrants, scrip, rights to subscribe to,
calls or commitments of any character whatsoever relating to, or securities or
rights convertible into or exchangeable for, Capital Securities of any Borrower
or any Subsidiary of any Borrower, and there will be no contracts, commitments,
understandings or arrangements by which any Borrower or any Subsidiary of any
Borrower will be, or may become, bound to issue additional Capital Securities
convertible into or exchangeable for such Capital Securities. All of such shares
listed on Schedule B, Part 6.10 are owned by the applicable Credit Party free
and clear of any Liens, other than Permitted Liens.

        6.11    NO JUDGMENTS OR LITIGATION. Except (a) as set forth on Schedule
B, Part 6.11, or (b) with respect to matters that singly or in the aggregate
could not reasonably be expected to have a Material Adverse Effect, and in any
event do not constitute an Event of Default pursuant to Section 9.1(j), no
judgments, orders, writs or decrees are outstanding against any Credit Party or
any Subsidiary of any Credit Party nor is there now pending or, to any
Borrower's knowledge, threatened any litigation, contested claim, investigation,
arbitration, or governmental proceeding by or against any Credit Party or any
Subsidiary of any Credit Party.

        6.12    NO DEFAULTS. No Credit Party and no Subsidiary of any Credit
Party is in default under any term of any Related Transactions Document or
Material Contract, except (a) as set

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forth on Schedule B, Part 6.12 and (b) for any such defaults which singly or in
the aggregate could not reasonably be expected to have a Material Adverse
Effect. Except as set forth on Schedule B, Part 6.12, as of the date hereof, no
Borrower knows of any material dispute regarding any Related Transaction
Document or Material Contract.

        6.13    LABOR MATTERS.

        (a)     Except as set forth on Schedule B, Part 6.13, there is no labor
related litigation, contested claim, investigation or proceeding before any
Governmental Authority pending or, to the knowledge of any Borrower, threatened
between any Credit Party or any Subsidiary of any Credit Party and any of their
respective employees, except for any of the foregoing which singly or in the
aggregate could not reasonably be expected to have a Material Adverse Effect.

        (b)     No Credit Party and no Subsidiary of any Credit Party is engaged
in any unfair labor practice, except for any such practices which singly or in
the aggregate could not reasonably be expected to have a Material Adverse
Effect. There is (i) no unfair labor practice complaint pending against any
Credit Party or any Subsidiary of any Credit Party or, to the knowledge of any
Borrower, threatened against any of them, before the National Labor Relations
Board, and no grievance or significant arbitration proceeding arising out of or
under collective bargaining agreements is so pending against any Credit Party or
any Subsidiary of any Credit Party or, to the knowledge of any Borrower,
threatened against any of them, (ii) no strike, labor dispute, slowdown or
stoppage pending against any Credit Party or any Subsidiary of any Credit Party
or, to the knowledge of any Borrower, threatened against any of them and (iii)
no union representation question with respect to the employees of any Credit
Party or any Subsidiary of any Credit Party and no union organizing activities,
except (with respect to any matter specified in the foregoing clauses (i), (ii)
or (iii)) for any of the foregoing which singly or in the aggregate could not
reasonably be expected to have a Material Adverse Effect.

        6.14    COMPLIANCE WITH LAWS.

        (a)     Except as set forth on Schedule B, Part 6.14 and for other
matters that singly or in the aggregate could not reasonably be expected to have
a Material Adverse Effect, no Credit Party and no Subsidiary of any Credit Party
has (i) violated or failed to comply with any Requirement of Law or (ii) any
Liability of which any Borrower has knowledge or reasonably should have
knowledge in connection with any release, generation, storage, use,
transportation, disposal or other handling of any hazardous or toxic waste,
substance or constituent into the environment, or (iii) received any notice,
letter or other indication of potential Liability arising from the release,
generation, storage, use, transportation, disposal or other handling of any
hazardous or toxic waste, substance or constituent into the environment.

        (b)     Except as set forth on Schedule B, Part 6.14 and for other
matters that singly or in the aggregate could not reasonably be expected to have
a Material Adverse Effect, none of the operations of any Credit Party or any
Subsidiary of any Credit Party is the subject of any federal or state
investigation evaluating whether such Borrower or Subsidiary disposed of any
hazardous or toxic waste, substance or constituent at any site that may require
remedial action, or any federal or state investigation evaluating whether any
remedial action is needed to respond to a release of any hazardous or toxic
waste, substance or constituent into the environment.

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        6.15    ERISA. No Credit Party, no Subsidiary of any Credit Party and no
ERISA Affiliate maintains or contributes to any Benefit Plan or Multiemployer
Plan other than those listed on Schedule B, Part 6.15.

        6.16    INTELLECTUAL PROPERTY. Each Credit Party and each Subsidiary of
each Credit Party possesses such patents, patent applications, copyrights,
service marks, trademarks and trade names (or licenses thereof) as are required
to continue to conduct its present business activities, except for any failures
to so possess which singly or in the aggregate could not reasonably be expected
to have a Material Adverse Effect.

        6.17    LICENSES AND PERMITS. Each Credit Party and each Subsidiary of
each Credit Party has obtained and holds in full force and effect, all
franchises, licenses, permits, certificates, authorizations, qualifications,
easements, rights of way and other similar rights and approvals which are
required to continue to conduct its present business activities, except for any
such failures to obtain or hold in full force and effect which singly or in the
aggregate could not reasonably be expected to have a Material Adverse Effect. No
Borrower and no Subsidiary of any Borrower is in violation of the terms of any
such franchise, license, permit, certificate, authorization, qualification,
easement, right of way, or other similar right or approval, except for any such
violations which singly or in the aggregate could not reasonably be expected to
have a Material Adverse Effect.

        6.18    TITLE TO COLLATERAL. All Real Estate is identified on Schedule
B, Part 6.18. Each Credit Party and each Subsidiary of each Credit Party has
good and marketable title in fee simple to, or a valid leasehold interest in,
all its Real Estate, and has good title to all other material items of
Collateral, except as otherwise set forth on Schedule B, Part 8.4(b), and no
Collateral is subject to any Lien, except Permitted Liens.

        6.19    INVESTMENT COMPANY. No Credit Party and no Subsidiary of any
Credit Party is (a) an investment company or a company controlled by an
investment company within the meaning of the Investment Company Act of 1940, or
(b) 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.

        6.20    BORROWERS' TAXES AND TAX RETURNS.

        (a)     Except as set forth on Schedule B, Part 6.20, each Credit Party
and each Subsidiary of each Credit Party (and any affiliated group of which any
Credit Party or any Subsidiary of any Credit Party is now or has been a member)
have timely filed (inclusive of any permitted extensions) with the appropriate
taxing authorities all material returns (including information returns) in
respect of Credit Party Taxes required to be filed through the date hereof.

        (b)     All material taxes, assessments, fees and other governmental
charges payable by any Credit Party and any Subsidiary of any Credit Party (and
any affiliated group of which any Credit Party or any Subsidiary of any Credit
Party is now or has been a member) in respect of their incomes, franchises,
businesses, properties or otherwise ("Credit Party Taxes") in respect of periods
beginning prior to the date hereof, have been timely paid, or will be timely
paid, or an

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<PAGE>

adequate reserve has been established therefor, as set forth in Schedule B, Part
6.20 or in the Financial Statements.

        (c)     As of the date hereof, except as set forth in Schedule B, Part
6.20, no material deficiencies for Credit Party Taxes have been claimed,
proposed or assessed by any taxing or other Governmental Authority against any
Credit Party or any Subsidiary of any Credit Party and no Tax Liens have been
filed. As of the date hereof, except as set forth in Schedule B, Part 6.20,
there are no pending or, to the best of the knowledge of any Credit Party,
threatened audits, investigations or claims for or relating to any material
liability in respect of Credit Party Taxes, and there are no matters under
discussion with any governmental authorities with respect to Credit Party Taxes
which are likely to result in a material additional liability for Credit Party
Taxes. As of the date hereof, either the federal income tax returns of each
Credit Party and each Subsidiary of each Credit Party have been audited by the
Internal Revenue Service and such audits have been closed, or the period during
which any assessments may be made by the Internal Revenue Service has expired
without waiver or extension, for all years up to and including the 1995 Fiscal
Year. As of the date hereof, except as set forth in Schedule B, Part 6.20, no
extension of a statute of limitations relating to Credit Party Taxes is in
effect with respect to any Credit Party or any Subsidiary of any Credit Party.

        (d)     No Credit Party and no Subsidiary of any Credit Party has any
obligation under any written tax sharing agreement or agreement regarding
payments in lieu of Credit Party Taxes.

        6.21    STATUS OF ACCOUNTS. Except as expressly disclosed with
reasonable specificity in the most recent Borrowing Base Certificate delivered
to the Agent hereunder, each Account of each Borrower is based on an actual and
bona fide sale and delivery of goods or rendition of services to customers, made
by such Borrower in the ordinary course of its businesses; the goods and
inventory being sold by any Borrower and the Accounts created thereby are the
exclusive property of such Borrower and are not and shall not be subject to any
Lien whatsoever, other than Permitted Liens, and such Borrower's customers have
accepted the goods or services, owe and are obligated to pay the full amounts
stated in the invoices according to their terms, without any dispute, offset,
defense or counterclaim or contra.

        6.22    MATERIAL CONTRACTS. Schedule B, Part 6.22 contains a true,
correct and complete list of all Related Transaction Documents and all Material
Contracts in effect on the date hereof. As of the date hereof, none of the
Material Contracts contains any restrictions on any Credit Party or any
Subsidiary of any Credit Party or any of their respective properties which
singly or in the aggregate could reasonably be expected to have a Material
Adverse Effect.

        6.23    AFFILIATE TRANSACTIONS. Except for (a) the Related Transactions,
(b) transactions expressly permitted pursuant to Section 8.10, and (c)
transactions set forth on Schedule B, Part 6.23, no Credit Party and no
Subsidiary of any Credit Party is a party to or bound by any agreement or
arrangement (whether oral or written) to which any Affiliate of such Credit
Party or Subsidiary, as the case may be, is a party, other than (i) in the
ordinary course of and pursuant to the reasonable requirements of such Person's
business and (ii) upon terms no less favorable to such Person than could be
obtained in a comparable arms-length transaction with an unaffiliated Person.

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        6.24    ACCURACY AND COMPLETENESS OF INFORMATION. All factual
information (other than Financial Statements and Projections) furnished by or on
behalf of any Credit Party or any Subsidiary of any Credit Party in writing to
the Agent, any Lender, or the Auditors for purposes of or in connection with
this Credit Agreement or any of the other Credit Documents, or any transaction
contemplated hereby or thereby, including without limitation, the Related
Transactions, taken as a whole, will not, when furnished, contain any untrue
statement of a material fact or omit to state a material fact known to any
Credit Party or any Subsidiary of any Credit Party necessary in order to make
the statements therein not misleading in light of the circumstances under which
such statements are made. All Projections furnished by or on behalf of any
Credit Party or any Subsidiary of any Credit Party to the Agent or any Lender
after the Closing Date will be prepared in good faith based upon assumptions
believed by such Person at the time of preparation to be reasonable; it being
understood that Projections are subject to significant uncertainties and
contingencies (many of which are beyond such Person's control) and that no
assurances can be given that such Projections will be realized.

        6.25    NO ADVERSE CHANGE OR EVENT. Since the last day of Fiscal Year
2002, no event relating to or affecting any of the Credit Parties has occurred
or failed to occur, that has had or could reasonably be expected to have, either
alone or in conjunction with all other such changes, events and failures, a
Material Adverse Effect. Such an event may have occurred or failed to occur at
any particular time notwithstanding the fact that at such time no Default or
Event of Default shall have occurred and be continuing.

        The Borrowers may, at any time and from time to time, upon written
notice to the Agent, amend any one or more of the Schedules referred in this
Article 6, or create any Schedule with respect to any representation or warranty
in this Article 6, and any representation or warranty contained herein to which
any such Schedule relates shall from and after the date of any such amendment or
creation, as the case may be, refer to such Schedule as so amended or created,
provided, that in no event may any Borrower amend or create any such Schedule if
such amendment or creation would reflect or evidence a Default or Event of
Default, except for any such Default or Event of Default waived pursuant to
Section 11.10.

                                    ARTICLE 7

                              AFFIRMATIVE COVENANTS

        Until the Expiration Date and payment and satisfaction of all
Obligations (other than contingent indemnification Obligations to the extent
that no claim giving rise thereto has been asserted and remains unresolved or
unsatisfied):

        7.1     FINANCIAL INFORMATION. The Borrowers shall furnish or cause to
be furnished to the Lenders the following information within the following time
periods:

        (a)     as soon as available and in any event within ninety (90) days
after the end of each Fiscal Year (i) audited Financial Statements as of the
close of such Fiscal Year and for such Fiscal Year, together with comparisons to
the Financial Statements for the prior year and to the most recent projections
with respect to such Fiscal Year delivered pursuant to clause (d) of this
Section 7.1, in each case accompanied by (A) an opinion of the Auditors (which
shall be

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unqualified as to scope and otherwise in form and substance reasonably
satisfactory to the Agent), (B) such Auditors' "Management Letter" to BWAY, (C)
a written statement signed by the Auditors stating that, in the course of the
regular audit of the business of the Credit Parties, which audit was conducted
by the Auditors in accordance with generally accepted auditing standards, the
Auditors have not obtained any knowledge of the existence of any Default or
Event of Default under any provision of this Credit Agreement, or, if such
Auditors shall have obtained from such examination any such knowledge, they
shall disclose in such written statement the existence of the Default or Event
of Default and the nature thereof, it being understood that such Auditors shall
have no liability, directly or indirectly, to anyone for failure to obtain
knowledge of any such Default or Event of Default, and (ii) a narrative
discussion of the consolidated and consolidating financial condition and results
of operations and the consolidated and consolidating liquidity and capital
resources of Credit Parties for such fiscal year prepared by a Responsible
Officer of BWAY. To the extent that BWAY's annual report on Form 10-K contains
any of the foregoing items, the Lenders will accept such Form 10-K in lieu of
such items;

        (b)     as soon as available and in any event within forty-five (45)
days after the end of each Fiscal Quarter (except the last Fiscal Quarter of any
Fiscal Year) (i) Financial Statements as at the end of and for such period and
for the current Fiscal Year to date, together with comparisons to the Financial
Statements for the same periods in the prior year and to the most recent
projections with respect to such periods delivered pursuant to clause (d) of
this Section 7.1, all in reasonable detail and duly certified (subject to the
absence of footnotes and normal year-end audit adjustments) by a Responsible
Officer of BWAY as having been prepared substantially in accordance with GAAP,
and (ii) a narrative discussion of the consolidated and consolidating financial
condition and results of operations and the consolidated and consolidating
liquidity and capital resources of the Credit Parties for such period and for
the Fiscal Year to date prepared by a Responsible Officer of BWAY. To the extent
that BWAY's quarterly report on Form 10-Q contains any of the foregoing terms,
the Lenders will accept such Form 10-Q in lieu of such items;

        (c)     as soon as available and in any event within thirty (30) days
after the end of each Fiscal Month (except the last Fiscal Month of any Fiscal
Quarter, with respect to which such reports shall be delivered within forty-five
(45) days after the end of such Fiscal Month (other than the last Fiscal Quarter
of any Fiscal Year with respect to which such reports shall be delivered within
ninety (90) days after the end of such Fiscal Month)), Financial Statements as
at the end of such Fiscal Month and Financial Statements for the current Fiscal
Year to date, together with a comparison to the Financial Statements for the
same periods in the prior Fiscal Year, all in reasonable detail and duly
certified (subject to the absence of footnotes and normal year-end audit
adjustments) by a Responsible Officer of BWAY as having been prepared
substantially in accordance with GAAP;

        (d)     not later than forty-five (45) days prior to the end of each
Fiscal Year commencing with the 2003 Fiscal Year, monthly projections of the
financial condition and results of operations of the Consolidated Entity for the
following Fiscal Year and annual projections for each subsequent Fiscal Year
through and including the Fiscal Year in which the Expiration Date occurs,
including, but not limited to, projected consolidating balance sheets,
consolidated and consolidating statements of operations and consolidated and
consolidating

                                     - 69 -

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statements of cash flows and consolidated and consolidating statements of
changes in shareholders' equity for such Fiscal Years;

        (e)     a copy of the state and federal income tax returns of each
Borrower and each Subsidiary of each Borrower within sixty (60) days after they
are filed with the appropriate taxing authorities, if and when requested by any
Lender;

        (f)     upon request by the Agent at any time and in any event not later
than 12:00 Noon on the third Business Day of each week (other than the last week
of any month covered by a monthly certificate), and within eight (8) Business
Days after the last Business Day of each month, a borrowing base certificate
(the "Borrowing Base Certificate") in the form of Exhibit F, duly completed,
detailing each Borrower's Eligible Accounts Receivable and Eligible Inventory as
of each Friday of the immediately preceding week and as of the last day of such
month, as applicable (or such other date as the Agent may specify in such
request), and certified by a Responsible Officer of BWAY and subject only to
adjustment upon completion of the normal year-end audit of physical inventory
(provided that no weekly certificate need be delivered unless at the time such
delivery would otherwise be required pursuant to the terms of this clause (f),
based on the most recent Borrowing Base Certificate delivered by the Borrowers
to the Agent hereunder, there shall be unused availability under the Borrowing
Base of less than $25,000,000). In addition, each Borrowing Base Certificate
shall have attached to it such additional schedules and/or other information as
the Agent may reasonably request;

        (g)     together with each delivery of Financial Statements required
pursuant to Sections 7.1(a), (b) and (c), respectively, a compliance certificate
substantially in the form of Exhibit E along with a schedule in form and
substance reasonably satisfactory to the Agent of the calculations used in
determining, as of the end of the applicable fiscal period covered thereby,
whether the Borrowers were in compliance with the covenants set forth in Article
8 of this Credit Agreement for such fiscal period;

        (h)     promptly and in any event within five (5) Business Days after
becoming aware of the occurrence of a Default or Event of Default, a certificate
of a Responsible Officer of BWAY specifying the nature thereof and the proposed
response thereto, each in reasonable detail;

        (i)     promptly upon the earlier of the mailing or filing thereof,
copies of all 10-Ks, 10-Qs, 8-Ks, proxy statements, annual reports, quarterly
reports, registration statements and any other filings or other communications
made by any Borrower to holders of its publicly traded securities or the
Securities Exchange Commission from time to time pursuant to the Securities
Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended;

        (j)     from time to time, such further information regarding the
Collateral, business affairs and prospects and financial condition of each
Borrower and each Subsidiary of each Borrower as the Agent may reasonably
request; and

        (k)     within ten (10) Business Days after the occurrence thereof,
notice of any Casualty Loss.

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        7.2     CERTAIN COLLATERAL. Promptly, upon the request of the Agent from
time to time, each Borrower shall provide to the Agent written statements
listing items of Inventory and Equipment in reasonable detail as requested by
the Agent. Each Borrower shall conduct or cause to be conducted annually (in a
manner consistent with the requirements for the physical count of the Inventory
in connection with the Borrowers' annual audit conducted by the Auditors) a
physical count of the Inventory and, if requested by the Agent, a copy of such
count shall be promptly supplied to the Agent accompanied by a report of the
value (valued at FIFO) of such Inventory. Upon the occurrence and during the
continuance of an Event of Default, each Borrower shall conduct such a physical
count of the Inventory at such other times and as of such other dates as the
Agent shall reasonably request. In addition to, and not in limitation of, the
foregoing, at any time and from time to time the Agent may conduct (or engage
third parties to conduct) such field examinations, appraisals, verifications and
evaluations of the Collateral as the Agent shall deem necessary or appropriate
in the exercise of its sole discretion; provided, that, so long as an Event of
Default shall not have occurred and be continuing, the Agent shall not conduct
(or engage third parties to conduct) field examinations, appraisals,
verifications and evaluations of the Collateral more than twice in any Fiscal
Year. If any Inventory of a Borrower is at any time hereafter stored or located
at any warehouse not owned or leased by such Borrower, then such Borrower shall
promptly deliver to such warehouseman notification of the Agent's Lien on such
Inventory and shall take such other steps as the Agent reasonably requires to
perfect its Liens thereon.

        7.3     CORPORATE EXISTENCE. Each Borrower shall, and shall cause each
of its Subsidiaries to, (i) except as otherwise expressly permitted pursuant to
Section 8.6, maintain its corporate or other existence and maintain in full
force and effect all licenses, bonds, franchises, and qualifications to do
business, and all other rights, in each case required to continue to conduct its
business activities, and (ii) continue in, and limit their operations to, the
same general lines of business as presently conducted by it (and reasonable
extensions thereof).

        7.4     ERISA. Each Borrower shall deliver to the Agent and each of the
Lenders, at such Borrower's expense, the following information at the times
specified below:

        (a)     within thirty (30) days after the filing thereof with the DOL,
Internal Revenue Service or PBGC, copies of each annual report (form 5500
series), including Schedule B thereto, filed with respect to each Benefit Plan;

        (b)     within thirty (30) days after receipt by such Borrower, any
Subsidiary of such Borrower or any ERISA Affiliate of each actuarial report for
any Benefit Plan or Multiemployer Plan and each annual report for any
Multiemployer Plan, copies of each such report;

        (c)     within thirty (30) days after the occurrence thereof,
notification of (i) any increase in the benefits of any existing Benefit Plan,
(ii) the establishment of any new Benefit Plan and (iii) the commencement of
contributions to any Benefit Plan or Multiemployer Plan not set forth on
Schedule B, Part 6.15; and

        (d)     within ten (10) days after the occurrence thereof, a statement
describing the material details of any event or condition referred to in clauses
(i) through (vii) of Section 9.1(i), whether or not such event or condition
shall constitute an Event of Default.

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        Except for any such failures to comply which singly or in the aggregate
could reasonably be expected to have a Material Adverse Effect, each Borrower
and its Subsidiaries shall establish, maintain and operate all employee benefit
plans (as defined in Section 3(3) of ERISA) to comply in all respects with the
provisions of ERISA, the Code, and all other Requirements of Law, other than to
the extent that such Borrower or any such Subsidiary (i) is in good faith
contesting by appropriate proceedings the validity or application of any such
Requirement of Law and (ii) has made an adequate reserve or other appropriate
provision therefor as required in order to be in conformity with GAAP.

        7.5     BOOKS AND RECORDS. Each Borrower agrees to maintain, and to
cause each of its Subsidiaries to maintain, books and records, including those
pertaining to the Collateral, in such detail, form and scope as is consistent
with good business practice, and agrees that such books and records will reflect
the Agent's and Lenders' respective interests in its Accounts. Each Borrower
agrees that the Agent or its agents may enter upon the premises of such Borrower
or any Subsidiary of such Borrower at any time and from time to time, during
normal business hours and upon reasonable notice under the circumstances, and at
any time at all on and after the occurrence and during the continuance of a
Default or an Event of Default for the purposes of (a) inspecting the Collateral
and/or copying (at such Borrower's expense) any and all records pertaining
thereto and (b) discussing the business affairs and prospects and financial
condition of such or any other Borrower and each Subsidiary of such or any other
Borrower with any officers, employees and directors of such Borrower or such
Subsidiary or with the Auditors. Each Borrower shall give the Agent thirty (30)
days prior written notice of any change in the location of any Collateral from
the locations specified on Schedule B, Part 6.8, and each Borrower shall execute
in advance of such change and cause to be delivered to the Agent any Collateral
Access Agreements or other documents reasonably required by the Agent, all in
form and substance reasonably satisfactory to the Agent. Each Borrower agrees to
advise the Agent promptly, in sufficient detail, of any substantial changes
relating to the type, quantity or quality of the Collateral, or any event which
singly or in the aggregate could reasonably be expected to have a material
adverse effect on the value of the Collateral or on the Liens granted for the
benefit of the Agent, the Lenders and the Issuing Lenders thereon.

        7.6     COLLATERAL RECORDS. Each Borrower agrees to execute and deliver
promptly, and to cause each of its Subsidiaries to execute and deliver promptly,
to the Agent, from time to time, such written statements and schedules as the
Agent may reasonably require, including those described in Section 7.1 of this
Credit Agreement, designating, identifying or describing the Collateral. The
failure by any Borrower or any Subsidiary of any Borrower, however, to promptly
give the Agent such statements or schedules shall not affect, diminish, modify
or otherwise limit the Liens on the Collateral granted pursuant to the Credit
Documents.

        7.7     SECURITY INTERESTS. Each Borrower shall, and shall cause each of
its Subsidiaries to, defend the Collateral against all claims and demands of all
Persons at any time claiming the same or any interest therein (other than with
respect to Permitted Liens). Each Borrower shall, and shall cause each of its
Subsidiaries to, comply with the requirements of all state and federal laws in
order to grant to the Agent, the Lenders and the Issuing Lenders valid and
perfected first priority security interests in the Collateral, subject to
Permitted Liens, with perfection, in the case of any investment property, being
effected by giving the Agent control of such investment property, rather than by
the filing of a UCC financing statement with respect to such investment

                                     - 72 -

<PAGE>

property. The Agent is hereby authorized by each Borrower to file any UCC
financing statements covering the Collateral in appropriate jurisdictions
whether or not such Borrower's signatures appear thereon. Each Borrower shall,
and shall cause each of its Subsidiaries to, do whatever the Agent may
reasonably request, from time to time, to effect the purposes of this Credit
Agreement and the other Credit Documents, including filing notices of liens, UCC
financing statements, fixture filings and amendments, renewals and continuations
thereof; cooperating with the Agent's representatives; keeping stock records;
obtaining waivers from landlords and mortgagees and from warehousemen and their
landlords and mortgagees; and, paying claims which might, if unpaid, become a
Lien on the Collateral.

        7.8     INSURANCE; CASUALTY LOSS.

        (a)     Each Borrower agrees to maintain, and to cause each of its
Subsidiaries to maintain, public liability insurance, third party property
damage insurance and replacement value insurance on the Collateral under such
policies of insurance, with such insurance companies, in such amounts and
covering such risks as are at all times satisfactory to the Agent in its
commercially reasonable judgment. All policies covering the Collateral are to
name the Agent as an additional insured and the loss payee in case of loss, and
are to contain such other provisions as the Agent may reasonably require to
fully protect the interest of the Lenders in the Collateral and to any payments
to be made under such policies. Each Borrower shall diligently file and
prosecute, or cause to be filed and prosecuted, all claims for any award or
payment in connection with a Casualty Loss with respect to such Borrower or any
Subsidiary of such Borrower. Each Borrower and each Subsidiary of a Borrower
shall receive in trust and pay to the Agent, promptly upon receipt thereof, the
Net Disposition Proceeds of all Casualty Losses with respect to such Person, for
application to the Loans. After the occurrence and during the continuance of an
Event of Default, (A) no settlement on account of any such Casualty Loss with
respect to any Borrower shall be made without the consent of the Agent and (B)
the Agent may participate in any such proceedings and the applicable Borrower
shall deliver to the Agent such documents as may be reasonably requested by the
Agent to permit such participation and shall consult with the Agent, its
attorneys and agents in the making and prosecution of such claim or claims. Each
Borrower hereby irrevocably authorizes and appoints the Agent its
attorney-in-fact, and agrees that, upon request, it will cause each Subsidiary
of such Borrower to authorize and appoint the Agent its attorney-in-fact, after
the occurrence and during the continuance of an Event of Default, to collect and
receive any such award or payment and to file and prosecute such claim or
claims, which power of attorney shall be irrevocable and shall be deemed to be
coupled with an interest, and each Borrower shall, upon demand of the Agent,
make, execute and deliver, and cause each of its Subsidiaries to make, execute
and deliver, any and all assignments and other instruments sufficient for the
purpose of assigning any such award or payment to the Agent for the benefit of
the Agent, the Lenders and the Issuing Lenders, free and clear of any
encumbrances of any kind or nature whatsoever.

        (b)     Notwithstanding anything to the contrary contained herein, upon
the occurrence of any Casualty Loss with respect to any Equipment or other fixed
assets of any Borrower or any Subsidiary of any Borrower, the Agent shall
establish a reserve against unused availability under the Borrowing Base in an
amount equal to the orderly liquidation value of such fixed assets (as
determined by the Agent in its sole discretion). Each such reserve shall remain
in effect until such time as the Net Disposition Proceeds of such Casualty Loss
are received by the Agent for

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<PAGE>

application to the Loans, at which time the Fixed Asset Sublimit shall be
automatically and permanently reduced by an amount equal to the greater of (i)
such Net Disposition Proceeds and (ii) such orderly liquidation value; provided,
that, with respect to no more than $7,500,000 of such Net Disposition Proceeds
received in cash in any Fiscal Year, so long an Event of Default shall not have
occurred and be continuing, within 90 days following receipt by the Agent
thereof, the Funds Administrator may deliver to the Agent a certificate of a
Responsible Officer of BWAY setting forth (x) that portion of such Net
Disposition Proceeds that the applicable Borrower or Subsidiary, as the case may
be, intends to reinvest in the purchase of Equipment or other fixed assets used
in the business of the Borrowers within two (2) years of such date of receipt,
and (y) the proposed use of such portion of such Net Disposition Proceeds (and,
in connection therewith, shall thereafter promptly provide such other
information with respect to such reinvestment as the Agent may from time to time
reasonably request) and, pending such reinvestment, the Agent shall continue to
maintain a reserve against unused availability under the Borrowing Base in the
amount of such Net Disposition Proceeds (which reserve shall remain in effect
until reduced from time to time at the written request of the Funds
Administrator upon the Agent's receipt of evidence reasonably satisfactory to
the Agent of the purchase of such Equipment or other fixed assets) and shall not
reduce the Fixed Asset Sublimit in the amount thereof (although an immediate
reduction in the Fixed Asset Sublimit shall occur in any event to the extent
that such Net Disposition Proceeds are less than the orderly liquidation value
of the Equipment or other fixed assets with respect to which such Casualty Loss
occurred, as determined by the Agent in its sole discretion); provided, further,
that if (A) within 365 days after the date of receipt by the Agent of such Net
Disposition Proceeds, the Borrowers have not so used such Net Disposition
Proceeds, or in the alternative have not delivered to the Agent evidence
reasonably satisfactory to the Agent that one or more of the Borrowers has
entered into one or more binding contractual commitments to so use such Net
Disposition Proceeds, or, in any event (B) within two (2) years after the date
of the Agent's receipt of such Net Disposition Proceeds, the Borrowers have not
so used all or any portion of such Net Disposition Proceeds not required to be
applied to reduce the Fixed Asset Sublimit pursuant to the preceding proviso, or
pursuant to clause (A) of this proviso, the Fixed Asset Sublimit shall be
promptly reduced by an amount equal to such remaining portion on the last day of
such 365 day period or two year period, as the case may be.

        7.9     TAXES. Each Borrower agrees to pay, when due and payable, and to
cause each of its Subsidiaries to pay when due and payable, all Credit Party
Taxes lawfully levied or assessed against such Borrower, any Subsidiary of such
Borrower or any of their properties, including any of the Collateral, before any
penalty or interest accrues thereon; provided that, unless such Credit Party
Taxes have become a federal tax or ERISA Lien on any of the assets of such
Borrower or any such Subsidiary, no such Credit Party Taxes need be paid if the
same are being contested, in good faith, by appropriate proceedings promptly
instituted and diligently conducted and if an adequate reserve or other
appropriate provision shall have been made therefor as required in order to be
in conformity with GAAP.

        7.10    COMPLIANCE WITH LAWS.

        (a)     Except for any such failures to comply which singly or in the
aggregate could not reasonably be expected to have a Material Adverse Effect,
each Borrower agrees to comply, and

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<PAGE>

to cause each of its Subsidiaries to comply, with all Requirements of Law
applicable to its business or its operations or to the Collateral or any part
thereof.

        (b)     Within fifteen (15) days after any Borrower learns of the
enactment or promulgation of any Requirement of Law which could reasonably be
expected to have a Material Adverse Affect, such Borrower shall provide the
Agent with notice thereof.

        (c)     At the request of the Agent from time to time, but in any event
not more frequently than once in any twelve month period, and at the sole cost
and expense of the Borrowers, each Borrower shall retain an environmental
consulting firm, satisfactory to Agent in its commercially reasonable judgment,
to conduct an environmental review, audit or investigation of the specific items
as reasonably requested by the Agent relating to the properties of such Borrower
and its Subsidiaries located in the United States and provide to the Agent and
each Lender a copy of any reports delivered in connection therewith. At the
request of the Agent, each Borrower shall provide the Agent with any additional
information relating to environmental matters and any potential related
liability resulting therefrom as the Agent may reasonably request.

        7.11    USE OF PROCEEDS. The Loans made to the Borrowers hereunder shall
be used solely by the Borrowers to pay the costs and expenses of the Related
Transactions and the transactions contemplated by this Credit Agreement and for
working capital and other general corporate purposes of the Borrowers, including
Investments consisting of Acquisitions, to the extent permitted pursuant to
Section 8.9(d). The Borrowers shall not use any portion of the proceeds of any
such Loans for the purpose of purchasing or carrying any "margin stock" (as
defined in Regulation U of the Board of Governors of the Federal Reserve System)
in any manner which violates the provisions of Regulation U or X of said Board
of Governors or for any other purpose in violation of any applicable statute or
regulation, or of the terms and conditions of this Credit Agreement.

        7.12    FISCAL YEAR. Each Borrower agrees to maintain its Fiscal Year as
a year ending on the Sunday closest to September 30th of the applicable year
unless otherwise required by law, in which case such Borrower will give the
Agent at least thirty (30) days prior written notice of any change therein.

        7.13    NOTIFICATION OF CERTAIN EVENTS. Each Borrower agrees that it
shall promptly notify the Agent of:

        (a)     any Material Contract of such Borrower or any of its
Subsidiaries that is terminated or amended, restated, supplemented or otherwise
modified (in any material and adverse respect) or any new Material Contract that
is entered into (in which event such Borrower shall provide the Agent with a
true, correct and complete copy of such Material Contract);

        (b)     any material and adverse change or amendment of the material
terms upon which any material supplier of such Borrower or any of its
Subsidiaries does business with such Borrower or Subsidiary;

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<PAGE>

        (c)     the entry of any order, judgment or decree in excess of
$1,000,000 against such Borrower or any of its Subsidiaries or any of their
respective properties or assets;

        (d)     receipt by such Borrower or any of its Subsidiaries of any
notification of violation in any material respect of any material Requirement of
Law from any Governmental Authority;

        (e)     the occurrence of any event which in the good faith
determination of such Borrower has had or could reasonably be expected to have a
Material Adverse Effect;

        (f)     any proceedings being instituted or, to the knowledge of any
Credit Party, threatened to be instituted by or against such Borrower or any of
its Subsidiaries, before any Governmental Authority, involving liability or
potential liability of $500,000 or more, in the case of any one such proceeding,
and $1,000,000 or more, in the aggregate for all such proceedings instituted or
threatened to be instituted by or against the Borrowers and their Subsidiaries
combined;

        (g)     the occurrence of an "Event of Default" (as such term is defined
in the Subordinated Note Indenture); and

        (h)     the occurrence of an "Event of Default" (as such term is defined
in the Existing Note Indenture).

        7.14    INTELLECTUAL PROPERTY. Except for any such failures to preserve
and keep in full force and effect which singly or in the aggregate could not
reasonably be expected to have a Material Adverse Effect, each Borrower shall,
and shall cause each of its Subsidiaries to, do and cause to be done all things
necessary to preserve and keep in full force and effect all registrations of
patents, copyrights, trademarks, service marks and other marks, trade names or
other trade rights required in the conduct of its business.

        7.15    MAINTENANCE OF PROPERTY. Each Borrower agrees to keep, and to
cause each of its Subsidiaries to keep, all property useful and necessary to its
respective businesses in good working order and condition in all material
respects (ordinary wear and tear excepted) in accordance with their past
operating practices.

        7.16    FURTHER ASSURANCES. Each Borrower shall take promptly, and shall
cause each of its Subsidiaries to take promptly, all such further actions and
execute all such further documents and instruments as the Agent may at any time
reasonably determine to be necessary or desirable to further carry out and
consummate the transactions contemplated by the Credit Documents, to cause the
execution, delivery and performance of the Credit Documents to be duly
authorized and to perfect or protect the Liens (and the priority status thereof)
of the Agent on the Collateral (subject to Permitted Liens).

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                                   ARTICLE 8

                               NEGATIVE COVENANTS

        Until the Expiration Date and payment and satisfaction of all
Obligations (other than contingent indemnification Obligations to the extent
that no claim giving rise thereto has been asserted and remains unresolved or
unsatisfied), each Borrower agrees that:

        8.1     CONSOLIDATED FIXED CHARGE COVERAGE RATIO. Upon the occurrence of
a Trigger Event, (a) if such Trigger Event is the event described in clause (a)
of the definition thereof, the Borrowers shall not permit the Consolidated Fixed
Charge Coverage Ratio to be less than 1:00 to 1:00 as determined as of the last
day of the most recent Fiscal Month with respect to which the Borrowers have
delivered Financial Statements to the Agent (whether pursuant to Section 7.1(a),
(b), or (c)) for the twelve (12) Fiscal Months ending on such last day; and (b)
if such Trigger Event is the event described in clause (b) of the definition
thereof, (i) the occurrence of such Trigger Event shall constitute an Event of
Default, and (ii) whether or not such Event of Default is subsequently waived by
the Majority Lenders, the Borrowers shall not permit the Fixed Charge Coverage
Ratio, as determined as of the last day of each Fiscal Quarter ending
thereafter, in each case for the twelve (12) Fiscal Months ending on such date,
to be less than 1:00 to 1:00.

        8.2     CAPITAL EXPENDITURES. No Borrower shall, or shall permit any of
its Subsidiaries to, directly or indirectly, make payments for Capital
Expenditures in any Fiscal Year in excess of (a) $17,000,000, plus (b) fifty
percent (50%) of the amount permitted to be spent on Capital Expenditures
pursuant to clause (a) of this Section 8.2 in the immediately preceding Fiscal
Year and not so used, plus (c) to the extent that, in the absence of such
allocation, the aggregate amount of all such payments for Capital Expenditures
in any such Fiscal Year would exceed the aggregate amount permitted pursuant to
foregoing clauses (a) and (b), that portion of the Excess Cash Flow Allowance,
if any, allocated to Capital Expenditures in such Fiscal Year pursuant to a
certificate of a Responsible Officer of the Funds Administrator delivered to the
Agent (any such allocation to be irrevocable and binding upon the Funds
Administrator and the Borrowers).

        8.3     NO ADDITIONAL INDEBTEDNESS. No Borrower shall, or shall permit
any of its Subsidiaries to, directly or indirectly, incur, create, assume or
suffer to exist any Indebtedness other than:

        (a)     (i) Indebtedness secured by Purchase Money Liens, and (ii)
Indebtedness consisting of regularly scheduled rental payments under Capital
Leases (such Capital Leases in any event to be entered into on commercially
reasonable terms); provided that the Indebtedness described in the foregoing
clauses (i) and (ii) shall not exceed, in the aggregate for the Borrowers and
their respective Subsidiaries combined, $5,000,000 outstanding at any one time;

        (b)     Indebtedness arising under this Credit Agreement and the other
Credit Documents;

        (c)     Indebtedness of any Borrower to any other Borrower; provided,
that, in each case, if and to the extent that any such Indebtedness is evidenced
by a promissory note or similar

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instrument such promissory note or other instrument shall be duly endorsed and
delivered to the Agent as additional Collateral;

        (d)     (i) Indebtedness evidenced by the Subordinated Notes in an
original principal amount not exceeding $200,000,000 (as reduced from time to
time by any repayments of principal thereof made on or after the Closing Date)
and (ii) Indebtedness evidenced by the Existing Notes in an outstanding
principal amount not exceeding $1,000,000 (as reduced from time to time by any
repayments of principal thereof made on or after the Closing Date);

        (e)     Indebtedness described on Schedule B, Part 8.3(e);

        (f)     Indebtedness to any Lender in respect of Derivative Transactions
entered into by any Borrower or any Subsidiary of any Borrower in the ordinary
course and pursuant to the reasonable requirements of such Person's business and
not for speculation;

        (g)     obligations or other Liabilities incurred in connection with
Acquisitions permitted pursuant to Section 8.9 in respect of usual and customary
provisions regarding post-closing purchase price adjustment, earnouts and
indemnification in the agreements governing such Acquisitions;

        (h)     (i) Indebtedness in an aggregate outstanding principal amount
not exceeding $5,000,000, assumed by any Borrower or any Subsidiary of any
Borrower in connection with any Acquisition otherwise permitted pursuant to
Section 8.9(d), including Indebtedness of a Person that becomes a Borrower as a
result of such Acquisition, to the extent such Indebtedness was not incurred in
contemplation of or in connection with such Acquisition and consists solely of
Capital Lease Obligations, Indebtedness secured by mortgage Liens on real
property, or Liens on Equipment, in each case of the Acquisition Target, and
obligations under real property and other ordinary course operating leases, and
(ii) unsecured Indebtedness in an aggregate outstanding principal amount not
exceeding $20,000,000, assumed or incurred by any Borrower or any Subsidiary of
any Borrower in connection with any Acquisition otherwise permitted pursuant to
Section 8.9(d), which was incurred in contemplation of or in connection with
such Acquisition, to the extent that all Indebtedness assumed or incurred by any
Borrower or any Subsidiary of any Borrower pursuant this clause (ii) shall not
require any scheduled payment of principal with respect thereto prior to one
hundred eighty (180) days after the Expiration Date;

        (i)     unsecured Indebtedness incurred in the ordinary course of
business to finance insurance premiums;

        (j)     Indebtedness in respect of bids, tenders, contracts (other than
contracts for the payment of money), leases, statutory obligations, surety and
appeal bonds and other obligations of like nature arising in the ordinary course
of business;

        (k)     Indebtedness incurred in the ordinary course of business in
respect of netting services, overdraft protections and other similar services in
connection with deposit accounts and Indebtedness in connection with drafts
payable for payroll and other ordinary course expense items;

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        (l)     unsecured Indebtedness evidenced by Management Notes in an
aggregate principal amount not exceeding $2,000,000, incurred in any Fiscal
Year;

        (m)     Indebtedness of Foreign Subsidiaries incurred solely for working
capital purposes in an aggregate principal amount not to exceed $5,000,000
outstanding at any time;

        (n)     Indebtedness in respect of Guaranties expressly permitted under
Section 8.7;

        (o)     unsecured Indebtedness of any Borrower or any Subsidiary of any
Borrower, in addition to other Indebtedness permitted under clauses (a) through
(n) above, in an aggregate principal amount, when aggregated with the
Investments made pursuant to Section 8.9(l) and Indebtedness Guaranteed by any
Borrower or any Subsidiary of any Borrower pursuant to Sections 8.7(g) and (h),
respectively, not to exceed $7,500,000 outstanding at any time, provided, that
such Indebtedness (a) may not be assumed or incurred by any Borrower or any
Subsidiary of any Borrower in connection with or in contemplation of any
Acquisition, and (b) shall not require any scheduled payment of principal with
respect thereto prior to one hundred eighty (180) days after the Expiration
Date; and

        (p)     extensions, renewals and replacements of any Indebtedness
described in clauses (a) through (o) above, in each case to the extent that such
extension, renewal or replacement, as the case may be, does not in any case
increase the aggregate outstanding principal amount thereof and is on terms no
more onerous in any material respect to the respective obligors in respect
thereof.

        8.4     NO LIENS; JUDGMENTS. No Borrower shall, or shall permit any of
its Subsidiaries to, directly or indirectly, mortgage, assign, pledge, transfer,
create, incur, assume, suffer to exist or otherwise permit any Lien (whether as
a result of a purchase money or title retention transaction, or other security
interest, judgment or otherwise) to exist on any of its property, assets,
revenues or goods, whether real, personal or mixed, whether now owned or
hereafter acquired, except for the following (the "Permitted Liens"):

        (a)     Liens granted by such Borrower or Subsidiary pursuant to any
Credit Document;

        (b)     Liens in existence on the Closing Date which are listed (and the
property subject thereto described) on Schedule B, Part 8.4(b);

        (c)     Purchase Money Liens;

        (d)     Liens of warehousemen, mechanics, material men, workers,
repairmen, common carriers, landlords and other similar Liens arising by
operation of law or otherwise, not waived in connection herewith, for amounts
that are not overdue by more than forty-five (45) days or which are being
diligently contested in good faith by such Borrower or Subsidiary by appropriate
proceedings;

        (e)     Attachment and judgment Liens, to the extent and for so long as
the underlying judgments and decrees do not constitute an Event of Default
pursuant to Section 9.1(j);

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<PAGE>

        (f)     Liens for Credit Party Taxes not yet due and payable or Liens
for Credit Party Taxes which are being diligently contested in good faith by
such Borrower by appropriate proceedings, provided that an adequate reserve with
respect thereto has been established in accordance with GAAP;

        (g)     Deposits or pledges to secure obligations under workmen's
compensation, social security or similar laws, or under unemployment insurance
incurred in the ordinary course of business;

        (h)     Deposits or pledges to secure bids, tenders, contracts (other
than contracts for the payment of money), leases, statutory obligations, surety
and appeal bonds and other obligations of like nature arising in the ordinary
course of business;

        (i)     Easements, covenants, licenses, rights-of-way, restrictions and
other similar encumbrances incurred in the ordinary course of business which (i)
appear as exceptions on the title insurance policies delivered to the Agent in
connection with the execution and delivery of the Existing Credit Agreement, and
(ii) other easements, covenants, licenses, rights-of-way, restrictions and other
similar encumbrances incurred in the ordinary course of business which, in the
aggregate, do not detract in any material respect from the value of the property
subject thereto or interfere in any material respect with the ordinary conduct
of the business of any Borrower or any Subsidiary of any Borrower;

        (j)     leases or subleases granted to third Persons not materially
interfering with the conduct of the business of any Borrower or any Subsidiary
of any Borrower;

        (k)     Liens existing on any property or assets acquired in connection
with an Acquisition permitted pursuant to Section 8.9 prior to the acquisition
thereof by a Borrower, including any such Liens on any property or assets of any
Person that becomes a Borrower as a result of such Acquisition, so long as such
Liens are not granted in contemplation of or in connection with such Acquisition
and secure Indebtedness permitted pursuant to Section 8.3(h)(i);

        (l)     Liens on assets of Foreign Subsidiaries securing Indebtedness
permitted pursuant to Section 8.3(m);

        (m)     Liens of landlords or mortgages of landlords arising by
operation of law securing lease obligations that are not overdue by more than
forty-five (45) days or are being contested in good faith by appropriate
proceedings, or any possessory rights of a lessor to the leased property under
the provisions of any lease expressly permitted by the terms of this Credit
Agreement;

        (n)     any encumbrance or restriction (including, without limitation,
put and call agreements) with respect to the Capital Securities of any Joint
Venture expressly permitted by the terms of this Credit Agreement pursuant to
the Joint Venture or similar agreement with respect to such Joint Venture;

        (o)     Liens on intellectual property to the extent such Liens arise
from the granting of licenses to use such intellectual property to any Person in
the ordinary course of business;

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        (p)     Liens on property subject to Sale-Leaseback Transactions
permitted under Section 8.5(f) and general intangibles related thereto;

        (q)     Liens on individual items of Collateral consisting of Equipment,
real property or other fixed assets in addition to those permitted under clauses
(a) through (p) above as the Agent may approve in writing in its sole
discretion, to the extent securing aggregate Indebtedness in an outstanding
principal amount not greater than $2,000,000; and

        (r)     Extensions and renewals of the foregoing permitted Liens;
provided that the aggregate amount of such extended or renewed Liens is not
increased and such extended or renewed Liens are on terms and conditions no more
restrictive than the terms and conditions of the Liens being extended or
renewed.

        8.5     NO SALE OF ASSETS. No Borrower shall, or shall permit any of its
Subsidiaries to, directly or indirectly, sell, lease, assign, transfer or
otherwise dispose of any assets other than:

        (a)     Inventory in the ordinary course of business;

        (b)     individual items of Collateral (other than any Capital
Securities of any of its Subsidiaries), with a book value of less than, in the
aggregate for all Borrowers and their respective Subsidiaries combined, during
any Fiscal Year, $250,000;

        (c)     the Permitted Dispositions;

        (d)     outdated and worn out property disposed of in the ordinary
course of business;

        (e)     property no longer used or useful in the conduct of the business
of such Person and disposed of in the ordinary course of business;

        (f)     Sale-Leaseback Transactions, so long as (i) no Default or Event
of Default then exists or would result therefrom, (ii) each such sale is in an
arm's-length transaction and such Borrower or Subsidiary, as the case may be,
receives fair value in consideration therefor, (iii) the total consideration
received by such Person is in immediately available Dollars and is paid at the
time of the closing of such sale, (iv) the Net Disposition Proceeds thereof are
applied as a reduction in the Fixed Asset Sublimit as (and to the extent)
required by clause (e) of the definition thereof, and (v) the aggregate
consideration for all Sale-Leaseback Transactions consummated after the Closing
Date does not exceed $2,000,000 in the aggregate for all Borrowers and their
respective Subsidiaries combined;

        (g)     the sale or discount, in each case without recourse and in the
ordinary course of business, of Accounts of such Person, but only in connection
with the compromise or collection thereof and not as part of any financing
transaction;

        (h)     sales, transfers and dispositions of non strategic assets
purchased as part of an Acquisition permitted pursuant to Section 8.9;

        (i)     as expressly permitted pursuant to Section 8.6; and

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        (j)     other sales, leases, assignments, transfers or other
dispositions of assets in addition to those described in the foregoing clauses
(a) through (i);

provided that, (i) in the case of any sale, lease, assignment, transfer or other
disposition described in foregoing clauses (e) and (j), respectively, (A) each
such sale, lease, assignment, transfer or other disposition shall be for fair
value, (B) no less than ninety percent (90%) of the total consideration for each
such sale, lease, assignment, transfer or other disposition is received by the
applicable Borrower or Subsidiary, as the case may be, in the form of
immediately available Dollars at the closing of such sale, lease, assignment,
transfer or other disposition, and (ii) in the case of sales, leases,
assignments, transfers and other dispositions described in foregoing clauses
(d), (e) and (j), respectively, the aggregate consideration for all such sales,
leases, assignments, transfers or other dispositions does not exceed, in the
aggregate for all Borrowers and their respective Subsidiaries combined, for any
Fiscal Year, $2,500,000.

        8.6     NO CORPORATE CHANGES. No Borrower shall, or shall permit any of
its Subsidiaries to, directly or indirectly, merge, consolidate, liquidate, wind
up, dissolve or otherwise alter or modify such Borrower's or such Subsidiary's
Governing Documents, corporate name, mailing addresses, structure, status or
existence, provided that (a) the Related Transactions occurring on or prior to
the Closing Date shall be permitted, (b) any Borrower or any Subsidiary of a
Borrower may be merged, consolidated or liquidated with or into, as the case may
be, such or any other Borrower so long as (i) a Borrower shall be the continuing
or surviving corporation and (ii) no Default or Event of Default shall exist or
result therefrom; (b) may alter or modify such Person's Governing Documents,
except for any such alterations or modifications, as the case may be, that
singly or in the aggregate could reasonably be expected to have a material
adverse impact on the rights, remedies and other interests of the Agent or
Lenders under the Credit Documents taken as a whole; and (c) may alter its
corporate name and mailing addresses upon not less than thirty (30) days' prior
written notice to the Agent.

        8.7     NO GUARANTIES. No Borrower shall, or shall permit any of its
Subsidiaries to, directly or indirectly, issue or assume any Guaranty with
respect to the Liabilities of any other Person, including any Subsidiary or
Affiliate of such or any other Borrower, except (a) by the endorsement of
negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business, (b) by the giving of usual and customary
indemnities in connection with the sale of Inventory or other asset dispositions
permitted hereunder, (c) by the giving of usual and customary indemnities in
connection with Acquisitions permitted pursuant to Section 8.9, (d) Guaranties
of Indebtedness permitted to be incurred pursuant to Section 8.3; (e) Guaranties
of surety and appeal bonds and other obligations of like nature arising in the
ordinary course of business; (f) obligations to insurance carriers in respect of
workmen's compensation and other insurance coverage arising in the ordinary
course of business, (g) Guaranties of Indebtedness of directors, officers and
employees of BCO Holding, any Borrower or any Subsidiary of any Borrower; and
(h) Guaranties in respect of Indebtedness of a Person in connection with a Joint
Venture; provided that, in no event shall (i) the aggregate principal amount of
Indebtedness outstanding at any time that is Guaranteed pursuant to clause (g)
and (h) of this Section 8.7, when aggregated with the amount of Investments then
outstanding under Section 8.9(l), exceed $5,000,000, and (ii) the aggregate
principal amount of Indebtedness outstanding at any time that is Guaranteed
pursuant to clause (g) and (h) of this Section 8.7,

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when aggregated with the amount of Indebtedness then outstanding under Section
8.3(o), exceed $7,500,000.

        8.8     NO RESTRICTED PAYMENTS. No Borrower shall, or shall permit any
of its Subsidiaries to, directly or indirectly make any Restricted Payment,
provided, that:

        (a)     (i) any Borrower may declare and pay dividends and make other
distributions to any other Borrower, (ii) any Borrower may make payments
required pursuant to the Merger Documents (in each case as in effect on the date
hereof), and (iii) any Subsidiary of any Borrower which is not itself a Borrower
may declare and pay dividends and make other distributions to its shareholders
or other equity holders generally, so long as such Borrower receives at least
its proportionate share thereof (based upon its relative holding of the equity
interest in the Subsidiary paying such dividend, or making such distribution as
the case may be, and taking into account the relative preferences, if any, of
the various classes of equity interest of such Subsidiary);

        (b)     BWAY may make Restricted Payments to BCO Holding:

                (i)     to permit BCO Holding to repurchase or redeem issued and
outstanding Management Notes or Capital Securities of BCO Holding (or options to
purchase Capital Securities of BCO Holding) held by former officers, directors
or employees of BCO Holding, any Borrower or any Subsidiary of any Borrower
following the death, retirement, disability or termination of employment or
service as a director of such officers, directors or employees, so long as (to
the extent such Restricted Payment is paid in cash, as opposed to through the
issuance of a Management Note): (i) immediately before and after giving effect
thereto, no Default or Event of Default shall have occurred and be continuing
and there shall be unused availability under the Borrowing Base of at least
$20,000,000; and (ii) the aggregate amount of all such payments made in cash
after the Closing Date does not exceed $10,000,000;

                (ii)    to permit BCO Holding to pay BCO Holding Related Taxes;

                (iii)   to permit BCO Holding to pay (substantially
contemporaneously with, and in the same amount of, such distributions) (x)
obligations under or in respect of director and officer insurance policies, and
(y) indemnification obligations owing to directors, officers, employees and
other Persons under its Governing Documents, the Employment Agreements and the
Kelso Agreements (in the case of all such agreements and documents, as in effect
on the date hereof) or any other written agreements with any such Person entered
into after the Closing Date by BCO Holding in the ordinary course of business;

                (iv)    to permit BCO Holdings (substantially contemporaneously
with, and in the same amount of, such distributions) to pay reasonable and
customary directors' fees and expenses, reasonable legal and accounting expenses
and other similar reasonable expenses necessary or advisable to the maintenance
of BCO Holding's corporate existence and good standing;

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                (v)     to permit BCO Holding (substantially contemporaneously
with, and in the same amount of, such distributions) to pay fees and expenses
incurred by BCO Holding in connection with the Related Transactions Documents;

                (vi)    to permit BCO Holding to pay (substantially
contemporaneously with, and in the same amount of, such distributions),
reasonable and customary fees, compensation and benefits paid to officers,
directors, employees of BCO Holding for services rendered to BCO Holding in the
ordinary course of business; and

                (vii)   to permit BCO Holdings to make payments required
pursuant to the Merger Documents (in each case as in effect on the date hereof);

        (c)     so long as immediately before and after giving effect thereto,
no Default or Event of Default shall have occurred and be continuing, BWAY may
repurchase or redeem up to 35% of the aggregate principal amount of the
Subordinated Notes outstanding on the Closing Date at a redemption price of no
more than 110% of the principal amount thereof, plus accrued and unpaid interest
thereon, if any, to the date of such repurchase or redemption with the Net
Equity Proceeds of any capital contribution to BWAY by BCO Holdings;

        (d)     BWAY may repurchase or redeem 100% of the Existing Notes at a
purchase or redemption price of no more than 105.125% of the principal amount
thereof, plus accrued and unpaid interest thereon, if any, to the date of such
purchase or redemption; and

        (e)     BWAY may make regularly scheduled payments of interest under the
Subordinated Notes, at the respective times and in the respective amounts
required under the Subordinated Note Indenture, to the extent permitted pursuant
to Article 10 and Article 12 of the Subordinated Note Indenture, as in effect on
the Closing Date.

        8.9     NO INVESTMENTS. No Borrower shall, or shall permit any of its
Subsidiaries to, directly or indirectly, make any Investment in any Person other
than:

        (a)     Investments in existence on the Closing Date which are set forth
on Schedule B, Part 8.9;

        (b)     Advances or loans to employees made in the ordinary course of
business;

        (c)     Interest-bearing demand or time deposits (including certificates
of deposit) which are insured by the Federal Deposit Insurance Corporation
("FDIC") or a similar federal insurance program; however, provided that such
Borrower may, in the ordinary course of its business, maintain in its
disbursement accounts from time to time accounts in excess of then applicable
FDIC or other program insurance limits;

        (d)     Investments in connection with Acquisitions, provided that:

                (i)     on the date of consummation of each such Acquisition,
Agent shall have received a certificate duly executed by a Responsible Officer
of BWAY certifying that the financial condition referred to in clause (ii) below
with respect thereto is satisfied, together with evidence thereof reasonably
satisfactory to the Agent,

                                     - 84 -

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                (ii)    the Consolidated Fixed Charge Coverage Ratio, determined
on a pro forma basis (after giving effect to any Permitted Pro Forma Acquisition
Adjustments in connection with such Acquisition) for the period of four (4)
consecutive Fiscal Quarters ending on the last day of the last completed Fiscal
Quarter immediately preceding the proposed date of consummation of such
Acquisition (on the assumption such Acquisition occurred on the first day of
such four Fiscal Quarter period and using historical results of the Consolidated
Entity and the related Acquisition Target for such period), shall be at least
equal to the minimum ratio with respect to such period required pursuant to
Section 8.1,

                (iii)   each such Acquisition shall be consummated (x) in
accordance with all material applicable Requirements of Law and the applicable
Borrower and Acquisition Target shall have obtained all material consents and
approvals of Governmental Authorities necessary in connection therewith and with
the business operations of the related Acquisition Target after such Acquisition
and (y) pursuant to such agreements, documents and instruments as shall be in
each case in form and substance reasonably satisfactory to the Agent,

                (iv)    the related Acquisition Target shall be engaged in the
same or substantially similar lines of business being conducted by the Borrowers
on the Closing Date (or reasonable extensions thereof),

                (v)     no Default or Event of Default shall exist at the time
of consummation thereof or would result therefrom,

                (vi)    after giving effect to each such Acquisition, the ratio
of Consolidated Total Indebtedness as of the last day of the Fiscal Quarter
ending immediately prior to the Fiscal Quarter in which such Acquisition is
consummated, to Consolidated EBITDA for the twelve month period ending as of
such day, is less than 4.0 to 1.00, and

                (vii)   proceeds of Revolving Loans may be used to consummate
(or make cash earnout payments in respect of) an Acquisition after the Closing
Date only to the extent that (A) after giving effect to such Acquisition (or
cash earnout payment, as the case may be), unused availability under the
Borrowing Base is at least equal to the greater of (x) $20,000,000 and (y) the
aggregate proceeds of Revolving Loans used to consummate such Acquisition (or
make such cash earnout payment, as the case may be), and (B) the aggregate
proceeds of Revolving Loans used to consummate all Acquisitions (or make cash
earnout payments, as the case may be) after the Closing Date does not exceed
$35,000,000;

        (e)     extensions of trade credit in the ordinary course of business;

        (f)     Investments expressly permitted pursuant to Sections 8.3, 8.7,
8.8, 8.10 and 8.17;

        (g)     non-cash consideration issued in connection with the sale,
lease, transfer or other disposition of assets, to the extent expressly
permitted by Section 8.5;

        (h)     Investments received in connection with the bankruptcy or
reorganization of suppliers and customers, and Investments received in good
faith settlement of delinquent obligations of, and other disputes with,
customers and suppliers arising in the ordinary course of business;

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        (i)     Cash Equivalents, to the extent the Agent has a perfected, first
priority Lien thereon securing all Obligations;

        (j)     Investments by any Borrower in any other Borrower;

        (k)     Investments consisting of payments made by any Borrower in
respect of indemnification obligations then due and payable to directors,
officers, employees and other Persons under such Borrower's Governing Documents,
any Employment Agreements or any other written agreements with any such Person
entered into after the Closing Date by BWAY in the ordinary course of business;

        (l)     Investments (including Investments consisting of Joint Ventures)
in addition to those permitted under clauses (a) through (k) above; provided,
that (i) before and after giving effect to each such Investment, no Default or
Event of Default shall have occurred and be continuing, (ii) the aggregate
amount, without duplication, of all Investments made by Borrowers and their
respective Subsidiaries on or after the Closing Date pursuant to this clause (l)
shall not exceed $3,000,000, and (iii) the aggregate amount, without
duplication, of all such Investments, when aggregated with the outstanding
principal amount of Indebtedness Guaranteed by any Borrower or any Subsidiary of
any Borrower pursuant to Section 8.7(g) or (h), respectively, shall not exceed
$5,000,000; and

        (m)     Investments in addition to those permitted under clauses (a)
through (l) above as the Agent may approve in writing in its sole discretion.

        8.10    NO AFFILIATE TRANSACTIONS. No Borrower shall, or shall permit
any of its Subsidiaries to, directly or indirectly, enter into any transaction
with, including the purchase, sale or exchange of property or the rendering of
any service to any Subsidiary of a Borrower or other Affiliate of a Borrower and
whether or not such transaction would otherwise be permitted under any of the
other provisions of the Credit Documents, except (a) in the ordinary course of
and pursuant to the reasonable requirements of such Borrower's or such
Subsidiary's business, as the case may be, and upon terms no less favorable to
such Borrower or such Subsidiary than could be obtained in a comparable
arms-length transaction with an unaffiliated Person; and (b) for (i)
transactions set forth on Schedule B, Part 8.10, (ii) the Related Transactions
(including the payment of fees and expenses in connection therewith, to the
extent payment thereof by a Borrower is required pursuant to the Related
Transactions Documents), (iii) employment agreements entered into in the
ordinary course of business with officers of any Borrower or any Subsidiary of
any Borrower, (iv) reasonable and customary compensation and benefits paid to,
and indemnity provided on behalf of, officers, directors, employees or
Affiliates of any Borrower or any Subsidiary of any Borrower in the ordinary
course of business, (v) transactions by or among any Borrower and any other
Borrower, (vi) transactions expressly permitted pursuant to Section 8.3, 8.6,
8.7, 8.8 or 8.9, (vii) except to the extent such payments constitute Permitted
Management Fees, the making of required payments to Kelso pursuant to any of the
Kelso Agreements (in each case as in effect on the date hereof), (viii) to the
extent that before and after giving effect to each such payment of Permitted
Management Fees, no Default or Event of Default shall have occurred and be
continuing, the payment by any Borrower to Kelso of Permitted Management Fees in
an aggregate amount not exceeding $500,000 in any Fiscal Year, provided, that,
to the extent that any payments of Permitted Management Fees are not made at

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<PAGE>

any time because a Default or an Event of Default has occurred and is
continuing, the amount of all such unpaid Permitted Management Fees shall
continue to accrue and, when any such Default or Event of Default is no longer
continuing, BWAY may make payments to Kelso in an amount equal to the total
amount of all such unpaid Permitted Management Fees (to the extent that before
and after giving effect to each such payment, no other Default or Event of
Default shall have occurred and be continuing).

        8.11    LIMITATION ON TRANSACTIONS UNDER ERISA. (a) No Borrower shall,
or shall permit any of its Subsidiaries to, directly or indirectly amend a
Benefit Plan resulting in an increase in current liability for the plan year
such that any of such Borrower, any Subsidiary of such Borrower or any ERISA
Affiliate is required to provide security to such a Benefit Plan under Section
401(a)(29) of the Code.

        8.12    NO ADDITIONAL BANK ACCOUNTS. Except with the prior written
consent of the Agent, no Borrower shall, or shall permit any of its Subsidiaries
to, directly or indirectly, open, maintain or otherwise have any checking,
savings or other accounts at any bank or other financial institution, or any
other account where money is or may be deposited or maintained with any Person,
other than the Disbursement Account, the Depositary Accounts and the other
accounts set forth on Schedule B, Part 8.12.

        8.13    AMENDMENTS OF RELATED TRANSACTIONS DOCUMENTS. No Borrower shall,
or shall permit any of its Subsidiaries to, directly or indirectly, amend,
modify, cancel or terminate or permit the amendment, modification, cancellation
or termination of, any of the Related Transaction Documents to which it is a
party, except for any such amendments, modifications, cancellations or
terminations, as the case may be, that singly or in the aggregate could not
reasonably be expected to have a material adverse impact on the rights, remedies
and other interests of the Agent or Lenders under the Credit Documents taken as
a whole.

        8.14    ADDITIONAL RESTRICTIVE COVENANTS. Except for Permitted
Restrictive Covenants and restrictions existing under or by reason of (a)
applicable Requirements of Law, (b) the Subordinated Note Documents, (c)
customary provisions restricting subletting or assignment of any lease governing
a leasehold interest of any Borrower or any Subsidiary of any Borrower, (d)
restrictions on the transfer of any asset subject to a Lien permitted pursuant
to Sections 8.4(c) and (k), and (e) customary restrictions in agreements
relating to the sale of a Subsidiary of any Borrower, pending consummation of
such sale, no Borrower shall, or shall permit any of its Subsidiaries to,
directly or indirectly, create or otherwise cause or suffer to exist or become
effective: (i) any consensual restriction limiting the ability (whether by
covenant, event of default, subordination or otherwise and including any such
the effect of which is to require the providing of equal and ratable security to
any other Person in the event a Lien is granted to or for the benefit of the
Agent and the Lenders) to (A) pay dividends or make any other distributions on
shares of its Capital Securities held by any Borrower or any other Subsidiary of
any Borrower; (B) pay any obligation to any Borrower or any other Subsidiary of
any Borrower; (C) make any loans or advances to or other Investments in any
Borrower or in any other Subsidiary of any other Borrower; or (D) create or
permit to exist any Lien upon the assets of any Borrower or any Subsidiary of
any Borrower, other than Liens permitted under Section 8.4; or (ii) any
contractual obligation which could reasonably be expected to restrict or
otherwise inhibit in any material

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<PAGE>

respect the Agent's rights or ability to sell or otherwise dispose of the
Collateral or any part thereof after the occurrence of an Event of Default.

        8.15    NO ADDITIONAL SUBSIDIARIES. No Borrower shall, or shall permit
any of its Subsidiaries to, directly or indirectly, form or acquire any new
Subsidiaries after the Closing Date, except for (a) Wholly-Owned Subsidiaries
which are Foreign Subsidiaries, to the extent that the Investment therein is
permitted pursuant to Section 8.9(l), (b) Wholly-Owned Subsidiaries which are
Domestic Subsidiaries formed or acquired by a Borrower in connection with the
consummation of an Acquisition permitted pursuant to Section 8.9(d), and (c)
Joint Ventures, to the extent that the Investment therein is permitted pursuant
to Section 8.9(k); provided, that, (i) in the case of any such Wholly-Owned
Subsidiary which is a Domestic Subsidiary formed or acquired in connection with
the consummation of an Acquisition, upon or immediately following such
consummation, (x) such Wholly-Owned Subsidiary shall be joined as a party to
this Credit Agreement, the Borrower Security Agreement and all other applicable
Credit Documents and shall have taken such further actions and executed such
additional agreements, documents and instruments as the Agent may reasonably
determine to be necessary or desirable to further carry out and consummate the
provisions contemplated by the Credit Documents with respect to such
Wholly-Owned Subsidiary, including, without limitation, the granting to the
Agent for the benefit of the Agent and Lenders of an enforceable, first (subject
to Permitted Liens) and perfected Lien on substantially all properties and
assets of such Wholly-Owned Subsidiary and (y) the Agent shall have been granted
for the benefit of the Agent and Lenders an enforceable, first (subject to
Permitted Liens) and perfected Lien on all Capital Securities of any kind
therein, (ii) in the case of any such Wholly-Owned Subsidiary which is a Foreign
Subsidiary, the Agent shall have been granted for the benefit of the Agent and
Lenders an enforceable, first (subject to Permitted Liens) and perfected Lien on
sixty-five percent (65%) of the total combined voting power of all classes of
Capital Securities therein, and in the case of both clauses (i) and (ii) above,
the Agent shall have received duly executed copies of all agreements,
instruments and documents as the Agent may reasonably deem necessary or
desirable in connection therewith.

        8.16    DESIGNATED SENIOR DEBT. No Borrower shall, or shall permit any
of its Subsidiaries to designate any Indebtedness (other than the Obligations)
as "Designated Senior Debt" for purposes of, and as defined in the Subordinated
Note Indenture.

        8.17    LIMITATION ON DERIVATIVE TRANSACTIONS. Except for Derivative
Transactions which are entered into in the ordinary course and pursuant to the
reasonable requirements of such Person's business, the Indebtedness in respect
of which is permitted pursuant to Section 8.3(f), no Borrower shall, or shall
permit any of its Subsidiaries to, enter into any Derivative Transaction.

                                   ARTICLE 9

                         EVENTS OF DEFAULT AND REMEDIES

        9.1     EVENTS OF DEFAULT. The occurrence of any of the following events
shall constitute an Event of Default hereunder (whatever the reason for such
event and whether it shall be voluntary or involuntary, or within or without the
control of any Borrower, any Subsidiary of any

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<PAGE>

Borrower or any other Credit Party, or be effected by operation of law or
pursuant to any judgment or order of any court or any order, rule or regulation
of any governmental or nongovernmental body):

        (a)     failure of the Borrowers to pay (i) any Obligation in respect of
principal of any Loan when due and payable, whether at stated maturity, by
acceleration or otherwise, or (ii) any interest on any Loan, or any Fees,
Expenses or other Obligations, in each case within three (3) Business Days of
when due and payable, whether at stated maturity, by acceleration or otherwise;
or

        (b)     failure of any Borrower or any Subsidiary of any Borrower to
perform, comply with or observe any term, covenant or agreement applicable to it
contained in Article 7 (other than Sections 7.3, 7.9, 7.12 and 7.15) or Article
8; or

        (c)     (i)     any representation or warranty made by any Borrower, any
Subsidiary of any Borrower or any other Credit Party under this Credit Agreement
or under any other Credit Document shall prove to have been incorrect in any
material respect when made or deemed made; or

                (ii)    any Borrower, any Subsidiary of any Borrower or any
other Credit Party shall fail to comply with any covenant contained in this
Credit Agreement or the other Credit Documents (other than under a provision
covered by Section 9.1(a) or (b) above), which failure to comply is not cured
within thirty (30) days after notice thereof from the Agent to the Funds
Administrator; or

        (d)     except as otherwise expressly permitted hereunder, dissolution,
liquidation, winding up or cessation of any Credit Party's businesses, or the
failure of any Credit Party to meet its debts generally as they mature, or the
calling of one or more meetings of any Credit Party's major creditors for
purposes of obtaining a moratorium on payment or a compromise of such Credit
Party's debts; or

        (e)     any Credit Party shall become the subject of an Insolvency
Event; or

        (f)     the occurrence of a Change of Control; or

        (g)     (i)     the occurrence of an Event of Default (as such term is
defined in the Subordinated Note Indenture); or

                (ii)    occurrence of a default or event of default (in each
case which shall continue beyond the expiration of any applicable grace periods)
which permits the acceleration of the maturity of any note, agreement or
instrument evidencing any other Indebtedness of any Borrower or any Subsidiary
of any Borrower, and the aggregate principal amount of all such Indebtedness
with respect to which such a default or event of default has occurred, or the
maturity of which is permitted to be accelerated, exceeds $1,000,000; or

        (h)     any covenant, agreement or obligation of any party contained in
or evidenced by any of the Credit Documents shall cease to be enforceable in
accordance with its terms, or any party (other than the Agent or the Lenders, in
its capacity as such, and not in its capacity as an

                                     - 89 -

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Issuing Lender) to any Credit Document shall deny or disaffirm its obligations
under any of the Credit Documents, or any Credit Document shall be cancelled,
terminated, revoked or rescinded without the express prior written consent of
the Agent, or any action or proceeding shall have been commenced by any Person
(other than the Agent or a Lender, in its capacity as such, and not in its
capacity as an Issuing Lender) seeking to cancel, revoke, rescind or disaffirm
the obligations of any party to any Credit Document, or any court or other
Governmental Authority shall issue a judgment, order, decree or ruling to the
effect that any of the obligations of any party to any Credit Document are
illegal, invalid or unenforceable; or

        (i)     (i) any Termination Event shall occur with respect to any
Benefit Plan, (ii) any Accumulated Funding Deficiency, whether or not waived,
shall exist with respect to any Benefit Plan, (iii) any Person shall engage in
any Prohibited Transaction involving any Benefit Plan, (iv) any Borrower, any
Subsidiary of any Borrower or any ERISA Affiliate shall be in "default" (as
defined in ERISA Section 4219(c)(5)) with respect to payments owing to any
Benefit Plan that is a Multiemployer Plan as a result of such Person's complete
or partial withdrawal (as described in ERISA Section 4203 or 4205) therefrom,
(v) any Borrower, any Subsidiary of any Borrower or any ERISA Affiliate shall
fail to pay when due and payable an amount that is payable by it to the PBGC or
to any Benefit Plan under Title IV of ERISA, (vi) a proceeding shall be
instituted by a fiduciary of any such Benefit Plan against any Borrower, any
Subsidiary of any Borrower or any ERISA Affiliate to enforce ERISA Section 515
and such proceeding shall not have been dismissed within 30 days thereafter or
(vii) any Person shall engage in any breach of fiduciary duty under Section 404
of ERISA involving any Benefit Plan, except that no event of default or
non-compliance with law referred to in clauses (i) through (vii) shall
constitute an Event of Default if it, together with all other such events or
conditions at the time existing, has not subjected, and in the reasonable
determination of the Agent will not subject, any Borrower or any Subsidiary of
any Borrower to any liability that, alone or in the aggregate with all such
liabilities for all such Persons, exceeds $1,000,000; or

        (j)     One or more judgments or decrees shall be entered against any
Borrower or any Subsidiary of any Borrower involving a liability of $500,000 or
more, in the case of any one such judgment or decree, and $1,000,000 or more, in
the aggregate for all such judgments and decrees for the Borrowers and their
Subsidiaries combined (in each case, to the extent not paid or covered by a
reputable and solvent insurance carrier that has acknowledged such coverage in
writing) and such judgments or decrees shall not have been vacated, discharged
or stayed pending appeal within thirty (30) days from the entry date thereof; or

        (k)     BCO Holding engages in any type of business activity other than
the ownership of the Capital Securities of BWAY and the performance of its
respective obligations under the Related Transactions Documents and the Credit
Documents.

        9.2     ACCELERATION AND CASH COLLATERALIZATION. Upon the occurrence of
an Event of Default and which is continuing, the Agent shall, upon the request
of the Majority Lenders, and by delivery of notice to the Funds Administrator
from the Agent, take any or all of the following actions, without prejudice to
the rights of the Agent, any Lender or the holder of any Note to enforce its
claims against any Borrower: (a) declare all Obligations (other than contingent
indemnification Obligations to the extent that no claim giving rise thereto has
been asserted and remains unresolved or unsatisfied) to be immediately due and
payable (except with respect to

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any Event of Default set forth in Section 9.1(e), in which case all such
Obligations (including, without limitation, all accrued but unpaid interest,
fees and Expenses) shall automatically become immediately due and payable
without the necessity of any notice or other demand) without presentment,
demand, protest or any other action or obligation of the Agent or any Lender;
and (b) immediately terminate the Commitments hereunder.

        In addition, upon demand by the Agent or the Majority Lenders upon the
occurrence of any Event of Default and which is continuing, the Borrowers shall
deposit with the Agent with cash or Cash Equivalents in an amount equal to 105%
of the Letter of Credit Outstandings (in each case to the extent the same are
such by virtue of clause (a) of the definition thereof). Such deposit shall be
held by the Agent as security for, and to provide for the payment of, Letter of
Credit Outstandings.

        If at any time after acceleration of the maturity of the Obligations,
the Borrowers shall pay all arrears of interest and all payments on account of
principal of the Loans which shall have become due and payable otherwise than by
acceleration (with interest on principal and, to the extent permitted by law, on
overdue interest, at the rates specified in Section 4.4) and all Events of
Default and Defaults (other than nonpayment of principal of and accrued interest
on the Loans and other Obligations due and payable solely by virtue of
acceleration) shall be remedied or waived, then by written notice to the Funds
Administrator, the Majority Lenders may elect, in the sole discretion of such
Majority Lenders, to rescind and annul the acceleration and its consequences and
return any cash collateral; but such action shall not affect any subsequent
Default or Event of Default or impair any right or remedy consequent thereon.
The provisions of the preceding sentence are intended merely to bind the Lenders
to a decision which may be made at the election of the Majority Lenders; they
are not intended to benefit the Borrowers and do not give any Borrower the right
to require the Lenders to rescind or annul any acceleration hereunder or to
return any cash collateral, even if the conditions set forth herein are met.

        9.3     REMEDIES. From and after the occurrence of any Event of Default
and which is continuing, the Agent may, to the extent permitted by applicable
law: (a) remove from any premises where same may be located any and all
documents, instruments, files and records (including the copying of any computer
records), and any receptacles or cabinets containing same, relating to any or
all of the Collateral, or the Agent may use (at the expense of the Borrowers)
such of the supplies or space of any Borrower at any Borrower's place of
business or otherwise, as may be necessary to properly administer and control
any or all of the Collateral or the handling of collections and realizations
thereon; (b) bring suit, in the name of a Borrower or the Lenders and generally
shall have all other rights respecting any or all of the Collateral, including
the right to: accelerate or extend the time of payment, settle, compromise,
release in whole or in part any amounts owing on any or all of the Collateral
and issue credits in the name of a Borrower or the Lenders; and (c) foreclose
the security interests created pursuant to the Credit Documents by any available
judicial procedure, or to take possession of any or all of the Collateral
without judicial process and enter any premises where any Collateral may be
located for the purpose of taking possession of or removing same. To the extent
permitted by applicable law, the Agent shall have the right, without notice or
advertisement, to sell, lease, or otherwise dispose of all or any part of the
Collateral, whether in its then condition or after further preparation or
processing, in the name of a Borrower or the Lenders, or in the name of such
other party as the Agent may designate, either at public or private sale or at
any broker's board, in lots

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or in bulk, for cash or for credit, with or without warranties or
representations, and upon such other terms and conditions as the Agent in its
sole discretion may deem advisable, and the Agent or any other Lender shall have
the right to purchase at any such sale. If any Collateral shall require
rebuilding, repairing, maintenance or preparation, the Agent shall have the
right, at its option, to do such of the aforesaid as is necessary, for the
purpose of putting such Collateral in such saleable form as the Agent shall deem
appropriate. Each Borrower agrees, at the request of the Agent, to assemble the
Collateral and to make it available to the Agent at places which the Agent shall
select, whether at the premises of such or any other Borrower or elsewhere, and
to make available to the Agent the premises and facilities of such Borrower for
the purpose of the Agent's taking possession of, removing or putting the
Collateral in saleable form. However, if notice of intended disposition of any
Collateral is required by law, it is agreed that ten (10) days notice shall
constitute reasonable notification. Unless expressly prohibited by the licensor
thereof, if any, the Agent is hereby granted a license to use, upon the
occurrence and during the continuance of an Event of Default, all computer
software programs, data bases, processes and materials used by each Borrower in
connection with its businesses or in connection with the Collateral. The net
cash proceeds resulting from the Agent's exercise of any of the foregoing rights
(after deducting all charges, costs and expenses, including reasonable
attorneys' fees) shall be applied by the Agent to the payment of the Obligations
(other than contingent indemnification Obligations to the extent that no claim
giving rise thereto has been asserted and remains unresolved or unsatisfied),
whether due and payable or to become due and payable, in such order as the Agent
may elect, and pending such payment shall be held as security for such payment.
All of such net cash proceeds remaining after the payment of all Obligations
(other than contingent indemnification Obligations to the extent that no claim
giving rise thereto has been asserted and remains unresolved or unsatisfied),
unless otherwise required pursuant to applicable law, shall be paid by the Agent
to the Funds Administrator. Each Borrower shall remain liable to the Agent and
the Lenders for any deficiencies. The enumeration of the foregoing rights is not
intended to be exhaustive and the exercise of any right shall not preclude the
exercise of any other rights, all of which shall be cumulative.

                                   ARTICLE 10

                                    THE AGENT

        10.1    APPOINTMENT OF AGENT.

        (a)     Each Lender hereby designates DBTCo as its contractual
representative to act as herein specified. Each Lender hereby irrevocably
authorizes, and each holder of a Note or a participation interest in a Letter of
Credit by the acceptance of such Note or participation interest shall be deemed
irrevocably to authorize, the Agent to take such action on its behalf under the
provisions of this Credit Agreement, the other Credit Documents and any other
instruments and agreements referred to herein or therein and to exercise such
powers and to perform such duties hereunder and thereunder as are specifically
delegated to or required of the Agent by the terms hereof and thereof and such
other powers as are reasonably incidental thereto. The Agent shall hold all
Collateral and all payments of principal, interest, Fees, charges and Expenses
received pursuant to this Credit Agreement or any other Credit Document for the
benefit of the Lenders and the Issuing Lenders to be distributed as provided
herein. The Agent may perform any of its duties hereunder by or through its
agents or employees.

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        (b)     The provisions of this Article 10 are solely for the benefit of
the Agent, the Lenders and the Issuing Lenders, and none of the Credit Parties
shall have any rights as a third party beneficiary of any of the provisions
hereof (other than Section 10.9). In performing its functions and duties under
this Credit Agreement, the Agent shall act solely as agent of the Lenders and
the Issuing Lenders and does not assume and shall not be deemed to have assumed
any obligation toward or relationship of agency or trust with or for any Credit
Party.

        10.2    NATURE OF DUTIES OF AGENT. The Agent shall have no duties or
responsibilities except those expressly set forth in this Credit Agreement and
the other Credit Documents. Neither the Agent nor any of its officers,
directors, employees or agents shall be liable for any action taken or omitted
by it as such hereunder or in connection herewith, unless caused by its or their
gross negligence or willful misconduct. The duties of the Agent shall be
mechanical and administrative in nature; the Agent shall not have by reason of
this Credit Agreement or the other Credit Documents a fiduciary relationship in
respect of any Lender or any Issuing Lender, and nothing in this Credit
Agreement or the other Credit Documents, expressed or implied, is intended to or
shall be so construed as to impose upon the Agent any obligations in respect of
this Credit Agreement or the other Credit Documents except as expressly set
forth herein or therein.

        10.3    LACK OF RELIANCE ON THE AGENT.

        (a)     Independently and without reliance upon the Agent, any Lender or
any Issuing Lender, to the extent it deems appropriate, has made and shall
continue to make (i) its own independent investigation of the financial or other
condition and affairs of each Credit Party in connection with the taking or not
taking of any action in connection herewith and (ii) its own appraisal of (A)
the creditworthiness of each Credit Party, and (B) the Collateral, and, except
as expressly provided in this Credit Agreement, the Agent shall have no duty or
responsibility, either initially or on a continuing basis, to provide any Lender
or any Issuing Lender with any credit or other information with respect thereto,
whether coming into its possession before the Initial Credit Event or at any
time or times thereafter.

        (b)     The Agent shall not be responsible to any Lender or Issuing
Lender for any recitals, statements, information, representations or warranties
herein or in any other Credit Document or for the execution, effectiveness,
genuineness, validity, enforceability, collectibility, priority or sufficiency
of this Credit Agreement or any other Credit Document or the financial or other
condition of any Credit Party. The Agent shall not be required to make any
inquiry concerning either the performance or observance, of any of the terms,
provisions or conditions of this Credit Agreement or any other Credit Document,
or the financial condition of any Credit Party, or the existence or possible
existence of any Default or Event of Default, unless specifically requested to
do so in writing by any Lender or Issuing Lender, as the case may be.

        10.4    CERTAIN RIGHTS OF THE AGENT. The Agent shall have the right to
request instructions from the Lenders at any time. If the Agent shall request
instructions from the Lenders with respect to any act or action (including the
failure to act) in connection with this Credit Agreement, the Agent shall be
entitled to refrain from such act or taking such action unless and until the
Agent shall have received instructions from the Majority Lenders (or, to the
extent required pursuant to Section 11.10, all Lenders), and the Agent shall not
incur liability to

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any Person by reason of so refraining. Without limiting the foregoing, no Lender
or Issuing Lender shall have any right of action whatsoever against the Agent as
a result of the Agent acting or refraining from acting hereunder in accordance
with the instructions of the Majority Lenders.

        10.5    RELIANCE BY THE AGENT. The Agent shall be entitled to rely, and
shall be fully protected in relying, upon any note, writing, resolution, notice,
statement, certificate, telex or facsimile transmission, E-mail, telecopier
message, cablegram, order or other documentary, teletransmission or telephone
message believed by it to be genuine and correct and to have been signed, sent
or made by the proper Person. The Agent may consult with legal counsel
(including counsel for the Borrowers with respect to matters concerning the
Borrowers), independent public accountants and other experts selected by it and
shall not be liable for any action taken or omitted to be taken by it in good
faith in accordance with the advice of such counsel, accountants or experts. The
Agent may, but shall not be required to, rely on Borrowing Base Certificates and
any other schedules or reports delivered to the Agent in connection herewith in
determining the amount of the Borrowing Base and the then eligibility of
Accounts and Inventory of the respective Borrowers. Reliance thereon by the
Agent from time to time shall not be deemed to limit the right of the Agent to
revise advance rates or standards of eligibility to the extent provided in the
definition of the term "Borrowing Base" set forth herein.

        10.6    INDEMNIFICATION OF AGENT. To the extent the Agent is not
reimbursed and indemnified by the Borrowers, each Lender will reimburse and
indemnify the Agent, in proportion to its respective Commitment, for and against
any and all Liabilities, losses, damages, penalties, actions, judgments, suits,
costs, expenses (including counsel fees and disbursements) or disbursements of
any kind or nature whatsoever (including all Expenses) which may be imposed on,
incurred by or asserted against the Agent, in any way relating to or arising out
of this Credit Agreement or any other Credit Document; provided that no Lender,
shall be liable for any portion of such Liabilities, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements to the extent it is
determined by a judgment of a court that is binding on the Agent, final and not
subject to review on appeal, to be the result of acts or omissions on the part
of the Agent, constituting gross negligence or willful misconduct.

        10.7    THE AGENT IN ITS INDIVIDUAL CAPACITY. With respect to its
obligation to lend under this Credit Agreement, the Loans made by it and the
Notes issued to it, and its participation in Letters of Credit, the Agent shall
have the same rights and powers hereunder as any other Lender or holder of a
Note or participation interests and may exercise the same as though it was not
performing the duties specified herein; and the terms "Lenders," "Majority
Lenders," "holders of Notes," or any similar terms shall, unless the context
clearly otherwise indicates, include the Agent in its individual capacity. The
Agent may accept deposits from, lend money to, acquire equity interests in, and
generally engage in any kind of banking, trust, financial advisory or other
business with any Borrower or any Affiliate of any Borrower as if it were not
performing the duties specified herein, and may accept fees and other
consideration from any Borrower for services in connection with this Credit
Agreement and otherwise without having to account for the same to the Lenders or
any Issuing Lender.

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        10.8    HOLDERS OF NOTES.

        (a)     The Agent may deem and treat the payee of any Note as the owner
thereof for all purposes hereof unless and until a written notice of the
assignment or transfer thereof shall have been filed with the Agent. Any
request, authority or consent of any Person who, at the time of making such
request or giving such authority or consent, is the holder of any Note, shall be
conclusive and binding on any subsequent holder, transferee or assignee of such
Note or of any Note or Notes issued in exchange therefor.

        10.9    SUCCESSOR AGENT.

        (a)     The Agent may, upon five (5) Business Days' notice to the
Lenders and the Funds Administrator, resign at any time (effective upon the
appointment of a successor Agent pursuant to the provisions of this Section
10.9) by giving written notice thereof to the Lenders and the Funds
Administrator. Upon such resignation, the Majority Lenders shall have the right,
upon five (5) days' notice to the Funds Administrator (and with the consent of
the Borrowers, which consent shall not be unreasonably withheld or delayed), to
appoint a successor Agent. If no successor Agent (i) shall have been so
appointed by the Majority Lenders and (ii) shall have accepted such appointment,
within thirty (30) days after the retiring Agent's giving of notice of
resignation, then, upon five (5) days' notice, the retiring Agent may, on behalf
of the Lenders, appoint a successor Agent.

        (b)     Upon the acceptance of any appointment as Agent hereunder by a
successor Agent, such successor Agent shall thereupon succeed to and become
vested with all the rights, powers, privileges and duties of the retiring Agent,
and the retiring Agent shall be discharged from its duties and obligations under
this Credit Agreement. After any retiring Agent's resignation hereunder as
Agent, the provisions of this Article 10 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Agent under this Credit
Agreement.

        (c)     In the event of a material breach by the Agent of its duties
hereunder, the Agent may be removed by the Majority Lenders for cause and the
provisions of this Section 10.9 shall apply to the appointment of a successor
Agent. Such removal of the Agent shall also operate, if at the time any such
Person is serving as such, as a removal of DBTCo and each of its Serving
Affiliates, if any, as an Issuing Lender, subject to Section 10.9(d).

        (d)     No removal of DBTCo, Deutsche Bank AG or any of its Serving
Affiliates pursuant to Section 10.9(c), as an Issuing Lender, shall be effective
unless its Liabilities under each Letter of Credit are secured with cash or by
letters of credit in form and substance, and issued by issuers, reasonably
satisfactory to DBTCo, Deutsche Bank AG or such Serving Affiliate.

        10.10   COLLATERAL MATTERS.

        (a)     Each Lender and each Issuing Lender authorizes and directs the
Agent to enter into the Collateral Documents for the benefit of such Person.
Each Lender and each Issuing Lender hereby agrees, and each holder of any Note
by the acceptance thereof will be deemed to agree, that, except as otherwise set
forth in Section 11.10, any action taken by the Majority

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<PAGE>

Lenders in accordance with the provisions of this Credit Agreement or the
Collateral Documents, and the exercise by the Majority Lenders of the powers set
forth herein or therein, together with such other powers as are reasonably
incidental thereto, shall be authorized and binding upon all of the Lenders and
all the Issuing Lenders. The Agent is hereby authorized on behalf of all of the
Lenders and all the Issuing Lenders, without the necessity of any notice to or
further consent from any Lender or any Issuing Lender from time to time prior
to, an Event of Default, to take any action with respect to any Collateral or
Collateral Documents which may be necessary to perfect and maintain perfected
the Liens upon the Collateral granted pursuant to the Collateral Documents.

        (b)     Each Lender and each Issuing Lender hereby authorizes the Agent,
at its option and in its discretion, to release any Lien granted to or held by
the Agent upon any Collateral (i) upon termination of the Commitments and
payment and satisfaction of all of the Obligations at any time arising under or
in respect of this Credit Agreement or the other Credit Documents or the
transactions contemplated hereby or thereby, (ii) constituting property being
sold or disposed of upon receipt of the proceeds of such sale by the Agent, if
the Funds Administrator certifies to the Agent that such sale or disposition is
made in compliance with Section 8.5 (and the Agent may rely conclusively on any
such certificate, without further inquiry) or (iii) if approved, authorized or
ratified in writing by the Majority Lenders, unless such release is required to
be approved by all of the Lenders pursuant to Section 11.10. Upon request by the
Agent at any time, each Lender and each Issuing Lender will confirm in writing
the Agent's authority to release particular types or items of Collateral
pursuant to this Section 10.10.

        (c)     Upon any sale and transfer of Collateral which is expressly
permitted pursuant to the terms of this Credit Agreement, or consented to in
writing by the Majority Lenders (or all Lenders, if such release is required to
be approved by all of the Lenders pursuant to Section 11.10), and upon at least
five (5) Business Days' prior written request by the Funds Administrator, the
Agent shall (and is hereby irrevocably authorized by each Lender and each
Issuing Lender, to) execute such documents as may be necessary to evidence the
release of the Liens granted to the Agent for the benefit of the Agent, the
Lenders and the Issuing Lenders herein or pursuant hereto upon the Collateral
that was sold or transferred; provided that (i) the Agent shall not be required
to execute any such document on terms which, in the Agent's good faith
determination would expose the Agent to or create any Liability or entail any
consequence, other than the release of such Liens without recourse or warranty
and (ii) such release shall not in any manner discharge, affect or impair the
Obligations or any Liens upon (or obligations of any Borrower or any Credit
Party in respect of) all interests retained by any Borrower or any Credit Party,
including the proceeds of the sale, all of which shall continue to constitute
part of the Collateral. In the event of any sale or transfer of Collateral, or
any foreclosure with respect to any of the Collateral, the Agent shall be
authorized to deduct all of the Expenses reasonably incurred by the Agent from
the proceeds of any such sale, transfer or foreclosure.

        (d)     The Agent shall have no obligation whatsoever to any Lender, any
Issuing Lender or any other Person to assure that the Collateral exists or is
owned by any Borrower or any Subsidiary thereof or is cared for, protected or
insured or that the Liens granted to the Agent herein or in any of the
Collateral Documents or pursuant hereto or thereto have been properly or
sufficiently or lawfully created, perfected, protected or enforced or are
entitled to any particular priority, or to exercise or to continue exercising at
all or in any manner or under any duty of care,

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<PAGE>

disclosure or fidelity any of the rights, authorities and powers granted or
available to the Agent in this Section 10.10 or in any of the Collateral
Documents, it being understood and agreed that in respect of the Collateral, or
any act, omission or event related thereto, the Agent may act in any manner it
may deem appropriate, in its sole discretion, given the Agent's own interest in
the Collateral as one of the Lenders and that the Agent shall have no duty or
liability whatsoever to the Lenders, except for its gross negligence or willful
misconduct.

        10.11   ACTIONS WITH RESPECT TO DEFAULTS. In addition to the Agent's
right to take actions on its own accord as permitted under this Credit
Agreement, the Agent shall take such action with respect to a Default or Event
of Default as shall be directed by the Majority Lenders; provided that until the
Agent shall have received such directions, the Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with respect
to such Default or Event of Default as it shall deem advisable and in the best
interests of the Lenders and the Issuing Lenders; and, further, provided that
the Agent shall not be required under any circumstances to take any action that,
in its judgment, (a) is contrary to any provision of the Credit Documents or
applicable law or (b) will expose it to any liability or expense against which
it has not been indemnified to its satisfaction.

        10.12   DELIVERY OF INFORMATION. The Agent shall not be required to
deliver to any Lender or any Issuing Lender originals or copies of any
documents, instruments, notices, communications or other information received by
the Agent from the Funds Administrator, any Borrower, any Subsidiary of any
Borrower, the Majority Lenders, any Lender, any Issuing Lender or any other
Person under or in connection with this Credit Agreement or any other Credit
Document except (a) as specifically provided in this Credit Agreement or any
other Credit Document and (b) as specifically requested from time to time in
writing by any Lender, or any Issuing Lender with respect to a specific
document, instrument, notice or other written communication received by and in
the possession of the Agent at the time of receipt of such request and then only
in accordance with such specific request.

                                   ARTICLE 11

                                  MISCELLANEOUS

        11.1    SUBMISSION TO JURISDICTION. EACH PARTY HERETO HEREBY IRREVOCABLY
AND UNCONDITIONALLY:

        (a)     SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS TO
WHICH IT IS A PARTY, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN
RESPECT THEREOF, TO THE NONEXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE
STATE OF NEW YORK, THE COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN
DISTRICT OF NEW YORK, IN EACH CASE LOCATED IN NEW YORK, NEW YORK, AND APPELLATE
COURTS FROM ANY THEREOF;

        (b)     CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN
SUCH COURTS AND WAIVES ANY OBJECTION THAT IT MAY NOW

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OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH
COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND
AGREES NOT TO PLEAD OR CLAIM THE SAME;

        (c)     AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING
MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR
ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO SUCH PARTY AT THE
ADDRESS OF SUCH PARTY SET FORTH IN SECTION 11.5 OR AT SUCH OTHER ADDRESS OF
WHICH THE AGENT SHALL HAVE BEEN NOTIFIED PURSUANT THERETO;

        (d)     AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY PARTY
HERETO TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR
AFFECT THE RIGHT OF THE AGENT OR ANY LENDER TO BRING ANY ACTION OR PROCEEDING
AGAINST ANY BORROWER, OR ITS PROPERTY IN THE COURTS OF OTHER JURISDICTIONS; AND

        (e)     IN THE CASE OF EACH CREDIT PARTY, WAIVES DUE DILIGENCE, DEMAND,
PRESENTMENT AND PROTEST AND ANY NOTICES THEREOF AS WELL AS NOTICE OF NONPAYMENT.

        11.2    JURY TRIAL. THE CREDIT PARTIES, THE AGENT, EACH ISSUING LENDER
AND THE LENDERS EACH HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING ARISING OUT OF THIS CREDIT AGREEMENT, THE OTHER CREDIT DOCUMENTS OR
ANY OTHER AGREEMENTS OR TRANSACTIONS RELATED HERETO OR THERETO.

        11.3    GOVERNING LAW. THE RIGHTS AND DUTIES OF THE CREDIT PARTIES, THE
AGENT, EACH ISSUING LENDER AND THE LENDERS UNDER THIS CREDIT AGREEMENT, THE
NOTES (INCLUDING MATTERS RELATING TO THE MAXIMUM PERMISSIBLE RATE) AND THE OTHER
CREDIT DOCUMENTS SHALL, PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION
5-1401, BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

        11.4    DELAYS; PARTIAL EXERCISE OF REMEDIES. No delay or omission of
Agent, any Issuing Lender, any Lender or any Credit Party to exercise any right
or remedy hereunder or under any of the other Credit Documents, whether before
or after the happening of any Event of Default, shall impair any such right or
shall operate as a waiver thereof or as a waiver of any such Event of Default.
No single or partial exercise by the Agent, any Issuing Lender, any Lender or
any Credit Party of any right or remedy shall preclude any other or further
exercise thereof, or preclude any other right or remedy.

        11.5    NOTICES. Except as otherwise provided herein, all notices and
correspondence hereunder shall be in writing and sent by certified or registered
mail, return receipt requested, or by overnight delivery service, with all
charges prepaid, to the following addresses, (a) if to the

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Agent, or any of the Lenders, then to Deutsche Bank Trust Company Americas, 31
West 52nd Street, New York, New York 10019, Attention Credit Department (with a
copy to Deutsche Bank Trust Company Americas, 233 South Wacker Drive, Suite
8400, Chicago, Illinois 60606, Attention: Credit Department); (b) if to any
Issuing Lender, to the address specified in the applicable Letter of Credit
Request; and (c) if to the Funds Administrator or any Borrower, then to such
Person at 8607 Roberts Drive, Suite 250, Atlanta, GA 30350, Attention: Treasurer
(with a copy to Debevoise & Plimpton, 919 Third Avenue, New York, New York,
10022, Attention: Stephen Hertz, Esq.) or by facsimile transmission, promptly
confirmed in writing sent by first class mail, (i) if to the Agent, or any of
the Lenders, at (212) 250-2500, (with a copy to (312) 993-8139); (ii) if to an
Issuing Lender, as specified in the applicable Letter of Credit Request; and
(iii) if to the Funds Administrator or any Borrower at (770) 587-0186 (with a
copy to Debevoise & Plimpton, (212) 909-6836, Attention: Stephen Hertz, Esq.,
and to Kelso & Company, L.P., 320 Park Avenue, New York, New York 10022,
Attention: James J. Connors II). All such notices and correspondence shall be
deemed given (a) if sent by certified or registered mail, three (3) Business
Days after being postmarked, (b) if sent by overnight delivery service, when
received at the above stated addresses or when delivery is refused and (c) if
sent by facsimile transmission, when receipt of such transmission is
acknowledged.

        11.6    ASSIGNABILITY.

        (a)     The Borrowers shall not have the right to assign this Credit
Agreement or any interest therein except with the prior written consent of the
Agent.

        (b)     Any Lender may make, carry or transfer Loans at, to or for the
account of, any of its branch offices or the office of an Affiliate of such
Lender except to the extent such transfer would result in increased costs to the
Borrowers.

        (c)     Each Lender may assign to one or more banks, other financial
institutions or investment funds all or a portion of its rights and obligations
under this Credit Agreement, the Notes and the other Credit Documents; provided
that, except in the case of an assignment to a Federal Reserve Bank (which may
be made without condition or restriction, provided that no such assignment to a
Federal Reserve Bank shall release a Lender from any of its obligations
hereunder or substitute any such assignee for such Lender as a party hereto),
(i) such assignment shall be for a fixed and not varying percentage of the
assigning Lender's Loans, participation interests in Letters of Credit and
Commitment, (ii) the Agent (after prior consultation with the Funds
Administrator) shall consent to such assignment), (iii) for each such
assignment, the parties thereto shall execute and deliver to the Agent, for its
acceptance and recording in the Register (as defined below), an Assignment and
Assumption Agreement, together with any Note or Notes subject to such assignment
and a processing and recordation fee of $5,000 and (iv) except for any
assignment covering all or the remaining portion of an assigning Lender's rights
and obligations under this Credit Agreement, the Notes and the other Credit
Documents, no such assignment shall be for less than $10,000,000 of the
assigning Lender's Commitment, unless such assignment is to a then-current
holder of a Note. Upon such execution and delivery of the Assignment and
Assumption Agreement to the Agent, from and after the date specified as the
effective date in the Assignment and Assumption Agreement (the "Acceptance
Date"), (A) the assignee thereunder shall be a party hereto, and, to the extent
that rights and obligations hereunder have been assigned to it pursuant to such
Assignment and Assumption Agreement,

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such assignee shall have the rights and obligations of a Lender hereunder and
(B) the assignor thereunder shall, to the extent that rights and obligations
hereunder have been assigned by it pursuant to such Assignment and Assumption
Agreement, relinquish its rights (other than any rights it may have pursuant to
Section 11.8, which rights will survive) and be released from its obligations
(other than any obligations it may have pursuant to Section 11.7, which
obligations will survive under this Credit Agreement (and, in the case of an
Assignment and Assumption Agreement covering all or the remaining portion of an
assigning Lender's rights and obligations under this Credit Agreement, such
Lender shall cease to be a party hereto).

        (d)     By executing and delivering an Assignment and Assumption
Agreement, the assignee thereunder confirms and agrees as follows: (i) other
than as provided in such Assignment and Assumption Agreement, the assigning
Lender makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in
connection with this Credit Agreement or any other Credit Document or the
execution, legality, validity, enforceability, genuineness, sufficiency or value
of this Credit Agreement, the Notes, or any other Credit Document; (ii) such
assigning Lender makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Borrower, any
other Credit Parties or any Issuing Lender, the value of the Collateral, or the
performance or observance by (A) any Borrower or any other Credit Parties of any
of its obligations under this Credit Agreement or any other Credit Document, or
(B) any Issuing Lender of any of its obligations in respect of any Letter of
Credit; (iii) such assignee confirms that it has received a copy of this Credit
Agreement, together with copies of the Financial Statements referred to in
Section 7.1 and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into such
Assignment and Assumption Agreement; (iv) such assignee represents and warrants
that it is a bank, savings and loan association or other similar savings
institution, insurance company, investment fund or company or other financial
institution that makes or acquires commercial loans in the ordinary course of
its business, that it is participating hereunder as a Lender for such commercial
purposes, and that it has the knowledge and experience to be and is capable of
evaluating the merits and risks of being a Lender hereunder; (v) such assignee
will continue, independently and without reliance upon the Agent, such assigning
Lender or any other Lender and based on such documents and information as it
shall deem appropriate at the time, to make its own credit decisions in taking
or not taking action under this Credit Agreement; (vi) such assignee appoints
and authorizes the Agent to take such action as agent on its behalf and to
exercise such powers under this Credit Agreement and the other Credit Documents
as are delegated to the Agent by their terms, together with such powers as are
reasonably incidental thereto; and (vii) such assignee agrees that it will
perform in accordance with their terms all of the obligations which by the terms
of this Credit Agreement are required to be performed by it as a Lender.

        (e)     The Agent shall maintain at its address referred to in Section
11.5 a copy of each Assignment and Assumption Agreement delivered to and
accepted by it and a register for the recordation of the names and addresses of
the Lenders and the Commitment of, and principal amount of the Loans owing to,
each Lender from time to time (the "Register"). The entries in the Register
shall be conclusive and binding for all purposes, absent manifest error, and the
Funds Administrator, each of the Borrowers, the Agent and the Lenders may treat
each Person whose name is recorded in the Register as a Lender hereunder for all
purposes of this Credit

                                     - 100 -

<PAGE>

Agreement. The Register and copies of each Assignment and Assumption shall be
available for inspection by any Borrower or any Lender at any reasonable time
and from time to time upon reasonable prior notice.

        (f)     Upon its receipt of an Assignment and Assumption Agreement
executed by an assigning Lender, together with the Note or Notes subject to such
assignment (which Note or Notes the Agent shall promptly mark "substituted and
amended"), the Agent shall, if such Assignment and Assumption Agreement has been
completed and is in substantially the form of Exhibit A hereto and otherwise
complies with this Section 11.6, (i) accept such Assignment and Assumption
Agreement, (ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Funds Administrator. Within five (5)
Business Days after its receipt of such notice, if so requested by the Agent,
the Borrowers shall execute and deliver to the Agent in exchange for the
surrendered Note or Notes a new Note or Notes to the order of the assignee in an
amount equal to the Commitment assumed by it pursuant to such Assignment and
Assumption Agreement and, if the assigning Lender has retained a Commitment
hereunder, a new Note or Notes to the order of the assigning Lender in an amount
equal to the Commitment retained by it hereunder. Such new Note or Notes shall
re-evidence the Indebtedness outstanding under the old Note or Notes and shall
be in an aggregate principal amount equal to the aggregate principal amount of
such surrendered Note or Notes, shall be dated the Closing Date and shall
otherwise be in substantially the form of the Note or Notes subject to such
assignments.

        (g)     Each Lender may sell participations (without the consent of the
Agent, any Borrower or any other Lender) to one or more parties in or to all or
a portion of its rights and obligations under this Credit Agreement (including
all or a portion of its Commitment, the Loans owing to it and the Note or Notes
held by it); provided that (i) such Lender's obligations under this Credit
Agreement (including its Commitment to the Borrowers hereunder) shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations, (iii) such Lender shall remain
the holder of any such Note for all purposes of this Credit Agreement, (iv) the
Funds Administrator, the Borrowers, the Agent, and the other Lenders shall
continue to deal solely and directly with such Lender in connection with such
Lender's rights and obligations under this Credit Agreement and such Notes and
(v) such Lender shall not transfer, grant, assign or sell any participation
under which the participant shall have rights to approve any amendment or waiver
of this Credit Agreement except to the extent such amendment or waiver would (A)
extend the final maturity date or the date for the payments of any installment
of fees or principal or interest of any Loans or Letter of Credit reimbursement
obligations in which such participant is participating; (B) reduce the amount of
any installment of principal of the Loans or the amount of any Drawing under any
Letter of Credit in which such participant is participating; (C) except as
otherwise expressly provided in this Credit Agreement, reduce the interest rate
applicable to the Loans or the amount of any Drawing under any Letter of Credit
in which such participant is participating; or (D) except as otherwise expressly
provided in this Credit Agreement, reduce any Fees payable hereunder. Each
Lender selling or granting a participation, including a participation sold
pursuant to Section 2.10, shall indemnify the Borrowers and the Agent for any
Taxes and Liabilities that either may sustain as a result of such Lender's
failure to withhold and pay any Taxes applicable to payments by such Lender to
its participant in respect of such participation.

                                     - 101 -

<PAGE>

        (h)     Each Lender agrees that, without the prior written consent of
the Borrowers and the Agent, it will not make any assignment hereunder in any
manner or under any circumstances that would require registration or
qualification of, or filings in respect of, any Loan, Note or other Obligation
under the securities laws of the United States of America or of any
jurisdiction.

        (i)     Subject to Section 11.7(e), in connection with the efforts of
any Lender to assign its rights or obligations or to participate interests, such
Lender may disclose any information in its possession regarding any Borrower.

        11.7    CONFIDENTIALITY. Each Lender agrees that it will use its
reasonable best efforts not to disclose without the prior consent of the
Borrowers (other than to its employees, auditors, advisors, Affiliates and
counsel, or to another Lender if the disclosing Lender or such disclosing
Lender's holding or parent company in its sole discretion determines that any
such party should have access to such information) any information with respect
to any Borrower or any of its Subsidiaries, which is furnished pursuant to this
Credit Agreement or any other Credit Document (or the respective transactions
contemplated hereby or thereby, as the case may be) and which is designated by
such Borrower to the Lenders in writing as confidential, provided that any
Lender may disclose any such information (a) as has become generally available
to the public, other than as a result of a breach of this Section 11.7, (b) as
may be required in any report, statement or testimony submitted to or
examination conducted by any Governmental Authority having or claiming to have
jurisdiction over such Lender, (c) as may be required in response to any summons
or subpoena or in connection with any litigation, (d) in order to comply with
any Requirement of Law, (e) to any prospective or actual transferee or
participant in connection with any contemplated transfer or participation of any
of the Notes or Commitments or any interest therein by such Lender which
prospective transferee or participant shall have agreed in writing to be subject
to the confidentiality provisions of this Section 11.7, (f) to other financial
institutions with respect to which the respective Lender has a contractual
relationship in accordance with such Lender's regular banking procedures,
provided that each such other financial institution agrees to be bound by the
confidentiality provisions contained in this Section 11.7, (g) as may be
required in protecting, preserving, exercising or enforcing any of its rights
in, under or related to the Collateral or the Credit Documents and (h) as may be
required in consulting with any Person with respect to any of the foregoing
matters, provided that, to the extent permitted pursuant to applicable
Requirements of Law, and other than in connection with credit and other bank
examinations conducted in the ordinary course with respect to such Lender, in
the case of any disclosure pursuant to the foregoing clauses (b), (c) or (d),
such Lender will use its reasonable best efforts to notify the Funds
Administrator in advance of such disclosure so as to afford the Funds
Administrator or the relevant Borrower the opportunity to protect the
confidentiality of the information proposed to be so disclosed.

        11.8    INDEMNIFICATION. The Borrowers shall and hereby agree jointly
and severally to indemnify, defend and hold harmless the Agent, each Issuing
Lender and each of the Lenders (in each case acting in their respective
capacities as such), and their respective directors, officers, agents,
employees, counsel, advisors and Affiliates (in each case to the extent incurred
or arising as a result of or in connection with actions taken or omitted to be
taken by such Person for or on behalf of the Agent, Issuing Lender or Lender, as
the case may be, acting in their respective capacities as such), from and
against (a) any and all losses, claims, damages, liabilities, deficiencies,
judgments or expenses (other than with respect to Taxes which shall be governed

                                     - 102 -

<PAGE>

by Section 2.8) incurred by any of them (except to the extent that it is finally
judicially determined to have resulted from their own gross negligence or
willful misconduct or from the gross negligence or willful misconduct of their
directors, officers, agents, employees, counsel, advisors or Affiliates, as the
case may be) arising out of or by reason of any litigations, investigations,
claims or proceedings which arise out of or are in any way related to (i) this
Credit Agreement or the transactions contemplated thereby; (ii) the issuance of
Letters of Credit; (iii) the failure of an Issuing Lender to honor a Drawing
under any Letter of Credit, as a result of any act or omission, whether rightful
or wrongful, of any present or future de jure or de facto government or
Governmental Authority; (iv) any actual or proposed use by any Borrower of (A)
the proceeds of any Loans or (B) any Letter of Credit; (v) the Agent's, the
Lenders' or any Issuing Lender's entering into this Credit Agreement, the other
Credit Documents or any other agreements and documents relating thereto,
including amounts paid in any settlement consented to by the Borrower (which
consent shall not be unreasonably withheld or delayed), court costs and the
reasonable fees and disbursements of counsel incurred in connection with any
such litigation, investigation, claim or proceeding or any advice rendered in
connection with any of the foregoing; or (vi) any of the Related Transactions
Documents or Related Transactions; and (b) any such losses, claims, damages,
liabilities, deficiencies, judgments or expenses that arise directly or
indirectly from or in connection with any federal, state or local environmental
laws, acts, rules, regulations, orders, directions, ordinances, criteria or
guidelines (except to the extent that such losses, claims, damages, liabilities,
deficiencies, judgments or expenses are finally judicially determined to have
resulted from the gross negligence or willful misconduct of the Person seeking
such indemnification, defense or holding harmless, or the gross negligence or
willful misconduct of such Person's directors, officers, agents, employees,
counsel, advisors or Affiliates). If and to the extent that the Obligations of
the Borrowers under this Section 11.8 are unenforceable for any reason, the
Borrowers hereby jointly and severally agree to make the maximum contribution to
the payment and satisfaction of such Obligations which is permissible under
applicable law. The Borrowers' joint and several Obligations under this Section
11.8 shall survive any termination of this Credit Agreement and the other Credit
Documents and the payment in full of the Obligations, and are in addition to,
and not in substitution of, any other of its Obligations. In addition, the
Borrowers shall, upon demand, pay to the Agent and each Lender all costs and
expenses (including the reasonable fees and disbursements of counsel and other
professionals) paid or incurred by the Agent or such Lender in (i) enforcing or
defending its rights under or in respect of this Credit Agreement, the other
Credit Documents or any other document or instrument now or hereafter executed
and delivered in connection herewith, (ii) collecting the Loans, (iii)
foreclosing or otherwise collecting upon the Collateral or any part thereof and
(iv) obtaining any legal, accounting or other advice in connection with any of
the foregoing.

        11.9    ENTIRE AGREEMENT; SUCCESSORS AND ASSIGNS. This Credit Agreement
and the other Credit Documents constitute the entire agreement among the Funds
Administrator, the Borrowers, the Agent and the Lenders (in their capacities as
such and not in their capacity, if any, as an Issuing Lender), supersedes any
prior agreements among them, and shall bind and benefit the Funds Administrator,
the Borrowers, the Agent and the Lenders and their respective successors and
permitted assigns.

        11.10   AMENDMENTS, ETC. No amendment or waiver of any provision of this
Credit Agreement or any Collateral Document, nor consent to any departure by any
Credit Party

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<PAGE>

therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Majority Lenders (or by the Agent on their behalf), or if the
Lenders shall not be parties thereto, by the parties thereto and consented to by
the Majority Lenders (or by the Agent on their behalf), and each such amendment,
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, that, notwithstanding the foregoing:

        (a)     no amendment, waiver or consent shall, unless in writing and
signed by all the Lenders, do any of the following: (i) increase the Commitments
of the Lenders or subject the Lenders to any additional obligations; (ii) except
as otherwise expressly provided in this Credit Agreement, reduce the principal
of the Notes, or interest on the Notes, or any Drawing under any Letter of
Credit or any fees hereunder; (iii) postpone any date fixed for any payment in
respect of principal of, or interest on, the Notes or any Drawing under any
Letter of Credit or any fees hereunder; (iv) change the percentage of the
Commitments, or any minimum requirement necessary for the Lenders or the
Majority Lenders to take any action hereunder; (v) amend or waive this Section
11.10, or change the definition of Majority Lenders; (vi) increase the advance
rates set forth in clauses (a)(ii), (iii) and (iv) of the definition of the term
"Borrowing Base" from the advance rates in effect on the Closing Date, or
increase the Fixed Asset Sublimit; (vii) except in connection with the
financing, refinancing, sale or other disposition of any Collateral of a
Borrower permitted under this Credit Agreement, or as otherwise expressly
provided in this Credit Agreement, release Agent's Liens on all or substantially
all of the Collateral and, provided that no amendment, waiver or consent
affecting the rights or duties of the Agent or any Issuing Lender under, (x) in
the case of the Agent, any term or provision of this Credit Agreement and (y) in
the case of any Issuing Lender, (1) Article 3 of this Credit Agreement, (2) any
Letter of Credit or (3) any application in respect of any Letter of Credit,
shall in any event be effective, unless in writing and signed by the Agent or
such Issuing Lender, as applicable, in addition to the Lenders required
hereinabove to take such action.

The Borrowers and the Lenders hereby authorize the Agent to modify this Credit
Agreement by unilaterally amending or supplementing Annex II from time to time
in the manner requested by the Borrowers, the Agent or any Lender solely in
order to reflect any assignments or transfers of the Loans as provided for
hereunder and to the extent in accordance with the terms of this Credit
Agreement; however, provided that the Agent shall promptly deliver a copy of any
such modification to the Funds Administrator and each Lender.

        11.11   NONLIABILITY OF AGENT AND LENDERS. The relationship between the
Borrowers and the Lenders and the Agent shall be solely that of borrower and
lender. Neither the Agent, any Lender or any Issuing Lender shall have any
fiduciary responsibilities to any Credit Party. Neither the Agent, any Lender or
any Issuing Lender undertakes any responsibility to any Credit Party to review
or inform such Credit Party of any matter in connection with any phase of any
other Credit Party's business or operations.

        11.12   COUNTERPARTS. This Credit Agreement may be executed in any
number of counterparts and by the different parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original,
but all of which shall together constitute one and the same instrument.

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<PAGE>

        11.13   EFFECTIVENESS. This Credit Agreement shall become effective on
the date on which all of the parties hereto shall have signed a copy hereof
(whether the same or different copies) and shall have delivered the same to the
Agent pursuant to Section 11.5 or, in the case of the Lenders, shall have given
to the Agent written or facsimile notice (actually received) at such a office
that the same has been signed and mailed to it.

        11.14   SEVERABILITY. In case any provision in or obligation under this
Credit Agreement or the Notes or the other Credit Documents shall be invalid,
illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining provisions or obligations, or of such provision
or obligation in any other jurisdiction, shall not in any way be affected or
impaired thereby.

        11.15   HEADINGS DESCRIPTIVE. The headings of the several sections and
subsections of this Credit Agreement, and the Table of Contents, are inserted
for convenience only and shall not in any way affect the meaning or construction
of any provision of this Credit Agreement.

        11.16   MAXIMUM RATE. Notwithstanding anything to the contrary contained
elsewhere in this Credit Agreement or in any other Credit Document, the
Borrowers, the Agent and the Lenders hereby agree that all agreements among them
under this Credit Agreement and the other Credit Documents, whether now existing
or hereafter arising and whether written or oral, are expressly limited so that
in no contingency or event whatsoever shall the amount paid, or agreed to be
paid, to the Agent or any Lender for the use, forbearance, or detention of the
money loaned to the Borrowers and evidenced hereby or thereby or for the
performance or payment of any covenant or obligation contained herein or
therein, exceed the Highest Lawful Rate. If due to any circumstance whatsoever,
fulfillment of any provisions of this Credit Agreement or any of the other
Credit Documents at the time performance of such provision shall be due shall
exceed the Highest Lawful Rate, then, automatically, the obligation to be
fulfilled shall be modified or reduced to the extent necessary to limit such
interest to the Highest Lawful Rate, and if from any such circumstance any
Lender should ever receive anything of value deemed interest by applicable law
which would exceed the Highest Lawful Rate, such excessive interest shall be
applied to the reduction of the principal amount then outstanding hereunder or
on account of any other then outstanding Obligations and not to the payment of
interest, or if such excessive interest exceeds the principal unpaid balance
then outstanding hereunder and such other then outstanding Obligations, such
excess shall be refunded to the Borrowers. All sums paid or agreed to be paid to
the Agent or any Lender for the use, forbearance, or detention of the
Obligations and other Indebtedness of the Borrowers to the Agent or any Lender
shall, to the extent permitted by applicable law, be amortized, prorated,
allocated and spread throughout the full term of such Indebtedness until payment
in full so that the actual rate of interest on account of all such Indebtedness
does not exceed the Highest Lawful Rate throughout the entire term of such
Indebtedness. The terms and provisions of this Section shall control every other
provision of this Credit Agreement and all agreements among the Borrowers, the
Agent and the Lenders.

        11.17   RIGHT OF SETOFF. In addition to and not in limitation of all
rights of offset that any Lender may have under applicable law, each Lender
shall, upon the occurrence and during the continuance of any Event of Default
and whether or not such Lender has made any demand or all of the Obligations of
any Credit Party are matured, have the right to appropriate and apply to the
payment of the Obligations (other than contingent indemnification Obligations to
the extent that

                                     - 105 -

<PAGE>

no claim giving rise thereto has been asserted and remains unresolved or
unsatisfied) of such Credit Party then due and payable all deposits (general or
special, time or demand, provisional or final) then or thereafter held by and
other Indebtedness or property then or thereafter owing by such Lender,
including any and all amounts in any Depositary Account, the DBTCo Account or
the Disbursement Account. For purposes of this Section 11.17, the Obligations of
a Credit Party to a Lender shall include, as fully as though such Obligations
were the direct Obligations of such Credit Party to such Lender, the Obligations
of such Credit Party in which such Lender has a participation interest in any
Letter of Credit pursuant to Article 3, in each case, to the extent of such
participation. Each Lender exercising such rights shall notify the Agent thereof
and any amount received as a result of the exercise of such rights shall be
reallocated as set forth in Section 2.10.

        11.18   DEFAULTING LENDER.

        (a)     Unless the Agent shall have received notice from a Lender, prior
to the time specified in such Section, that such Lender will not make available
to the Agent a Loan required to be made by it pursuant to Section 2.2 or its
funding with respect to any participation interest in any Letter of Credit
pursuant to Article 3, the Agent may assume that such Lender has made such
amounts available to the Agent in accordance with such Sections and the Agent in
its sole discretion may, in reliance upon such assumption, make available to the
Borrowers or the applicable Issuing Lender a corresponding amount on behalf of
such Lender.

        (b)     If any amount referred to in subsection (a) of this Section
11.18 or in Section 2.3 is not made available to the Agent by a Lender (a
"Defaulting Lender") and the Agent has made such amount available to the
Borrowers or an Issuing Lender, the Agent shall be entitled to recover such
amount on demand from such Defaulting Lender together with interest as
hereinafter provided. If such Defaulting Lender does not pay such amount
forthwith upon the Agent's demand therefor, the Agent shall promptly notify the
Funds Administrator and the Borrowers shall immediately (but in no event later
than five Business Days after such demand) pay such amount to the Agent together
with interest calculated as hereinafter provided. The Agent shall also be
entitled to recover from such Defaulting Lender and/or the Borrowers, as the
case may be, (i) interest on such amount in respect of each day from the date
such corresponding amount was made available by the Agent to the Borrowers to
the date such amount is recovered by the Agent, at a rate per annum equal to
either (A) if paid by such Defaulting Lender, the overnight Federal Funds Rate
or (B) if paid by the Borrowers, the then applicable rate of interest,
calculated in accordance with Section 4.1 or Section 4.2, plus (ii) in each
case, an amount equal to any costs (including reasonable legal expenses) and
losses incurred as a result of the failure of such Defaulting Lender to provide
such amount as provided in this Credit Agreement. Nothing herein shall be deemed
to relieve any Lender from its duty to fulfill its obligations hereunder or to
prejudice any rights which the Borrowers or any Issuing Lender, may have against
any Lender as a result of any default by such Lender hereunder, including the
right of the Borrowers to seek reimbursement from any Defaulting Lender for any
amounts paid by the Borrowers under clause (ii) above on account of such
Defaulting Lender's default.

        (c)     (i)     Notwithstanding anything contained herein to the
contrary, so long as any Lender is a Defaulting Lender or has rejected its
Commitment, the Agent shall not be obligated to transfer to such Lender (and
such Lender shall not be entitled to seek payment directly from

                                     - 106 -

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the Borrowers of): (A) any payments made by the Borrowers to the Agent for the
benefit of such Lender or (B) any amounts contemplated by Section 2.3(b)(i);
and, such Lender shall not be entitled to the sharing of any payments pursuant
to Section 2.10. Amounts otherwise payable to such Lender under Section 2.10
shall instead be paid to the Agent.

                (ii)    For purposes of voting or consenting to matters with
respect to the Credit Documents and determining Proportionate Share, such
Defaulting Lender shall be deemed not to be a "Lender" and such Lender's
Commitment shall be deemed to be zero (0).

                (iii)   This Section 11.18(c) shall remain effective with
respect to a Defaulting Lender until (A) the Obligations under this Credit
Agreement shall have been declared or shall have become immediately due and
payable or (B) the Majority Lenders, the Agent and the Borrowers shall have
waived such Lender's default in writing.

                (iv)    No Lender's Commitment shall be increased or otherwise
affected, and performance by the respective Borrowers shall not be excused, by
the operation of this Section 11.18(c). Any payments of principal or interest
which would, but for this subsection (c), be paid to any Lender, shall be paid
to the Lenders who shall not be in default under their respective Commitments
and who shall not have rejected any Commitment, for application to the Loans
then due and payable or to the other Obligations (other than contingent
indemnification Obligations to the extent that no claim giving rise thereto has
been asserted and remains unresolved or unsatisfied) then due and payable or to
provide cash collateral to secure Obligations (other than contingent
indemnification Obligations to the extent that no claim giving rise thereto has
been asserted and remains unresolved or unsatisfied) not then due and payable in
such manner and order as shall be determined by the Agent. The amount of any
such payments remaining after the payment of all Obligations (other than
contingent indemnification Obligations to the extent that no claim giving rise
thereto has been asserted and remains unresolved or unsatisfied), unless
otherwise required pursuant to applicable law, shall be paid by the Agent to the
Funds Administrator.

        11.19   RIGHTS CUMULATIVE. Each of the rights and remedies of the Agent,
each Issuing Lender, the Lenders and the Credit Parties under the Credit
Documents shall be in addition to all of their other rights and remedies under
the Credit Documents and applicable law, and nothing in the Credit Documents
shall be construed as limiting any such rights or remedies.

        11.20   THIRD PARTY BENEFICIARIES. Each Issuing Lender shall be deemed
to be a third party beneficiary of its rights under this Credit Agreement,
provided that, except as otherwise provided in Section 11.10, such rights may be
amended or waived, and any departure therefrom by any Credit Party consented to,
without their respective consents.

        11.21   JOINT AND SEVERAL LIABILITY OF BORROWERS. Each of the Borrowers
shall be jointly and severally liable hereunder and under each of the other
Credit Documents with respect to all Obligations, regardless of which of the
Borrowers actually receives the proceeds of the Loans or the benefit of any
other extensions of credit hereunder, or the manner in which the Funds
Administrator, the Borrowers, the Agent, the Lenders or any of the Issuing
Lenders account therefor in their respective books and records. In furtherance
and not in limitation of the foregoing, (i) each Borrower's obligations and
liabilities with respect to proceeds of Loans which

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it receives or Letters of Credit issued on its behalf, and related fees, costs
and expenses, and (ii) each Borrower's obligations and liabilities arising as a
result of the joint and several liability of the Borrowers hereunder with
respect to proceeds of Loans received by, or Letters of Credit issued for the
account of, any of the other Borrowers, together with the related fees, costs
and expenses, shall be separate and distinct obligations, both of which are
primary obligations of such Borrower. Neither the joint and several liability
of, nor the Liens granted to the Agent under the Collateral Documents by, any of
the Borrowers shall be impaired or released by (A) the failure of the Agent, any
Lender or any Issuing Lender, any successors or assigns thereof, or any holder
of any Note or any of the Obligations to assert any claim or demand or to
exercise or enforce any right, power or remedy against the Funds Administrator,
any Borrower, any Subsidiary of any Borrower, any other Person, the Collateral
or otherwise; (B) any extension or renewal for any period (whether or not longer
than the original period) or exchange of any of the Obligations or the release
or compromise of any obligation of any nature of any Person with respect
thereto; (C) the surrender, release or exchange of all or any part of any
property (including, without limitation, any Collateral consisting of property
of any other Borrower) securing payment, performance and/or observance of any of
the Obligations or the compromise or extension or renewal for any period
(whether or not longer than the original period) of any obligations of any
nature of any Person with respect to any such property; (D) except to the extent
such action or inaction constitutes a breach of any Credit Document (as
determined by a court of competent jurisdiction in a final and non-appealable
decision), or any action or inaction on the part of the Agent, any Lender or any
Issuing Lender, or any other event or condition with respect to any other
Borrower, including any such action or inaction or other event or condition,
which might otherwise constitute a defense available to, or a discharge of, such
Borrower, or a guarantor or surety of or for any or all of the Obligations; and
(E) any other act, matter or thing (other than payment or performance of the
Obligations) which would or might, in the absence of this provision, operate to
release, discharge or otherwise prejudicially affect the obligations of such or
any other Borrower.

        11.22   APPOINTMENT AND AUTHORIZATION OF FUNDS ADMINISTRATOR.

        (a)     Each Borrower hereby designates, appoints, authorizes and
empowers BWAY as its agent to act as specified in the capacity of Funds
Administrator under this Credit Agreement and each of the other Credit Documents
and BWAY hereby acknowledges such designation, authorization and empowerment,
and accepts such appointment. Each Borrower hereby irrevocably authorizes and
directs the Funds Administrator to take such action on its behalf under the
respective provisions of this Credit Agreement and the other Credit Documents,
and any other instruments, documents and agreements referred to herein or
therein, and to exercise such powers and to perform such duties hereunder and
thereunder as are specifically delegated to or required of the Funds
Administrator by the respective terms and provisions hereof and thereof, and
such other powers as are reasonably incidental thereto, including, without
limitation, to take the following actions for and on such Borrower's behalf:

                (i)     to submit Notices of Borrowing, Notices of Conversion
and Notices of Continuation to Agent in accordance with the provisions of this
Credit Agreement, each such notice to be submitted by the Funds Administrator to
Agent as soon as practicable after its receipt of a request to do so from such
Borrower; and

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                (ii)    to receive the proceeds of the Loans in accordance with
the provisions of this Credit Agreement, such proceeds to be disbursed to such
Borrower by the Funds Administrator as soon as practicable after its receipt
thereof; and

                (iii)   to submit requests for the issuance of Letters of Credit
in accordance with the provisions of this Credit Agreement, each such request
for the issuance of a Letter of Credit to be submitted by the Funds
Administrator as soon as practicable after its receipt of a request to do so
from such Borrower.

The Funds Administrator is further authorized and directed by each of the
Borrowers to take all such actions on behalf of such Borrower necessary to
exercise the specific powers granted in clauses (i) through (iii) above and to
perform such other duties hereunder and under the other Credit Documents, and
deliver such documents as delegated to or required of the Funds Administrator by
the terms hereof or thereof.

        (b)     The Funds Administrator may perform any of its duties hereunder
or under any of the other Credit Documents by or through its agents or
employees.

                  -Remainder of Page Intentionally Left Blank-
                            -Signature Page Follows-

                                     - 109 -

<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Credit Agreement
to be executed and delivered by their proper and duly authorized officers as of
the date set forth above.

                                            BORROWERS:

                                            ARMSTRONG CONTAINERS, INC.
                                            BWAY CORPORATION
                                            BWAY MANUFACTURING, INC.,
                                            each a Delaware corporation

                                            By: /s/ Kevin C. Kern
                                                -------------------------------
                                            Name: Kevin C. Kern
                                            Title: Vice President and Treasurer

                                            FUNDS ADMINISTRATOR:

                                            BWAY CORPORATION, in its capacity
                                            as Funds Administrator

                                            By: /s/ Kevin C. Kern
                                                -------------------------------
                                            Name: Kevin C. Kern
                                            Title: Chief Financial Officer

                                     - 110 -

<PAGE>

                                            AGENT AND LENDER:

                                            DEUTSCHE BANK TRUST COMPANY
                                            AMERICAS, in the respective
                                            capacities of Agent and Lender

                                            By: /s/ Albert Fischetti
                                                -------------------------------
                                            Name: Albert Fiscetti
                                            Title: Director

                                     - 111 -

<PAGE>

                                            LENDER:

                                            BANK OF AMERICA, N.A

                                            By: /s/ Perri H. Love
                                                -------------------------------
                                            Name: Perri H. Love
                                            Title: Assistant Vice President

                                     - 112 -

<PAGE>

                                            LENDER:

                                            FLEET CAPITAL CORPORATION

                                            By: /s/ David A. Gozdecki
                                                -------------------------------
                                            Name: David A Gozdecki
                                            Title: Assistant Vice President

                                     - 113 -

<PAGE>

                                            LENDER:

                                            HELLER FINANCIAL, INC., a GE Capital
                                            Company

                                            By: /s/ Dwayne L. Coker
                                                -------------------------------
                                            Name: Dwayne L. Coker
                                            Title: Duly Authorized Signer

                                     - 114 -

<PAGE>

                                            LENDER:

                                            LASALLE BANK NATIONAL ASSOCIATION

                                            By: /s/ John Mostofi
                                                -------------------------------
                                            Name: John Mostofi
                                            Title: Senior Vice President

                                     -115-

<PAGE>

                                            LENDER:

                                            TRANSAMERICA BUSINESS CAPITAL
                                            CORPORATION

                                            By: /s/ Ari Kaplan
                                                -------------------------------
                                            Name: Ari Kaplan
                                            Title: Vice President

                                     - 116 -

<PAGE>

                                            LENDER:

                                            WHITEHALL BUSINESS CREDIT
                                            CORPORATION

                                            By: /s/ Chris Magnante
                                                -------------------------------
                                            Name: Chris Magnante
                                            Title: Assistant Vice President

                                     - 117 -<PAGE>

                                                                     EXHIBIT 4.2

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

                               BWAY FINANCE CORP.

                      (to be assumed by BWAY CORPORATION),

                                   as Issuer,

                                       and

                              THE BANK OF NEW YORK,

                                   as Trustee

                                   ----------

                                    INDENTURE

                          Dated as of November 27, 2002

                                   ----------

                     10% Senior Subordinated Notes due 2010

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                  Page
                                                                                                  ----
<S>                                                                                                 <C>
                                   ARTICLE ONE

                   DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01.       Definitions......................................................................1
SECTION 1.02.       Incorporation by Reference of TIA...............................................41
SECTION 1.03.       Rules of Construction...........................................................42

                                   ARTICLE TWO

                                 THE SECURITIES

SECTION 2.01.       Form and Dating.................................................................42
SECTION 2.02.       Execution and Authentication....................................................43
SECTION 2.03.       Registrar and Paying Agent......................................................44
SECTION 2.04.       Paying Agent To Hold Assets in Trust............................................45
SECTION 2.05.       Holder Lists....................................................................46
SECTION 2.06.       Transfer and Exchange...........................................................46
SECTION 2.07.       Replacement Securities..........................................................47
SECTION 2.08.       Outstanding Securities..........................................................47
SECTION 2.09.       Treasury Securities.............................................................48
SECTION 2.10.       Temporary Securities............................................................48
SECTION 2.11.       Cancellation....................................................................49
SECTION 2.12.       Defaulted Interest..............................................................49
SECTION 2.13.       CUSIP Number....................................................................50
SECTION 2.14.       Restrictive Legends.............................................................50
SECTION 2.15.       Deposit of Moneys...............................................................50
SECTION 2.16.       Book-Entry Provisions for Global Securities.....................................51
SECTION 2.17.       Special Transfer Provisions.....................................................52

                                  ARTICLE THREE

                                   REDEMPTION

SECTION 3.01.       Notices to Trustee..............................................................56
SECTION 3.02.       Selection of Securities To Be Redeemed..........................................57
SECTION 3.03.       Notice of Redemption............................................................57
SECTION 3.04.       Effect of Notice of Redemption..................................................59
SECTION 3.05.       Deposit of Redemption Price.....................................................59
SECTION 3.06.       Securities Redeemed in Part.....................................................59
</TABLE>

                                       -i-

<PAGE>

<TABLE>
<CAPTION>
                                                                                                  Page
                                                                                                  ----
<S>                                                                                                 <C>
                                  ARTICLE FOUR

                                    COVENANTS

SECTION 4.01.       Payment of Securities...........................................................60
SECTION 4.02.       Maintenance of Office or Agency.................................................60
SECTION 4.03.       Limitation on Restricted Payments...............................................60
SECTION 4.04.       Limitation on Incurrence of Additional Indebtedness.............................65
SECTION 4.05.       Corporate Existence.............................................................66
SECTION 4.06.       Compliance Certificate; Notice of Default.......................................66
SECTION 4.07.       Reports to Holders..............................................................67
SECTION 4.08.       Waiver of Stay, Extension or Usury Laws.........................................68
SECTION 4.09.       Limitations on Transactions with Affiliates.....................................69
SECTION 4.10.       Limitation on Dividend and Other Payment Restrictions Affecting
                     Subsidiaries...................................................................71
SECTION 4.11.       Limitation on Liens.............................................................74
SECTION 4.12.       Change of Control...............................................................74
SECTION 4.13.       Limitation on Asset Sales.......................................................77
SECTION 4.14.       Prohibition on Incurrence of Senior Subordinated Debt...........................82
SECTION 4.15.       Conduct of Business.............................................................82
SECTION 4.16.       Limitation of Guarantees by Restricted Subsidiaries.............................82
SECTION 4.17.       Limitation on Preferred Stock of Subsidiaries...................................84

                                  ARTICLE FIVE

                              SUCCESSOR CORPORATION

SECTION 5.01.       Merger, Consolidation and Sale of Assets........................................84
SECTION 5.02.       Successor Corporation Substituted for the Company...............................86
SECTION 5.03.       Merger, Consolidation and Sale of Assets of Any Guarantor.......................86
SECTION 5.04.       Successor Corporation Substituted for Guarantor.................................87

                                   ARTICLE SIX

                              DEFAULT AND REMEDIES

SECTION 6.01.       Events of Default...............................................................87
SECTION 6.02.       Acceleration....................................................................89
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<CAPTION>
                                                                                                  Page
                                                                                                  ----
<S>                                                                                                <C>
SECTION 6.03.       Other Remedies..................................................................90
SECTION 6.04.       Waiver of Past Defaults.........................................................91
SECTION 6.05.       Control by Majority.............................................................91
SECTION 6.06.       Limitation on Suits.............................................................91
SECTION 6.07.       Rights of Holders To Receive Payment............................................92
SECTION 6.08.       Collection Suit by Trustee......................................................92
SECTION 6.09.       Trustee May File Proofs of Claim................................................93
SECTION 6.10.       Priorities......................................................................93
SECTION 6.11.       Undertaking for Costs...........................................................94

                                  ARTICLE SEVEN

                                     TRUSTEE

SECTION 7.01.       Duties of Trustee...............................................................94
SECTION 7.02.       Rights of Trustee...............................................................96
SECTION 7.03.       Individual Rights of Trustee....................................................97
SECTION 7.04.       Trustee's Disclaimer............................................................97
SECTION 7.05.       Notice of Default...............................................................98
SECTION 7.06.       Reports by Trustee to Holders...................................................98
SECTION 7.07.       Compensation and Indemnity......................................................99
SECTION 7.08.       Replacement of Trustee.........................................................101
SECTION 7.09.       Successor Trustee by Merger, Etc...............................................102
SECTION 7.10.       Eligibility; Disqualification..................................................102
SECTION 7.11.       Preferential Collection of Claims Against Company..............................102

                                  ARTICLE EIGHT

                       DISCHARGE OF INDENTURE; DEFEASANCE

SECTION 8.01.       Termination of the Company's Obligations.......................................103
SECTION 8.02.       Legal Defeasance and Covenant Defeasance.......................................104
SECTION 8.03.       Conditions to Legal Defeasance or Covenant Defeasance..........................106
SECTION 8.04.       Application of Trust Money.....................................................108
SECTION 8.05.       Repayment to the Company.......................................................108
SECTION 8.06.       Reinstatement..................................................................109

                                  ARTICLE NINE

                       AMENDMENTS, SUPPLEMENTS AND WAIVERS

SECTION 9.01.       Without Consent of Holders.....................................................109
SECTION 9.02.       With Consent of Holders........................................................110
SECTION 9.03.       Effect on Senior Debt..........................................................112
SECTION 9.04.       Compliance with TIA............................................................112
</TABLE>

                                      -iii-

<PAGE>

<TABLE>
<CAPTION>
                                                                                                  Page
                                                                                                  ----
<S>                                                                                                <C>
SECTION 9.05.       Revocation and Effect of Consents..............................................112
SECTION 9.06.       Notation on or Exchange of Securities..........................................113
SECTION 9.07.       Trustee To Sign Amendments, Etc................................................113

                                   ARTICLE TEN

                           SUBORDINATION OF SECURITIES

SECTION 10.01.      Securities Subordinated to Senior Debt.........................................114
SECTION 10.02.      Suspension of Payment When Senior Debt Is in Default...........................114
SECTION 10.03.      Securities Subordinated to Prior Payment of All Senior Debt on
                     Dissolution, Liquidation or Reorganization of the Company.....................116
SECTION 10.04.      Payments May Be Paid Prior to Dissolution......................................118
SECTION 10.05.      Holders To Be Subrogated to Rights of Holders of Senior Debt...................119
SECTION 10.06.      Obligations of the Company Unconditional.......................................119
SECTION 10.07.      Notice to Trustee..............................................................120
SECTION 10.08.      Reliance on Judicial Order or Certificate of Liquidating Agent.................120
SECTION 10.09.      Trustee's Relation to Senior Debt..............................................121
SECTION 10.10.      Subordination Rights Not Impaired by Acts or Omissions of the Company or
                     Holders of Senior Debt........................................................121
SECTION 10.11.      Securityholders Authorize Trustee To Effectuate Subordination of
                     Securities....................................................................122
SECTION 10.12.      This Article Ten Not To Prevent Events of Default..............................123
SECTION 10.13.      Trustee's Compensation Not Prejudiced..........................................123

                                 ARTICLE ELEVEN

                             GUARANTEE OF SECURITIES

SECTION 11.01.      Unconditional Guarantee........................................................123
SECTION 11.02.      Limitations on Guarantees......................................................125
SECTION 11.03.      Notation Not Required..........................................................125
SECTION 11.04.      Release of a Guarantor.........................................................125
SECTION 11.05.      Waiver of Subrogation..........................................................126
SECTION 11.06.      Immediate Payment..............................................................127
SECTION 11.07.      No Set-Off.....................................................................127
SECTION 11.08.      Obligations Absolute...........................................................127
SECTION 11.09.      Obligations Continuing.........................................................128
SECTION 11.10.      Obligations Not Reduced........................................................128
</TABLE>

                                      -iv-

<PAGE>

<TABLE>
<CAPTION>
                                                                                                  Page
                                                                                                  ----
<S>                                                                                                <C>
SECTION 11.11.      Obligations Reinstated.........................................................128
SECTION 11.12.      Obligations Not Affected.......................................................129
SECTION 11.13.      Waiver.........................................................................130
SECTION 11.14.      No Obligation To Take Action Against the Company...............................131
SECTION 11.15.      Dealing with the Company and Others............................................131
SECTION 11.16.      Default and Enforcement........................................................132
SECTION 11.17.      Amendment, Etc.................................................................132
SECTION 11.18.      Acknowledgment.................................................................132
SECTION 11.19.      Costs and Expenses.............................................................132
SECTION 11.20.      No Waiver; Cumulative Remedies.................................................132
SECTION 11.21.      Survival of Obligations........................................................133
SECTION 11.22.      Guarantee in Addition to Other Obligations.....................................133
SECTION 11.23.      Severability...................................................................133
SECTION 11.24.      Successors and Assigns.........................................................133

                                 ARTICLE TWELVE

                           SUBORDINATION OF GUARANTEES

SECTION 12.01.      Guarantee Obligations Subordinated to Guarantor Senior Debt....................134
SECTION 12.02.      Suspension of Guarantee Obligations When Guarantor Senior Debt Is in
                     Default.......................................................................134
SECTION 12.03.      Guarantee Obligations Subordinated to Prior Payment of All Guarantor
                     Senior Debt on Dissolution, Liquidation or Reorganization of Such
                     Guarantor.....................................................................135
SECTION 12.04.      Payments May Be Paid Prior to Dissolution......................................137
SECTION 12.05.      Holders of Guarantee Obligations To Be Subrogated to Rights of Holders of
                     Guarantor Senior Debt.........................................................138
SECTION 12.06.      Obligations of the Guarantors Unconditional....................................138
SECTION 12.07.      Notice to Trustee..............................................................139
SECTION 12.08.      Reliance on Judicial Order or Certificate of Liquidating Agent.................140
SECTION 12.09.      Trustee's Relation to Guarantor Senior Debt....................................140
SECTION 12.10.      Subordination Rights Not Impaired by Acts or Omissions of the Guarantors
                     or Holders of Guarantor Senior Debt...........................................141
SECTION 12.11.      Holders Authorize Trustee To Effectuate Subordination of Guarantee
                     Obligations...................................................................141
</TABLE>

                                       -v-

<PAGE>

<TABLE>
<CAPTION>
                                                                                                  Page
                                                                                                  ----
<S>                                                                                                <C>
SECTION 12.12.      This Article Twelve Not To Prevent Events of Default...........................142
SECTION 12.13.      Trustee's Compensation Not Prejudiced..........................................142

                                ARTICLE THIRTEEN

                                  MISCELLANEOUS

SECTION 13.01.      TIA Controls...................................................................142
SECTION 13.02.      Notices........................................................................143
SECTION 13.03.      Communications by Holders with Other Holders...................................145
SECTION 13.04.      Certificate and Opinion as to Conditions Precedent.............................145
SECTION 13.05.      Statements Required in Certificate or Opinion..................................145
SECTION 13.06.      Rules by Trustee, Paying Agent, Registrar......................................146
SECTION 13.07.      Legal Holidays.................................................................146
SECTION 13.08.      Governing Law..................................................................146
SECTION 13.09.      No Adverse Interpretation of Other Agreements..................................146
SECTION 13.10.      No Recourse Against Others.....................................................147
SECTION 13.11.      Successors.....................................................................147
SECTION 13.12.      Duplicate Originals............................................................147
SECTION 13.13.      Severability...................................................................147

Signatures.........................................................................................S-1
</TABLE>

                                      -vi-

<PAGE>

Exhibit A   - Form of Note
Exhibit B   - Form of Exchange Note
Exhibit C   - Form of Legends
Exhibit D   - Form of Certificate To Be Delivered in Connection with Transfers
              to Non-QIB Accredited Investors
Exhibit E   - Form of Certificate To Be Delivered in Connection with Transfers
              Pursuant to Regulation S

Note:   This Table of Contents shall not, for any purpose, be deemed to be part
        of the Indenture

                                      -vii-

<PAGE>

                              CROSS-REFERENCE TABLE

<TABLE>
<CAPTION>
  TIA                                                                            Indenture
Section                                                                            Section
-------                                                                          ------------------
<S>                                                                              <C>
310(a)(1)...............................................................         7.10
   (a)(2)...............................................................         7.10
   (a)(3)...............................................................         N.A.
   (a)(4)...............................................................         N.A.
   (a)(5)...............................................................         7.08; 7.10
   (b)..................................................................         7.08; 7.10; 13.02
   (c)..................................................................         N.A.
311(a)..................................................................         7.11
   (b)..................................................................         7.11
   (c)..................................................................         N.A.
312(a)..................................................................         2.05
   (b)..................................................................         13.03
   (c)..................................................................         13.03
313(a)..................................................................         7.06
   (b)(1)...............................................................         7.06
   (b)(2)...............................................................         7.06
   (c)..................................................................         7.06; 13.02
   (d)..................................................................         7.06
314(a)..................................................................         4.06; 4.08; 13.02
   (b)..................................................................         N.A.
   (c)(1)...............................................................         7.02; 13.04; 13.05
   (c)(2)...............................................................         7.02; 13.04; 13.05
   (c)(3)...............................................................         N.A.
   (d)..................................................................         N.A.
   (e)..................................................................         13.05
   (f)..................................................................         N.A.
315(a)..................................................................         7.01(b)
   (b)..................................................................         7.05
   (c)..................................................................         7.01
   (d)..................................................................         6.05; 7.01(c)
   (e)..................................................................         6.11
316(a)(last sentence)...................................................         2.09
   (a)(1)(A)............................................................         6.05
   (a)(1)(B)............................................................         6.04
   (a)(2)...............................................................         9.05
   (b)..................................................................         6.07
   (c)..................................................................         9.05
317(a)(1)...............................................................         6.08
   (a)(2)...............................................................         6.09
   (b)..................................................................         2.04
</TABLE>

----------
N.A. means Not Applicable

Note:   This Cross-Reference Table shall not, for any purpose, be deemed to be a
        part of the Indenture

<PAGE>

<TABLE>
<S>                                                                              <C>
318(a)..................................................................         13.01
   (c)..................................................................         13.01
</TABLE>

----------
N.A. means Not Applicable

Note:   This Cross-Reference Table shall not, for any purpose, be deemed to be a
        part of the Indenture

<PAGE>

          INDENTURE dated as of November 27, 2002 between BWAY FINANCE CORP., a
Delaware corporation (the "Issuer"), as Issuer, and THE BANK OF NEW YORK, a New
York banking corporation, as Trustee (the "Trustee").

          The Company has duly authorized the creation of an issue of 10% Senior
Subordinated Notes due 2010 and, to provide therefor, the Company has duly
authorized the execution and delivery of this Indenture. All things necessary to
make the Securities, when duly issued and executed by the Company and
authenticated and delivered hereunder, the valid and binding obligations of the
Company and to make this Indenture a valid and binding agreement of the Company
have been done.

          Each party hereto agrees as follows for the benefit of each other
party and for the equal and ratable benefit of the Holders of the Securities:

                                   ARTICLE ONE

                   DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01.     Definitions.

          "Acquired Indebtedness" means Indebtedness (1) of a Person or any of
its Subsidiaries existing at the time such Person becomes a Restricted
Subsidiary of the Company or (2) assumed in connection with the acquisition of
assets from such Person, in each case whether or not incurred by such Person in
connection with, or in anticipation or contemplation of, such Person becoming a
Restricted Subsidiary of the Company or such acquisition. Acquired Indebtedness
shall be deemed to have been incurred, with respect to clause (1) of the
preceding sentence, on the date such Person becomes a Restricted Subsidiary of
the Company and, with respect to clause (2) of the preceding sentence, on the
date of consummation of such acquisition of assets.

          "Affiliate" means, with respect to any specified Person, any other
Person who directly or indirectly through one or more intermediaries controls,
or is controlled by, or is under common control with, such specified Person. The
term "control" means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative of the
foregoing. Notwithstanding

<PAGE>

the foregoing, no Person (other than the Company or any Subsidiary of the
Company) in whom a Receivables Entity makes an Investment in connection with a
Qualified Receivables Transaction shall be deemed to be an Affiliate of the
Company or any of its Subsidiaries solely by reason of such Investment.

          "Affiliate Transaction" has the meaning set forth in Section 4.09.

          "Agent" means any Registrar, Paying Agent or co-Registrar.

          "Asset Acquisition" means (1) an Investment by the Company or any
Restricted Subsidiary of the Company in any other Person pursuant to which such
Person shall become a Restricted Subsidiary of the Company or any Restricted
Subsidiary of the Company, or shall be merged with or into the Company or any
Restricted Subsidiary of the Company, or (2) the acquisition by the Company or
any Restricted Subsidiary of the Company of the assets of any Person (other than
a Restricted Subsidiary of the Company) which constitute all or substantially
all of the assets of such Person or comprise any division or line of business of
such Person or any other properties or assets of such Person other than in the
ordinary course of business.

          "Asset Sale" means any direct or indirect sale, issuance, conveyance,
transfer, lease (other than operating leases entered into in the ordinary course
of business), assignment or other transfer for value by the Company or any of
its Restricted Subsidiaries (including any Sale and Leaseback Transaction) to
any Person other than the Company or a Restricted Subsidiary of the Company of:
(1) any Capital Stock of any Restricted Subsidiary of the Company; or (2) any
other property or assets of the Company or any Restricted Subsidiary of the
Company other than in the ordinary course of business; provided, however, that
asset sales or other dispositions shall not include:

          (a)     any transaction or series of related transactions for which
     the Company or its Restricted Subsidiaries receive aggregate consideration
     of less than $1.0 million;

          (b)     the sale, lease, conveyance, disposition or other transfer of
     all or substantially all of the assets of the Company as permitted under
     Section 5.01;

                                       -2-

<PAGE>

          (c)     the sale or discount, in each case without recourse, of
     accounts receivable arising in the ordinary course of business, but only in
     connection with the compromise or collection thereof;

          (d)     the factoring of accounts receivable arising in the ordinary
     course of business pursuant to arrangements customary in the industry (as
     determined in good faith by the Company);

          (e)     the licensing of intellectual property;

          (f)     disposals or replacements of obsolete equipment in the
     ordinary course of business;

          (g)     the sale, lease, conveyance, disposition or other transfer by
     the Company or any Restricted Subsidiary of assets or property in
     transactions constituting Investments that are not prohibited under Section
     4.03;

          (h)     sales of accounts receivable and related assets of the type
     specified in the definition of "Qualified Receivables Transaction" to a
     Receivables Entity (for the purposes of this clause (h), Purchase Money
     Notes shall be deemed to be cash);

          (i)     transfers of accounts receivable and related assets of the
     type specified in the definition of "Qualified Receivables Transaction" (or
     a fractional undivided interest therein) by a Receivables Entity in a
     Qualified Receivables Transaction; and

          (j)     leases or subleases to third persons not interfering in any
     material respect with the business of the Company or any of its Restricted
     Subsidiaries.

          "Bankruptcy Law" means Title 11, U.S. Code or any similar Federal,
state or foreign law for the relief of debtors.

          "BCO Acquisition" means BCO Acquisition, Inc., a Delaware corporation.

          "Board of Directors" means, as to any Person, the board of directors
or other governing body of such Person or any duly authorized committee thereof
or, if such Person is owned or managed by a single entity, the board of
directors or

                                       -3-

<PAGE>

other governing body of such entity or any duly authorized committee thereof.

          "Board Resolution" means, with respect to any Person, a copy of a
resolution certified by the Secretary or an Assistant Secretary of such Person
to have been duly adopted by the Board of Directors of such Person and to be in
full force and effect on the date of such certification, and delivered to the
Trustee.

          "Borrowing Base" means the sum (determined as of the end of the most
recently ended fiscal quarter for which consolidated financial statements of the
Company are available) of (1) 60% of the net book value of Inventory of the
Company and its Restricted Subsidiaries and (2) 85% of the net book value of
Receivables of the Company and its Restricted Subsidiaries.

          "Business Day" means any day other than a Saturday, Sunday or any
other day on which banking institutions in the City of New York are required or
authorized by law or other governmental action to be closed.

          "BWAY" means BWAY Corporation, a Delaware corporation.

          "BWAY Assumption" means the assumption by BWAY and BWAY Manufacturing
of the obligations of the Issuer under this Indenture, the Securities, the
Registration Rights Agreement, the Purchase Agreement and the Escrow Agreement.

          "BWAY Manufacturing" means BWAY Manufacturing, Inc., a Delaware
corporation.

          "Capital Stock" means:

          (1)     with respect to any Person that is a corporation, any and all
     shares, interests, participations or other equivalents (however designated
     and whether or not voting) of corporate stock, including each class of
     Common Stock and Preferred Stock of such Person; and

          (2)     with respect to any Person that is not a corporation, any and
     all partnership, membership or other equity interests of such Person.

          "Capitalized Lease Obligation" means, as to any Person, the
obligations of such Person under a lease that are required to be classified and
accounted for as capital lease obligations

                                       -4-

<PAGE>

under GAAP and, for purposes of this definition, the amount of such obligations
at any date shall be the capitalized amount of such obligations at such date,
determined in accordance with GAAP.

          "Cash Equivalents" means:

          (1)     marketable direct obligations issued by, or unconditionally
     guaranteed by, the United States Government or issued by any agency thereof
     and backed by the full faith and credit of the United States, in each case
     maturing within one year from the date of acquisition thereof;

          (2)     marketable direct obligations issued by any state of the
     United States of America or any political subdivision of any such state or
     any public instrumentality thereof maturing within one year from the date
     of acquisition thereof and, at the time of acquisition, having one of the
     two highest ratings obtainable from either Standard & Poor's Ratings Group
     ("S&P") or Moody's Investors Service, Inc. ("Moody's");

          (3)     commercial paper maturing no more than one year from the date
     of creation thereof and, at the time of acquisition, having a rating of at
     least A-1 from S&P or at least P-1 from Moody's;

          (4)     certificates of deposit or bankers' acceptances (or with
     respect to foreign banks, similar instruments) maturing within one year
     from the date of acquisition thereof issued by any bank organized under the
     laws of the United States of America or any state thereof or the District
     of Columbia or any U.S. branch of a foreign bank having at the date of
     acquisition thereof combined capital and surplus of not less than $200.0
     million;

          (5)     certificates of deposit or bankers' acceptances or similar
     instruments maturing within one year from the date of acquisition thereof
     issued by any foreign bank that is a lender under the Credit Facility
     having at the date of acquisition thereof combined capital and surplus of
     not less than $500 million;

          (6)     repurchase obligations with a term of not more than seven days
     for underlying securities of the types described in clause (1) above
     entered into with any bank

                                       -5-

<PAGE>

     meeting the qualifications specified in clause (4) above; and

          (7)     investments in money market funds which invest at least 85% of
     their assets in securities of the types described in clauses (1) through
     (6) above.

          "Change of Control" means the occurrence of one or more of the
following events:

          (1)     any sale, lease, exchange or other transfer (in one
     transaction or a series of related transactions) of all or substantially
     all of the assets of the Company to any Person or group of related Persons
     (other than one or more Permitted Holders) for purposes of Section 13(d) of
     the Exchange Act (a "Group") (whether or not otherwise in compliance with
     the provisions of this Indenture);

          (2)     the approval by the holders of Capital Stock of the Company of
     any plan or proposal for the liquidation or dissolution of the Company
     (whether or not otherwise in compliance with the provisions of this
     Indenture);

          (3)     any Person or Group (other than one or more Permitted Holders)
     shall become the beneficial owner, directly or indirectly, of shares
     representing more than 50% of the aggregate ordinary voting power
     represented by the issued and outstanding Capital Stock of the Company,
     provided that so long as the Company is, and continues to be, a Subsidiary
     of a parent Person, no Person shall be deemed to be or become a beneficial
     owner of more than 50% of the aggregate ordinary voting power represented
     by the issued and outstanding Capital Stock of the Company unless such
     Person shall be or become a beneficial owner of more than 50% of the
     aggregate ordinary voting power represented by the issued and outstanding
     Capital Stock of such parent Person; or

          (4)     the first day on which a majority of the Board of Directors of
     the Company are not Continuing Directors.

          "Change of Control Date" has the meaning set forth in Section 4.12.

          "Change of Control Offer" has the meaning set forth in Section 4.12.

                                       -6-

<PAGE>

          "Change of Control Payment Date" has the meaning set forth in Section
4.12.

          "Commission" means the Securities and Exchange Commission.

          "Common Stock" of any Person means any and all shares, interests or
other participations in, and other equivalents (however designated and whether
voting or non-voting) of such Person's common stock, whether outstanding on the
Issue Date or issued after the Issue Date, and includes, without limitation, all
series and classes of such common stock.

          "Company" means (i) prior to the Effective Date, the Issuer, and (ii)
from and after the Effective Date, BWAY, until a successor replaces it and,
thereafter, means the successor and, for purposes of any provision contained
herein and required by the TIA, each other obligor on the indenture securities.

          "Consolidated EBITDA" means, with respect to any Person, for any
period, the sum (without duplication) of:

          (1)     Consolidated Net Income; and

          (2)     to the extent Consolidated Net Income has been reduced
     thereby:

                  (a) all income taxes of such Person and its Restricted
          Subsidiaries paid or accrued in accordance with GAAP for such period;

                  (b) Consolidated Interest Expense;

                  (c) charges attributable to the exercise of employee options
          vesting upon the consummation of the Transactions; and

                  (d) (x) the aggregate depreciation, amortization and other
          non-cash expenses of such Person and its Restricted Subsidiaries
          reducing Consolidated Net Income of such Person and its Restricted
          Subsidiaries for such period, determined on a consolidated basis in
          accordance with GAAP (excluding any such charges constituting an
          extraordinary item or loss or any such charge which requires an
          accrual of or a reserve for cash charges for any future period) less
          (y) any non-cash items increasing Consolidated Net Income for

                                       -7-

<PAGE>

          such period, all as determined on a consolidated basis for such Person
          and its Restricted Subsidiaries in accordance with GAAP.

          "Consolidated Fixed Charge Coverage Ratio" means, with respect to any
Person, the ratio of Consolidated EBITDA of such Person during the four full
fiscal quarters (the "Four Quarter Period") ending prior to the date of the
transaction giving rise to the need to calculate the Consolidated Fixed Charge
Coverage Ratio for which financial statements are available (the "Transaction
Date") to Consolidated Fixed Charges of such Person for the Four Quarter Period.
In addition to and without limitation of the foregoing, for purposes of this
definition, "Consolidated EBITDA" and "Consolidated Fixed Charges" shall be
calculated after giving effect on a pro forma basis for the period of such
calculation to:

          (1)     the incurrence or repayment of any Indebtedness of such Person
     or any of its Restricted Subsidiaries (and the application of the proceeds
     thereof) giving rise to the need to make such calculation and any
     incurrence or repayment of other Indebtedness (and the application of the
     proceeds thereof), other than the incurrence or repayment of Indebtedness
     in the ordinary course of business for working capital purposes pursuant to
     working capital facilities, occurring during the Four Quarter Period or at
     any time subsequent to the last day of the Four Quarter Period and on or
     prior to the Transaction Date, as if such incurrence or repayment, as the
     case may be (and the application of the proceeds thereof), occurred on the
     first day of the Four Quarter Period; and

          (2)     any Asset Sales or Asset Acquisitions (including, without
     limitation, any Asset Acquisition giving rise to the need to make such
     calculation as a result of such Person or one of its Restricted
     Subsidiaries (including any Person who becomes a Restricted Subsidiary as a
     result of the Asset Acquisition) incurring, assuming or otherwise being
     liable for Acquired Indebtedness and also including any Consolidated EBITDA
     (including pro forma adjustments for cost savings ("Cost Savings
     Adjustments") that the Company reasonably believes in good faith could have
     been achieved during the Four Quarter Period as a result of such
     acquisition or disposition (provided that both (i) such cost savings were
     identified and quantified in an Officers' Certificate delivered to the
     Trustee on or prior to the Transaction Date and (ii) with respect to each
     acquisition

                                       -8-

<PAGE>

     or disposition completed prior to the 90th day preceding the Transaction
     Date, actions were commenced or initiated by the Company within 90 days of
     such acquisition or disposition to effect such cost savings identified in
     such Officers' Certificate and with respect to any other acquisition or
     disposition, such Officers' Certificate sets forth the specific steps to be
     taken within the 90 days after such acquisition or disposition to
     accomplish such cost savings) attributable to the assets which are the
     subject of the Asset Acquisition or Asset Sale during the Four Quarter
     Period) occurring during the Four Quarter Period or at any time subsequent
     to the last day of the Four Quarter Period and on or prior to the
     Transaction Date, as if such Asset Sale or Asset Acquisition (including the
     incurrence, assumption or liability for any such Indebtedness or Acquired
     Indebtedness) occurred on the first day of the Four Quarter Period;

          (3)     with respect to any such Four Quarter Period commencing prior
     to the Transactions, the Transactions (including any Cost Savings
     Adjustments) shall be deemed to have taken place on the first day of such
     Four Quarter Period; and

          (4)     any asset sales or asset acquisitions (including any
     Consolidated EBITDA (including any Cost Savings Adjustments) attributable
     to the assets which are the subject of the asset acquisition or asset sale
     during the Four Quarter Period) that have been made by any Person that has
     become a Restricted Subsidiary of the Company or has been merged with or
     into the Company or any Restricted Subsidiary of the Company during the
     Four Quarter Period or at any time subsequent to the last day of the Four
     Quarter Period and on or prior to the Transaction Date that would have
     constituted Asset Sales or Asset Acquisitions had such transactions
     occurred when such Person was a Restricted Subsidiary of the Company or
     subsequent to such Person's merger into the Company, as if such asset sale
     or asset acquisition (including the incurrence, assumption or liability for
     any Indebtedness or Acquired Indebtedness in connection therewith) occurred
     on the first day of the Four Quarter Period;

provided that to the extent that clause (2) or (4) of this sentence requires
that pro forma effect be given to an asset sale or asset acquisition, such pro
forma calculation shall be based upon the four full fiscal quarters immediately
preceding the

                                       -9-

<PAGE>

Transaction Date of the Person, or division or line of business of the Person,
that is acquired or disposed for which financial information is available. If
such Person or any of its Restricted Subsidiaries directly or indirectly
guarantees Indebtedness of a third Person, the preceding sentence shall give
effect to the incurrence of such guaranteed Indebtedness as if such Person or
any Restricted Subsidiary of such Person had directly incurred or otherwise
assumed such guaranteed Indebtedness.

          Furthermore, in calculating "Consolidated Fixed Charges" for purposes
of determining the denominator (but not the numerator) of this "Consolidated
Fixed Charge Coverage Ratio":

          (1)     interest on outstanding Indebtedness determined on a
     fluctuating basis as of the Transaction Date and which will continue to be
     so determined thereafter shall be deemed to have accrued at a fixed rate
     per annum equal to the rate of interest on such Indebtedness in effect on
     the Transaction Date;

          (2)     if interest on any Indebtedness actually incurred on the
     Transaction Date may optionally be determined at an interest rate based
     upon a factor of a prime or similar rate, a eurocurrency interbank offered
     rate, or other rates, then the interest rate in effect on the Transaction
     Date will be deemed to have been in effect during the Four Quarter Period;
     and

          (3)     notwithstanding clause (1) above, interest on Indebtedness
     determined on a fluctuating basis, to the extent such interest is covered
     by agreements relating to Interest Swap Obligations, shall be deemed to
     accrue at the rate per annum resulting after giving effect to the operation
     of such agreements.

          "Consolidated Fixed Charges" means, with respect to any Person for any
period, the sum, without duplication, of:

          (1)     Consolidated Interest Expense (excluding amortization or
     write-off of debt issuance costs relating to the Transactions and the
     financing therefor or relating to retired or existing Indebtedness and
     amortization or write-off of customary debt issuance costs relating to
     future Indebtedness incurred in the ordinary course of business); plus

                                      -10-

<PAGE>

          (2)     the product of (x) the amount of all dividend payments on any
     series of Preferred Stock of such Person (other than dividends paid in
     Qualified Capital Stock) paid, accrued or scheduled to be paid or accrued
     during such period times (y) a fraction, the numerator of which is one and
     the denominator of which is one minus the then current effective
     consolidated federal, state and local tax rate of such Person, expressed as
     a decimal.

          "Consolidated Interest Expense" means, with respect to any Person for
any period, the sum of, without duplication:

          (1)     the aggregate of all cash and non-cash interest expense with
     respect to all outstanding Indebtedness of such Person and its Restricted
     Subsidiaries, including the net costs associated with Interest Swap
     Obligations for such period determined on a consolidated basis in
     conformity with GAAP; and

          (2)     the interest component of Capitalized Lease Obligations paid,
     accrued and/or scheduled to be paid or accrued by such Person and its
     Restricted Subsidiaries during such period as determined on a consolidated
     basis in accordance with GAAP.

          "Consolidated Net Income" of the Company means, for any period, the
aggregate net income (or loss) of the Company and its Restricted Subsidiaries
for such period on a consolidated basis, determined in accordance with GAAP;
provided that there shall be excluded therefrom:

          (1)     gains and losses from Asset Sales (without regard to the $1.0
     million limitation set forth in the definition thereof) or abandonments or
     reserves relating thereto and the related tax effects according to GAAP;

          (2)     gains and losses due solely to fluctuations in currency values
     and the related tax effects according to GAAP;

          (3)     extraordinary, unusual or nonrecurring gains, losses, income
     or expense, and the related tax effects;

          (4)     for purposes of Section 4.03 only, the net income (or loss) of
     any Person accrued prior to the date it becomes a Restricted Subsidiary of
     the Company or is merged or consolidated with the Company or any Restricted
     Subsidiary of the Company;

                                      -11-

<PAGE>

          (5)     the net income of any Restricted Subsidiary of the Company
     that is not a Guarantor to the extent that the declaration of dividends or
     similar distributions by that Restricted Subsidiary of that income is
     restricted by a contract, operation of law or otherwise;

          (6)     the net loss of any Person other than a Restricted Subsidiary
     of the Company;

          (7)     the net income of any Person, other than a Restricted
     Subsidiary of the Company, except to the extent of cash dividends or
     distributions paid to the Company or to a Restricted Subsidiary of the
     Company by such Person unless, in the case of a Restricted Subsidiary of
     the Company who receives such dividends or distributions, such Restricted
     Subsidiary is subject to clause (5) above;

          (8)     non-cash compensation charges, including any arising from
     existing stock options resulting from any merger or recapitalization
     transaction; and

          (9)     any fees, expenses or charges related to the Transactions or
     the transactions contemplated by the Transactions.

          "Continuing Directors" means, as of any date of determination, any
member of the Board of Directors of the Company who:

          (1)     was a member of such Board of Directors on the Effective Date;

          (2)     was nominated for election or elected to such Board of
     Directors with, or whose election to such Board of Directors was approved
     by, the affirmative vote of a majority of the Continuing Directors who were
     members of such Board of Directors at the time of such nomination or
     election; or

          (3)     is any designee of a Permitted Holder or was nominated by a
     Permitted Holder or any designees of a Permitted Holder on the Board of
     Directors.

          "Corporate Trust Office" means the office of the Trustee in New York,
New York which at any time its corporate trust business shall be principally
administered, which office at the date hereof is located at 101 Barclay Street,
Floor 8 West, New York, New York 10286, Attention: Corporate Trust

                                      -12-

<PAGE>

Division -- Corporate Finance Unit, or such other address as the Trustee may
designate from time to time by notice to the Holders, the Company and any
Guarantors, or the principal corporate trust office of any successor Trustee (or
such other address as such successor Trustee may designate from time to time by
notice to the Holders, the Company and any Guarantors).

          "Covenant Defeasance" has the meaning set forth in Section 8.02.

          "Credit Facility" means the Credit Agreement dated as of May 22, 2001,
between the Company, the lenders party thereto in their capacities as lenders
thereunder and Deutsche Bank Trust Company Americas, as agent, together with the
related documents thereto (including, without limitation, any guarantee
agreements and security documents), in each case as such agreements may be
amended (including any amendment and restatement thereof), supplemented or
otherwise modified from time to time, including any agreement extending the
maturity of, refinancing, replacing or otherwise restructuring (including
increasing the amount of available borrowings thereunder or adding Subsidiaries
of the Company as additional borrowers or guarantors thereunder) all or any
portion of the Indebtedness under such agreement or one or more successor or
replacement agreements and whether with the same or any other agent, lender or
group of lenders and whether provided under the original Credit Facility or one
or more other credit agreements or otherwise.

          "Currency Agreement" means any foreign exchange contract, currency
swap agreement or other similar agreement or arrangement designed to protect the
Company or any Restricted Subsidiary of the Company against fluctuations in
currency values.

          "Custodian" means any receiver, trustee, assignee, liquidator,
sequestrator or similar official under any Bankruptcy Law.

          "Deadline Date" means March 31, 2003.

          "Default" means an event or condition the occurrence of which is, or
with the lapse of time or the giving of notice or both would be, an Event of
Default.

          "Depository" shall mean The Depository Trust Company, New York, New
York, or a successor thereto registered under the Exchange Act or other
applicable statute or regulation.

                                      -13-

<PAGE>

          "Designated Senior Debt" means (1) Indebtedness under or in respect of
the Credit Facility and (2) any other Indebtedness constituting Senior Debt
which, at the time of determination, has an aggregate principal amount
outstanding of, or under which, at the date of determination, the holders
thereof are committed to lend up to, at least $30.0 million and is specifically
designated in the instrument evidencing such Senior Debt as "Designated Senior
Debt" by the Company.

          "Disqualified Capital Stock" means that portion of any Capital Stock
which, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable at the option of the holder
thereof), or upon the happening of any event (other than an event which would
constitute a Change of Control), matures (excluding any maturity as the result
of an optional redemption by the issuer thereof) or is mandatorily redeemable,
pursuant to a sinking fund obligation or otherwise, or is redeemable at the sole
option of the holder thereof (except, in each case, upon the occurrence of a
Change of Control) on or prior to the final maturity date of the Securities.

          "Effective Date" means the effective date of the BWAY Assumption.

          "Equity Offering" means a sale of Qualified Capital Stock (i) of the
Company or (ii) of any direct or indirect parent of the Company (including
Holding), provided that proceeds of such sale sufficient to pay the redemption
price plus accrued interest to the redemption date shall be contributed to the
Company.

          "Escrow Agent" means the Escrow Agent from time to time under the
Escrow Agreement.

          "Escrow Agreement" means the Escrow Agreement dated as of November 27,
2002 between the Company and The Bank of New York, as escrow agent thereunder,
as amended from time to time.

          "Escrowed Property" has the meaning ascribed thereto in the Escrow
Agreement.

          "Event of Default" has the meaning set forth in Section 6.01.

          "Exchange Act" means the Securities Exchange Act of 1934, as amended,
or any successor statute or statutes thereto.

                                      -14-

<PAGE>

          "Exchange Securities" means Securities issued (i) in exchange for
Securities in the form of Exhibit A hereto pursuant to the terms of the
Registration Rights Agreement or, in the case of Securities issued after the
Issue Date, any other registration rights agreement or (ii) in the form of
Exhibit B hereto.

          "fair market value" means, with respect to any asset or property, the
price which could be negotiated in an arm's-length, free market transaction, for
cash, between a willing seller and a willing and able buyer, neither of whom is
under undue pressure or compulsion to complete the transaction. Fair market
value shall be determined by the Board of Directors of the Company acting
reasonably and in good faith and shall be evidenced by a Board Resolution of the
Board of Directors of the Company delivered to the Trustee.

          "Foreign Subsidiary" means (i) any Restricted Subsidiary of the
Company that is not organized under the laws of the United States of America or
any state thereof or the District of Columbia and (ii) any Restricted Subsidiary
of the Company that has no material assets other than securities of one or more
Foreign Subsidiaries, and other assets relating to an ownership interest in any
such securities or Foreign Subsidiaries.

          "GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as may be approved by a significant segment of the accounting
profession of the United States, which are in effect as of the Issue Date.

          "Global Security" shall mean one or more IAI Global Securities,
Regulation S Global Securities and Rule 144A Global Securities.

          "Guarantee Obligations" has the meaning set forth in Section 12.01.

          "Guarantees" means the guarantees of the Securities by the Guarantors.

          "Guarantor" means each of the Company's Restricted Subsidiaries that
executes a supplemental indenture in which

                                      -15-

<PAGE>

such Restricted Subsidiary agrees to be bound by the terms of this Indenture as
a Guarantor; provided that any Person constituting a Guarantor as described
above shall cease to constitute a Guarantor when its respective Guarantee is
released in accordance with the terms of this Indenture.

          "Guarantor Senior Debt" means, with respect to any Guarantor: the
principal of and premium, if any, and interest (including any interest accruing
subsequent to the filing of a petition of bankruptcy at the rate provided for in
the documentation with respect thereto, whether or not such interest is an
allowed claim under applicable law) on any Indebtedness of a Guarantor, whether
outstanding on the Issue Date or thereafter created, incurred or assumed,
unless, in the case of any particular Indebtedness, the instrument creating or
evidencing the same or pursuant to which the same is outstanding expressly
provides that such Indebtedness shall not be senior in right of payment to the
Guarantee of such Guarantor. Without limiting the generality of the foregoing,
"Guarantor Senior Debt" shall also include the principal of, premium, if any,
interest (including any interest accruing subsequent to the filing of a petition
of bankruptcy at the rate provided for in the documentation with respect
thereto, whether or not such interest is an allowed claim under applicable law)
on, and all other amounts owing in respect of:

          (x)     all monetary obligations of every nature of such Guarantor
     under, or with respect to, the Credit Facility, including, without
     limitation, obligations to pay principal and interest, reimbursement
     obligations under letters of credit, fees, expenses and indemnities (and
     guarantees thereof);

          (y)     all Interest Swap Obligations of such Guarantor (and
     guarantees thereof by such Guarantor); and

          (z)     all obligations of such Guarantor (and guarantees thereof by
     such Guarantor) under Currency Agreements;

in each case whether outstanding on the Issue Date or thereafter incurred.

          Notwithstanding the foregoing, "Guarantor Senior Debt" shall not
include:

          (1)     any Indebtedness of such Guarantor to a Subsidiary of such
     Guarantor;

                                      -16-

<PAGE>

          (2)     Indebtedness to, or guaranteed on behalf of, any director,
     officer or employee of such Guarantor or any Subsidiary of such Guarantor
     (including, without limitation, amounts owed for compensation);

          (3)     Indebtedness to trade creditors and other amounts incurred in
     connection with obtaining goods, materials or services;

          (4)     Indebtedness represented by Disqualified Capital Stock;

          (5)     any liability for federal, state, local or other taxes owed or
     owing by such Guarantor;

          (6)     that portion of any Indebtedness incurred in violation of
     Section 4.04 (but, as to any such obligation, no such violation shall be
     deemed to exist for purposes of this clause (6) if the holder(s) of such
     obligation or their representative shall have received an Officers'
     Certificate of the Company to the effect that the incurrence of such
     Indebtedness does not (or, in the case of revolving credit indebtedness,
     that the incurrence of the entire committed amount thereof at the date on
     which the initial borrowing thereunder is made would not) violate Section
     4.04);

          (7)     Indebtedness which, when incurred and without respect to any
     election under Section 1111(b) of Title 11, United States Code, is without
     recourse to the Company; and

          (8)     any Indebtedness which is, by its express terms, subordinated
     in right of payment to any other Indebtedness of such Guarantor.

          "Holding" means BCO Holding Company, a Delaware corporation.

          "Holding Expenses" means (i) costs (including all professional fees
and expenses) incurred by Holding in connection with its reporting obligations
under or in compliance with applicable laws, applicable rules or regulations of
any governmental, regulatory or self-regulatory body or stock exchange, this
Indenture or any other agreement or instrument relating to Indebtedness of the
Company or any Restricted Subsidiary, including any reports filed with respect
to the Securities Act, Exchange Act or the respective rules and regulations
promulgated

                                      -17-

<PAGE>

thereunder, (ii) obligations of Holding in respect of indemnification owing to
directors, officers, employees or other Persons under its charter or by-laws or
pursuant to written agreements with any such Person, or obligations under or in
respect of director and officer insurance policies, (iii) fees and expenses
payable by Holding in connection with the Transactions, (iv) other operational
expenses of Holding incurred in the ordinary course of business in an amount not
to exceed $1.0 million in any fiscal year, and (v) expenses incurred by Holding
in connection with any public offering of Capital Stock or Indebtedness (x)
where the net proceeds of such offering are intended to be received by or
contributed or loaned to the Company or a Restricted Subsidiary, or (y) in a
prorated amount of such expenses in proportion to the amount of such net
proceeds intended to be so received, contributed or loaned, or (z) otherwise on
an interim basis prior to completion of such offering so long as Holding shall
cause the amount of such expenses to be repaid to the Company or the relevant
Restricted Subsidiary out of the proceeds of such offering promptly if
completed.

          "Holding Related Taxes" means (x) any taxes, charges or assessments,
including but not limited to sales, use, transfer, rental, ad valorem,
value-added, stamp, property, consumption, franchise, license, capital, net
worth, gross receipts, excise, occupancy, intangibles or similar taxes, charges
or assessments (other than federal, state or local taxes measured by income and
federal, state or local withholding imposed on payments made by Holding)
required to be paid by Holding by virtue of its being incorporated or having
Capital Stock outstanding (but not by virtue of owning stock or other equity
interests of any corporation or other entity other than the Issuer, the Company
or any of its Subsidiaries), or being a holding company parent of the Issuer or
the Company or receiving dividends from or other distributions in respect of the
Capital Stock of the Issuer or the Company, or having guaranteed any obligations
of the Issuer, the Company or any Subsidiary thereof, or having made any payment
in respect of any of the items for which the Issuer or the Company is permitted
to make payments to Holding pursuant to Section 4.03, or (y) any other federal,
state, foreign, provincial or local taxes measured by income for which Holding
is liable up to an amount not to exceed with respect to any such taxes the total
amount of such taxes that the Company and the Issuer would have each been
required to pay on a separate company basis or on a consolidated basis if the
Company had filed a consolidated return on behalf of an affiliated group (as
defined in Section 1504 of the Internal Revenue Code, or an analogous provision
of state, local or foreign law) of

                                      -18-

<PAGE>

which it were the common parent and that included the Issuer, or with respect to
state and local taxes, on a combined basis if the Company had filed a combined
return on behalf of an affiliated group consisting only of the Issuer, the
Company and its Subsidiaries.

          "IAI Global Security" means a permanent global security in registered
form representing the aggregate principal amount of Securities held by
Institutional Accredited Investors which are not QIBs.

          "incur" has the meaning set forth in Section 4.04.

          "Indebtedness" means with respect to any Person, without duplication:

          (1)     all Obligations of such Person for borrowed money;

          (2)     all Obligations of such Person evidenced by bonds, debentures,
     notes or other similar instruments;

          (3)     all Capitalized Lease Obligations of such Person;

          (4)     all Obligations of such Person issued or assumed as the
     deferred purchase price of property, all conditional sale obligations and
     all Obligations under any title retention agreement (but excluding trade
     accounts payable and other accrued liabilities arising in the ordinary
     course of business);

          (5)     all Obligations for the reimbursement of any obligor on any
     letter of credit, banker's acceptance or similar credit transaction;

          (6)     guarantees and other contingent obligations in respect of
     Indebtedness referred to in clauses (1) through (5) above and clause (8)
     below;

          (7)     all Obligations of any other Person of the type referred to in
     clauses (1) through (6) which are secured by any lien on any property or
     asset of such Person, but which Obligations are not assumed by such Person,
     the amount of such Obligation being deemed to be the lesser of the fair
     market value of such property or asset or the amount of the Obligation so
     secured;

                                      -19-

<PAGE>

          (8)     all Obligations under currency agreements and interest swap
     agreements of such Person; and

          (9)     all Disqualified Capital Stock issued by such Person with the
     amount of Indebtedness represented by such Disqualified Capital Stock being
     equal to the greater of its voluntary or involuntary liquidation preference
     and its maximum fixed repurchase price, but excluding accrued dividends, if
     any.

          For purposes hereof, (x) the "maximum fixed repurchase price" of any
Disqualified Capital Stock which does not have a fixed repurchase price shall be
calculated in accordance with the terms of such Disqualified Capital Stock as if
such Disqualified Capital Stock were purchased on any date on which Indebtedness
shall be required to be determined pursuant to this Indenture, and if such price
is based upon, or measured by, the fair market value of such Disqualified
Capital Stock, such fair market value shall be determined reasonably and in good
faith by the Board of Directors of the issuer of such Disqualified Capital Stock
and (y) any transfer of accounts receivable or other assets which constitute a
sale for purposes of GAAP shall not constitute Indebtedness hereunder.

          "Indenture" means this Indenture, as amended or supplemented from time
to time in accordance with the terms hereof.

          "Initial Purchaser" means Deutsche Bank Securities Inc.

          "Institutional Accredited Investor" or "IAI" means an institution that
is an "accredited investor" as that term is defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act.

          "Interest Payment Date" means the stated maturity of an installment of
interest on the Securities.

          "Interest Swap Obligations" means the obligations of any Person
pursuant to any arrangement with any other Person, whereby, directly or
indirectly, such Person is entitled to receive from time to time periodic
payments calculated by applying either a floating or a fixed rate of interest on
a stated notional amount in exchange for periodic payments made by such other
Person calculated by applying a fixed or a floating rate of interest on the same
notional amount.

                                      -20-

<PAGE>

          "Inventory" means goods held for sale or lease by a Person in the
ordinary course of business, net of any reserve for goods that have been
segregated by such Person to be returned to the applicable vendor for credit, as
determined in accordance with GAAP.

          "Investment" by any Person in any other Person means, with respect to
any Person, any direct or indirect loan or other extension of credit (including,
without limitation, a guarantee) or capital contribution to (by means of any
transfer of cash or other property to others or any payment for property or
services for the account or use of others), or any purchase or acquisition by
such Person of any Capital Stock, bonds, notes, debentures or other securities
or evidences of Indebtedness issued by, such other Person. "Investment" shall
exclude extensions of trade credit by the Company and its Restricted
Subsidiaries on commercially reasonable terms in accordance with normal trade
practices of the Company or such Restricted Subsidiary, as the case may be. For
the purposes of Section 4.03:

          (1)     the Company shall be deemed to have made an "Investment" equal
     to the fair market value of the net assets of any Restricted Subsidiary at
     the time that such Restricted Subsidiary is designated an Unrestricted
     Subsidiary and the aggregate amount of Investments made subsequent to the
     Issue Date shall exclude (to the extent the designation as an Unrestricted
     Subsidiary was included as a Restricted Payment) the fair market value of
     the net assets of any Unrestricted Subsidiary at the time that such
     Unrestricted Subsidiary is designated a Restricted Subsidiary, not to
     exceed the amount of the Investment deemed made at the date of designation
     thereof as an Unrestricted Subsidiary; and

          (2)     the amount of any Investment shall be the cost of such
     Investment by the Company or any of its Restricted Subsidiaries, without
     any adjustments for increases or decreases in value, or write-ups,
     writedowns or write-offs with respect to such Investment, reduced by the
     payment of dividends or distributions (including tax sharing payments) in
     connection with such Investment or any other amounts received in respect of
     such Investment; provided that no such payment of dividends or
     distributions or receipt of any such other amounts shall reduce the amount
     of any Investment if such payment of dividends or distributions or receipt
     of any such amounts has been included in

                                      -21-

<PAGE>

     Consolidated Net Income for purposes of making any Restricted Payment. If
     the Company or any Restricted Subsidiary of the Company sells or otherwise
     disposes of any Common Stock of any direct or indirect Restricted
     Subsidiary of the Company such that, after giving effect to any such sale
     or disposition, the Company no longer owns, directly or indirectly, more
     than 50% of the outstanding Common Stock of such Restricted Subsidiary, the
     Company shall be deemed to have made an Investment on the date of any such
     sale or disposition equal to the fair market value of the Common Stock of
     such Restricted Subsidiary not sold or disposed of.

          "Issue Date" means November 27, 2002, the date of original issuance of
any Securities under this Indenture.

          "Issuer" means BWAY Finance Corp., a Delaware corporation.

          "Joint Venture" means a corporation, partnership or other business
entity, other than a Subsidiary of the Company, engaged or proposed to be
engaged in the same or a similar line of business as the Company in which the
Company owns, directly or indirectly, not less than 30% of the total voting
power of shares of Capital Stock or other interests (including partnership
interests) entitled (without regard to the occurrence of any contingency) to
vote in the election of directors, managers and trustees thereof, with the
balance of the ownership interests being held by one or more third parties.

          "Legal Defeasance" has the meaning set forth in Section 8.02.

          "Lien" means any lien, mortgage, deed of trust, pledge, security
interest, charge or encumbrance of any kind (including any conditional sale or
other title retention agreement, any lease in the nature thereof and any
agreement to give any security interest).

          "Mandatory Redemption Date" means (a) April 20, 2003, if the BWAY
Assumption has not occurred on or prior to the Deadline Date or (b) the 20th day
(of if such day is not a Business Day, the first Business Day thereafter)
following the termination of the Merger Agreement, on or prior to the Deadline
Date, for any reason.

                                      -22-

<PAGE>

          "Mandatory Redemption Price" means 101% of the offering price (i.e.,
100% of the principal amount at maturity) of the Securities plus accrued and
unpaid interest up to but not including the Mandatory Redemption Date.

          "Maturity Date" means October 15, 2010.

          "Merger Agreement" means the Agreement and Plan of Merger dated as of
September 30, 2002 by and among BWAY, Holding and BCO Acquisition as amended,
waived, supplemented or otherwise modified from time to time.

          "Mergers" means (i) the merger of BCO Acquisition with and into BWAY,
with BWAY as the surviving corporation, and (ii) the merger of the Issuer with
and into BWAY, with BWAY as the surviving corporation, in each case in
connection with the consummation of the Transactions.

          "Net Cash Proceeds" means, with respect to any Asset Sale, the
proceeds in the form of cash or Cash Equivalents including payments in respect
of deferred payment obligations when received in the form of cash or Cash
Equivalents (other than the portion of any such deferred payment constituting
interest) received by the Company or any of its Restricted Subsidiaries from
such Asset Sale net of:

          (1)     out-of-pocket expenses and fees relating to such Asset Sale
     (including, without limitation, legal, accounting and investment banking
     fees and sales commissions);

          (2)     taxes paid or payable after taking into account any reduction
     in consolidated tax liability due to available tax credits or deductions
     and any tax sharing arrangements;

          (3)     repayment of Senior Debt, Guarantor Senior Debt or
     Indebtedness of a Restricted Subsidiary that is not a Guarantor that is
     required to be repaid in connection with such Asset Sale; and

          (4)     any portion of cash proceeds which the Company determines in
     good faith should be reserved for post-closing adjustments, it being
     understood and agreed that on the day that all such post-closing
     adjustments have been determined, the amount (if any) by which the reserved
     amount in respect of such Asset Sale exceeds the actual post-closing
     adjustments payable by the Company or any of its Subsidiaries shall
     constitute Net Cash Proceeds on

                                      -23-

<PAGE>

     such date; provided that, in the case of the sale by the Company of an
     asset constituting an Investment made after the Issue Date (other than a
     Permitted Investment), the "Net Cash Proceeds" in respect of such Asset
     Sale shall not include the lesser of (x) the cash received with respect to
     such Asset Sale and (y) the initial amount of such Investment, less, in the
     case of clause (y), all amounts (up to an amount not to exceed the initial
     amount of such Investment) received by the Company with respect to such
     Investment, whether by dividend, sale, liquidation or repayment, in each
     case prior to the date of such Asset Sale.

          "Net Proceeds Offer" has the meaning set forth in Section 4.13.

          "Net Proceeds Offer Amount" has the meaning set forth in Section 4.13.

          "Net Proceeds Offer Payment Date" has the meaning set forth in Section
4.13.

          "Net Proceeds Offer Trigger Date" has the meaning set forth in Section
4.13.

          "Non-payment Default" has the meaning set forth in Section 10.02.

          "Non-U.S. Person" means any Person who is not a "U.S. Person" as
defined in Regulation S.

          "Obligations" means all obligations for (a) principal, premium,
interest, penalties, fees, and (b) to the extent liquidated and quantifiable at
the time of determination, indemnifications, reimbursements, damages and other
liabilities payable under the documentation governing any Indebtedness.

          "Officer" means, with respect to any Person, the Chairman of the
Board, the Chief Executive Officer, the President, any Vice President, the Chief
Financial Officer, the Controller, the Treasurer or the Secretary (a) of such
Person or (b) if such Person is owned or managed by a single entity, of such
entity or (c) any other individual designated as an "Officer" for the purposes
of this Indenture by the Board of Directors.

          "Officers' Certificate" means a certificate signed by two Officers of
the Company.

                                      -24-

<PAGE>

          "Opinion of Counsel" means a written opinion from legal counsel who is
reasonably acceptable to the Trustee.

          "Participants" has the meaning set forth in Section 2.16.

          "Paying Agent" has the meaning set forth in Section 2.03.

          "Payment Blockage Notice" has the meaning set forth in Section 10.02.

          "Payment Blockage Period" has the meaning set forth in Section 10.02.

          "Payment Default" has the meaning set forth in Section 10.02.

          "Permitted Holders" means Kelso & Company, Kelso Investment Associates
VI L.P., KEP VI LLC and their respective Affiliates.

          "Permitted Indebtedness" means, without duplication, each of the
following:

          (1)     Indebtedness under the Securities and this Indenture in an
     aggregate principal amount not to exceed $200 million;

          (2)     Indebtedness incurred pursuant to the Credit Facility
     (including but not limited to the face amount of Indebtedness in respect of
     letters of credit or bankers' acceptances issued or created thereunder) not
     to exceed in the aggregate a principal amount equal to the greater of (x)
     $90.0 million and (y) the Borrowing Base, in each case less the amount of
     all repayments of term loans and permanent commitment reductions in the
     revolving credit portion of the Credit Facility with Net Cash Proceeds of
     Asset Sales applied thereto as required by Section 4.13; provided, that the
     amount of Indebtedness permitted to be incurred pursuant to the Credit
     Facility in accordance with this clause (2) shall be in addition to any
     Indebtedness permitted to be incurred under the Credit Facility in
     accordance with clauses (10) and (17) below and in accordance with the
     proviso to Section 4.04;

          (3)     other Indebtedness of the Company and its Restricted
     Subsidiaries outstanding on the Effective Date

                                      -25-

<PAGE>

     reduced by the amount of any scheduled amortization payments or mandatory
     prepayments when actually paid or permanent reductions thereon;

          (4)     Interest Swap Obligations of the Company or any Restricted
     Subsidiary of the Company covering Indebtedness of the Company or any of
     its Restricted Subsidiaries; provided that any Indebtedness to which any
     such Interest Swap Obligations correspond is otherwise permitted to be
     incurred under this Indenture; provided, further, that such Interest Swap
     Obligations are entered into, in the judgment of the Company, to protect
     the Company and its Restricted Subsidiaries from fluctuations in interest
     rates on their respective outstanding Indebtedness;

          (5)     Indebtedness of the Company or any of its Restricted
     Subsidiaries under Currency Agreements entered into, in the judgment of the
     Company, to protect the Company or such Restricted Subsidiary from foreign
     currency exchange rates;

          (6)     intercompany Indebtedness owed by any Restricted Subsidiary of
     the Company to the Company or any Restricted Subsidiary of the Company or
     by the Company to any Restricted Subsidiary;

          (7)     Acquired Indebtedness of any Restricted Subsidiary of the
     Company that is not a Guarantor to the extent the Company could have
     incurred such Indebtedness in accordance with the Consolidated Fixed Charge
     Coverage Ratio of Section 4.04 on the date such Indebtedness became
     Acquired Indebtedness; provided that such Acquired Indebtedness was not
     incurred in connection with, or in anticipation or contemplation of, such
     Person becoming a Restricted Subsidiary of the Company;

          (8)     Indebtedness arising from the honoring by a bank or other
     financial institution of a check, draft or similar instrument inadvertently
     drawn against insufficient funds in the ordinary course of business;
     provided, however, that such Indebtedness is extinguished within five
     Business Days of incurrence;

          (9)     any refinancing, modification, replacement, renewal,
     restatement, refunding, deferral, extension, substitution, supplement,
     reissuance or resale of existing or future Indebtedness (other than
     pursuant to clauses (2),

                                      -26-

<PAGE>

     (4), (5), (6), (8), (10), (11), (12), (13), (14), (15), (16) and (17) of
     this definition), including any additional Indebtedness incurred to pay
     interest or premiums required by the instruments governing such existing or
     future Indebtedness as in effect at the time of issuance thereof ("Required
     Premiums") and fees in connection therewith; provided that any such event
     shall not (1) result in an increase in the aggregate principal amount of
     Permitted Indebtedness (except to the extent such increase is a result of a
     simultaneous incurrence of additional Indebtedness (A) to pay Required
     Premiums and related fees or (B) otherwise permitted to be incurred under
     this Indenture) of the Company and its Restricted Subsidiaries and (2)
     create Indebtedness with a Weighted Average Life to Maturity at the time
     such Indebtedness is incurred that is less than the Weighted Average Life
     to Maturity at such time of the Indebtedness being refinanced, modified,
     replaced, renewed, restated, refunded, deferred, extended, substituted,
     supplemented, reissued or resold; provided that no Restricted Subsidiary of
     the Company that is not a Guarantor may refinance any Indebtedness pursuant
     to this clause (9) other than its own Indebtedness or the Indebtedness of
     another Restricted Subsidiary of the Company that is not a Guarantor;

          (10)    Indebtedness (including Capitalized Lease Obligations)
     incurred by the Company or any Restricted Subsidiary to finance or
     refinance the purchase, lease or improvement of property (real or personal)
     or equipment (whether through the direct purchase of assets or the Capital
     Stock of any Person owning such assets) and any refinancing, modification,
     replacement, renewal, restatement, refunding, deferral, extension,
     substitution, supplement, reissuance or resale of any Indebtedness incurred
     pursuant to this clause (10), in an aggregate principal amount outstanding
     not to exceed $15.0 million at the time of any incurrence thereof (which
     amount may, but need not be incurred in whole or in part under the Credit
     Facility);

          (11)    the incurrence by a Receivables Entity of Indebtedness in a
     Qualified Receivables Transaction that is not recourse to the Company or
     any Restricted Subsidiary of the Company (except for Standard
     Securitization Undertakings);

                                      -27-

<PAGE>

          (12)    Indebtedness incurred by the Company or any of its Restricted
     Subsidiaries constituting reimbursement obligations with respect to letters
     of credit issued in the ordinary course of business, including, without
     limitation, letters of credit in respect of workers' compensation claims or
     self-insurance, or other Indebtedness with respect to reimbursement type
     obligations regarding workers' compensation claims;

          (13)    Indebtedness arising from agreements of the Company or a
     Restricted Subsidiary of the Company providing for indemnification,
     adjustment of purchase price, earn out or other similar obligations, in
     each case, incurred or assumed in connection with the disposition of any
     business, assets or a Restricted Subsidiary of the Company, other than
     guarantees of Indebtedness incurred by any Person acquiring all or any
     portion of such business, assets or Restricted Subsidiary for the purpose
     of financing such acquisition, provided that the maximum assumable
     liability in respect of all such Indebtedness shall at no time exceed the
     gross proceeds actually received by the Company and its Restricted
     Subsidiaries in connection with such disposition;

          (14)    obligations in respect of judgment, appeal, performance and
     surety bonds, completion guarantees or other similar bonds, instruments or
     obligations provided, or relating to liabilities or obligations incurred,
     by the Company or any Restricted Subsidiary of the Company in the ordinary
     course of business;

          (15)    Indebtedness consisting of guarantees (i) by the Company of
     Indebtedness and any other obligation or liability permitted to be incurred
     under this Indenture by Restricted Subsidiaries of the Company, and (ii)
     subject to the provisions of Section 4.16 by Restricted Subsidiaries of the
     Company of Indebtedness and any other obligation or liability permitted to
     be incurred by the Company or other Restricted Subsidiaries of the Company;

          (16)    Indebtedness incurred by Foreign Subsidiaries of the Company
     with respect to such Subsidiaries' working capital requirements in an
     aggregate principal amount outstanding at any time not to exceed $5.0
     million; and

          (17)    additional Indebtedness of the Company or any Restricted
     Subsidiary in an aggregate principal amount not

                                      -28-

<PAGE>

     to exceed $20.0 million at any one time outstanding (which amount may, but
     need not, be incurred in whole or in part under the Credit Facility).

          "Permitted Investments" means:

          (1)     Investments by the Company or any Restricted Subsidiary of the
     Company in any Restricted Subsidiary of the Company (whether existing on
     the Issue Date or created thereafter) and Investments in the Company by any
     Restricted Subsidiary of the Company;

          (2)     cash and Cash Equivalents;

          (3)     Investments existing on the Effective Date and Investments
     made on the Effective Date pursuant to the Merger Agreement;

          (4)     loans and advances to employees, officers and directors of the
     Company and its Restricted Subsidiaries not in excess of $5.0 million at
     any one time outstanding;

          (5)     accounts receivable owing to the Company or any Restricted
     Subsidiary created or acquired in the ordinary course of business and
     payable or dischargeable in accordance with customary trade terms;
     provided, however, that such trade terms may include such concessionary
     trade terms as the customary trade terms;

          (6)     Currency Agreements and Interest Swap Obligations entered into
     by the Company or any of its Restricted Subsidiaries for bona fide business
     reasons and not for speculative purposes, and otherwise in compliance with
     this Indenture;

          (7)     Investments in securities of trade creditors or customers
     received pursuant to any plan of reorganization or similar arrangement upon
     the bankruptcy or insolvency of such trade creditors or customers;

          (8)     guarantees by the Company or any of its Restricted
     Subsidiaries of Indebtedness otherwise permitted to be incurred by the
     Company or any of its Restricted Subsidiaries under this Indenture;

          (9)     Investments by the Company or any Restricted Subsidiary of the
     Company in a Person, if as a result of such Investment (a) such Person
     becomes a Restricted Subsidiary

                                      -29-

<PAGE>

     of the Company or (b) such Person is merged, consolidated or amalgamated
     with or into, or transfers or conveys all or substantially all of its
     assets to, or is liquidated into, the Company or a Restricted Subsidiary of
     the Company;

          (10)    additional Investments in an amount, taken together with the
     amount of all other Investments made pursuant to this clause (10) that are
     at the time outstanding, not exceeding $15.0 million at the time of such
     Investment, plus an amount equal to (a) 100% of the aggregate net cash
     proceeds received by the Company from any Person (other than a Subsidiary
     of the Company) from the issuance and sale subsequent to the Issue Date of
     Qualified Capital Stock of the Company (including Qualified Capital Stock
     issued upon the conversion of convertible Indebtedness or in exchange for
     outstanding Indebtedness) and (b) without duplication of any amounts
     included in clause (10)(a) above, 100% of the aggregate net cash proceeds
     of any equity contribution received by the Company from a holder of the
     Company's Capital Stock, that in the case of amounts described in clause
     (10)(a) or (10)(b) are applied by the Company within 180 days after
     receipt, to make additional Permitted Investments under this clause (10)
     (such additional Permitted Investments being referred to collectively as
     "Stock Permitted Investments");

          (11)    any Investment by the Company or a Restricted Subsidiary of
     the Company in a Receivables Entity or any Investment by a Receivables
     Entity in any other Person in connection with a Qualified Receivables
     Transaction; provided that any Investment in a Receivables Entity is in the
     form of a Purchase Money Note or an equity interest;

          (12)    Investments received by the Company or its Restricted
     Subsidiaries as consideration for asset sales, including Asset Sales;
     provided in the case of an Asset Sale, (a) such Investment does not exceed
     25% of the consideration received for such Asset Sale and (b) such Asset
     Sale is otherwise effected in compliance with Section 4.13;

          (13)    Investments by the Company or its Restricted Subsidiaries in
     Joint Ventures in an aggregate amount not in excess of $5.0 million; and

                                      -30-

<PAGE>

          (14)    that portion of any Investment where the consideration
     provided by the Company is Capital Stock of the Company (other than
     Disqualified Capital Stock) or of Holding.

          Any net cash proceeds that are used by the Company or any of its
Restricted Subsidiaries to make Stock Permitted Investments pursuant to clause
(10) of this definition shall not be included in subclauses (x) and (y) of
clause (iii) of the second paragraph of Section 4.03.

          "Permitted Liens" means the following types of Liens:

          (1)     Liens securing the Securities and the Guarantees;

          (2)     Liens securing Acquired Indebtedness; provided that (x) such
     Acquired Indebtedness was not incurred in connection with, or in
     anticipation or contemplation of, the acquisition giving rise to the
     incurrence of such Acquired Indebtedness and (y) such Liens do not extend
     to or cover any property or assets of the Company or of any of its
     Restricted Subsidiaries other than the property or assets that secured the
     Acquired Indebtedness prior to the time such Indebtedness became Acquired
     Indebtedness of the Company or a Restricted Subsidiary of the Company;

          (3)     Liens existing on the Effective Date, together with any Liens
     securing Indebtedness incurred in reliance on clause (9) of the definition
     of "Permitted Indebtedness" in order to refinance the Indebtedness secured
     by Liens existing on the Effective Date; provided that the Liens securing
     the refinancing Indebtedness shall not extend to property other than that
     pledged under the Liens securing the Indebtedness being refinanced;

          (4)     Liens in favor of the Company on the property or assets, or
     any proceeds, income or profit therefrom, of any Restricted Subsidiary; and

          (5)     other Liens securing Senior Subordinated Indebtedness;
     provided that the maximum aggregate amount of outstanding obligations
     secured thereby shall not at any time exceed $5.0 million.

          "Person" means an individual, partnership, corporation, unincorporated
organization, trust or joint venture, or a

                                      -31-

<PAGE>

governmental agency or political subdivision thereof or any other entity.

          "Physical Securities" shall have the meaning provided in Section 2.01.

          "Plan" means any employee benefit plan, retirement plan, deferred
compensation plan, restricted stock plan, health, life, disability or other
insurance plan or program, employee stock purchase plan, employee stock
ownership plan, pension plan, stock option plan or similar plan or arrangement
of the Company or any Subsidiary of the Company, or other successor plan
thereof, and "Plans" shall have a correlative meaning.

          "Preferred Stock" of any Person means any Capital Stock of such Person
that has preferential rights to any other Capital Stock of such Person with
respect to dividends or redemptions or upon liquidation.

          "principal" of any Indebtedness (including the Securities) means the
principal amount of such Indebtedness plus the premium, if any, on such
Indebtedness.

          "Private Placement Legend" shall have the meaning provided in Exhibit
C.

          "Productive Assets" means assets (including Capital Stock) of a kind
used or usable in the businesses of the Company and its Restricted Subsidiaries
as, or related to such business, conducted on the date of the relevant Asset
Sale.

          "Purchase Money Note" means a promissory note of a Receivables Entity
evidencing a line of credit, which may be irrevocable, from the Company or any
Subsidiary of the Company in connection with a Qualified Receivables Transaction
to a Receivables Entity, which note is intended to be repaid from cash available
to the Receivables Entity, other than amounts required to be established as
reserves pursuant to agreements, amounts paid to investors in respect of
interest, principal and other amounts owing to such investors and amounts owing
to such investors and amounts paid in connection with the purchase of newly
generated receivables.

          "Qualified Capital Stock" means any Capital Stock that is not
Disqualified Capital Stock.

                                      -32-

<PAGE>

          "Qualified Institutional Buyer" or "QIB" shall have the meaning
specified in Rule 144A under the Securities Act.

          "Qualified Receivables Transaction" means any transaction or series of
transactions that may be entered into by the Company or any of its Subsidiaries
pursuant to which the Company or any of its Subsidiaries may sell, convey or
otherwise transfer to (a) a Receivables Entity (in the case of a transfer by the
Company or any of its Subsidiaries) and (b) any other Person (in the case of a
transfer by a Receivables Entity), or may grant a security interest in, any
accounts receivable (whether now existing or arising in the future) of the
Company or any of its Subsidiaries, and any assets related thereto including,
without limitation, all collateral securing such accounts receivable, all
contracts and all guarantees or other obligations in respect of such accounts
receivable, proceeds of such accounts receivable and other assets which are
customarily transferred or in respect of which security interests are
customarily granted in connection with asset securitization transactions
involving accounts receivable.

          "Receivable" means a right to receive payment arising from a sale or
lease of goods or services by a Person pursuant to an arrangement with another
Person pursuant to which such other Person is obligated to pay for goods or
services under terms that permit the purchase of such goods and services on
credit, as determined in accordance with GAAP.

          "Receivables Entity" means a Wholly Owned Subsidiary of the Company
(or another Person in which the Company or any Subsidiary of the Company makes
an Investment and to which the Company or any Subsidiary of the Company
transfers accounts receivable and related assets) which engages in no activities
other than in connection with the financing of accounts receivable, all proceeds
thereof and all rights (contractual or other), collateral and other assets
relating thereto, and any business or activities incidental or related to such
business, and which is designated by the Board of Directors of the Company (as
provided below) as a Receivables Entity:

          (1)     no portion of the Indebtedness or any other Obligations
     (contingent or otherwise) of which:

                  (i) is guaranteed by the Company or any Subsidiary of the
          Company (excluding guarantees of Obligations (other than the principal
          of, and interest

                                      -33-

<PAGE>

          on, Indebtedness) pursuant to Standard Securitization Undertakings);

                  (ii) is recourse to or obligates the Company or any Subsidiary
          of the Company in any way other than pursuant to Standard
          Securitization Undertakings; or

                  (iii) subjects any property or asset of the Company or any
          Subsidiary of the Company, directly or indirectly, contingently or
          otherwise, to the satisfaction thereof, other than pursuant to
          Standard Securitization Undertakings;

          (2)     with which neither the Company nor any Subsidiary of the
     Company has any material contract, agreement, arrangement or understanding
     other than on terms no less favorable to the Company or such Subsidiary
     than those that might be obtained at the time from Persons that are not
     Affiliates of the Company, other than fees payable in the ordinary course
     of business in connection with servicing accounts receivable; and

          (3)     to which neither the Company nor any Subsidiary of the Company
     has any obligation to maintain or preserve such entity's financial
     condition or cause such entity to achieve certain levels of operating
     results other than through the contribution of additional Receivables,
     related security and collections thereto and proceeds of the foregoing.

          Any such designation by the Board of Directors of the Company shall be
evidenced to the Trustee by filing with the Trustee a certified copy of the
resolution of the Board of Directors of the Company giving effect to such
designation and an Officers' Certificate certifying that such designation
complied with the foregoing conditions.

          "Record Date" means the applicable Record Date specified in the
Securities, whether or not any such date is a Business Day.

          "Redemption Date," when used with respect to any Security to be
redeemed, means the date fixed for such redemption pursuant to this Indenture
and the Securities.

          "Redemption Price," when used with respect to any Security to be
redeemed, means the price fixed for such redemption,

                                      -34-

<PAGE>

payable in immediately available funds, pursuant to this Indenture and the
Securities.

          "Reference Date" has the meaning set forth in Section 4.03.

          "Registrar" has the meaning set forth in Section 2.03.

          "Registration Rights Agreement" means the Registration Rights
Agreement dated as of the Issue Date among the Issuer and the Initial Purchaser.

          "Regulation S" means Regulation S under the Securities Act.

          "Regulation S Global Security" has the meaning set forth in Section
2.01.

          "Representative" means the indenture trustee or other trustee, agent
or representative in respect of any Designated Senior Debt or Guarantor Senior
Debt; provided that if, and for so long as, any Designated Senior Debt lacks
such a representative, then the Representative for such Designated Senior Debt
shall at all times constitute the holders of a majority in outstanding principal
amount of such Designated Senior Debt in respect of any Designated Senior Debt.

          "Responsible Officer" means, when used with respect to the Trustee,
any officer within the Corporate Trust Division -- Corporate Finance Unit of the
Trustee (or any successor unit or department of the Trustee) located at the
Corporate Trust Office of the Trustee who has direct responsibility for the
administration of this Indenture and, for purposes of Sections 7.01(c)(2) and
7.05, also includes any officer of the Trustee or to whom any corporate trust
matter is referred because of such officer's knowledge of and familiarity with
the particular subject.

          "Restricted Payment" has the meaning set forth in Section 4.03.

          "Restricted Period" has the meaning set forth in Section 2.01.

          "Restricted Security" means a Security that constitutes a "Restricted
Security" within the meaning of Rule 144(a)(3) under the Securities Act;
provided, however, that the

                                      -35-

<PAGE>

Trustee shall be entitled to request and conclusively rely on an Opinion of
Counsel with respect to whether any Security constitutes a Restricted Security.

          "Restricted Subsidiary" of any Person means any Subsidiary of such
Person which at the time of determination is not an Unrestricted Subsidiary.

          "Rule 144A" means Rule 144A under the Securities Act.

          "Rule 144A Global Security" has the meaning set forth in Section 2.01.

          "Sale and Leaseback Transaction" means any direct or indirect
arrangement with any Person or to which any such Person is a party, providing
for the leasing to the Company or a Restricted Subsidiary of any property,
whether owned by the Company or any Restricted Subsidiary at the Issue Date or
later acquired, which has been or is to be sold or transferred by the Company or
such Restricted Subsidiary to such Person or to any other Person from whom funds
have been or are to be advanced by such Person on the security of such property.

          "Securities" means, collectively, the Company's 10% Senior
Subordinated Notes due 2010 issued in accordance with Section 2.02 (whether on
the Issue Date or thereafter), including any Exchange Securities, treated as a
single class of securities under this Indenture, as amended or supplemented from
time to time in accordance with the terms of this Indenture.

          "Securities Act" means the Securities Act of 1933, as amended, or any
successor statute or statutes thereto.

          "Securityholder" or "Holder" means the Person in whose name a Security
is registered on the Registrar's books.

          "Senior Debt" means the principal of and premium, if any, and interest
(including any interest accruing subsequent to the filing of a petition of
bankruptcy at the rate provided for in the documentation with respect thereto,
whether or not such interest is an allowed claim under applicable law) on any
Indebtedness of the Company, whether outstanding on the Issue Date or thereafter
created, incurred or assumed, unless, in the case of any particular
Indebtedness, the instrument creating or evidencing the same or pursuant to
which the same is outstanding expressly provides that such Indebtedness shall
not be senior in right of payment to the Securities. Without limiting the
generality of the foregoing, "Senior Debt" shall also include

                                      -36-

<PAGE>

the principal of, premium, if any, interest (including any interest accruing
subsequent to the filing of a petition of bankruptcy at the rate provided for in
the documentation with respect thereto, whether or not such interest is an
allowed claim under applicable law) on, and all other amounts owing in respect
of:

          (1)     all monetary obligations of every nature of the Company under,
     or with respect to, the Credit Facility, including, without limitation,
     obligations to pay principal and interest, reimbursement obligations under
     letters of credit, fees, expenses and indemnities (and guarantees thereof);

          (2)     all Interest Swap Obligations of the Company (and guarantees
     thereof by the Company); and

          (3)     all obligations of the Company (and guarantees thereof by the
     Company) under Currency Agreements;

in each case whether outstanding on the Issue Date or thereafter incurred.

          Notwithstanding the foregoing, "Senior Debt" shall not include:

          (1)     any Indebtedness of the Company to a Subsidiary of the
     Company;

          (2)     Indebtedness to, or guaranteed on behalf of, any director,
     officer or employee of the Company or any Subsidiary of the Company
     (including, without limitation, amounts owed for compensation);

          (3)     Indebtedness to trade creditors and other amounts incurred in
     connection with obtaining goods, materials or services;

          (4)     Indebtedness represented by Disqualified Capital Stock;

          (5)     any liability for federal, state, local or other taxes owed or
     owing by the Company;

          (6)     that portion of any Indebtedness incurred in violation of
     Section 4.04 (but, as to any such obligation, no such violation shall be
     deemed to exist for purposes of this clause (6) if the holder(s) of such
     obligation or

                                      -37-

<PAGE>

     their representative shall have received an officers' certificate of the
     Company to the effect that the incurrence of such Indebtedness does not
     (or, in the case of revolving credit indebtedness, that the incurrence of
     the entire committed amount thereof at the date on which the initial
     borrowing thereunder is made would not) violate Section 4.04);

          (7)     Indebtedness which, when incurred and without respect to any
     election under Section 1111(b) of Title 11, United States Code, is without
     recourse to the Company; and

          (8)     any Indebtedness which is, by its express terms, subordinated
     in right of payment to any other Indebtedness of the Company.

          "Senior Subordinated Indebtedness" means (i) the Notes and the
Guarantee of any Guarantor, (ii) the Indebtedness under the Company's 10 1/4%
Senior Subordinated Notes due 2007 and (iii) any other Indebtedness of the
Company or any Guarantor that specifically provides that such Indebtedness is to
rank pari passu with the Notes or the Guarantee of such Guarantor, as the case
may be, and is not by its express terms subordinate in right of payment to any
Indebtedness of the Company or such Guarantor, as the case may be, which is not
Senior Debt or Guarantor Senior Debt, as the case may be.

          "Significant Subsidiary", with respect to any Person, means any
Restricted Subsidiary of such Person that satisfies the criteria for a
"significant subsidiary" set forth in Rule 1.02(w) of Regulation S-X under the
Exchange Act.

          "Standard Securitization Undertakings" means representations,
warranties, covenants and indemnities entered into by the Company or any
Subsidiary of the Company which are reasonably customary in an accounts
receivable transaction.

          "Subordinated Obligation" means any Indebtedness (other than any
Indebtedness under the Company's 10 1/4% Senior Subordinated Notes due 2007) of
the Company or any Guarantor (whether outstanding on the Issue Date or
thereafter incurred) which is expressly subordinate in right of payment to the
Notes or the Guarantee of such Guarantor, as the case may be, pursuant to a
written agreement.

                                      -38-

<PAGE>

          "Subsidiary", with respect to any Person, means:

          (1)     any corporation of which the outstanding Capital Stock having
     at least a majority of the votes entitled to be cast in the election of
     directors under ordinary circumstances shall at the time be owned, directly
     or indirectly, by such Person; or

          (2)     any other Person of which at least a majority of the voting
     interest under ordinary circumstances is at the time, directly or
     indirectly, owned by such Person.

          "TIA" means the Trust Indenture act of 1939 (15 U.S.C. Sections
77aaa-77bbbb), as amended, as in effect on the date of the execution of this
Indenture until such time as this Indenture is qualified under the TIA, and
thereafter as in effect on the date on which this Indenture is qualified under
the TIA, except as otherwise provided in Section 9.03.

          "Transactions" means, collectively, (i) the Mergers, including the
cash and other investments in Holding made by the Permitted Holders and certain
stockholders and option holders of the Company in connection therewith, (ii) the
amendment and restatement or refinancing, as the case may be, of the Credit
Facility, (iii) the offer and sale of the Notes, (iv) the tender offer and
consent solicitation with respect to the Company's 10 1/4% Senior Subordinated
Notes due 2007, (v) the redemption of any such Notes not tendered into such
tender offer, (vi) the payment to one of the Permitted Holders of a one-time
deal fee of $4,950,000 and (vii) all other transactions, arrangements and
agreements related to the Mergers or the financing thereof.

          "Trustee" means the party named as such in this Indenture until a
successor replaces it in accordance with the provisions of this Indenture and
thereafter means such successor.

          "Unrestricted Securities" means one or more Securities in the form set
forth in Exhibit B that do not and are not required to bear the Private
Placement Legend, including, without limitation, the Exchange Securities.

          "Unrestricted Subsidiary" of any Person means:

          (1)     any Subsidiary of such Person that at the time of
     determination shall be or continue to be designated an

                                      -39-

<PAGE>

     Unrestricted Subsidiary by the Board of Directors of such Person in the
     manner provided below; and

          (2)     any Subsidiary of an Unrestricted Subsidiary.

          The Board of Directors may designate any Subsidiary (including any
newly acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary
unless such Subsidiary owns any Capital Stock of, or owns or holds any Lien on
any property of, the Company or any other Subsidiary of the Company that is not
a Subsidiary of the Subsidiary to be so designated; provided that:

          (1)     the Company certifies to the Trustee in an Officers'
     Certificate that such designation complies with Section 4.03; and

          (2)     each Subsidiary to be so designated and each of its
     Subsidiaries has not at the time of designation, and does not thereafter,
     create, incur, issue, assume, guarantee or otherwise become directly or
     indirectly liable with respect to any Indebtedness pursuant to which the
     lender of such Indebtedness has recourse to any of the assets of the
     Company or any of its Restricted Subsidiaries.

          The Board of Directors may designate any Unrestricted Subsidiary to be
a Restricted Subsidiary only if:

          (1)     immediately after giving effect to such designation, the
     Company is able to incur at least $1.00 of additional Indebtedness (other
     than Permitted Indebtedness) in compliance with Section 4.04; and

          (2)     immediately before and immediately after giving effect to such
     designation, no Default or Event of Default shall have occurred and be
     continuing. Any such designation by the Board of Directors shall be
     evidenced to the Trustee by promptly filing with the Trustee a copy of the
     Board Resolution giving effect to such designation and an Officers'
     Certificate certifying that such designation complied with the foregoing
     provisions.

          "U.S. Government Obligations" means direct obligations of, and
obligations guaranteed by, the United States of America for the payment of which
the full faith and credit of the United States of America is pledged and which
are not callable or redeemable at the issuer's option.

                                      -40-

<PAGE>

          "U.S. Legal Tender" means such coin or currency of the United States
of America as at the time of payment shall be legal tender for the payment of
public and private debts.

          "Weighted Average Life to Maturity" means, when applied to any
Indebtedness at any date, the number of years obtained by dividing (a) the then
outstanding aggregate principal amount of such Indebtedness into (b) the sum of
the total of the products obtained by multiplying (i) the amount of each then
remaining installment, sinking fund, serial maturity or other required payment
of principal, including payment at final maturity, in respect thereof, by (ii)
the number of years (calculated to the nearest one-twelfth) which will elapse
between such date and the making of such payment.

          "Wholly Owned Restricted Subsidiary" of any Person means any Wholly
Owned Subsidiary of such Person which at the time of determination is a
Restricted Subsidiary of such Person.

          "Wholly Owned Subsidiary" means any Restricted Subsidiary of the
Company all the outstanding voting securities of which (other than directors'
qualifying shares or an immaterial amount of shares required to be owned by
other Persons pursuant to applicable law) are owned, directly or indirectly, by
the Company.

SECTION 1.02.     Incorporation by Reference of TIA.

          Whenever this Indenture refers to a provision of the TIA, such
provision is incorporated by reference in, and made a part of, this Indenture.
The following TIA terms used in this Indenture have the following meanings:

          "indenture securities" means the Securities.

          "indenture security holder" means a Holder or a Securityholder.

          "indenture to be qualified" means this Indenture.

          "indenture trustee" or "institutional trustee" means the Trustee.

          "obligor" on the indenture securities means the Company, any Guarantor
or any other obligor on the Securities.

                                      -41-

<PAGE>

          All other TIA terms used in this Indenture that are defined by the
TIA, defined by TIA reference to another statute or defined by Commission rule
and not otherwise defined herein have the meanings assigned to them therein.

SECTION 1.03.     Rules of Construction.

          Unless the context otherwise requires:

          (1)     a term has the meaning assigned to it;

          (2)     an accounting term not otherwise defined has the meaning
     assigned to it in accordance with GAAP;

          (3)     "or" is not exclusive;

          (4)     words in the singular include the plural, and words in the
     plural include the singular;

          (5)     provisions apply to successive events and transactions;

          (6)     "herein," "hereof" and other words of similar import refer to
     this Indenture as a whole and not to any particular Article, Section or
     other subdivision; and

          (7)     any reference to a Section or Article refers to such Section
     or Article of this Indenture.

                                   ARTICLE TWO

                                 THE SECURITIES

SECTION 2.01.     Form and Dating.

          The Securities and the Trustee's certificate of authentication shall
be substantially in the form of Exhibit A hereto and the Exchange Notes and the
Trustee's certificate of authentication shall be substantially in the form of
Exhibit B. The Securities may have notations, legends or endorsements required
by law, stock exchange rule or usage. The Company shall approve the form of the
Securities and any notation, legend or endorsement on them. Each Security shall
be dated the date of its issuance and show the date of its authentication.

                                      -42-

<PAGE>

          The terms and provisions contained in the Securities shall constitute,
and are hereby expressly made, a part of this Indenture and, to the extent
applicable, the Company and the Trustee, by their execution and delivery of this
Indenture, expressly agree to such terms and provisions and to be bound thereby.

          Securities offered and sold in reliance on Rule 144A shall be issued
initially in the form of one or more permanent Global Securities in registered
form, substantially in the form set forth in Exhibit A, deposited with the
Trustee, as custodian for the Depository, duly executed by the Company and
authenticated by the Trustee as hereinafter provided, and shall bear the legends
set forth in Section 2.14 (the "Rule 144A Global Security"). Securities offered
and sold in reliance on Regulation S shall be issued initially in the form of
one or more Global Securities in registered form, substantially in the form set
forth in Exhibit A, deposited with the Trustee, as custodian for the Depository,
duly executed by the Company and authenticated by the Trustee as hereinafter
provided, and shall bear the legends set forth in Exhibit C (the "Regulation S
Global Security"). The aggregate principal amount of the Global Securities may
from time to time be increased or decreased by adjustments made on the records
of the Trustee, as custodian for the Depository, as hereinafter provided.

          Through and including the 40th day after the Issue Date (the
"Restricted Period"), beneficial interests in the Regulation S Global Security
may be held only through Euroclear and Cedel (as indirect participants in The
Depository Trust Company), unless transferred to a Person that takes delivery
through a Rule 144A Global Security in accordance with Section 2.16.

          Securities issued in exchange for interests in the Global Securities
pursuant to Section 2.16 may be issued in the form of permanent certificated
Securities in registered form (the "Physical Securities") and shall bear the
Private Placement Legend. Notwithstanding the foregoing, all Securities offered
and sold in reliance on Regulation S shall remain in the form of a Global
Security until the consummation of the Exchange Offer pursuant to the
Registration Rights Agreement.

SECTION 2.02.     Execution and Authentication.

          Two Officers, or an Officer and an Assistant Secretary, shall sign, or
one Officer shall sign and one Officer or

                                      -43-

<PAGE>

an Assistant Secretary (each of whom shall, in each case, have been duly
authorized by all requisite corporate actions) shall witness, the Securities for
the Company by manual or facsimile signature.

          If an Officer whose signature is on a Security was an Officer at the
time of such execution but no longer holds that office at the time the Trustee
authenticates the Security, the Security shall nevertheless be valid.

          A Security shall not be valid until an authorized signatory of the
Trustee manually signs the certificate of authentication on the Security. The
signature shall be conclusive evidence that the Security has been authenticated
under this Indenture.

          The Trustee shall authenticate Securities for original issue (i) on
the initial Issue Date in the aggregate principal amount of $200,000,000 and
(ii) after the initial Issue Date in an unlimited amount, in each case upon a
written order of the Company and an Officers' Certificate and an opinion of
Counsel, each pursuant to Sections 13.04 and 13.05. Each such written order
shall specify the amount of Securities to be authenticated and the date on which
the Securities are to be authenticated. There shall be no limit on the aggregate
principal amount of Securities that may be outstanding at any time.

          The Trustee may appoint an authenticating agent reasonably acceptable
to the Company to authenticate Securities. Unless otherwise provided in the
appointment, an authenticating agent may authenticate Securities whenever the
Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by such agent. An authenticating agent has the
same rights as an Agent to deal with the Company and Affiliates of the Company.

          The Securities shall be issuable only in registered form without
coupons in denominations of $1,000 and integral multiples thereof.

SECTION 2.03.     Registrar and Paying Agent.

          The Company shall maintain an office or agency in the Borough of
Manhattan, The City of New York, where (a) Securities may be presented or
surrendered for registration of transfer or for exchange ("Registrar"), (b)
Securities may be presented or surrendered for payment ("Paying Agent") and

                                      -44-

<PAGE>

(c) notices and demands to or upon the Company in respect of the Securities and
this Indenture may be served. The Company may also from time to time designate
one or more other offices or agencies where the Securities may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency
in the Borough of Manhattan, The City of New York, for such purposes. The
Company may act as its own Registrar or Paying Agent. The Registrar shall keep a
register of the Securities and of their transfer and exchange. The Company, upon
notice to the Trustee, may have one or more co-Registrars and one or more
additional paying agents reasonably acceptable to the Trustee. The term "Paying
Agent" includes any additional paying agent. The Company initially appoints the
Trustee as Registrar and Paying Agent until such time as the Trustee has
resigned or a successor has been appointed.

          The Company shall enter into an appropriate agency agreement with any
Agent not a party to this Indenture, which agreement shall implement the
provisions of this Indenture that relate to such Agent. The Company shall notify
the Trustee, in advance, of the name and address of any such Agent. If the
Company fails to maintain a Registrar or Paying Agent, the Trustee shall act as
such.

SECTION 2.04.     Paying Agent To Hold Assets in Trust.

          The Company shall require each Paying Agent other than the Trustee to
agree in writing that, subject to Article Four and Article Twelve, each Paying
Agent shall hold in trust for the benefit of Holders or the Trustee all assets
held by the Paying Agent for the payment of principal of, or interest on, the
Securities (whether such assets have been distributed to it by the Company or
any other obligor on the Securities), and shall notify the Trustee of any
Default by the Company (or any other obligor on the Securities) in making any
such payment. If the Company or a Subsidiary acts as Paying Agent, it shall
segregate such assets and hold them as a separate trust fund. The Company at any
time may require a Paying Agent to distribute all assets held by it to the
Trustee and account for any assets disbursed and the Trustee may at any time
during the continuance of any Payment Default, upon written request to a Paying
Agent, require such Paying Agent to distribute all assets held by it to the
Trustee and to account for any assets distributed. Upon distribution to the
Trustee of all assets

                                      -45-

<PAGE>

that shall have been delivered by the Company to the Paying Agent, the Paying
Agent shall have no further liability for such assets.

SECTION 2.05.     Holder Lists.

          The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Holders. If the Trustee is not the Registrar, the Company shall furnish to the
Trustee on or before each Interest Payment Date, and at such other times as the
Trustee may request in writing within 30 days after the receipt by the Company
of such request, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of Holders, which list may be
conclusively relied upon by the Trustee.

SECTION 2.06.     Transfer and Exchange.

          Subject to Sections 2.16 and 2.17, when Securities are presented to
the Registrar or a co-Registrar with a request to register the transfer of such
Securities or to exchange such Securities for an equal principal amount of
Securities of other authorized denominations, the Registrar or co-Registrar
shall register the transfer or make the exchange as requested if its
requirements for such transaction are met; provided, however, that the
Securities surrendered for registration of transfer or exchange shall be duly
endorsed or accompanied by a written instrument of transfer in form satisfactory
to the Company and the Registrar or co-Registrar, duly executed by the Holder
thereof or his attorney duly authorized in writing. To permit registrations of
transfers and exchanges, the Company shall execute and the Trustee shall
authenticate Securities at the Registrar's or co-Registrar's request. No service
charge shall be made for any registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any transfer tax or
similar governmental charge payable in connection therewith. The Registrar or
co-Registrar shall not be required to register the transfer of or exchange of
any Security, and the Company shall not be required to issue any Security, (i)
during a period beginning at the opening of business 15 days before the mailing
of a notice of redemption of Securities and ending at the close of business on
the day of such mailing, (ii) selected for redemption in whole or in part
pursuant to Article Three, except the unredeemed portion of any Security being
redeemed in part, and (iii) during a Change of Control Offer or a Net Proceeds
Offer if such Security is tendered pursuant

                                      -46-

<PAGE>

to such Change of Control Offer or Net Proceeds Offer and not withdrawn.

          Any Holder of a beneficial interest in a Global Security shall, by
acceptance of such beneficial interest, agree that transfers of beneficial
interests in such Global Securities may be effected only through a book entry
system maintained by the Holder of such Global Security (or its agent), and that
ownership of a beneficial interest in the Security shall be required to be
reflected in a book entry system.

SECTION 2.07.     Replacement Securities.

          If a mutilated Security is surrendered to the Trustee or if the Holder
of a Security claims that the Security has been lost, destroyed or wrongfully
taken, the Company shall issue and the Trustee shall authenticate a replacement
Security if the Trustee's requirements are met. If required by the Trustee or
the Company, such Holder must provide an indemnity bond or other indemnity,
sufficient in the judgment of both the Company and the Trustee, to protect the
Company, the Trustee or any Agent from any loss which any of them may suffer if
a Security is replaced. The Company may charge such Holder for its and the
Trustee's reasonable out-of-pocket expenses in replacing a Security pursuant to
this Section 2.07, including reasonable fees and expenses of counsel.

          In case any such mutilated, destroyed, lost or wrongfully taken
Security has become or is about to become due and payable, the Company in its
discretion may, instead of issuing a new Security, pay such Security. The
provisions of this Section 2.07 are exclusive and shall preclude (to the extent
lawful) all other rights and remedies of any Holder with respect to the
replacement or payment of mutilated, destroyed, lost or wrongfully taken
Securities.

          Every replacement Security is an additional obligation of the Company.

SECTION 2.08.     Outstanding Securities.

          Securities outstanding at any time are all the Securities that have
been authenticated by the Trustee except those cancelled by it, those delivered
to it for cancellation and those described in this Section as not outstanding. A
Security does not cease to be outstanding because the Company or any one

                                      -47-

<PAGE>

of its Affiliates holds the Security (subject to the provisions of Section
2.09).

          If a Security is replaced pursuant to Section 2.07 (other than a
mutilated Security surrendered for replacement), it ceases to be outstanding
unless the Trustee receives proof satisfactory to it that the replaced Security
is held by a protected purchaser. A mutilated Security ceases to be outstanding
upon surrender of such Security and replacement thereof pursuant to Section
2.07. If the principal amount of any Security is considered paid under Section
4.01, it ceases to be outstanding and interest ceases to accrue.

          If on a Redemption Date or the Maturity Date the Paying Agent (other
than the Company or a Subsidiary) holds in trust for the express purpose of
paying principal or interest on particular Securities U.S. Legal Tender or U.S.
Government Obligations sufficient to pay all of the principal and interest due
on such Securities payable on that date, then on and after that date such
Securities cease to be outstanding and interest on them ceases to accrue.

SECTION 2.09.     Treasury Securities.

          In determining whether the Holders of the required principal amount of
Securities have concurred in any direction, waiver or consent, Securities owned
by the Company, any of its Subsidiaries or any of their respective Affiliates
shall be disregarded, except that, for the purposes of determining whether the
Trustee shall be protected in relying on any such direction, waiver or consent,
only Securities that a Responsible Officer of the Trustee actually knows are so
owned shall be disregarded. Notwithstanding the foregoing, Securities so owned
that have been pledged in good faith shall not be so disregarded if the pledgee
establishes to the reasonable satisfaction of the Trustee the pledgee's right to
act with respect to such Securities and that the pledgee is not the Company, a
Subsidiary of the Company or an Affiliate of the Company or any of its
Subsidiaries.

SECTION 2.10.     Temporary Securities.

          Until definitive Securities are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Securities. Temporary
Securities shall be substantially in the form of definitive Securities but may
have variations that the Company considers appropriate for temporary Securities.

                                      -48-

<PAGE>

Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate definitive Securities in exchange for temporary Securities. Until
such exchange, temporary Securities shall be entitled to the same rights,
benefits and privileges as definitive Securities. Notwithstanding the foregoing,
so long as the Securities are represented by a Global Security, such Global
Security may be in typewritten form.

SECTION 2.11.     Cancellation.

          The Company at any time may deliver Securities to the Trustee for
cancellation, including any Securities that the Company may have acquired in any
manner whatsoever. The Registrar and the Paying Agent shall forward to the
Trustee any Securities surrendered to them for registration of transfer,
exchange or payment. The Trustee, or at the direction of the Trustee, the
Registrar or the Paying Agent (other than the Company or a Subsidiary), and no
one else, shall cancel and, unless otherwise requested by the written direction
of the Company, shall dispose of all Securities surrendered for registration of
transfer, exchange, payment or cancellation in accordance with its customary
procedures then in effect. Subject to Section 2.07, the Company may not issue
new Securities to replace Securities that it has paid or delivered to the
Trustee for cancellation. If the Company shall acquire any of the Securities,
such acquisition shall not operate as a redemption or satisfaction of the
Indebtedness represented by such Securities unless and until the same are
surrendered to the Trustee for cancellation pursuant to this Section 2.11.

SECTION 2.12.     Defaulted Interest.

          If the Company defaults in a payment of interest on the Securities, it
shall, unless the Trustee fixes another record date pursuant to Section 6.10,
pay the defaulted interest, plus (to the extent lawful) any interest payable on
the defaulted interest, in any lawful manner. The Company may pay the defaulted
interest to the Persons who are Holders on a subsequent special record date,
which date shall be the fifteenth day next preceding the date fixed by the
Company for the payment of defaulted interest or the next succeeding Business
Day if such date is not a Business Day. At least 15 days before any such
subsequent special record date, the Company shall mail to each Holder, with a
copy to the Trustee, a notice that states the subsequent special record date,
the payment date and

                                      -49-

<PAGE>

the amount of defaulted interest, and interest payable on such defaulted
interest, if any, to be paid.

SECTION 2.13.     CUSIP Number.

          The Company in issuing the Securities may use a "CUSIP" number or
other similar number, and if so, the Trustee shall use the CUSIP number or other
similar number in notices of redemption or exchange as a convenience to Holders;
provided, however, that any such notice may state that no representation is made
as to the correctness or accuracy of the CUSIP number or other similar number
printed in the notice or on the Securities, and that reliance may be placed only
on the other identification numbers printed on the Securities. The Company shall
promptly notify the Trustee of any change in the CUSIP number or other similar
number.

SECTION 2.14.     Restrictive Legends.

          Each Global Security and Physical Security that constitutes a
Restricted Security or is sold in compliance with Regulation S shall bear the
Private Placement Legends on the face thereof until after the second anniversary
of the later of the Issue Date and the last date on which the Company or any
Affiliate of the Company was the owner of such Security (or any predecessor
security) (or such shorter period of time as permitted by Rule 144(k) under the
Securities Act or any successor provision thereunder) (or such longer period of
time as may be required under the Securities Act or applicable state securities
laws in the opinion of counsel for the Company, unless otherwise agreed by the
Company and the Holder thereof).

SECTION 2.15.     Deposit of Moneys.

          Prior to 11:00 A.M. New York City time on each Interest Payment Date,
Maturity Date, Redemption Date, Change of Control Payment Date and Net Proceeds
Offer Payment Date, the Company shall have deposited with the Paying Agent in
immediately available funds money sufficient to make cash payments, if any, due
on such Interest Payment Date, Maturity Date, Redemption Date, Change of Control
Payment Date or Net Proceeds Offer Payment Date, as the case may be, in a timely
manner which permits the Paying Agent to remit payment to the Holders on such
Interest Payment Date, Maturity Date, Redemption Date, Change of Control Payment
Date or Net Proceeds Offer Payment Date, as the case may be.

                                      -50-

<PAGE>

SECTION 2.16.     Book-Entry Provisions for Global Securities.

          (a)     The Global Securities initially shall (i) be registered in the
name of the Depository or the nominee of such Depository, (ii) be delivered to
the Trustee as custodian for such Depository and (iii) bear legends as set forth
in Exhibit C. Neither the Company nor any agent of the Company shall have any
responsibility or liability for any aspect of the records relating to or
payments made on account of beneficial ownership interests of a Global Security,
or for maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.

          Members of, or participants in, the Depository ("Participants") shall
have no rights under this Indenture with respect to any Global Security held on
their behalf by the Depository, or the Trustee as its custodian, or under the
Global Security, and the Depository may be treated by the Company, the Trustee
and any agent of the Company or the Trustee as the absolute owner of the Global
Security for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall prevent the Company, the Trustee or any agent of the Company or the
Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depository or impair, as between the Depository
and Participants, the operation of customary practices governing the exercise of
the rights of a Holder of any Security.

          (b)     Transfers of Global Securities shall be limited to transfers
in whole, but not in part, to the Depository, its successors or their respective
nominees. Interests of beneficial owners in the Global Securities may be
transferred or exchanged for Physical Securities in accordance with the rules
and procedures of the Depository and the provisions of Section 2.17. In
addition, Physical Securities shall be transferred to all beneficial owners in
exchange for their beneficial interests in Global Securities if (i) the
Depository notifies the Company that it is unwilling or unable to continue as
Depository for any Global Security and a successor Depository is not appointed
by the Company within 90 days of such notice, (ii) the Company, at its option,
notifies the Trustee in writing that it elects to cause the issuance of Physical
Securities under this Indenture or (iii) an Event of Default has occurred and is
continuing and the Registrar has received a written request from the Depository
or the Trustee to issue Physical Securities.

                                      -51-

<PAGE>

          (c)     In connection with any registration of transfer or exchange of
a portion of the beneficial interest in a Global Security to beneficial owners
pursuant to paragraph (b), the Registrar shall (if one or more Physical
Securities are to be issued) reflect on its books and records the date and a
decrease in the principal amount of such Global Security in an amount equal to
the principal amount of the beneficial interest in the Global Security to be
transferred, and the Company shall execute, and the Trustee shall authenticate
and deliver, one or more Physical Securities of authorized denominations in an
aggregate principal amount equal to the principal amount of the beneficial
interest in the Global Security so transferred.

          (d)     In connection with the transfer of a Global Security as an
entirety to beneficial owners pursuant to paragraph (b) of this Section 2.16,
such Global Security shall be deemed to be surrendered to the Trustee for
cancellation, and the Company shall execute and the Trustee shall upon written
instructions from the Company authenticate and deliver, to each beneficial owner
identified by the Depository in exchange for its beneficial interest in such
Global Security, an equal aggregate principal amount of Physical Securities of
authorized denominations.

          (e)     Any Physical Security constituting a Restricted Security
delivered in exchange for an interest in a Global Security pursuant to paragraph
(b) or (c) of this Section 2.16 shall, except as otherwise provided by Section
2.17(d), bear the Private Placement Legend.

          (f)     The Holder of any Global Security may grant proxies and
otherwise authorize any Person, including Participants and Persons that may hold
interests through Participants, to take any action which a Holder is entitled to
take under this Indenture or the Securities.

          The Company or any other obligor upon the Securities or the Trustee,
in the discretion of any of them, may treat as the instrument or writing of a
Holder any instrument or writing of any Person that is identified by the
Depository as the owner of a beneficial interest in the Global Security.

SECTION 2.17.     Special Transfer Provisions.

          (a)     Transfers to Non-QIB Institutional Accredited Investors and
Non-U.S. Persons. The following additional provisions shall apply with respect
to the registration of any

                                      -52-

<PAGE>

proposed transfer of a Restricted Security to any Institutional Accredited
Investor which is not a QIB or to any Non-U.S. Person:

          (i)     the Registrar shall register the transfer of any Restricted
     Security, whether or not such Security bears the Private Placement Legend,
     if (x) the requested transfer is after the second anniversary of the Issue
     Date and, unless otherwise agreed to by the Company and the Registrar, the
     proposed transferee has delivered to the Registrar a legal opinion and
     certifications satisfactory to the Company and the Registrar; provided,
     however, that neither the Company nor any Affiliate of the Company has held
     any beneficial interest in such Security, or portion thereof, at any time
     on or prior to the second anniversary of the Issue Date or (y) (1) in the
     case of a transfer to an Institutional Accredited Investor which is not a
     QIB (excluding Non-U.S. Persons), the proposed transferee has delivered to
     the Registrar a certificate substantially in the form of Exhibit D hereto
     and any legal opinions and certifications required thereby and (2) in the
     case of a transfer to a Non-U.S. Person, the proposed transferor has
     delivered to the Registrar a certificate substantially in the form of
     Exhibit E hereto;

          (ii)    if the proposed transferee is a Participant and the Securities
     to be transferred consist of Physical Securities which after transfer are
     to be evidenced by an interest in the IAI Global Security or Regulation S
     Global Security, as the case may be, upon receipt by the Registrar of (x)
     written instructions given in accordance with the Depository's and the
     Registrar's procedures and (y) the appropriate certificate, if any,
     required by clause (y) of paragraph (i) above, the Registrar shall register
     the transfer and reflect on its books and records the date and an increase
     in the principal amount of the IAI Global Security or Regulation S Global
     Security, as the case may be, in an amount equal to the principal amount of
     Physical Securities to be transferred, and the Registrar shall cancel the
     Physical Securities so transferred; and

          (iii)   if the proposed transferor is a Participant seeking to
     transfer an interest in a Global Security, upon receipt by the Registrar of
     (x) written instructions given in accordance with the Depository's and the
     Registrar's procedures and (y) the appropriate certificate, if any,
     required by clause (y) of paragraph (i) above, the Registrar

                                      -53-

<PAGE>

     shall register the transfer and reflect on its books and records the date
     and (A) a decrease in the principal amount of the Global Security from
     which such interests are to be transferred in an amount equal to the
     principal amount of the Securities to be transferred and (B) an increase in
     the principal amount of the IAI Global Security or the Regulation S Global
     Security, as the case may be, in an amount equal to the principal amount of
     the Securities to be transferred.

          (b)     Transfers to QIBs. The following provisions shall apply with
respect to the registration of any proposed transfer of a Restricted Security to
a QIB:

          (i)     the Registrar shall register the transfer of any Restricted
     Security, whether or not such Security bears the Private Placement Legend,
     if (x) the requested transfer is after the second anniversary of the Issue
     Date; provided, however, that neither the Company nor any Affiliate of the
     Company has held any beneficial interest in such Security, or portion
     thereof, at any time on or prior to the second anniversary of the Issue
     Date or (y) such transfer is being made by a proposed transferor who has
     checked the box provided for on the form of Security stating, or has
     otherwise certified to the Company and the Registrar in writing, that the
     sale has been made in compliance with the provisions of Rule 144A to a
     transferee who has signed the certification provided for on the form of
     Security stating, or has otherwise certified to the Company and the
     Registrar in writing, that it is purchasing the Security for its own
     account or an account with respect to which it exercises sole investment
     discretion and that it and any such account is a QIB within the meaning of
     Rule 144A, and is aware that the sale to it is being made in reliance on
     Rule 144A and acknowledges that it has received such information regarding
     the Company as it has requested pursuant to Rule 144A or has determined not
     to request such information and that it is aware that the transferor is
     relying upon its foregoing representations in order to claim the exemption
     from registration provided by Rule 144A;

          (ii)    if the proposed transferee is a Participant and the Securities
     to be transferred consist of Physical Securities which after transfer are
     to be evidenced by an interest in the Rule 144A Global Security, upon
     receipt by the Registrar of written instructions given in accordance

                                      -54-

<PAGE>

     with the Depository's and the Registrar's procedures, the Registrar shall
     register the transfer and reflect on its book and records the date and an
     increase in the principal amount of the Rule 144A Global Security in an
     amount equal to the principal amount of Physical Securities to be
     transferred, and the Registrar shall cancel the Physical Securities so
     transferred; and

          (iii)   if the proposed transferor is a Participant seeking to
     transfer an interest in the IAI Global Security or the Regulation S Global
     Security, upon receipt by the Registrar of written instructions given in
     accordance with the Depository's and the Registrar's procedures, the
     Registrar shall register the transfer and reflect on its books and records
     the date and (A) a decrease in the principal amount of the IAI Global
     Security or the Regulation S Global Security, as the case may be, in an
     amount equal to the principal amount of the Securities to be transferred
     and (B) an increase in the principal amount of the 144A Global Security in
     an amount equal to the principal amount of the Securities to be
     transferred.

          (c)     Restrictions on Transfer and Exchange of Global Securities.
Notwithstanding any other provisions of this Indenture, a Global Security may
not be transferred as a whole except by the Depository to a nominee of the
Depository or by a nominee of the Depository to the Depository or another
nominee of the Depository or by the Depository or any such nominee to a
successor Depository or a nominee of such successor Depository.

          (d)     Private Placement Legend. Upon the registration of transfer,
exchange or replacement of Securities not bearing the Private Placement Legend,
the Registrar or co-Registrar shall deliver Securities that do not bear the
Private Placement Legend. Upon the registration of transfer, exchange or
replacement of Securities bearing the Private Placement Legend, the Registrar or
co-Registrar shall deliver only Securities that bear the Private Placement
Legend unless (i) there is delivered to the Trustee an Opinion of Counsel
reasonably satisfactory to the Company and the Trustee to the effect that
neither such legend nor the related restrictions on transfer are required in
order to maintain compliance with the provisions of the Securities Act or (ii)
such Security has been sold pursuant to an effective registration statement
under the Securities Act.

                                      -55-

<PAGE>

          (e)     General. By its acceptance of any Security bearing the Private
Placement Legend, each Holder of such a Security acknowledges the restrictions
on transfer of such Security set forth in this Indenture and in the Private
Placement Legend and agrees that it will transfer such Security only as provided
in this Indenture.

          The Registrar shall retain in accordance with its customary procedure
copies of all letters, notices and other written communications received
pursuant to Section 2.16 or this Section 2.17. The Company shall have the right
to inspect and make copies of all such letters, notices or other written
communications at any reasonable time upon the giving of reasonable written
notice to the Registrar.

          Neither the Company, the Trustee nor any agent of the Company or the
Trustee shall have any responsibility or liability for any aspect of the records
relating to or payments made on account of beneficial ownership interests of a
Global Security, or for maintaining, supervising or reviewing any records
relating to such beneficial ownership interests.

          To the fullest extent permitted by law, the Trustee shall have no
obligation or duty to monitor, determine or inquire as to compliance with any
restrictions on transfer imposed under this Indenture or under applicable law
with respect to any transfer of any interest in any Security (including any
transfers between or among Participants or beneficial owners of interests in any
Global Security) other than to require delivery of such certificates and other
documentation or evidence as is expressly required by, and to do so if and when
expressly required by the terms of, this Indenture, and to examine the same to
determine substantial compliance as to form with the express requirements
hereof.

                                  ARTICLE THREE

                                   REDEMPTION

SECTION 3.01.     Notices to Trustee.

          If the Company elects to redeem Securities pursuant to paragraph 6 or
paragraph 7 of the Securities or if the Company is required to redeem Securities
pursuant to paragraph 8 of the Securities (other than Exchange Securities), it
shall notify the Trustee in writing of the Redemption Date, the Redemption

                                      -56-

<PAGE>

Price and the principal amount of Securities to be redeemed. If the Company is
required to redeem the Securities pursuant to paragraph 8 of the Securities
(other than Exchange Securities) the Company shall also so notify the Escrow
Agent concurrently with its notification to the Trustee. The Company shall give
notice of redemption pursuant to paragraphs 6 or 7 of the Securities to the
Paying Agent and Trustee at least 30 days but not more than 60 days before the
Redemption Date (unless a shorter notice shall be agreed to by the Trustee in
writing), together with an Officers' Certificate stating that such redemption
will comply with the conditions contained herein. In the case of a redemption
pursuant to paragraph 8 of the Securities (other than the Exchange Securities),
the Company shall give notices to the Trustee and the Escrow Agent provided for
in this Section promptly after the occurrence of the event triggering the
requirement to redeem the Securities.

SECTION 3.02.     Selection of Securities To Be Redeemed.

          In the event that less than all of the Securities are to be redeemed
at any time, selection of such Securities for redemption will be made by the
Trustee in compliance with the requirements of the principal national securities
exchange, if any, on which such Securities are listed or, if such Securities are
not then listed on a national securities exchange, on a pro rata basis, by lot
or by such method as the Trustee shall deem fair and appropriate; provided,
however, that no Securities of a principal amount of $1,000 or less shall be
redeemed in part; and provided, further, that if a partial redemption is made
with the net cash proceeds of an Equity Offering, selection of the Securities or
portions thereof for redemption shall be made by the Trustee only on a pro rata
basis or on as nearly a pro rata basis as is practicable (subject to the
procedures of the Depository), unless such method is otherwise prohibited.

SECTION 3.03.     Notice of Redemption.

          In the case of a redemption pursuant to paragraph 6 or paragraph 7 of
the Securities, at least 30 days but not more than 60 days before a Redemption
Date, the Company shall mail a notice of redemption by first class mail, postage
prepaid, to each Holder whose Securities are to be redeemed at its registered
address. In the case of a redemption pursuant to paragraph 8 of the Securities
(other than the Exchange Securities), the Company shall mail a notice of
redemption by first class mail, postage prepaid, to each Holder of Securities at
its registered address on the date it delivers the notice to the Trustee

                                      -57-

<PAGE>

pursuant to Section 3.01. At the Company's request, the Trustee shall give the
notice of redemption in the Company's name and at the Company's expense. Each
notice for redemption shall identify the Securities to be redeemed and shall
state:

          (1)     the Redemption Date;

          (2)     the Redemption Price and the amount of accrued interest, if
     any, to be paid;

          (3)     the name and address of the Paying Agent;

          (4)     that Securities called for redemption must be surrendered to
     the Paying Agent to collect the Redemption Price plus accrued interest, if
     any;

          (5)     that, unless the Company defaults in making the redemption
     payment, interest on Securities called for redemption ceases to accrue on
     and after the Redemption Date, and the only remaining right of the Holders
     of such Securities is to receive payment of the Redemption Price upon
     surrender to the Paying Agent of the Securities redeemed;

          (6)     if any Security is being redeemed in part, the portion of the
     principal amount of such Security to be redeemed and that, after the
     Redemption Date, and upon surrender of such Security, a new Security or
     Securities in aggregate principal amount equal to the unredeemed portion
     thereof will be issued;

          (7)     if fewer than all the Securities are to be redeemed, the
     identification of the particular Securities (or portion thereof) to be
     redeemed, as well as the aggregate principal amount of Securities to be
     redeemed and the aggregate principal amount of Securities to be outstanding
     after such partial redemption; and

          (8)     the paragraph of the Securities pursuant to which the
     Securities are to be redeemed.

          The notice, if mailed in a manner herein provided, shall be
conclusively presumed to have been given, whether or not the Holder receives
such notice. In any case, failure to give such notice by mail or any defect in
the notice to the Holder of any Security designated for redemption in whole or
in part shall not affect the validity of the proceedings for the redemption of
any other Security.

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<PAGE>

SECTION 3.04.     Effect of Notice of Redemption.

          Once notice of redemption is mailed in accordance with Section 3.03,
Securities called for redemption become due and payable on the Redemption Date
and at the Redemption Price plus accrued interest, if any. Upon surrender to the
Trustee or Paying Agent, such Securities called for redemption shall be paid at
the Redemption Price (plus accrued interest thereon to the Redemption Date), but
installments of interest, the maturity of which is on or prior to the Redemption
Date, shall be payable to Holders of record at the close of business on the
relevant Record Dates.

SECTION 3.05.     Deposit of Redemption Price.

          On or before 11:00 A.M. New York time on the Redemption Date, the
Company shall deposit with the Paying Agent U.S. Legal Tender sufficient to pay
the Redemption Price plus accrued interest, if any, of all Securities to be
redeemed on that date.

          If the Company complies with the preceding paragraph, then, unless the
Company defaults in the payment of such Redemption Price plus accrued interest,
if any, interest on the Securities to be redeemed will cease to accrue on and
after the applicable Redemption Date, whether or not such Securities are
presented for payment, and the only right of the Holders of such Securities (or
the redeemed portions thereof) will be to receive payment of the Redemption
Price of and any accrued and unpaid interest on such Securities (or the redeemed
portions thereof) to the Redemption Date.

SECTION 3.06.     Securities Redeemed in Part.

          Upon surrender of a Security that is to be redeemed in part only, the
Trustee shall upon written instruction from the Company authenticate for the
Holder a new Security or Securities in a principal amount equal to the
unredeemed portion of the Security surrendered.

                                      -59-

<PAGE>

                                  ARTICLE FOUR

                                    COVENANTS

SECTION 4.01.     Payment of Securities.

          The Company shall pay the principal of and interest on the Securities
in the manner provided in the Securities. An installment of principal of or
interest on the Securities shall be considered paid on the date it is due if the
Trustee or Paying Agent holds on that date U.S. Legal Tender designated for and
sufficient to pay the installment. Interest on the Securities will be computed
on the basis of a 360-day year comprised of twelve 30-day months.

SECTION 4.02.     Maintenance of Office or Agency.

          The Company shall maintain in the Borough of Manhattan, The City of
New York, the office or agency required under Section 2.03. The Company shall
give prompt written notice to the Trustee of the location, and any change in the
location, of such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee
with the address thereof, such presentations, surrenders, notices and demands
may be made or served at the address of the Trustee set forth in Section 13.02.

          The Company may also from time to time designate one or more other
offices or agencies where the Securities may be presented or surrendered for any
or all such purposes and may from time to time rescind such designations. The
Company will give prompt written notice to the Trustee of any such designation
or rescission and of any change in the location of any such other office or
agency.

          The Company hereby initially designates the Corporate Trust Office of
the Trustee located in the Borough of Manhattan, The City of New York, as such
office of the Company in accordance with Section 2.03.

SECTION 4.03.     Limitation on Restricted Payments.

          Prior to the Effective Date, the Company shall not make any Restricted
Payment or any Permitted Investment except in connection with the consummation
of the Transactions, the BWAY Assumption and the transactions contemplated
thereby, including any Investments deemed to exist by virtue of the Escrow

                                      -60-

<PAGE>

Agreement. The foregoing shall not prohibit the Company from paying a dividend
or otherwise distributing to the holders of its Capital Stock an amount equal to
the excess of the Escrowed Property over the Mandatory Redemption Price.

          From and after the Effective Date, the Company shall not, and shall
not cause or permit any of its Restricted Subsidiaries to, directly or
indirectly:

          (1)     declare or pay any dividend or make any distribution (other
     than dividends or distributions payable in Qualified Capital Stock) on or
     in respect of shares of Capital Stock of the Company to holders of such
     Capital Stock;

          (2)     purchase, redeem or otherwise acquire or retire for value any
     Capital Stock of the Company or any warrants, rights or options to purchase
     or acquire shares of any class of such Capital Stock, other than the
     exchange of such Capital Stock for Qualified Capital Stock;

          (3)     voluntarily defease, redeem, prepay, decrease or otherwise
     acquire or retire for value, prior to any scheduled final maturity,
     scheduled repayment or scheduled sinking fund payment, any Subordinated
     Obligations (other than a purchase, defeasance, redemption, prepayment,
     decrease or other acquisition or retirement for value in ancitipation of
     satisfying a sinking fund obligation, principal installment or final
     maturity, in each case due within one year of the date of such acquisition
     or retirement); or

          (4)     make any Investment (other than Permitted Investments) in any
     other Person

(each of the foregoing actions set forth in clauses (1), (2), (3) and (4) (other
than the exceptions thereto) being referred to as a "Restricted Payment"), if at
the time of such Restricted Payment or immediately after giving effect thereto:

          (i)     a Default or an Event of Default shall have occurred and be
     continuing; or

          (ii)    the Company is not able to incur at least $1.00 of additional
     Indebtedness (other than Permitted Indebtedness) in compliance with Section
     4.04; or

                                      -61-

<PAGE>

          (iii)   the aggregate amount of Restricted Payments made subsequent to
     the Effective Date shall exceed the sum of:

                  (w) 50% of the cumulative Consolidated Net Income (or if
          cumulative Consolidated Net Income shall be a loss, minus 100% of such
          loss) of the Company earned subsequent to the Effective Date and on or
          prior to the date the Restricted Payment occurs (the "Reference Date")
          (treating such period as a single accounting period); plus

                  (x) 100% of the aggregate net cash proceeds received by the
          Company from any Person (other than a Subsidiary of the Company) from
          the issuance and sale subsequent to the Effective Date and on or prior
          to the Reference Date of Qualified Capital Stock of the Company
          (including Capital Stock issued upon the conversion of convertible
          Indebtedness or in exchange for outstanding Indebtedness but excluding
          the aggregate net cash proceeds from the sale of Capital Stock of the
          Company to the extent used (A) to repurchase or acquire shares of
          Capital Stock of the Company pursuant to clause (2)(ii) of the next
          succeeding paragraph or (B) to repay Subordinated Obligations pursuant
          to clause (3)(ii)(a) of the next succeeding paragraph); plus

                  (y) without duplication of any amounts included in clause
          (iii)(x) above, 100% of the aggregate net cash proceeds of any equity
          contribution received by the Company (excluding any equity
          contribution to the extent used to repay Subordinated Obligations
          pursuant to clause (3)(iii) of the next succeeding paragraph); plus

                  (z) to the extent that any Investment (other than a Permitted
          Investment) that was made after the Effective Date is sold for cash or
          otherwise liquidated or repaid for cash, the net cash proceeds
          received with respect to such sale, liquidation or repayment of such
          Investment (less the cost of such sale, liquidation or repayment, if
          any).

Any net cash proceeds included in the foregoing clause (iii)(x) or (iii)(y)
shall not be included in clause (10)(a) or clause (10)(b) of the definition of
"Permitted Investments" to the extent

                                      -62-

<PAGE>

actually utilized to make a Restricted Payment under this paragraph.

          Notwithstanding the foregoing, the provisions set forth in the
immediately preceding paragraph do not prohibit:

          (1)     the payment of any dividend or the consummation of any
     irrevocable redemption within 60 days after the date of declaration of such
     dividend or notice of such redemption if the dividend or payment of the
     redemption price, as the case may be, would have been permitted on the date
     of declaration or notice;

          (2)     if no Event of Default shall have occurred and be continuing
     as a consequence thereof, the acquisition of any shares of Capital Stock of
     the Company, either (i) solely in exchange for shares of Qualified Capital
     Stock of the Company, or (ii) through the application of net proceeds of a
     substantially concurrent sale (other than to a Subsidiary of the Company)
     of shares of Qualified Capital Stock of the Company;

          (3)     if no Default or Event of Default shall have occurred and be
     continuing, the defeasance, redemption, prepayment, decrease or other
     acquisition or retirement for value of any Subordinated Obligations (i)
     solely in exchange for shares of Qualified Capital Stock of the Company,
     (ii) through the application of net proceeds of a substantially concurrent
     sale for cash (other than to a Subsidiary of the Company) of (a) shares of
     Qualified Capital Stock of the Company or (b) Indebtedness in compliance
     with Section 4.04, which Indebtedness shall not have a final maturity date
     at the time such Indebtedness is incurred that is before the earlier of (x)
     the final maturity date at such time of the Subordinated Obligations being
     purchased, defeased, redeemed, prepaid, decreased or acquired or retired
     for value or (y) the final maturity date of the Securities; provided that
     such Indebtedness shall be subordinated to the Securities or the Guarantee
     of the relevant Guarantor, as the case may be, at least to the same extent
     and in the same manner as the Subordinated Obligations being refinanced,
     (iii) from net cash proceeds of any equity contribution received by the
     Company, (iv) from Net Cash Proceeds to the extent permitted by Section
     4.13,(v) to the extent provided by the agreement governing such
     Subordinated Obligations, following the occurrence of a Change of Control
     (or, in the case of Acquired Indebtedness,

                                      -63-

<PAGE>

     any similar event), but only if in each case the Company shall have
     complied with Section 4.12 and, if required, purchased all Securities
     tendered pursuant to the offer to repurchase all the Securities required
     thereby, prior to purchasing or repaying such Subordinated Obligations, or
     (vi) to the extent such Subordinated Obligations constitute Acquired
     Indebtedness that was not incurred in connection with, or in anticipation
     or contemplation of, the acquisition giving rise to the incurrence of such
     Acquired Indebtedness; and

          (4)     loans, advances, dividends, distributions or other payments
     for the purpose of and in an amount equal to the amount required to permit
     Holding to redeem or repurchase shares of its Capital Stock or options in
     respect thereof, in each case in connection with the repurchase provisions
     under employee stock option or stock purchase agreements or other
     agreements to compensate management employees or payments in respect of any
     redemption, repurchase, acquisition, cancellation or other retirement for
     value of shares of Capital Stock of Holding or options, stock appreciation
     or similar securities, in each case held by then current or former
     officers, directors or employees of Holding or any of its Subsidiaries (or
     their estates or beneficiaries under their estates) or by an employee
     benefit plan, upon death, disability, retirement or termination of
     employment; provided that such redemptions, repurchases, acquisitions,
     cancellations or other retirements pursuant to this clause (4) shall not
     exceed $10.0 million in the aggregate after the Issue Date (which amount
     shall be increased by the amount of any cash proceeds to the Company from,
     or as a contribution to its capital from, (x) sales of Capital Stock to
     directors, officers or employees of Holding or any of its Subsidiaries
     subsequent to the Effective Date and (y) any "key-man" life insurance
     policies which are used to make such redemptions or repurchases);

          (5)     the payment of fees and compensation as permitted under clause
     (1), (14) or (15) of paragraph (c) of Section 4.09;

          (6)     so long as no Default or Event of Default shall have occurred
     and be continuing, loans, advances, dividends, distributions or other
     payments not to exceed $100,000 in the aggregate, to enable the Company or
     Holding to make payments to holders of its Capital Stock in

                                      -64-

<PAGE>

     lieu of issuance of fractional shares of its Capital Stock;

          (7)     repurchases of Capital Stock deemed to occur upon the exercise
     of stock options if such Capital Stock represents a portion of the exercise
     price thereof;

          (8)     Restricted Payments made pursuant to the Merger Agreement;

          (9)     the distribution of Capital Stock of an Unrestricted
     Subsidiary of the Company to holders of Capital Stock of the Company;

          (10)    Restricted Payments (including loans and advances) in an
     aggregate amount outstanding at any time not to exceed $10.0 million (net
     of repayments of any such loans or advances); and

          (11)    loans, advances, dividends or distributions to Holding or
     other payments by the Company or any of its Restricted Subsidiaries to pay
     or permit Holding to pay Holding Expenses and Holding Related Taxes.

          In determining the aggregate amount of Restricted Payments made
subsequent to the Effective Date in accordance with clause (iii) of the second
paragraph of this covenant:

          (1)     amounts expended (to the extent such expenditure is in the
     form of cash or other property other than Capital Stock of Holding or
     Qualified Capital Stock) pursuant to clause (1) shall be included in such
     calculation; and

          (2)     amounts expended pursuant to clauses (2) through (11) shall be
     excluded from such calculation.

SECTION 4.04.     Limitation on Incurrence of Additional Indebtedness.

          Prior to the Effective Date, the Company shall not incur any
Indebtedness except the following:

          (1)     the Securities in an aggregate principal amount not to exceed
     $200.0 million; and

          (2)     Indebtedness of the Company that is not secured by a Lien on
     any assets, property or Capital Stock owned by the Company or any of its
     Subsidiaries, the proceeds of

                                      -65-

<PAGE>

     which Indebtedness are used solely for deposit (or the purchase of
     marketable direct obligations issued by the United States Government to be
     deposited) with the Escrow Agent in an amount not to exceed the amount
     necessary, together with net proceeds to the Company of the issuance of the
     Securities, to enable the Company to make the Initial Deposit.

          From and after the Effective Date, the Company shall not, and shall
not permit any of its Restricted Subsidiaries to, directly or indirectly,
create, incur, assume, enter into any guarantee of, acquire, become liable,
contingently or otherwise, with respect to, or otherwise become responsible for
payment of (collectively, "incur") any Indebtedness (other than Permitted
Indebtedness); provided, however, that if no Default or Event of Default shall
have occurred and be continuing at the time or as a consequence of the
incurrence of any such Indebtedness, the Company or any Guarantor may incur
Indebtedness if on the date of the incurrence of such Indebtedness, after giving
effect to the incurrence thereof, the Consolidated Fixed Charge Coverage Ratio
of the Company is greater than 2.0 to 1.0.

SECTION 4.05.     Corporate Existence.

          Except as otherwise permitted by Article Four or Five, the Company
shall do or cause to be done all things necessary to preserve and keep in full
force and effect its corporate existence and the corporate, partnership or other
existence of each of its Restricted Subsidiaries in accordance with the
respective organizational documents of each such Restricted Subsidiary and the
rights (charter and statutory) and material franchises of the Company and each
of its Restricted Subsidiaries; provided, however, that the Company shall not be
required to preserve (i)any such right or franchise of the Company or any
Restricted Subsidiary or (ii) the corporate, partnership or other existence of
any Restricted Subsidiary if the maintenance and preservation thereof is in the
judgment of the Company no longer desirable in the conduct of the business of
the Company and its Restricted Subsidiaries, taken as a whole.

SECTION 4.06.     Compliance Certificate; Notice of Default.

          (a)     The Company shall deliver to the Trustee, within 120 days
after the close of each fiscal year (which on the date hereof is December 31) an
Officers' Certificate signed by its

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<PAGE>

principal executive officer, principal financial officer or principal accounting
officer (as such terms are defined in the TIA) stating that a review of the
activities of the Company has been made under the supervision of the signing
officers with a view to determining whether it has kept, observed, performed and
fulfilled its obligations under this Indenture and further stating, as to each
such Officer signing such certificate, that to the best of such Officer's
knowledge, the Company during such preceding fiscal year has kept, observed,
performed and fulfilled each and every such covenant and no Default or Event of
Default occurred during such year and at the date of such certificate there is
no Default or Event of Default that has occurred and is continuing or, if such
signers do know of such Default or Event of Default, the certificate shall
describe its status with particularity. The Officers' Certificate shall also
notify the Trustee should the Company elect to change the manner in which it
fixes its fiscal year end.

          (b)     The Company shall deliver to the Trustee, forthwith upon
becoming aware of any Default or Event of Default, an Officers' Certificate
specifying the Default or Event of Default and describing its status with
particularity.

SECTION 4.07.     Reports to Holders.

          From and after the Effective Date, whether or not required by the
rules and regulations of the Commission, so long as any Securities are
outstanding, the Company shall furnish the Holders of Securities:

          (1)     all quarterly and annual financial information that would be
     required to be contained in a filing with the Commission on Forms 10-Q and
     10-K if the Company were required to file such Forms; and

          (2)     all current reports that would be required to be filed with
     the Commission on Form 8-K if the Company were required to file such
     reports,

in each case within the time periods specified in the Commission's rules and
regulations.

          In addition, following the consummation of the exchange offer
contemplated by the Registration Rights Agreement, whether or not required by
the rules and regulations of the Commission, the Company shall file a copy of
all such information and reports with the Commission for public availability

                                      -67-

<PAGE>

within the time periods specified in the Commission's rules and regulations
(unless the Commission will not accept such a filing) and make such information
available to securities analysts and prospective investors upon request. In
addition, for a period of two years after the Issue Date, the Company shall
furnish to the Holders and to securities analysts and prospective investors,
upon their request, the information required to be delivered pursuant to Rule
144A(d)(4) under the Securities Act if at the time of such request the Company
is not subject to Section 13 or 15(d) of the Exchange Act. The Company will be
deemed to have satisfied such requirements if Holding files and provides
reports, documents and information of the types otherwise so required, in each
case within the applicable time periods, and the Company is not required to file
such reports, documents and information separately under the applicable rules
and regulations of the Commission (after giving effect to any exemptive relief)
because of the filings by Holding.

          The Company shall file with the Trustee within 15 days after it files
with the Commission copies of the annual reports and the information, documents
and other reports which the Company is required to file with the Commission
pursuant to this Section 4.07. The Company will also comply with the other
provisions of the TIA Section 3.14(a). Delivery of such reports, information and
documents to the Trustee is for information purposes only and the Trustee's
receipt of such shall not constitute notice or constructive notice of any
information contained therein, including the Company's compliance with any of
its covenants hereunder (as to which the Trustee is entitled to rely exclusively
on Officers' Certificates).

SECTION 4.08.     Waiver of Stay, Extension or Usury Laws.

          The Company covenants (to the extent that it may lawfully do so) that
it shall not at any time insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay or extension law or any usury law
or other law that would prohibit or forgive the Company from paying all or any
portion of the principal of and/or interest on the Securities as contemplated
herein, wherever enacted, now or at any time hereafter in force, or which may
affect the covenants or the performance of this Indenture, and (to the extent
that it may lawfully do so) the Company hereby expressly waives all benefit or
advantage of any such law, and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will suffer
and permit the

                                      -68-

<PAGE>

execution of every such power as though no such law had been enacted.

SECTION 4.09.     Limitations on Transactions with Affiliates.

          (a)     Prior to the Effective Date, the Company shall not enter into
or permit to exist any Affiliate Transactions other than in connection with the
consummation of the Transactions, the BWAY Assumption and the transactions
contemplated thereby.

          (b)     From and after the Effective Date, the Company shall not, and
shall not permit any of its Restricted Subsidiaries to, directly or indirectly,
enter into or permit to exist any transaction or series of related transactions
(including, without limitation, the purchase, sale, lease or exchange of any
property or the rendering of any service) with, or for the benefit of, any of
its Affiliates (an "Affiliate Transaction"), other than (x) Affiliate
Transactions permitted under paragraph (c) below and (y) Affiliate Transactions
entered into on terms that are fair and reasonable to, and in the best interests
of, the Company or such Restricted Subsidiary, as the case may be, as determined
in good faith by the Company's Board of Directors; provided, however, that for a
transaction or series of related transactions with an aggregate value of $5.0
million or more, at the Company's option, (i) such determination shall be made
in good faith by a majority of the disinterested members of the Board of the
Directors of the Company or (ii) the Board of Directors of the Company or any
such Restricted Subsidiary party to such Affiliate Transaction shall have
received a favorable opinion from a nationally recognized investment banking,
accounting or appraisal firm that such Affiliate Transaction is fair from a
financial point of view to the Company or such Restricted Subsidiary; provided,
further, that for a transaction or series of related transactions with an
aggregate value of $15.0 million or more, the Board of Directors of the Company
shall have received a favorable opinion from a nationally recognized investment
banking, accounting or appraisal firm that such Affiliate Transaction is fair
from a financial point of view to the Company or such Restricted Subsidiary.

          (c)     The foregoing restrictions shall not apply to:

          (1)     reasonable fees and compensation paid to, and indemnity
     provided on behalf of, officers, directors, employees or consultants of the
     Company or any Subsidiary of

                                      -69-

<PAGE>

          the Company as determined in good faith by the Company's Board of
          Directors;

          (2)     transactions exclusively between or among the Company and any
     of its Restricted Subsidiaries or exclusively between or among such
     Restricted Subsidiaries, provided such transactions are not otherwise
     prohibited by this Indenture;

          (3)     transactions effected as part of a Qualified Receivables
     Transaction;

          (4)     any agreement as in effect as of the Effective Date or any
     amendment thereto or any transaction contemplated thereby (including
     pursuant to any amendment thereto) in any replacement agreement thereto so
     long as any such amendment or replacement agreement is not more
     disadvantageous to the Holders in any material respect than the original
     agreement as in effect on the Effective Date;

          (5)     Restricted Payments permitted by this Indenture;

          (6)     any Permitted Investment; and any loan, advance or other
     payment described in the third paragraph of Section 4.03;

          (7)     transactions permitted by, and complying with, the provisions
     of Article Five hereof;

          (8)     any payment, issuance of securities or other payments, awards
     or grants, in cash or otherwise, pursuant to, or the funding of, employment
     arrangements and Plans approved by the Board of Directors of the Company;

          (9)     the grant of stock options or similar rights to employees and
     directors of the Company and its Subsidiaries pursuant to Plans and
     employment contracts approved by the Board of Directors of the Company;

          (10)    loans or advances to officers, directors or employees of the
     Company or its Restricted Subsidiaries not in excess of $5.0 million at any
     one time outstanding;

          (11)    the granting or performance of registration rights under a
     written registration rights agreement approved by the Board of Directors of
     the Company;

                                      -70-

<PAGE>

          (12)    transactions with Persons solely in their capacity as holders
     of Indebtedness or Capital Stock of the Company or any of its Restricted
     Subsidiaries, where such Persons are treated no more favorably than holders
     of Indebtedness or Capital Stock of the Company or such Restricted
     Subsidiary generally;

          (13)    any agreement to do any of the foregoing;

          (14)    the payment of fees, reimbursements, indemnifications and
     other amounts pursuant to any agreements between the Company and Kelso &
     Company, L.P. with respect to the payment of investment banking and annual
     financial advisory fees;

          (15)    the Transactions;

          (16)    execution, delivery and performance of a tax sharing agreement
     with respect to Holding Related Taxes;

          (17)    transactions with customers, clients, suppliers or purchasers
     or sellers of goods or services, in each case in the ordinary course of
     business and otherwise in compliance with the terms of this Indenture,
     which are fair to the Company or the relevant Restricted Subsidiary in the
     reasonable determination of the Board of Directors or senior management
     thereof or are on terms no less favorable as might reasonably have been
     obtained at such time from an unaffiliated party; and

          (18)    any transaction in the ordinary course of business, or
     approved in good faith by a majority of the Board of Directors, between the
     Company or any Restricted Subsidiary and any Affiliate of the Company
     controlled by the Company that is a joint venture or similar entity.

SECTION 4.10.     Limitation on Dividend and Other Payment Restrictions
                  Affecting Subsidiaries.

          From and after the Effective Date, the Company shall not, and shall
not permit any of its Restricted Subsidiaries to, directly or indirectly, create
or otherwise cause or permit to exist or become effective any consensual
encumbrance or restriction on the ability of any Restricted Subsidiary to:

          (1)     pay dividends or make any other distributions on or in respect
     of its Capital Stock;

                                      -71-

<PAGE>

          (2)     make loans or advances or to pay any Indebtedness or other
     obligation owed to the Company or any other Restricted Subsidiary of the
     Company; or

          (3)     transfer any of its property or assets to the Company or any
     other Restricted Subsidiary of the Company, except for such encumbrances or
     restrictions existing under or by reason of:

                  (a) applicable law;

                  (b) this Indenture or encumbrances or restrictions
          substantially similar to the encumbrances and restrictions contained
          in this Indenture taken as a whole;

                  (c) non-assignment provisions of any contract or any lease
          entered into in the ordinary course of business;

                  (d) any instrument governing Acquired Indebtedness, which
          encumbrance or restriction is not applicable to the Company or any
          Restricted Subsidiary of the Company, or the properties or assets of
          any such Person, other than the Person or the properties or assets of
          the Person so acquired; provided, however, that such Acquired
          Indebtedness was not incurred in connection with, or in anticipation
          or contemplation of, an acquisition by the Company or the Restricted
          Subsidiary;

                  (e) agreements existing on the Effective Date;

                  (f) the Credit Facility;

                  (g) restrictions on the transfer of assets subject to any Lien
          permitted under this Indenture imposed by the holder of such Lien;

                  (h) restrictions imposed by any agreement to sell assets
          permitted under this Indenture to any Person pending the closing of
          such sale;

                  (i) any agreement or instrument governing Capital Stock of any
          Person that is acquired after the Issue Date;

                                      -72-

<PAGE>

                  (j) Indebtedness or other contractual requirements of a
          Receivables Entity in connection with a Qualified Receivables
          Transaction; provided that such restrictions apply only to such
          Receivables Entity;

                  (k) (A) encumbrances or restrictions contained in mortgages,
          pledges or other security agreements securing Indebtedness of a
          Restricted Subsidiary to the extent restricting the transfer of the
          property or assets subject thereto, (B) customary provisions
          restricting dispositions of real property interests set forth in any
          reciprocal easement agreements of the Company or any Restricted
          Subsidiary, (C) purchase money obligations that impose encumbrances or
          restrictions on the property or assets so acquired, (D) encumbrances
          or restrictions on cash or other deposits or net worth imposed by
          customers under agreements entered into in the ordinary course of
          business, (E) customary provisions contained in agreements and
          instruments entered into in the ordinary course of business (including
          but not limited to leases and joint venture and other similar
          agreements entered into in the ordinary course of business), or (F)
          encumbrances or restrictions that arise or are agreed to in the
          ordinary course of business and do not detract from the value of
          property or assets of the Company or any Restricted Subsidiary in any
          manner material to the Company or such Restricted Subsidiary;

                  (l) an agreement or instrument relating to Indebtedness of a
          Foreign Subsidiary incurred pursuant to clause (16) of the definition
          of "Permitted Indebtedness"; or

                  (m) an agreement effecting a refinancing, replacement or
          substitution of Indebtedness issued, assumed or incurred pursuant to
          an agreement referred to in clause (b), (d), (e) or (f) above;
          provided, however, that the provisions relating to such encumbrance or
          restriction contained in any such refinancing, replacement or
          substitution agreement are no less favorable to the Company or the
          Holders in any material respect as determined by the Board of
          Directors of the Company than the provisions relating to such
          encumbrance or restriction contained in agreements

                                      -73-

<PAGE>

          referred to in such clause (b), (d), (e) or (f).

SECTION 4.11.     Limitation on Liens.

          Prior to the Effective Date, the Company shall not create, incur,
assume or suffer to exist any Lien of any kind against or upon any of its
property or assets, or any proceeds, income or profit therefrom which secure any
Indebtedness other than as contemplated by the Escrow Agreement.

          From and after the Effective Date, the Company shall not, and shall
not permit any of its Restricted Subsidiaries to, create, incur, assume or
suffer to exist any Liens (other than Permitted Liens) of any kind against or
upon any of their respective property or assets, or any proceeds, income or
profit therefrom which secures Senior Subordinated Indebtedness or Subordinated
Obligations, unless:

          (1)     in the case of Liens securing Subordinated Obligations, the
     Securities or the Guarantee of the relevant Guarantor, as the case may be,
     is secured by a Lien on such property, assets, proceeds, income or profit
     that is senior in priority to such Liens at least to the same extent that
     the Securities are subordinated to Senior Debt or the Guarantee of such
     Guarantor is subordinated to Guarantor Senior Debt, as the case may be; and

          (2)     in the case of Liens securing Senior Subordinated
     Indebtedness, the Securities or the Guarantee of the relevant Guarantor, as
     the case may be, is equally and ratably secured by a Lien on such property,
     assets, proceeds, income or profit.

SECTION 4.12.     Change of Control.

          (a)     Upon the occurrence of a Change of Control, the Company shall
make an offer to purchase (the "Change of Control Offer"), and shall purchase,
on a Business Day (the "Change of Control Payment Date") as described below, all
of the then outstanding Securities at a purchase price equal to 101% of the
principal amount thereof, plus accrued and unpaid interest, if any, thereon to
the Change of Control Payment Date. The Change of Control Offer shall remain
open for at least 20 Business Days and until the close of business on the Change
of Control Payment Date.

                                      -74-

<PAGE>

          (b)     Prior to the mailing of the notice referred to below, but in
any event within 30 days following the date upon which the Company obtains
actual knowledge of any Change of Control, the Company covenants to (i) repay in
full and terminate all commitments under Indebtedness under the Credit Facility
and all other Senior Debt the terms of which require repayment upon a Change of
Control or offer to repay in full and terminate all commitments under all
Indebtedness under the Credit Facility and all other such Senior Debt and to
repay the Indebtedness owed to each lender which has accepted such offer or (ii)
obtain the requisite consents under the Credit Facility and all other Senior
Debt to permit the repurchase of the Securities as provided below. The Company
shall first comply with the covenant in the immediately preceding sentence
before it shall be required to repurchase Securities pursuant to the provisions
described below. The Company's failure to comply with the covenant described in
the second preceding sentence (and any failure to send the notice referred to in
clause (c) below because the same is prohibited by the second preceding
sentence) may (with notice and lapse of time) constitute an Event of Default
described in clause (c) of Section 6.01 but shall not constitute an Event of
Default described in clause (b) of Section 6.01.

          (c)     Within 30 days following the date upon which the company
obtains actual knowledge that a Change of Control occurred (the "Change of
Control Date"), the Company shall send, by first class mail, a notice to each
Holder, with a copy to the Trustee, which notice shall govern the terms of the
Change of Control Offer. The notice to the Holders shall contain all
instructions and materials necessary to enable such Holders to tender Securities
pursuant to the Change of Control Offer. Such notice shall state:

          (1)     that the Change of Control Offer is being made pursuant to
     this Section 4.12 and that all Securities tendered and not withdrawn will
     be accepted for payment;

          (2)     the purchase price (including the amount of accrued interest)
     and the Change of Control Payment Date, which shall be a Business Day, that
     is not earlier than 30 days or later than 45 days from the date such notice
     is mailed other than as may be required by law or stock exchange rule;

          (3)     that any Security not tendered will continue to accrue
     interest;

                                      -75-

<PAGE>

          (4)     that, unless the Company defaults in making payment therefor,
     any Security accepted for payment pursuant to the Change of Control Offer
     shall cease to accrue interest after the Change of Control Payment Date;

          (5)     that Holders electing to have a Security purchased pursuant to
     a Change of Control Offer will be required to surrender the Security, with
     the form entitled "Option of Holder to Elect Purchase" on the reverse of
     the Security completed, to the Paying Agent at the address specified in the
     notice prior to the close of business on the third Business Day prior to
     the Change of Control Payment Date;

          (6)     that Holders will be entitled to withdraw their election if
     the Paying Agent receives, not later than the second Business Day prior to
     the Change of Control Payment Date, a telegram, telex, facsimile
     transmission or letter setting forth the name of the Holder, the principal
     amount of the Securities the Holder delivered for purchase and a statement
     that such Holder is withdrawing his election to have such Security
     purchased;

          (7)     that Holders whose Securities are purchased only in part will
     be issued new Securities in a principal amount equal to the unpurchased
     portion of the Securities surrendered; and

          (8)     the circumstances and relevant facts regarding such Change of
     Control.

          On or before the Change of Control Payment Date, the Company shall (i)
accept for payment Securities or portions thereof tendered pursuant to the
Change of Control Offer, (ii) deposit with the Paying Agent U.S. Legal Tender
sufficient to pay the purchase price plus accrued interest, if any, of all
Securities so tendered and (iii) deliver to the Trustee Securities so accepted
together with an Officers' Certificate stating the Securities or portions
thereof being purchased by the Company. The Paying Agent shall promptly mail to
the Holders of Securities so accepted payment in an amount equal to the purchase
price plus accrued interest, if any, and upon written order of the Company the
Trustee shall promptly authenticate and mail to such Holders new Securities
equal in principal amount to any unpurchased portion of the Securities
surrendered. Any Securities not so accepted shall be promptly mailed by the
Company

                                      -76-

<PAGE>

to the Holder thereof. For purposes of this Section 4.12, the Trustee shall act
as the Paying Agent.

          Any amounts remaining with the Paying Agent after the purchase of
Securities pursuant to a Change of Control Offer shall be returned by the
Trustee to the Company.

          The Company shall comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent such laws and regulations are applicable in connection with the
repurchase of Securities pursuant to a Change of Control Offer. To the extent
the provisions of any securities laws or regulations conflict with the
provisions of this Section 4.12, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations under this Section 4.12 by virtue thereof.

SECTION 4.13.     Limitation on Asset Sales.

          Prior to the Effective Date, the Company shall not consummate an Asset
Sale except in connection with the consummation of the Transactions and the
transactions contemplated by the Escrow Agreement, including the BWAY Assumption
and related release of the Escrowed Property.

          From and after the Effective Date, the Company shall not, and shall
not permit any of its Restricted Subsidiaries to, consummate an Asset Sale
unless:

          (1)     the Company or the applicable Restricted Subsidiary, as the
     case may be, receives consideration at the time of such Asset Sale at least
     equal to the fair market value of the assets sold or otherwise disposed of
     (as determined in good faith by the Company's Board of Directors);

          (2)     at least 75% of the consideration received by the Company or
     such Restricted Subsidiary, as the case may be, from such Asset Sale shall
     be cash or Cash Equivalents and is received at the time of such
     disposition; provided that the amount of (x) any liabilities (as shown on
     the Company's or such Restricted Subsidiary's most recent balance sheet or
     in the notes thereto) of the Company or such Restricted Subsidiary (other
     than liabilities that are by their terms subordinated to the Notes and
     other than liabilities consisting of Disqualified Capital Stock)

                                      -77-

<PAGE>

     (i) that are assumed by the transferee of any such assets and from which
     the Company and its Restricted Subsidiaries are unconditionally released or
     indemnified against by such transferee or (ii) in respect of which neither
     the Company nor any Restricted Subsidiary following such sale has any
     obligation and (y) any notes or other obligations received by the Company
     or such Restricted Subsidiary from such transferee that are promptly, but
     in no event more than 60 days after receipt, converted by the Company or
     such Restricted Subsidiary into cash or Cash Equivalents (to the extent of
     the cash or Cash Equivalents received), shall be deemed to be cash for
     purposes of this provision; and

          (3)     upon the consummation of an Asset Sale, the Company shall
     apply, or cause such Restricted Subsidiary to apply, the Net Cash Proceeds
     relating to such Asset Sale within 365 days of receipt thereof either:

                  (a) to prepay any Senior Debt, Guarantor Senior Debt or
          Indebtedness of a Restricted Subsidiary that is not a Guarantor and,
          in the case of any Senior Debt, Guarantor Senior Debt or Indebtedness
          of a Restricted Subsidiary that is not a Guarantor under any revolving
          credit facility, effect a permanent reduction in the availability
          under such revolving credit facility;

                  (b) to reinvest in Productive Assets; or

                  (c) a combination of prepayment and investment permitted by
          the foregoing clauses (3)(a) and (3)(b).

          On the 366th day after an Asset Sale or such earlier date, if any, as
the Board of Directors of the Company or of such Restricted Subsidiary
determines not to apply the Net Cash Proceeds relating to such Asset Sale as set
forth in clauses (3)(a), (3)(b) and (3)(c) of the immediately preceding sentence
(each, a "Net Proceeds Offer Trigger Date"), such aggregate amount of Net Cash
Proceeds which have not been applied on or before such Net Proceeds Offer
Trigger Date as permitted in clauses (3)(a), (3)(b) and (3)(c) of the
immediately preceding sentence (each a "Net Proceeds Offer Amount") shall be
applied by the Company or such Restricted Subsidiary to make an offer to
purchase for cash (the "Net Proceeds Offer") on a date (the "Net Proceeds Offer
Payment Date") not less than 30 nor more than 45 days following the applicable
Net Proceeds Offer Trigger

                                      -78-

<PAGE>

Date, from all Holders on a pro rata basis, that amount of Notes equal to the
Net Proceeds Offer Amount at a price in cash equal to 100% of the principal
amount of the Securities to be purchased, plus accrued and unpaid interest
thereon, if any, to the date of purchase; provided, however, that if at any time
any non-cash consideration received by the Company or any Restricted Subsidiary
of the Company, as the case may be, in connection with any Asset Sale is
converted into or sold or otherwise disposed of for cash (other than interest,
dividends or other earnings received with respect to any such non-cash
consideration), then such conversion or disposition shall be deemed to
constitute an Asset Sale hereunder and the Net Cash Proceeds thereof shall be
applied in accordance with this covenant.

          Notwithstanding the foregoing, if a Net Proceeds Offer Amount is less
than $10.0 million, the application of the Net Cash Proceeds constituting such
Net Proceeds Offer Amount to a Net Proceeds Offer may be deferred until such
time as such Net Proceeds Offer Amount plus the aggregate amount of all Net
Proceeds Offer Amounts arising subsequent to the Net Proceeds Offer Trigger Date
relating to such initial Net Proceeds Offer Amount from all Asset Sales by the
Company and its Restricted Subsidiaries aggregates at least $10.0 million, at
which time the Company or such Restricted Subsidiary shall apply all Net Cash
Proceeds constituting all Net Proceeds Offer Amounts that have been so deferred
to make a Net Proceeds Offer (the first date the aggregate of all such deferred
Net Proceeds Offer Amounts is equal to $10.0 million or more shall be deemed to
be a "Net Proceeds Offer Trigger Date").

          Notwithstanding the immediately preceding paragraphs of this Section
4.13, the Company and its Restricted Subsidiaries shall be permitted to
consummate an Asset Sale without complying with such paragraphs to the extent
that:

          (1)     at least 75% of the consideration for such Asset Sale
     constitutes Productive Assets; and

          (2)     such Asset Sale is for at least fair market value (as
     determined in good faith by the Company's Board of Directors); provided
     that any consideration not constituting Productive Assets received by the
     Company or any of its Restricted Subsidiaries in connection with any Asset
     Sale permitted to be consummated under this paragraph shall constitute
     consideration for purposes of the definition of "Net Cash Proceeds" and
     shall be subject to the

                                      -79-

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     provisions of the two preceding paragraphs; provided, that at the time of
     entering into such transaction or immediately after giving effect thereto,
     no Default or Event of Default shall have occurred or be continuing or
     would occur as a consequence thereof.

          Notice of each Net Proceeds Offer pursuant to this Section 4.13 shall
be mailed or caused to be mailed, by first class mail, by the Company within 25
days following the applicable Net Proceeds Offer Trigger Date to all Holders at
their last registered addresses, with a copy to the Trustee. A Net Proceeds
Offer shall remain open for a period of 20 Business Days or such longer period
as may be required by law. Upon receiving notice of the Net Proceeds Offer,
Holders may elect to tender their Securities in whole or in part in integral
multiples of $1,000 in exchange for cash. The notice shall contain all
instructions and materials necessary to enable such Holders to tender Securities
pursuant to the Net Proceeds Offer and shall state the following terms:

          (1)     that the Net Proceeds Offer is being made pursuant to this
     Section 4.13 and that all Securities tendered will be accepted for payment;
     provided, however, that if the principal amount of Securities tendered in
     the Net Proceeds Offer exceeds the aggregate amount of Net Proceeds Offer
     Amount, the Company shall select the Securities to be purchased on a pro
     rata basis;

          (2)     the purchase price (including the amount of accrued interest,
     if any) and the purchase date (which shall be no earlier than 30 days nor
     later than 60 days from the date such notice is mailed, other than as may
     be required by applicable law);

          (3)     that any Security not tendered will continue to accrue
     interest;

          (4)     that, unless the Company defaults in making payment therefor,
     any Security accepted for payment pursuant to the Net Proceeds Offer shall
     cease to accrue interest after the Net Proceeds Offer Payment Date;

          (5)     that Holders electing to have a Security purchased pursuant to
     the Net Proceeds Offer will be required to surrender the Security, with the
     form entitled "Option of Holder to Elect Purchase" on the reverse of the
     Security completed, to the Paying Agent at the address specified

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     in the notice prior to the close of business on the Net Proceeds Offer
     Payment Date;

          (6)     that Holders will be entitled to withdraw their election if
     the Paying Agent receives, not later than the second Business Day prior to
     the Net Proceeds Offer Payment Date, a facsimile transmission or letter
     setting forth the name of the Holder, the principal amount of the Security
     the Holder delivered for purchase and a statement that such Holder is
     withdrawing his election to have such Security purchased; and

          (7)     that Holders whose Securities are purchased only in part will
     be issued new Securities in a principal amount at maturity equal to the
     unpurchased portion of the Securities surrendered.

          On or before the Net Proceeds Offer Payment Date, the Company shall
(i) accept for payment Securities or portions thereof tendered pursuant to the
Net Proceeds Offer, (ii) deposit with the Paying Agent U.S. Legal Tender
sufficient to pay the purchase price, plus accrued interest, if any, of all
Securities to be purchased and (iii) deliver to the Trustee Securities so
accepted together with an Officers' Certificate stating the Securities or
portions thereof being purchased by the Company. The Paying Agent shall promptly
mail to the Holders of Securities so accepted payment in an amount equal to the
purchase price, plus accrued interest, if any, thereon set forth in the notice
of such Net Proceeds Offer. Any Security not so accepted shall be promptly
mailed by the Company to the Holder thereof. For purposes of this Section 4.13,
the Trustee shall act as the Paying Agent.

          To the extent that the aggregate amount of Notes tendered pursuant to
a Net Proceeds Offer is less than the Net Proceeds Offer Amount, the Company may
use any remaining Net Proceeds Offer Amount for general corporate purposes. Upon
completion of any such Net Proceeds Offer, the Net Proceeds Offer Amount shall
be reset at zero.

          The Company shall comply with the requirements of Rule 14e-1 under the
Exchange Act and any other securities laws and regulations thereunder to the
extent such laws and regulations are applicable in connection with the
repurchase of Notes pursuant to a Net Proceeds Offer. To the extent that the
provisions of any securities laws or regulations conflict with this Section
4.13, the Company shall comply with the applicable

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<PAGE>

securities laws and regulations and shall not be deemed to have breached its
obligations under this Section 4.13 by virtue thereof.

SECTION 4.14.     Prohibition on Incurrence of Senior Subordinated Debt.

          Neither the Company nor any Guarantor shall incur or suffer to exist
Indebtedness that is senior in right of payment to the Securities or such
Guarantor's Guarantee and subordinate in right of payment to any other
Indebtedness of the Company or such Guarantor, as the case may be.

SECTION 4.15.     Conduct of Business.

          Prior to the Effective Date, the Company shall not engage in any
business operations other than those in connection with the issuance of the
Securities, the Escrow Agreement and the Transactions.

          From and after the Effective Date, the Company and its Restricted
Subsidiaries shall not engage in any businesses which are not the same, similar,
related or ancillary to the businesses in which the Company and its Restricted
Subsidiaries are engaged on the Issue Date except to the extent as would not be
material to the Company and its Restricted Subsidiaries taken as a whole.

SECTION 4.16.     Limitation of Guarantees by Restricted Subsidiaries.

          On the Effective Date, BWAY Manufacturing will provide a guarantee of
payment of the Securities. From and after the Effective Date, the Company shall
not permit any of its Restricted Subsidiaries, directly or indirectly, by way of
the pledge of any intercompany note or otherwise, to assume, guarantee or in any
other manner become liable with respect to any Indebtedness of the Company
(other than: (1) Permitted Indebtedness of a Restricted Subsidiary of the
Company; (2) Indebtedness under Currency Agreements in reliance on clause (5) of
the definition of "Permitted Indebtedness"; or (3) Interest Swap Obligations
incurred in reliance on clause (4) of the definition of "Permitted
Indebtedness"), unless, in any such case:

          (1)     such Restricted Subsidiary executes and delivers a
     supplemental indenture to the Indenture, providing a

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<PAGE>

     guarantee of payment of the Securities by such Restricted Subsidiary, and

          (2)     (a) if any such assumption, guarantee or other liability of
     such Restricted Subsidiary is provided in respect of Senior Debt, the
     guarantee or other instrument provided by such Restricted Subsidiary in
     respect of such Senior Debt may be superior to such guarantee of the
     Securities pursuant to subordination provisions no less favorable to the
     Holders of the Securities than those contained in this Indenture and (b) if
     such assumption, guarantee or other liability of such Restricted Subsidiary
     is provided in respect of Indebtedness that is expressly subordinated to
     the Securities, the guarantee or other instrument provided by such
     Restricted Subsidiary in respect of such subordinated Indebtedness shall be
     subordinated to such guarantee at least to the same extent that the
     Securities are subordinated to Senior Debt.

          Notwithstanding the foregoing, any such Guarantee by a Restricted
Subsidiary of the Securities shall provide by its terms that it shall be
automatically and unconditionally released and discharged, without any further
action required on the part of the Trustee or any Holder, upon:

          (1)     the release of such Restricted Subsidiary from its liability
     in respect of the Indebtedness in connection with which such Guarantee was
     executed and delivered pursuant to the preceding paragraph;

          (2)     any sale or other disposition (by merger or otherwise) to any
     Person which is not a Restricted Subsidiary of the Company of all of the
     Company's Capital Stock in, or all or substantially all of the assets of,
     such Restricted Subsidiary; provided that (a) such sale or disposition of
     such Capital Stock or assets is otherwise in compliance with the terms of
     this Indenture and (b) in the case of a sale of substantially all assets,
     such assumption, guarantee or other liability of such Restricted Subsidiary
     has been released by the holders of the other Indebtedness of the Company
     so guaranteed;

          (3)     the Legal Defeasance of the Securities pursuant to Section
     8.02; or

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<PAGE>

          (4)     such Restricted Subsidiary being designated as an Unrestricted
     Subsidiary pursuant to the provisions of this Indenture.

SECTION 4.17.     Limitation on Preferred Stock of Subsidiaries.

          From and after the Effective Date, the Company shall not permit any of
its Restricted Subsidiaries to issue any Preferred Stock (other than to the
Company or to a Restricted Subsidiary of the Company) or permit any Person
(other than the Company or a Restricted Subsidiary of the Company) to own any
Preferred Stock of any Restricted Subsidiary of the Company.

                                  ARTICLE FIVE

                              SUCCESSOR CORPORATION

SECTION 5.01.     Merger, Consolidation and Sale of Assets.

          (a)     Except for or in connection with the BWAY Assumption, the
related release of the Escrowed Property and the Mergers, prior to the Effective
Date, the Company shall not, in a single transaction or a series of related
transactions, consolidate with or merge with or into, or sell, assign, transfer,
lease, convey or otherwise dispose of all or substantially all of the Company's
assets to, another Person or Persons.

          From and after the Effective Date, the Company shall not, in a single
transaction or a series of related transactions, consolidate with or merge with
or into, or sell, assign, transfer, lease, convey or otherwise dispose of (or
cause or permit any Restricted Subsidiary of the Company to sell, assign,
transfer, lease, convey or otherwise dispose of) all or substantially all of the
Company's assets to, another Person or Persons unless:

          (1)     either:

                  (a) the Company shall be the surviving or continuing Person of
          such merger or consolidation; or

                  (b) the surviving Person is a Person existing under the laws
          of the United States, any state thereof or the District of Columbia
          and such surviving Person shall expressly assume all the obligations

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<PAGE>

          of the Company under the Securities and this Indenture;

          (2)     immediately after giving effect to such transaction (on a pro
     forma basis, including any Indebtedness incurred or anticipated to be
     incurred in connection with such transaction and the other adjustments that
     are referred to in the definition of "Consolidated Fixed Charge Coverage
     Ratio"), the Company or the surviving Person is able to incur at least
     $1.00 of additional Indebtedness (other than Permitted Indebtedness) in
     compliance with Section 4.04;

          (3)     immediately before and immediately after giving effect to such
     transaction (including any Indebtedness incurred or anticipated to be
     incurred in connection with the transaction), no Default or Event of
     Default shall have occurred and be continuing; and

          (4)     the Company or the surviving Person, as the case may be, has
     delivered to the Trustee an Officers' Certificate and Opinion of Counsel,
     each stating that such consolidation, merger or transfer complies with this
     Indenture, that the surviving Person agrees to be bound thereby and by the
     Securities and the Registration Rights Agreement, and that all conditions
     precedent in this Indenture relating to such transaction have been
     satisfied.

          (b)     For purposes of the foregoing paragraph (a), the transfer (by
lease, assignment, sale or otherwise, in a single transaction or series of
transactions) of all or substantially all of the properties or assets of one or
more Subsidiaries of the Company, the Capital Stock of which constitutes all or
substantially all of the properties and assets of the Company, shall be deemed
to be the transfer of all or substantially all of the properties and assets of
the Company.

          (c)     Notwithstanding clauses (1), (2) and (3) of the foregoing
paragraph (a):

          (a)     any Restricted Subsidiary of the Company may consolidate with,
     merge into or transfer all or part of its properties and assets to the
     Company; and

          (b)     the Company may merge with an Affiliate that is (x) a Person
     that has no material assets or liabilities and that was organized solely
     for the purpose of reorganizing

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<PAGE>

     the Company in another jurisdiction or (y) a Restricted Subsidiary of the
     Company so long as all assets of the Company and the Restricted
     Subsidiaries immediately prior to such transaction are owned by such
     Restricted Subsidiary and its Restricted Subsidiaries immediately after the
     consummation thereof.

          This covenant will not apply to the Mergers.

          (d)     Upon the execution and delivery by BWAY and BWAY Manufacturing
to the Trustee of a supplemental indenture substantially in the form of Exhibit
A to the Escrow Agreement and compliance with the provisions of Section 9.07,
pursuant to which BWAY assumes, and BWAY Manufacturing guarantees, the Issuer's
obligations under this Indenture and the Securities, BWAY shall be the successor
Company under this Indenture and the Securities and shall succeed to, and be
substituted for, and may exercise every right and power of, the Issuer hereunder
and thereunder and the Issuer shall be discharged from all obligations and
covenants under this Indenture and the Securities.

SECTION 5.02.     Successor Corporation Substituted for the Company.

          Upon any consolidation, combination or merger or any transfer of all
or substantially all of the assets of the Company in accordance with Section
5.01 in which the Company is not the continuing corporation, the successor
Person formed by such consolidation or into which the Company is merged or to
which such conveyance, lease or transfer is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture and the Securities with the same effect as if such Surviving
Entity had been named as such.

SECTION 5.03.     Merger, Consolidation and Sale of Assets of Any Guarantor.

          The Company shall not permit any Guarantor (other than any Guarantor
whose Guarantee is to be released in accordance with the terms of the Guarantee
and this Indenture in connection with any transaction complying with the
provisions of Section 4.13) to consolidate with or merge with or into another
Person or Persons unless: (i) the Person formed by or surviving any such
consolidation or merger (if other than the Guarantor) is a Person organized and
existing under the laws of

                                      -86-

<PAGE>

the United States or any state thereof or the District of Columbia; (ii) such
entity assumes by supplemental indenture all of the obligations of the Guarantor
on the Guarantee; (iii) immediately after giving effect to such transaction, no
Default or Event of Default shall have occurred and be continuing; and (iv)
immediately after giving effect to such transaction and the use of any net
proceeds therefrom on a pro forma basis, the Company could satisfy the
provisions of clause (2) of Section 5.01(a). Any merger or consolidation of a
Guarantor with and into the Company (with the Company being the surviving
entity) or another Guarantor, or of a Restricted Subsidiary with and into a
Guarantor, need only comply with clause (4) of Section 5.01(a).

          Notwithstanding the foregoing, a Guarantor may merge with an Affiliate
that is a Person that has no material assets or liabilities and which was
organized solely for the purpose of reorganizing such Guarantor in another
jurisdiction.

SECTION 5.04.     Successor Corporation Substituted for Guarantor.

          Upon any consolidation, combination or merger or any transfer of all
or substantially all of the assets of any Guarantor in accordance with Section
5.03, in which such Guarantor is not the continuing corporation, the successor
Person formed by such consolidation or into which such Guarantor is merged or to
which such conveyance, lease or transfer is made shall succeed to, and be
substituted for, and may exercise every right and power of, such Guarantor under
this Indenture with the same effect as if such surviving entity has been named
as such, and the predecessor company, in the case of a conveyance, transfer or
lease, shall be released from the obligation to pay the principal of and
interest of the Securities.

                                   ARTICLE SIX

                              DEFAULT AND REMEDIES

SECTION 6.01.     Events of Default.

          Each of the following shall be an "Event of Default":

          (a)     the failure to pay interest on any Securities when the same
     becomes due and payable and the default continues for a period of 30 days
     (whether or not such payment

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<PAGE>

     shall be prohibited by Article Ten or Article Twelve of this Indenture);

          (b)     the failure to pay the principal on any Securities, when such
     principal becomes due and payable, at maturity, upon redemption or
     otherwise (including the failure to make a payment to purchase Securities
     tendered pursuant to a Change of Control Offer or a Net Proceeds Offer on
     the date specified for such payment in the applicable offer to purchase and
     the failure to pay the Mandatory Redemption Price if required) (whether or
     not such payment shall be prohibited by Article Ten or Article Twelve of
     this Indenture);

          (c)     a default in the observance or performance of any other
     covenant or agreement contained in this Indenture, which default continues
     for a period of 30 days after the Company receives written notice
     specifying the default (and demanding that such default be remedied) from
     the Trustee or the Holders of at least 25% of the outstanding principal
     amount of the Securities (except in the case of a default with respect to
     Article 5 hereof, which shall constitute an Event of Default with such
     notice requirement but without such passage of time requirement);

          (d)     the failure to pay at final stated maturity (giving effect to
     any applicable grace periods and any extensions thereof) the principal
     amount of any Indebtedness of the Company or any Restricted Subsidiary
     (other than a Receivables Entity) of the Company, or the acceleration of
     the final stated maturity of any such Indebtedness (which acceleration is
     not rescinded, annulled or otherwise cured within 20 days of receipt by the
     Company or such Restricted Subsidiary of notice of any such acceleration)
     if the aggregate principal amount of such Indebtedness, together with the
     principal amount of any other such Indebtedness in default for failure to
     pay principal at final maturity or which has been accelerated (in each case
     with respect to which the 20-day period described above has elapsed),
     aggregates $15.0 million or more at any time;

          (e)     one or more judgments in an aggregate amount in excess of
     $15.0 million shall have been rendered against the Company or any of its
     Significant Subsidiaries and such judgments remain undischarged, unpaid or
     unstayed for a period of 60 days after such judgment or judgments become
     final and non-appealable;

                                      -88-

<PAGE>

          (f)     the Company or any of its Significant Subsidiaries (i)
     commences a voluntary case or proceeding under any Bankruptcy Law with
     respect to itself, (ii) consents to the entry of a judgment, decree or
     order for relief against it in an involuntary case or proceeding under any
     Bankruptcy Law, (iii) consents to the appointment of a custodian of it or
     for substantially all of its property, (iv) consents to or acquiesces in
     the institution of a bankruptcy or an insolvency proceeding against it, (v)
     makes a general assignment for the benefit of its creditors or (vi) takes
     any corporate action to authorize or effect any of the foregoing;

          (g)     a court of competent jurisdiction enters a judgment, decree or
     order for relief in respect of the Company or any of its Significant
     Subsidiaries in an involuntary case or proceeding under any Bankruptcy Law,
     which shall (i) approve as properly filed a petition seeking
     reorganization, arrangement, adjustment or composition in respect of the
     Company or any of its Significant Subsidiaries, (ii) appoint a Custodian of
     the Company or any of its Significant Subsidiaries or for substantially all
     of any of its property or (iii) order the winding-up or liquidation of its
     affairs; and such judgment, decree or order shall remain unstayed and in
     effect for a period of 60 consecutive days; or

          (h)     any Guarantee of a Significant Subsidiary ceases to be in full
     force and effect or any Guarantee of a Significant Subsidiary is declared
     by a court of competent jurisdiction to be null and void and unenforceable
     or any Guarantee of a Significant Subsidiary is found by a court of
     competent jurisdiction to be invalid or any Guarantor that is a Significant
     Subsidiary denies in writing its liability under its Guarantee (other than
     by reason of release of a Guarantor in accordance with the terms of this
     Indenture).

SECTION 6.02.     Acceleration.

          If an Event of Default (other than an Event of Default specified in
either clause (f) or (g) of Section 6.01 above with respect to the Company)
shall occur and be continuing, the Trustee or the Holders of at least 25% in
principal amount of outstanding Securities may declare the principal of and
accrued interest on all the Securities to be due and payable by notice in
writing to the Company and the Trustee specifying

                                      -89-

<PAGE>

the respective Event of Default and that it is a "notice of acceleration" (the
"Acceleration Notice"), and the same (i) shall become immediately due and
payable or (ii) if there are any amounts outstanding under the Credit Facility,
shall become immediately due and payable upon the first to occur of an
acceleration under the Credit Facility or 5 Business Days after receipt by the
Company and the Representative under the Credit Facility of such Acceleration
Notice but only if such Event of Default is then continuing. If an Event of
Default specified in either clause (f) or (g) of Section 6.01 above with respect
to the Company occurs and is continuing, then all unpaid principal of, and
premium, if any, and accrued and unpaid interest on all of the outstanding
Securities shall ipso facto become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holder.

          At any time after a declaration of acceleration with respect to the
Securities as described in the preceding paragraph, the Holders of a majority in
principal amount of the Securities may rescind and cancel such declaration and
its consequences (i) if the rescission would not conflict with any judgment or
decree, (ii) if all existing Events of Default have been cured or waived except
nonpayment of principal or interest that has become due solely because of the
acceleration, (iii) to the extent the payment of such interest is lawful,
interest on overdue installments of interest and overdue principal, which has
become due otherwise than by such declaration of acceleration, has been paid,
(iv) if the Company has paid the Trustee its reasonable compensation and
reimbursed the Trustee for its expenses, disbursements and advances and all
other amounts due to the Trustee under Section 7.07 and (v) in the event of the
cure or waiver of an Event of Default of the type described in either clause (f)
or (g) of Section 6.01, the Trustee shall have received an Officers' Certificate
to the effect that such Event of Default has been cured or waived. No such
rescission shall affect any subsequent Default or impair any right consequent
thereto.

SECTION 6.03.     Other Remedies.

          If an Event of Default occurs and is continuing, the Trustee may
pursue any available remedy by proceeding at law or in equity to collect the
payment of principal of or interest on the Securities or to enforce the
performance of any provision of the Securities or this Indenture.

                                      -90-

<PAGE>

          The Trustee may maintain a proceeding even if it does not possess any
of the Securities or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Securityholder in exercising any right or remedy
accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. No remedy is
exclusive of any other remedy. All available remedies are cumulative to the
extent permitted by law.

SECTION 6.04.     Waiver of Past Defaults.

          Subject to Sections 2.09, 6.07 and 9.02, the Holders of not less than
a majority in principal amount of the outstanding Securities by notice to the
Trustee may waive an existing Default or Event of Default and its consequences,
except a Default in the payment of principal of or interest on any Security as
specified in clauses (a) and (b) of Section 6.01. The Company shall deliver to
the Trustee an Officers' Certificate stating that the requisite percentage of
Holders have consented to such waiver and attaching copies of such consents.
When a Default or Event of Default is waived, it is cured and ceases.

SECTION 6.05.     Control by Majority.

          The Holders of not less than a majority in principal amount of the
outstanding Securities may direct the time, method and place of conducting any
proceeding for any remedy available to the Trustee or exercising any trust or
power conferred on it. Subject to Section 7.01, however, the Trustee may refuse
to follow any direction that conflicts with any law or this Indenture, that the
Trustee determines may be unduly prejudicial to the rights of another
Securityholder, or that may involve the Trustee in personal liability; provided
that the Trustee may take any other action deemed proper by the Trustee which is
not inconsistent with such direction.

          In the event the Trustee takes any action or follows any direction
pursuant to this Indenture, the Trustee shall be entitled to indemnification
satisfactory to it in its sole discretion against any loss or expense caused by
taking such action or following such direction.

SECTION 6.06.     Limitation on Suits.

          A Securityholder may not pursue any remedy with respect to this
Indenture or the Securities unless:

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<PAGE>

          (1)     the Holder gives to the Trustee written notice of a continuing
     Event of Default;

          (2)     the Holder or Holders of at least 25% in principal amount of
     the outstanding Securities make a written request to the Trustee to pursue
     the remedy;

          (3)     such Holder or Holders offer and, if requested, provide to the
     Trustee indemnity satisfactory to the Trustee against any loss, liability
     or expense;

          (4)     the Trustee does not comply with the request within 60 days
     after receipt of the request and the offer and, if requested, the provision
     of indemnity; and

          (5)     during such 60-day period the Holder or Holders of a majority
     in principal amount of the outstanding Securities do not give the Trustee a
     direction which, in the opinion of the Trustee, is inconsistent with the
     request.

          A Securityholder may not use this Indenture to prejudice the rights of
another Securityholder or to obtain a preference or priority over such other
Securityholder.

SECTION 6.07.     Rights of Holders To Receive Payment.

          Notwithstanding any other provision of this Indenture, the right of
any Holder to receive payment of principal of and interest on a Security, on or
after the respective due dates expressed in such Security, or to bring suit for
the enforcement of any such payment on or after such respective dates, shall not
be impaired or affected without the consent of the Holder.

SECTION 6.08.     Collection Suit by Trustee.

          If an Event of Default in payment of principal or interest specified
in clause (a) or (b) of Section 6.01 occurs and is continuing, the Trustee may
recover judgment in its own name and as trustee of an express trust against the
Company or any other obligor on the Securities for the whole amount of principal
and accrued interest and fees remaining unpaid, together with interest on
overdue principal and, to the extent that payment of such interest is lawful,
interest on overdue installments of interest, in each case at the rate per annum
borne by the Securities and such further amount as shall be sufficient to cover
the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements

                                      -92-

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and advances of the Trustee, its agents and counsel and any other amounts due
the Trustee under Section 7.07.

SECTION 6.09.     Trustee May File Proofs of Claim.

          The Trustee may file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Securityholders allowed in any judicial proceedings relating to the Company, its
creditors or its property and shall be entitled and empowered to collect and
receive any monies or other property payable or deliverable on any such claims
and to distribute the same, and any Custodian in any such judicial proceedings
is hereby authorized by each Securityholder to make such payments to the Trustee
and, in the event that the Trustee shall consent to the making of such payments
directly to the Securityholders, to pay to the Trustee any amount due to it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agent and counsel, and any other amounts due the Trustee under
Section 7.07. Nothing herein contained shall be deemed to authorize the Trustee
to authorize or consent to or accept or adopt on behalf of any Securityholder
any plan of reorganization, arrangement, adjustment or composition affecting the
Securities or the rights of any Holder thereof, or to authorize the Trustee to
vote in respect of the claim of any Securityholder in any such proceeding.

SECTION 6.10.     Priorities.

          Any money or other property distributable in respect of the Company's
or any Guarantor's obligations under this Indenture shall be paid in the
following order, on the date or dates fixed by the Trustee:

          First:  to the Trustee (including any predecessor Trustee) for amounts
     due under Section 7.07;

          Second: Subject to Articles Ten and Twelve, to Holders for interest
     accrued on the Securities, ratably, without preference or priority of any
     kind, according to the amounts due and payable on the Securities for
     interest;

          Third:  Subject to Articles Ten and Twelve, to Holders for principal
     amounts due and unpaid on the Securities, ratably, without preference or
     priority of any kind,

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     according to the amounts due and payable on the Securities for principal;
     and

          Fourth: to the Company or, if applicable, the Guarantors, as their
     respective interests may appear.

          The Trustee, upon prior notice to the Company, may fix a record date
and payment date for any payment to Securityholders pursuant to this Section
6.10.

SECTION 6.11.     Undertaking for Costs.

          In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted by
it as Trustee, a court in its discretion may require the filing by any party
litigant in the suit of an undertaking to pay the costs of the suit, and the
court in its discretion may assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in the suit, having due regard to
the merits and good faith of the claims or defenses made by the party litigant.
This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder
pursuant to Section 6.07, or a suit by a Holder or Holders of more than 10% in
principal amount of the outstanding Securities.

                                  ARTICLE SEVEN

                                     TRUSTEE

SECTION 7.01.     Duties of Trustee.

          (a)     If an Event of Default has occurred and is continuing, the
Trustee shall exercise such of the rights and powers vested in it by this
Indenture and use the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the conduct of
his or her own affairs.

          (b)     Except during the continuance of an Event of Default:

          (1)     The Trustee need perform only those duties as are specifically
     set forth herein or in the TIA and no duties, covenants, responsibilities
     or obligations shall be implied in this Indenture against the Trustee.

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          (2)     In the absence of bad faith on its part, the Trustee may
     conclusively rely, as to the truth of the statements and the correctness of
     the opinions expressed therein, upon certificates (including Officers'
     Certificates) or opinions (including Opinions of Counsel) furnished to the
     Trustee and conforming to the requirements of this Indenture. However, in
     the case of any such certificates or opinions which by any provision hereof
     are specifically required to be furnished to the Trustee, the Trustee shall
     examine the certificates and opinions to determine whether or not they
     conform to the requirements of this Indenture (but need not confirm or
     investigate the accuracy, mathematical calculations or other facts stated
     therein).

          (c)     Notwithstanding anything to the contrary herein, the Trustee
may not be relieved from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that:

          (1)     This paragraph does not limit the effect of paragraph (b) of
     this Section 7.01.

          (2)     The Trustee shall not be liable for any error of judgment made
     in good faith by a Responsible Officer, unless it is proved that the
     Trustee was negligent in ascertaining the pertinent facts.

          (3)     The Trustee shall not be liable with respect to any action it
     takes or omits to take in good faith in accordance with a direction
     received by it pursuant to Section 6.05.

          (d)     No provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder or to take or omit to take any action
under this Indenture or take any action at the request or direction of Holders
if it shall have reasonable grounds for believing that repayment of such funds
is not assured to it.

          (e)     Every provision of this Indenture that in any way relates to
the Trustee is subject to this Section 7.01.

          (f)     The Trustee shall not be liable for interest on or the
investment of any money received by it except as the Trustee may agree in
writing with the Company. Money held in

                                      -95-

<PAGE>

trust by the Trustee need not be segregated from other funds except to the
extent required by law.

SECTION 7.02.     Rights of Trustee.

          Subject to Section 7.01:

          (a)     The Trustee may conclusively rely on any document believed by
     it to be genuine and to have been signed or presented by the proper Person.
     The Trustee need not investigate any fact or matter stated in the document.

          (b)     Before the Trustee acts or refrains from acting, it may
     require an Officers' Certificate if the Trustee deems it desirable that a
     matter be proved or established, which shall conform to the provisions of
     Section 13.05. The Trustee shall not be liable for any action it takes or
     omits to take in good faith in reliance on such certificate.

          (c)     The Trustee may act through its attorneys and agents and shall
     not be responsible for the misconduct or negligence of any agent (other
     than an agent who is an employee of the Trustee) appointed with due care.

          (d)     The Trustee shall not be liable for any action it takes or
     omits to take in good faith which it reasonably believes to be authorized
     or within its rights or powers.

          (e)     The Trustee may consult with counsel and the advice or opinion
     of such counsel as to matters of law shall be full and complete
     authorization and protection from liability in respect of any action taken,
     omitted or suffered by it hereunder in good faith and in accordance with
     the advice or opinion of such counsel.

          (f)     The Trustee shall be under no obligation to exercise any of
     the rights or powers vested in it by this Indenture at the request, order
     or direction of any of the Holders pursuant to the provisions of this
     Indenture, unless such Holders shall have offered to the Trustee reasonable
     security or indemnity satisfactory to the Trustee against the costs,
     expenses and liabilities which may be incurred therein or thereby.

          (g)     The Trustee shall not be bound to make any investigation into
     the facts or matters stated in any resolution,

                                      -96-

<PAGE>

     certificate (including any Officers' Certificate), statement, instrument,
     opinion (including any Opinion of Counsel), notice, request, direction,
     consent, order, bond, debenture, or other paper or document, but the
     Trustee, in its discretion, may make such further inquiry or investigation
     into such facts or matters as it may see fit.

          (h)     The Trustee shall not be required to give any bond or surety
     in respect of the performance of its powers and duties hereunder.

          (i)     The permissive rights of the Trustee to do things enumerated
     in this Indenture shall not be construed as duties.

          (j)     The Trustee shall not be charged with knowledge of any Default
     or Event of Default with respect to the Securities unless either (1) a
     Responsible Officer of the Trustee shall have actual knowledge of such
     Default or Event of Default or (2) written notice of such Default or Event
     of Default shall have been given to the Trustee by the Company or by any
     Holder of the Securities and shall have been received by the Trustee at the
     Corporate Trust Office of the Trustee and such notice references the
     Securities and this Indenture.

          The rights, privileges, protections, immunities and benefits given to
the Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Trustee in each of its capacities
hereunder, and each agent, custodian and other Person employed by the Trustee to
act hereunder.

SECTION 7.03.     Individual Rights of Trustee.

          The Trustee in its individual or any other capacity may become the
owner or pledgee of Securities and may otherwise deal with the Company, its
Subsidiaries or their respective Affiliates with the same rights it would have
if it were not Trustee. Any Agent may do the same with like rights. However, the
Trustee must comply with Sections 7.10 and 7.11.

SECTION 7.04.     Trustee's Disclaimer.

          The Trustee shall not be responsible for and makes no representation
as to the validity or adequacy of this Indenture, any Guarantee or the
Securities, except that the Trustee

                                      -97-

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represents that it is duly authorized to execute and deliver this Indenture,
authenticate the Securities and perform its obligations hereunder and that the
statements made by it in a Statement of Eligibility and Qualification on Form
T-1 supplied to the Company and any other obligor upon the Securities in
connection with the registration of any Securities and any Guarantees issued
hereunder are and will be true and accurate subject to the qualifications set
forth therein. The Trustee shall not be accountable for the Company's use of the
proceeds from the Securities, and it shall not be responsible for the recitals
herein or any statement of the Company in this Indenture or any document issued
in connection with the sale of Securities or any statement in the Securities
other than the Trustee's certificate of authentication. The Trustee makes no
representations with respect to the effectiveness or adequacy of this Indenture.

SECTION 7.05.     Notice of Default.

          If a Default or an Event of Default occurs and is continuing and the
Trustee receives actual notice of such Default or Event of Default, the Trustee
shall mail to each Securityholder notice of the uncured Default or Event of
Default within 90 days after such Default or Event of Default occurs. Except in
the case of a Default or an Event of Default in payment of principal of, or
interest on, any Security, including an accelerated payment and the failure to
make payment on the Change of Control Payment Date pursuant to a Change of
Control Offer or the Net Proceeds Offer Payment Date pursuant to a Net Proceeds
Offer, the Trustee may withhold the notice if and so long as the Board of
Directors, the executive committee, or a trust committee of directors and/or
Responsible Officers, of the Trustee in good faith determines that withholding
the notice is in the interest of the Securityholders.

SECTION 7.06.     Reports by Trustee to Holders.

          Within 60 days after each May 15, beginning with the first May 15
following the date of this Indenture, the Trustee shall, to the extent that any
of the events described in TIA Section 313(a) occurred within the previous
twelve months, but not otherwise, mail to each Securityholder a brief report
dated as of such date that complies with TIA Section 313(a). The Trustee also
shall comply with TIA Sections 313(b), 313(c) and 313(d).

          A copy of each report at the time of its mailing to Securityholders
shall be mailed to the Company and filed with

                                      -98-

<PAGE>

the Commission and each securities exchange, if any, on which the Securities are
listed.

          The Company shall notify the Trustee if the Securities become listed
on any securities exchange or of any delisting thereof and the Trustee shall
comply with TIA Section 313(d).

SECTION 7.07.     Compensation and Indemnity.

          The Company shall pay to the Trustee from time to time such
compensation as the Company and the Trustee shall from time to time agree in
writing for its services hereunder. The Trustee's compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Company
shall reimburse the Trustee upon request for all reasonable disbursements,
expenses and advances (including reasonable fees and expenses of counsel)
incurred or made by it in addition to the compensation for its services, except
any such disbursements, expenses and advances as may be attributable to the
Trustee's negligence or willful misconduct. Such expenses shall include the
reasonable fees and expenses of the Trustee's agents and counsel.

          The Company and the Guarantors shall indemnify the Trustee and its
agents, employees, officers, stockholders and directors for, and hold them
harmless against, any loss, liability or expense incurred by them except to the
extent caused by any negligence or willful misconduct on their part, arising out
of or in connection with the acceptance or administration of this trust,
including the reasonable costs and expenses of defending themselves against or
investigating any claim (whether asserted by the Company, a Guarantor, any
Holder or any other Person) or liability in connection with the exercise or
performance of any of the Trustee's rights, powers or duties hereunder
(including in connection with enforcing the provisions of this Section 7.07).
The Trustee shall notify the Company promptly of any claim asserted against the
Trustee or any of its agents, employees, officers, stockholders and directors
for which it may seek indemnity; provided, however, that any failure of the
Trustee to so notify the Company shall not relieve the Company or any Guarantor
of its obligations under this Section 7.07 unless and to the extent that it has
been materially prejudiced (through the forfeiture of substantive rights or
defenses. The Company may, subject to the approval of the Trustee, defend the
claim and the Trustee shall cooperate in the defense. The Trustee and its
agents, employees, officers, stockholders and directors subject to the claim may

                                      -99-

<PAGE>

have one firm of separate counsel and the Company shall pay the reasonable fees
and expenses of such counsel; provided, however, that the Company will not be
required to pay such fees and expenses if, subject to the approval of the
Trustee, it assumes the Trustee's defense and, in the sole determination of the
Trustee, there is no conflict of interest between the Company and the Trustee
and its agents, employees, officers, stockholders and directors subject to the
claim in connection with such defense or there are no legal defenses available
to the Trustee that are different from or are in addition to those available to
the Company, or if all parties commonly represented agree as to the action (or
inaction) of counsel. Notwithstanding the foregoing, if the failure to provide
separate counsel to the Trustee in any such action or proceeding, in the sole
judgment of the Trustee, would jeopardize the reputation or name or otherwise
materially adversely affect the business interests of the Trustee, the Trustee
shall be entitled to separate counsel, the reasonable fees and expenses in
respect of which shall be borne by the Company. The Company need not pay for any
settlement made without its written consent. The Company need not reimburse any
expense or indemnify against any loss or liability to the extent incurred by the
Trustee through its negligence, bad faith or willful misconduct.

          With respect to the Company's payment obligations in this Section
7.07, the Trustee shall have a claim prior to the Securities against all money
or property held or collected by the Trustee, in its capacity as Trustee. The
obligations of the Company and the Guarantors under this Section shall not be
subordinated to the payment of Senior Debt pursuant to Article Ten or Article
Twelve except assets or money held in trust to pay principal of or interest on
particular Securities.

          In addition to and without prejudice to the rights provided to the
Trustee under any provision of this Indenture, when the Trustee incurs expenses
or renders services after an Event of Default specified in clause (f) or (g) of
Section 6.01 occurs, such expenses (including reasonable attorneys' fees and
expenses) and the compensation for such services are intended to constitute
expenses of administration under any applicable Bankruptcy Law.

          The term "Trustee" for purposes of this Section shall include any
predecessor Trustee; provided, however, that the negligence, willful misconduct
or bad faith of any Trustee hereunder shall not affect the rights of any other
Trustee hereunder.

                                      -100-

<PAGE>

          Notwithstanding any other provision in this Indenture, the foregoing
provisions of this Section 7.07 shall survive the resignation or removal of the
Trustee, the satisfaction and discharge of this Indenture, the appointment of a
successor Trustee or the termination of this Indenture for any reason.

SECTION 7.08.     Replacement of Trustee.

          The Trustee may resign at any time by so notifying the Company in
writing. The Holders of a majority in principal amount of the outstanding
Securities may remove the Trustee by so notifying the Company and the Trustee
and may appoint a successor Trustee. The Company may remove the Trustee if:

          (1)     the Trustee fails to comply with Section 7.10;

          (2)     the Trustee is adjudged a bankrupt or an insolvent;

          (3)     a receiver or other public officer takes charge of the Trustee
     or its property; or

          (4)     the Trustee becomes incapable of acting.

          If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, the Company shall notify each Holder of such
event and shall promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount of
the Securities may appoint a successor Trustee to replace the successor Trustee
appointed by the Company.

          A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Immediately after that,
the retiring Trustee shall transfer, after payment of all sums then owing to the
Trustee pursuant to Section 7.07, all property held by it as Trustee to the
successor Trustee, subject to the Lien provided in Section 7.07, the resignation
or removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. A successor Trustee shall mail notice of its succession to each
Securityholder.

          If a successor Trustee does not take office within 30 days after the
retiring Trustee resigns or is removed, the retiring Trustee (at the reasonable
expense of the Company), the

                                      -101-

<PAGE>

Company or the Holders of at least 10% in principal amount of the outstanding
Securities may petition any court of competent jurisdiction for the appointment
of a successor Trustee.

          If the Trustee fails to comply with Section 7.10, any Securityholder
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.

          Notwithstanding replacement of the Trustee pursuant to this Section
7.08, the Company's obligations under Section 7.07 shall continue for the
benefit of the retiring Trustee.

SECTION 7.09.     Successor Trustee by Merger, Etc.

          If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all of its corporate trust business to, another
corporation, the resulting, surviving or transferee corporation without any
further act shall, if such resulting, surviving or transferee corporation is
otherwise eligible hereunder, be the successor Trustee; provided that such
corporation shall be otherwise qualified and eligible under this Article Seven.

SECTION 7.10.     Eligibility; Disqualification.

          This Indenture shall always have a Trustee who satisfies the
requirement of TIA Sections 310(a)(1), 310(a)(2) and 310(a)(5). The Trustee
shall have a combined capital and surplus of at least $50,000,000 as set forth
in its most recent published annual report of condition. In addition, if the
Trustee is a corporation included in a bank holding company system, the Trustee,
independently of the bank holding company, shall meet the capital requirements
of TIA Section 310(a)(2). The Trustee shall comply with TIA Section 310(b);
provided, however, that there shall be excluded from the operation of TIA
Section 310(b)(1) any indenture or indentures under which other securities, or
certificates of interest or participation in other securities, of the Company
are outstanding, if the requirements for such exclusion set forth in TIA Section
310(b)(1) are met. The provisions of TIA Section 310 shall apply to the Company
and any other obligor of the Securities.

SECTION 7.11.     Preferential Collection of Claims Against Company.

          The Trustee, in its capacity as Trustee hereunder, shall comply with
TIA Section 311(a), excluding any creditor relationship

                                      -102-

<PAGE>

listed in TIA Section 311(b). A Trustee who has resigned or been removed shall
be subject to TIA Section 311(a) to the extent indicated.

                                  ARTICLE EIGHT

                       DISCHARGE OF INDENTURE; DEFEASANCE

SECTION 8.01.     Termination of the Company's Obligations.

          The Company may terminate its obligations under the Securities and
this Indenture, except those obligations referred to in the penultimate
paragraph of this Section 8.01, if all Securities previously authenticated and
delivered (other than destroyed, lost or stolen Securities which have been
replaced or paid or Securities for whose payment U.S. Legal Tender has
theretofore been deposited with the Trustee or the Paying Agent in trust or
segregated and held in trust by the Company and thereafter repaid to the
Company, as provided in Section 8.05 or discharged from such trust) have been
delivered to the Trustee for cancellation and the Company has paid all sums
payable by it hereunder, or if:

          (a)     either (i) pursuant to Article Three, the Company shall have
     given notice to the Trustee and mailed a notice of redemption to each
     Holder of the redemption of all of the Securities in accordance with the
     provisions hereof or (ii) all Securities have otherwise become due and
     payable hereunder or will become due and payable within one year, or are to
     be called for redemption within one year, under arrangements reasonably
     satisfactory to the Trustee for the giving of notice of redemption by the
     Trustee in the name, and at the expense, of the Company;

          (b)     the Company shall have irrevocably deposited or caused to be
     deposited with the Trustee or a trustee satisfactory to the Trustee, under
     the terms of an irrevocable trust agreement in form and substance
     satisfactory to the Trustee, as trust funds in trust solely for the benefit
     of the Holders of that purpose, U.S. Legal Tender in such amount as is
     sufficient without consideration of reinvestment of such interest, to pay
     principal of, premium, if any, and interest on the outstanding Securities
     to maturity or redemption; provided that the Trustee shall have been
     irrevocably instructed to apply such U.S. Legal Tender

                                      -103-

<PAGE>

     to the payment of said principal, premium, if any, and interest with
     respect to the Securities;

          (c)     the Company shall have paid all other sums payable by it
     hereunder; and

          (d)     the Company shall have delivered to the Trustee an Officers'
     Certificate and an Opinion of Counsel, each stating that all conditions
     precedent providing for or relating to the termination of the Company's
     obligations under the Securities and this Indenture have been complied
     with.

          Subject to the next sentence and notwithstanding the foregoing
paragraph, the Company's obligations in Sections 2.05, 2.06, 2.07, 2.08, 4.01,
4.02, 7.07, 8.05 and 8.06 shall survive until the Securities are no longer
outstanding pursuant to the last paragraph of Section 2.08. After the Securities
are no longer outstanding, the Company's obligations in Sections 7.07, 8.05 and
8.06 shall survive.

          After such delivery or irrevocable deposit, the Trustee upon request
shall acknowledge in writing the discharge of the Company's obligations under
the Securities and this Indenture except for those surviving obligations
specified above.

SECTION 8.02.     Legal Defeasance and Covenant Defeasance.

          (a)     The Company may, at its option by Board Resolution of the
Company, at any time, elect to have either paragraph (b) or (c) below be applied
to all outstanding Securities upon compliance with the conditions set forth in
Section 8.03.

          (b)     Upon the Company's exercise under paragraph (a) hereof of the
option applicable to this paragraph (b), the Company shall, subject to the
satisfaction of the conditions set forth in Section 8.03, be deemed to have been
discharged from its obligations and the Guarantors shall be deemed to have been
discharged from their obligations with respect to all outstanding Securities on
the date the conditions set forth below are satisfied (hereinafter, "Legal
Defeasance"). For this purpose, Legal Defeasance means that the Company shall be
deemed to have paid and discharged the entire Indebtedness represented by the
outstanding Securities, which shall thereafter be deemed to be "outstanding"
only for the purposes of Section 8.04 hereof and the other Sections of this
Indenture referred to in (i) and (ii) below, and to have satisfied all its other
obligations

                                      -104-

<PAGE>

under such Securities and this Indenture (and the Trustee, on demand of and at
the expense of the Company, shall execute proper instruments acknowledging the
same), except for the following provisions, which shall survive until otherwise
terminated or discharged hereunder: (i) the rights of Holders of outstanding
Securities to receive solely from the trust fund described in Section 8.04
hereof, and as more fully set forth in such Section, payments in respect of the
principal of, premium, if any, and interest on such Securities when such
payments are due, (ii) the Company's obligations with respect to such Securities
under Sections 2.03, 2.04, 2.06, 2.07, 2.10 and 4.02 hereof, (iii) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and the Company's
obligations in connection therewith and (iv) this Article Eight. Subject to
compliance with this Article Eight, the Company may exercise its option under
this paragraph (b) notwithstanding the prior exercise of its option under
paragraph (c) hereof.

          (c)     Upon the Company's exercise under paragraph (a) hereof of the
option applicable to this paragraph (c), the Company shall, subject to the
satisfaction of the conditions set forth in Section 8.03 hereof, be released
from its obligations under the covenants contained in Sections 4.03, 4.04, 4.07
and Sections 4.09 through 4.17 and Article Five hereof and under any covenants
added pursuant to Section 9.01(5) hereof with respect to the outstanding
Securities on and after the date the conditions set forth below are satisfied
(hereinafter, "Covenant Defeasance"), and the Securities shall thereafter be
deemed not "outstanding" for the purposes of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in
connection with such covenants, but shall continue to be deemed "outstanding"
for all other purposes hereunder (it being understood that such Securities shall
not be deemed outstanding for accounting purposes) and Holders of the Securities
and any amounts deposited under Section 8.03 hereof shall cease to be subject to
any obligations to, or the rights of, any holder of Senior Debt under Article
Ten or Guarantor Senior Debt, if any, under Article Twelve or otherwise. For
this purpose, such Covenant Defeasance means that, with respect to the
outstanding Securities, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document and such omission to
comply shall not constitute a Default or an Event of Default under

                                      -105-

<PAGE>

Section 6.01(c) hereof, but, except as specified above, the remainder of this
Indenture and such Securities shall be unaffected thereby. In addition, upon the
Company's exercise under paragraph (a) hereof of the option applicable to this
paragraph (c), subject to the satisfaction of the conditions set forth in
Section 8.03 hereof and Sections 6.01(c), 6.01(d), 6.01(e), 6.01(f) and 6.01(g)
shall not constitute Events of Default.

SECTION 8.03.     Conditions to Legal Defeasance or Covenant Defeasance.

          The following shall be the conditions to the application of either
Section 8.02(b) or 8.02(c) hereof to the outstanding Securities:

          (a)     the Company must irrevocably deposit with the Trustee, in
     trust, for the benefit of the Holders, U.S. Legal Tender or U.S. Government
     Obligations or a combination thereof, in such amounts as will be
     sufficient, in the opinion of a nationally recognized firm of independent
     public accountants expressed in a written certification thereof delivered
     to the Trustee, to pay the principal of, premium, if any, and interest on
     the Securities on the stated date for payment thereof or on the applicable
     redemption date, as the case may be;

          (b)     in the case of an election under Section 8.02(b) hereof, the
     Company shall have delivered to the Trustee an Opinion of Counsel in the
     United States reasonably acceptable to the Trustee confirming that (A) the
     Company has received from, or there has been published by, the Internal
     Revenue Service a ruling or (B) since the date of this Indenture, there has
     been a change in the applicable federal income tax law, in either case to
     the effect that, and based thereon such Opinion of Counsel shall confirm
     that, the Holders will not recognize income, gain or loss for federal
     income tax purposes as a result of such Legal Defeasance and will be
     subject to federal income tax on the same amounts, in the same manner and
     at the same times as would have been the case if such Legal Defeasance had
     not occurred;

          (c)     in the case of an election under Section 8.02(c) hereof, the
     Company shall have delivered to the Trustee an Opinion of Counsel in the
     United States reasonably acceptable to the Trustee confirming that the
     Holders of the Securities will not recognize income, gain or loss for
     federal

                                      -106-

<PAGE>

     income tax purposes as a result of such Covenant Defeasance and will be
     subject to federal income tax on the same amounts, in the same manner and
     at the same times as would have been the case if such Covenant Defeasance
     had not occurred;

          (d)     no Default or Event of Default shall have occurred and be
     continuing on the date of such deposit (other than a Default or Event of
     Default resulting from the incurrence of Indebtedness all or a portion of
     the proceeds of which will be used to defease the Securities pursuant to
     this Article Eight concurrently with such incurrence);

          (e)     such Legal Defeasance or Covenant Defeasance shall not result
     in a breach or violation of, or constitute a default under, any other
     material agreement or instrument to which the Company or any of its
     Subsidiaries is a party or by which the Company or any of its Subsidiaries
     is bound;

          (f)     the Company shall have delivered to the Trustee an Officers'
     Certificate stating that the deposit was not made by the Company with the
     intent of preferring the Holders over any other creditors of the Company or
     with the intent of defeating, hindering, delaying or defrauding any other
     creditors of the Company or others;

          (g)     the Company shall have delivered to the Trustee an Officers'
     Certificate and an Opinion of Counsel, each stating that all conditions
     precedent provided for or relating to the Legal Defeasance or the Covenant
     Defeasance have been complied with;

          (h)     the Company shall have delivered to the Trustee an Opinion of
     Counsel to the effect that assuming no intervening bankruptcy or insolvency
     of the Company between the date of deposit and the 91st day following the
     deposit and that no Holder is an insider of the Company, after the 91st day
     following the deposit, the trust funds will not be subject to the effect of
     any applicable Bankruptcy Law.

          Notwithstanding the foregoing, the Opinion of Counsel required by
clause (b) above of this Section 8.03 with respect to a Legal Defeasance need
not be delivered if all Securities not theretofore delivered to the Trustee for
cancellation (i) have become due and payable or (ii) will become due and payable

                                      -107-

<PAGE>

on the Maturity Date within one year, or are to be called for redemption within
one year, under arrangements reasonably satisfactory to the Trustee for the
giving of notice of redemption by the Trustee in the name, and at the expense,
of the Company.

SECTION 8.04.     Application of Trust Money.

          The Trustee or Paying Agent shall hold in trust U.S. Legal Tender or
U.S. Government Obligations deposited with it pursuant to this Article Eight,
and shall apply the deposited U.S. Legal Tender and the money from U.S.
Government Obligations in accordance with this Indenture to the payment of
principal of and interest on the Securities. The Trustee shall be under no
obligation to invest said U.S. Legal Tender or money paid in respect of U.S.
Government Obligations.

          The Company shall pay and indemnify the Trustee against any tax, fee
or other charge imposed on or assessed against the U.S. Legal Tender or U.S.
Government Obligations deposited pursuant to Section 8.03 hereof or the
principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the
outstanding Securities.

          Anything in this Article Eight to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon the Company's
request any U.S. Legal Tender or U.S. Government Obligations held by it as
provided in Section 8.03 hereof which, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, are in excess of the amount thereof that would
then be required to be deposited to effect an equivalent Legal Defeasance or
Covenant Defeasance.

SECTION 8.05.     Repayment to the Company.

          Subject to this Article Eight, the Trustee and the Paying Agent shall
promptly pay to the Company upon request any excess U.S. Legal Tender or U.S.
Government Obligations held by them at any time and thereupon shall be relieved
from all liability with respect to such money. The Trustee and the Paying Agent
shall pay to the Company upon request any money held by them for the payment of
principal or interest that remains unclaimed for two years. After payment to the
Company, Holders entitled to such money must look to the Company for payment as

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general creditors unless an applicable law designates another Person.

SECTION 8.06.     Reinstatement.

          If the Trustee or Paying Agent is unable to apply any U.S. Legal
Tender or money received in respect of U.S. Government Obligations in accordance
with this Article Eight by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, the Company's obligations under this Indenture and the Securities,
and each Guarantor's obligation under its Guarantee shall be revived and
reinstated as though no deposit had occurred pursuant to this Article Eight
until such time as the Trustee or Paying Agent is permitted to apply all such
U.S. Legal Tender or money received in respect of U.S. Government Obligations in
accordance with this Article Eight; provided that if the Company has made any
payment of interest on or principal of any Securities because of the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Securities to receive such payment from the U.S. Legal
Tender or U.S. Government Obligations held by the Trustee or Paying Agent.

                                  ARTICLE NINE

                       AMENDMENTS, SUPPLEMENTS AND WAIVERS

SECTION 9.01.     Without Consent of Holders.

          Subject to Section 9.03, the Company, the Guarantors and the Trustee,
as applicable, together, may amend or supplement this Indenture, the Securities
or the Guarantees without notice to or consent of any Securityholder:

          (1)     to cure any ambiguity, defect or inconsistency;

          (2)     to evidence the succession in accordance with Article Five
     hereof of another Person to the Company and the assumption by any such
     successor of the covenants of the Company herein and in the Securities;

          (3)     to provide for uncertificated Securities in addition to or in
     place of certificated Securities;

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          (4)     to make any other change that does not adversely affect the
     rights of any Securityholders hereunder in any material respect;

          (5)     to comply with any requirements of the Commission in
     connection with the qualification of this Indenture under the TIA;

          (6)     to add or release any Guarantor pursuant to the terms of this
     Indenture; or

          (7)     to add to the covenants of the Company for the benefit of the
     Holders or to surrender any right or power conferred upon the Company,

provided that the Company has delivered to the Trustee, upon the Trustee's
request, an Opinion of Counsel and/or an Officers' Certificate, each stating
that such amendment or supplement complies with the provisions of this Section
9.01.

Notwithstanding the foregoing provisions of this Section 9.01 and of Section
9.02, on or after the date hereof (but after the execution and delivery of this
Indenture and the issuance of the Securities), BWAY, BWAY Manufacturing and the
Trustee may execute and deliver a supplemental indenture giving effect to the
BWAY Assumption and to the Guarantee by BWAY Manufacturing of the Securities, in
each case without notice to or consent of any Holder.

SECTION 9.02.     With Consent of Holders.

          Subject to Sections 6.07 and 9.03, the Company, the Guarantors and the
Trustee, as applicable, together, with the written consent of the Holder or
Holders of at least a majority in aggregate principal amount of the outstanding
Securities, may amend or supplement this Indenture, the Securities or the
Guarantees, without notice to any other Securityholders. Subject to Sections
6.07 and 9.03, the Holder or Holders of a majority in aggregate principal amount
of the outstanding Securities may waive compliance by the Company with any
provision of this Indenture, the Securities or the Guarantees without notice to
any other Securityholder. Without the consent of each Securityholder affected,
however, no amendment, supplement or waiver, including a waiver pursuant to
Section 6.04, may:

          (1)     reduce the amount of Securities whose Holders must consent to
     an amendment, supplement or waiver;

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          (2)     reduce the rate of or change or have the effect of changing
     the time for payment of interest, including default interest, on any
     Securities;

          (3)     reduce the principal of or change or have the effect of
     changing the fixed maturity of any Securities, or change the date on which
     any Securities may be subject to redemption or reduce the redemption price
     therefor;

          (4)     make any Securities payable in money other than that stated in
     the Securities;

          (5)     make any change in provisions of this Indenture protecting the
     right of each Holder to receive payment of principal of and interest on
     such Security on or after the due date thereof or to bring suit to enforce
     such payment, or permitting Holders of a majority in principal amount of
     the Securities to waive Defaults or Events of Default;

          (6)     after the Company's obligation to purchase Securities arises
     thereunder, amend, change or modify in any material respect the obligation
     of the Company to make and consummate a Change of Control Offer with
     respect to a Change of Control that has occurred or make and consummate a
     Net Proceeds Offer with respect to any Asset Sale that has been
     consummated, or modify any of the provisions or definitions with respect
     thereto;

          (7)     make any change to paragraph 8 of the Securities (other than
     the Exchange Securities) which would adversely affect the rights of any of
     the Holders to receive the Mandatory Redemption Price; or

          (8)     modify or change any provision of this Indenture or the
     related definitions affecting the subordination or ranking of the
     Securities or any Guarantee in a manner which adversely affects the
     Holders.

          Notwithstanding Section 9.01 and the foregoing provisions of this
Section 9.02, no amendment or modification to Article Ten or Twelve of this
Indenture that adversely affects the rights of (i) the Holders of Indebtedness
under the Credit Facility or (ii) any Holder of Senior Indebtedness at the time
outstanding (which Senior Indebtedness has been previously designated in writing
by the Company to the Trustee for this purpose) may be made unless the holders
of the Senior Indebtedness referred to in clauses (i) and (ii) above (or any
group or representative

                                      -111-

<PAGE>

thereof authorized to give a consent) consent in writing to such amendment or
modification.

          It shall not be necessary for the consent of the Holders under this
Section to approve the particular form of any proposed amendment, supplement or
waiver, but it shall be sufficient if such consent approves the substance
thereof.

          After an amendment, supplement or waiver under this Section 9.02
becomes effective, the Company shall mail to the Holders affected thereby a
notice briefly describing the amendment, supplement or waiver. Any failure of
the Company to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such supplemental indenture.

SECTION 9.03.     Effect on Senior Debt.

          No amendment of, or supplement or waiver to, this Indenture shall
adversely affect the rights of any holder of Senior Debt or Guarantor Senior
Debt under Article Ten or Article Twelve, as the case may be, of this Indenture,
without the consent of such holder.

SECTION 9.04.     Compliance with TIA.

          From the date on which this Indenture is qualified under the TIA,
every amendment, waiver or supplement of this Indenture, the Securities or the
Guarantees shall comply with the TIA as then in effect.

SECTION 9.05.     Revocation and Effect of Consents.

          Until an amendment, waiver or supplement becomes effective, a consent
to it by a Holder is a continuing consent by the Holder and every subsequent
Holder of a Security or portion of a Security that evidences the same debt as
the consenting Holder's Security, even if notation of the consent is not made on
any Security. However, any such Holder or subsequent Holder may revoke the
consent as to his Security or portion of his Security by notice to the Trustee
or the Company received before the date on which the Trustee receives an
Officers' Certificate certifying that the Holders of the requisite principal
amount of Securities have consented (and not theretofore revoked such consent)
to the amendment, supplement or waiver.

          The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Holders entitled

                                      -112-

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to consent to any amendment, supplement or waiver. If a record date is fixed,
then notwithstanding the last sentence of the immediately preceding paragraph,
those Persons who were Holders at such record date (or their duly designated
proxies), and only those Persons, shall be entitled to revoke any consent
previously given, whether or not such Persons continue to be Holders after such
record date.

          After an amendment, supplement or waiver becomes effective, it shall
bind every Securityholder, unless it makes a change described in any of clauses
(1) through (8) of Section 9.02, in which case, the amendment, supplement or
waiver shall bind only each Holder of a Security who has consented to it and
every subsequent Holder of a Security or portion of a Security that evidences
all or part of the same debt as the consenting Holder's Security; provided that
any such waiver shall not impair or affect the right of any Holder to receive
payment of principal of and interest on a Security, on or after the respective
due dates expressed in such Security, or to bring suit for the enforcement of
any such payment on or after such respective dates without the consent of such
Holder.

SECTION 9.06.     Notation on or Exchange of Securities.

          If an amendment, supplement or waiver changes the terms of a Security,
the Company may require the Holder of the Security to deliver it to the Trustee.
The Company shall provide the Trustee with an appropriate notation on the
Security about the changed terms and cause the Trustee to return it to the
Holder at the Company's expense. Alternatively, if the Company or the Trustee so
determines, the Company in exchange for the Security shall issue and the Trustee
shall authenticate a new Security that reflects the changed terms. Failure to
make the appropriate notation or issue a new Security shall not affect the
validity and effect of such amendment, supplement or waiver.

SECTION 9.07.     Trustee To Sign Amendments, Etc.

          The Trustee shall execute any amendment, supplement or waiver
authorized pursuant to this Article Nine; provided that the Trustee may, but
shall not be obligated to, execute any such amendment, supplement or waiver
which affects the Trustee's own rights, duties or immunities under this
Indenture. The Trustee shall be entitled to receive, and shall be fully
protected in relying upon, an Opinion of Counsel and an Officers' Certificate,
each stating that the execution of any

                                      -113-

<PAGE>

amendment, supplement or waiver authorized pursuant to this Article Nine is
authorized or permitted by this Indenture and constitutes the legal, valid and
binding obligations of the Company enforceable in accordance with its terms.
Such Opinion of Counsel shall be at the expense of the Company.

                                   ARTICLE TEN

                           SUBORDINATION OF SECURITIES

SECTION 10.01.    Securities Subordinated to Senior Debt.

          Anything herein to the contrary notwithstanding, the Company, for
itself and its successors, and each Holder, by his or her acceptance of
Securities, agrees that the payment of all Obligations owing to the Holders in
respect of the Securities is subordinated, to the extent and in the manner
provided in this Article Ten, to the prior payment in full in cash or Cash
Equivalents (other than Cash Equivalents of the type referred to in clauses (4),
(5) and (6) of the definition thereof), or such payment duly provided for to the
satisfaction of the holders of Senior Debt, of all Senior Debt (including the
Obligations with respect to the Credit Facility). Notwithstanding the foregoing,
payments and distributions made relating to the Securities pursuant to the trust
described under Article Eight shall not be so subordinated in right of payment.

          This Article Ten shall constitute a continuing offer to all Persons
who become holders of, or continue to hold, Senior Debt, and such provisions are
made for the benefit of the holders of Senior Debt and such holders are made
obligees hereunder and any one or more of them may enforce such provisions. Each
such holder shall be deemed to have acquired such Senior Debt in reliance upon
the covenants and provisions contained in this Article Ten.

SECTION 10.02.    Suspension of Payment When Senior Debt Is in Default.

          (a)     If any default occurs and is continuing in the payment when
due, whether at maturity, upon any redemption, by declaration or otherwise, of
any principal of, interest on, unpaid drawings for letters of credit issued in
respect of, or regularly accruing fees with respect to, any Senior Debt (a
"Payment Default"), then no payment or distribution of any kind or character
shall be made by or on behalf of the Company or

                                      -114-

<PAGE>

any other Person on its or their behalf with respect to any Obligations on or
relating to the Securities or to acquire any of the Securities for cash or
property or otherwise.

          (b)     If any other event of default (other than a Payment Default)
occurs and is continuing with respect to any Designated Senior Debt (as such
event of default is defined in the instrument creating or evidencing such
Designated Senior Debt) permitting the holders of such Designated Senior Debt
then outstanding to accelerate the maturity thereof (a "Non-payment Default")
and if the Representative for the respective issue of Designated Senior Debt
gives notice of the event of default to the Trustee stating that such notice is
a payment blockage notice (a "Payment Blockage Notice"), then, unless and until
all events of default have been cured or waived or have ceased to exist or a
Responsible Officer of the Trustee receives at the Corporate Trust Office of the
Trustee written notice thereof from the Representative for the respective issue
of Designated Senior Debt terminating the Payment Blockage Period, during the
180 days after the delivery of such Payment Blockage Notice (the "Payment
Blockage Period"), neither the Company nor any other Person on its behalf shall
(x) make any payment or distribution of any kind or character with respect to
any Obligations on or with respect to the Securities or (y) acquire any of the
Securities for cash or property or otherwise. Notwithstanding anything herein to
the contrary, (x) in no event will a Payment Blockage Period extend beyond 180
days from the date the applicable Payment Blockage Notice is received by the
Trustee and (y) only one such Payment Blockage Notice may be delivered within
any 360 consecutive days. For all purposes of this Section 10.02(b), no event of
default which existed or was continuing on the date of the commencement of any
Payment Blockage Period with respect to the Designated Senior Debt shall be, or
be made, the basis for the commencement of a second Payment Blockage Period by
the Representative of such Designated Senior Debt whether or not within a period
of 360 consecutive days, unless such event of default shall have been cured or
waived for a period of not less than 90 consecutive days (it being acknowledged
that any subsequent action, or any breach of any financial covenants for a
period commencing after the date of commencement of such Payment Blockage Period
that, in either case, would give rise to an event of default pursuant to any
provisions under which an event of default previously existed or was continuing
shall constitute a new event of default for this purpose).

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          (c)     In the event that, notwithstanding the foregoing, any payment
shall be received by the Trustee or any Holder when such payment is prohibited
by the foregoing provisions of this Section 10.02, such payment shall be held in
trust for the benefit of, and shall be paid over or delivered to, the holders of
Senior Debt (pro rata to such holders on the basis of the respective amount of
Senior Debt held by such holders) or their respective Representatives, as their
respective interests may appear. The Trustee shall be entitled to rely on
information regarding amounts then due and owing on the Senior Debt, if any,
received from the holders of Senior Debt (or their Representatives) or, if such
information is not received from such holders or their Representatives, from the
Company and only amounts included in the information provided to the Trustee
shall be paid to the holders of Senior Debt.

          If payment of the Securities is accelerated because of an Event of
Default, the Company or the Trustee shall promptly notify the holders of the
Senior Debt or the Representative of such holders of the acceleration. If any
Senior Debt is outstanding, such acceleration will not be effective until the
time specified in Section 6.02.

          Nothing contained in this Article Ten shall limit the right of the
Trustee or the Holders of Securities to take any action to accelerate the
maturity of the Securities pursuant to Section 6.02 or to pursue any rights or
remedies hereunder; provided that all Senior Debt thereafter due or declared to
be due shall first be paid in full in cash or Cash Equivalents (other than Cash
Equivalents of the type referred to in clauses (4), (5) and (6) of the
definition thereof) before the Holders are entitled to receive any payment of
any kind or character with respect to Obligations on the Securities.

SECTION 10.03.    Securities Subordinated to Prior Payment of All Senior Debt on
                  Dissolution, Liquidation or Reorganization of the Company.

          (a)     Upon any payment or distribution of assets of the Company of
any kind or character, whether in cash, property or securities, to creditors
upon any total or partial liquidation, dissolution, winding-up, reorganization,
assignment for the benefit of creditors or marshaling of assets of the Company
or in a bankruptcy, reorganization, insolvency, receivership or other similar
proceeding relating to the Company or its property, whether voluntary or
involuntary, all Obligations due or

                                      -116-

<PAGE>

to become due upon all Senior Debt shall first be paid in full in cash or Cash
Equivalents (other than Cash Equivalents of the type referred to in clauses (4),
(5) and (6) of the definition thereof), or such payment duly provided for to the
satisfaction of the holders of Senior Debt, before any payment or distribution
of any kind or character is made on account of any Obligations on or relating to
the Securities, or for the acquisition of any of the Securities for cash or
property or otherwise. Upon any such dissolution, winding-up, liquidation,
reorganization, receivership or similar proceeding, any payment or distribution
of assets of the Company of any kind or character, whether in cash, property or
securities, to which the Holders of the Securities or the Trustee under this
Indenture would be entitled, except for the provisions hereof, shall be paid by
the Company or by any receiver, trustee in bankruptcy, liquidating trustee,
agent or other Person making such payment or distribution, or by the Holders or
by the Trustee under this Indenture if received by them, directly to the holders
of Senior Debt (pro rata to such holders on the basis of the respective amounts
of Senior Debt held by such holders) or their respective Representatives, or to
the trustee or trustees under any indenture pursuant to which any of such Senior
Debt may have been issued, as their respective interests may appear, for
application to the payment of Senior Debt remaining unpaid until all such Senior
Debt has been paid in full in cash or Cash Equivalents (other than Cash
Equivalents of the type referred to in clauses (4), (5) and (6) of the
definition thereof) after giving effect to any concurrent payment, distribution
or provision therefor to or for the holders of Senior Debt.

          (b)     To the extent any payment of Senior Debt (whether by or on
behalf of the Company, as proceeds of security or enforcement of any right of
setoff or otherwise) is declared to be fraudulent or preferential, set aside or
required to be paid to any receiver, trustee in bankruptcy, liquidating trustee,
agent or other similar Person under any bankruptcy, insolvency, receivership,
fraudulent conveyance or similar law, then, if such payment is recovered by, or
paid over to, such receiver, trustee in bankruptcy, liquidating trustee, agent
or other similar Person, the Senior Debt or part thereof originally intended to
be satisfied shall be deemed to be reinstated and outstanding as if such payment
had not occurred.

          (c)     In the event that, notwithstanding the foregoing, any payment
or distribution of assets of the Company of any kind or character, whether in
cash, property or securities, shall be received by any Holder when such payment
or distribution

                                      -117-

<PAGE>

is prohibited by this Section 10.03, such payment or distribution shall be held
in trust for the benefit of, and shall be paid over or delivered to, the holders
of Senior Debt (pro rata to such holders on the basis of the respective amount
of Senior Debt held by such holders) or their respective Representatives, or to
the trustee or trustees under any indenture pursuant to which any of such Senior
Debt may have been issued, as their respective interests may appear, for
application to the payment of Senior Debt remaining unpaid until all such Senior
Debt has been paid in full in cash or Cash Equivalents (other than Cash
Equivalents of the type referred to in clauses (4), (5) and (6) of the
definition thereof), after giving effect to any concurrent payment, distribution
or provision therefor to or for the holders of such Senior Debt.

          (d)     The consolidation of the Company with, or the merger of the
Company with or into, another Person or the liquidation or dissolution of the
Company following the conveyance or transfer of all or substantially all of its
assets, to another Person upon the terms and conditions provided in Article Five
hereof and as long as permitted under the terms of the Senior Debt shall not be
deemed a dissolution, winding-up, liquidation or reorganization for the purposes
of this Section if such other Person shall, as a part of such consolidation,
merger, conveyance or transfer, assume the Company's obligations hereunder in
accordance with Article Five hereof.

SECTION 10.04.    Payments May Be Paid Prior to Dissolution.

          Nothing contained in this Article Ten or elsewhere in this Indenture
shall prevent (i) the Company, except under the conditions described in Sections
10.02 and 10.03, from making payments at any time for the purpose of making
payments of principal of and interest on the Securities, or from depositing with
the Trustee any moneys for such payments, or (ii) in the absence of actual
knowledge by a Responsible Officer of the Trustee that a given payment would be
prohibited by Section 10.02 or 10.03, the application by the Trustee of any
moneys deposited with it for the purpose of making such payments of principal
of, and interest on, the Securities to the Holders entitled thereto unless at
least two Business Days prior to the date upon which such payment would
otherwise become due and payable a Responsible Officer shall have actually
received the written notice provided for in the first sentence of Section
10.02(b) or in Section 10.07 (provided that, notwithstanding the foregoing, the
subordination of the Securities to Senior

                                      -118-

<PAGE>

Debt shall not be affected and the Holders receiving any payments made in
contravention of Section 10.02 and/or 10.03 (and the respective such payments)
shall otherwise be subject to the provisions of this Article Ten). The Company
shall give prompt written notice to the Trustee of any dissolution, winding-up,
liquidation or reorganization of the Company, although any delay or failure to
give any such notice shall have no effect on the subordination provisions
contained herein.

SECTION 10.05.    Holders To Be Subrogated to Rights of Holders of Senior Debt.

          Subject to the payment in full in cash or Cash Equivalents (other than
Cash Equivalents of the type referred to in clauses (4), (5) and (6) of the
definition thereof) of all Senior Debt, the Holders of the Securities shall be
subrogated to the rights of the holders of Senior Debt to receive payments or
distributions of cash, property or securities of the Company applicable to the
Senior Debt until the Securities shall be paid in full; and, for the purposes of
such subrogation, no such payments or distributions to the holders of the Senior
Debt by or on behalf of the Company, or by or on behalf of the Holders by virtue
of this Article Ten, which otherwise would have been made to the Holders shall,
as between the Company and the Holders, be deemed to be a payment by the Company
to or on account of the Senior Debt, it being understood that the provisions of
this Article Ten are and are intended solely for the purpose of defining the
relative rights of the Holders, on the one hand, and the holders of Senior Debt,
on the other hand.

SECTION 10.06.    Obligations of the Company Unconditional.

          Nothing contained in this Article Ten or elsewhere in this Indenture
or in the Securities is intended to or shall impair, as among the Company, its
creditors other than the holders of Senior Debt, and the Holders, the obligation
of the Company, which is absolute and unconditional, to pay to the Holders the
principal of and any interest on the Securities as and when the same shall
become due and payable in accordance with their terms, or is intended to or
shall affect the relative rights of the Holders and creditors of the Company
other than the holders of the Senior Debt, nor shall anything herein or therein
prevent the Holder of any Security or the Trustee on its behalf from exercising
all remedies otherwise permitted by applicable law upon default under this
Indenture, subject to

                                      -119-

<PAGE>

the rights, if any, in respect of cash, property or securities of the Company
received upon the exercise of any such remedy.

SECTION 10.07.    Notice to Trustee.

          The Company shall give prompt written notice to the Trustee of any
fact known to the Company which would prohibit the making of any payment to or
by the Trustee in respect of the Securities pursuant to the provisions of this
Article Ten, although any delay or failure to give any such notice shall have no
effect on the subordination provisions contained herein. Regardless of anything
to the contrary contained in this Article Ten or elsewhere in this Indenture,
the Trustee shall not be charged with knowledge of the existence of any default
or event of default with respect to any Senior Debt or of any other facts which
would prohibit the making of any payment to or by the Trustee unless and until a
Responsible Officer of the Trustee shall have received at the Corporate Trust
Office of the Trustee notice in writing from the Company or from a holder of
Senior Debt or a Representative therefor and, prior to the receipt of any such
written notice, the Trustee shall be entitled to assume that no such facts
exist. The Trustee shall be entitled to rely on the delivery to it of any notice
pursuant to this Section 10.07 to establish that such notice has been given by a
holder of Senior Debt (or a Representative thereof).

          In the event that the Trustee determines in good faith that any
evidence is required with respect to the right of any Person as a holder of
Senior Debt to participate in any payment or distribution pursuant to this
Article Ten, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amounts of Senior Debt held by
such Person, the extent to which such Person is entitled to participate in such
payment or distribution and any other facts pertinent to the rights of such
Person under this Article Ten, and if such evidence is not furnished the Trustee
may defer any payment to such Person pending judicial determination as to the
right of such Person to receive such payment.

SECTION 10.08.    Reliance on Judicial Order or Certificate of Liquidating
                  Agent.

          Upon any payment or distribution of assets of the Company referred to
in this Article Ten, the Trustee, subject to the provisions of Article Seven
hereof, and the Holders of the Securities shall be entitled to rely upon any
order or decree

                                      -120-

<PAGE>

made by any court of competent jurisdiction in which any insolvency, bankruptcy,
receivership, dissolution, winding-up, liquidation, reorganization or similar
case or proceeding is pending, or upon a certificate of the receiver, trustee in
bankruptcy, liquidating trustee, assignee for the benefit of creditors, agent or
other person making such payment or distribution, delivered to the Trustee or
the Holders of the Securities, for the purpose of ascertaining the Persons
entitled to participate in such payment or distribution, the holders of the
Senior Debt and other Indebtedness of the Company, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Article Ten.

SECTION 10.09.    Trustee's Relation to Senior Debt.

          The Trustee and any agent of the Company or the Trustee shall be
entitled to all the rights set forth in this Article Ten with respect to any
Senior Debt which may at any time be held by it in its individual or any other
capacity to the same extent as any other holder of Senior Debt and nothing in
this Indenture shall deprive the Trustee or any such agent of any of its rights
as such holder.

          With respect to the holders of Senior Debt, the Trustee undertakes to
perform or to observe only such of its covenants and obligations as are
specifically set forth in this Article Ten, and no implied covenants or
obligations with respect to the holders of Senior Debt shall be read into this
Indenture against the Trustee. The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Debt.

          Whenever a distribution is to be made or a notice given to holders or
owners of Senior Debt, the distribution may be made and the notice may be given
to their Representative, if any.

SECTION 10.10.    Subordination Rights Not Impaired by Acts or Omissions of the
                  Company or Holders of Senior Debt.

          No right of any present or future holders of any Senior Debt to
enforce subordination as provided herein shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the Company
or by any act or failure to act by any such holder, or by any noncompliance by
the Company with the terms of this Indenture, regardless of any

                                      -121-

<PAGE>

knowledge thereof which any such holder may have or otherwise be charged with.

          Without in any way limiting the generality of the foregoing paragraph,
the holders of Senior Debt may, at any time and from time to time, without the
consent of or notice to the Trustee, without incurring responsibility to the
Trustee or the Holders of the Securities and without impairing or releasing the
subordination provided in this Article Ten or the obligations hereunder of the
Holders of the Securities to the holders of the Senior Debt, do any one or more
of the following: (i) change the manner, place or terms of payment or extend the
time of payment of, or renew or alter, Senior Debt, or otherwise amend or
supplement in any manner Senior Debt, or any instrument evidencing the same or
any agreement under which Senior Debt is outstanding; (ii) sell, exchange,
release or otherwise deal with any property pledged, mortgaged or otherwise
securing Senior Debt; (iii) release any Person liable in any manner for the
payment or collection of Senior Debt; and (iv) exercise or refrain from
exercising any rights against the Company and any other Person.

SECTION 10.11.    Securityholders Authorize Trustee To Effectuate Subordination
                  of Securities.

          Each Holder of Securities by its acceptance of them authorizes and
expressly directs the Trustee on its behalf to take such action as may be
necessary or appropriate to effectuate, as between the holders of Senior Debt
and the Holders of Securities, the subordination provided in this Article Ten,
and appoints the Trustee its attorney-in-fact for such purposes, including, in
the event of any dissolution, winding-up, liquidation or reorganization of the
Company (whether in bankruptcy, insolvency, receivership, reorganization or
similar proceedings or upon an assignment for the benefit of credits or
otherwise) tending towards liquidation of the business and assets of the
Company, the filing of a claim for the unpaid balance of its Securities and
accrued interest in the form required in those proceedings.

          If the Trustee does not file a proper claim or proof of debt in the
form required in such proceeding prior to 30 days before the expiration of the
time to file such claim or claims, then the holders of the Senior Debt or their
Representative are or is hereby authorized to have the right to file and are or
is hereby authorized to file an appropriate claim for and on behalf of the
Holders of said Securities. Nothing

                                      -122-

<PAGE>

herein contained shall be deemed to authorize the Trustee or the holders of
Senior Debt or their Representative to authorize or consent to or accept or
adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder
thereof, or to authorize the Trustee or the holders of Senior Debt or their
Representative to vote in respect of the claim of any Holder in any such
proceeding.

SECTION 10.12.    This Article Ten Not To Prevent Events of Default.

          The failure to make a payment on account of principal of or interest
on the Securities by reason of any provision of this Article Ten will not be
construed as preventing the occurrence of an Event of Default.

SECTION 10.13.    Trustee's Compensation Not Prejudiced.

          Nothing in this Article Ten will apply to amounts due to the Trustee
pursuant to other sections of this Indenture.

                                 ARTICLE ELEVEN

                             GUARANTEE OF SECURITIES

SECTION 11.01.    Unconditional Guarantee.

          Each Guarantor from time to time party hereto jointly and severally,
unconditionally and irrevocably guarantees, on a senior subordinated basis (such
guarantees to be referred to herein as a "Guarantee") to each Holder of a
Security authenticated and delivered by the Trustee and to the Trustee and its
successors and assigns, irrespective of the validity and enforceability of this
Indenture, the Securities or the obligations of the Company or any other
Guarantors to the Holders or the Trustee hereunder or thereunder, that: (a) the
principal of, premium, if any, and interest on the Securities shall be duly and
punctually paid in full when due, whether at maturity, upon redemption at the
option of Holders pursuant to the provisions of the Securities relating thereto,
by acceleration or otherwise, and interest on the overdue principal and (to the
extent permitted by law) interest, if any, on the Securities and all other
monetary obligations of the Company or the Guarantors to the Holders or the
Trustee hereunder or thereunder (including amounts due the Trustee under Section
7.07 hereof)

                                      -123-

<PAGE>

and all other monetary obligations shall be promptly paid in full, all in
accordance with the terms hereof and thereof; and (b) in case of any extension
of time of payment or renewal of any Securities or any of such other
obligations, the same shall be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at maturity, by
acceleration or otherwise. Failing payment when due of any amount so guaranteed,
for whatever reason, each Guarantor shall be obligated to pay the same
immediately. An Event of Default under this Indenture or the Securities shall
constitute an event of default under the Guarantee, and shall entitle the
Holders of Securities to accelerate the obligations of the Guarantors hereunder
in the same manner and to the same extent as the obligations of the Company.

          Each Guarantor agrees (to the fullest extent permitted by law) that
its obligations hereunder shall be unconditional, irrespective of the validity,
regularity or enforceability of the Securities or this Indenture, the absence of
any action to enforce the same, any waiver or consent by any Holder of the
Securities with respect to any provisions hereof or thereof, any release of any
other Guarantor, the recovery of any judgment against the Company, any action to
enforce the same, whether or not a Guarantee is affixed to any particular
Security, or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a Guarantor. Each of the Guarantors hereby
waives (to the fullest extent permitted by law) the benefit of diligence,
presentment, demand of payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Company, any right to require a proceeding first
against the Company, protest, notice and all demands whatsoever and covenants
that its Guarantee shall not be discharged except by complete performance of the
obligations contained in the Securities, this Indenture and this Guarantee. Each
Guarantee is a guarantee of payment and not of collection. If any Holder or the
Trustee is required by any court or otherwise to return to the Company or to any
Guarantor, or any custodian, trustee, liquidator or other similar official
acting in relation to the Company or such Guarantor, any amount paid by the
Company or such Guarantor to the Trustee or such Holder, each such Guarantee, to
the extent theretofore discharged, shall be reinstated in full force and effect.
Each Guarantor further agrees (to the fullest extent permitted by law) that, as
between it, on the one hand, and the Holders of Securities and the Trustee, on
the other hand, (a) subject to this Article Eleven and Article Twelve hereof,
the maturity of the obligations guaranteed by its Guarantee may be accelerated

                                      -124-

<PAGE>

as provided in Article Six hereof for the purposes of its Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed thereby, and (b) in the
event of any acceleration of such obligations as provided in Article Six hereof,
such obligations (whether or not due and payable) shall forthwith become due and
payable by the Guarantors for the purpose of their Guarantees.

          No stockholder, officer, director, employee or incorporator, past,
present or future, or any Guarantor, as such, shall have any personal liability
under any Guarantee by reason of his, her or its status as such stockholder,
officer, director, employee or incorporator.

SECTION 11.02.    Limitations on Guarantees.

          The obligations of each Guarantor under its Guarantee are limited to
the maximum amount which, after giving effect to all other contingent and fixed
liabilities of such Guarantor (including without limitation, its guarantee of
Obligations pursuant to the Credit Facility and any other Guarantor Senior
Debt), will result in the obligations of such Guarantor under its Guarantee not
constituting a fraudulent conveyance or fraudulent transfer under applicable
law, or being void or unenforceable under any applicable law, including any law
relating to the insolvency of debtors. Each Guarantor that makes a payment or
distribution under a Guarantee shall be entitled to a contribution from each
other Guarantor in an amount pro rata, based on the net assets of each
Guarantor, determined in accordance with GAAP.

SECTION 11.03.    Notation Not Required.

          Neither the Company nor any Guarantor shall be required to make a
notation on the Securities to reflect any Guarantee or any release, termination
or discharge thereof.

SECTION 11.04.    Release of a Guarantor.

          Notwithstanding the provisions of Section 11.09, any Guarantee will be
subject to termination and discharge under the circumstances described in this
Section 11.04.

          (a)     Upon (i) the occurrence of any of the events set forth in
     clauses (1) through (4) of Section 4.16 with respect to any Guarantor, or
     (ii) the dissolution or liquidation of any Guarantor in accordance with
     this Indenture,

                                      -125-

<PAGE>

     such Guarantor's Guarantee will be automatically discharged and released
     from all obligations under this Article Eleven without any further action
     required on the part of the Trustee or any Holder. Any Guarantor not so
     released or the entity surviving such Guarantor, as applicable, shall
     remain or be liable under its Guarantee as provided in this Article Eleven.

          (b)     Subject to Section 11.11, upon payment in full of the
     aggregate amount of all Securities then outstanding and all other
     obligations guaranteed under this Article Eleven, each Guarantor's
     Guarantee will be automatically discharged and released from all
     obligations under this Article Eleven without any further action required
     on the part of the Trustee or any Holder.

          (c)     The Trustee shall deliver an appropriate instrument evidencing
     the release of a Guarantor upon receipt of a request by the Company or such
     Guarantor accompanied by an Officers' Certificate and an Opinion of Counsel
     certifying as to the compliance with this Section 11.04; provided, however,
     that the legal counsel delivering such Opinion of Counsel may rely as to
     matters of fact on one or more Officers' Certificates of the Company.

          Except as set forth in Articles Four and Five and this Section 11.04,
nothing contained in this Indenture or in any of the Securities shall prevent
any consolidation or merger of a Guarantor with or into the Company or another
Guarantor or shall prevent any sale or conveyance of the property of a Guarantor
as an entirety or substantially as an entirety to the Company or another
Guarantor.

SECTION 11.05.    Waiver of Subrogation.

          Until this Indenture is discharged and all of the Securities are
discharged and paid in full, each Guarantor irrevocably waives, and agrees not
to exercise, any claim or other rights which it may then have or thereafter
acquire against the Company that arise from the existence, payment, performance
or enforcement of the Company's obligations under the Securities or this
Indenture and such Guarantor's obligations under its Guarantee and this
Indenture, in any such instance including, without limitation, any right of
subrogation, reimbursement, exoneration, contribution, indemnification, and any
right to participate in any claim or remedy of the Holders against the Company,
whether or not such claim, remedy or right

                                      -126-

<PAGE>

arises in equity, or under contract, statute or common law, including, without
limitation, the right to take or receive from the Company, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim or other rights. If any amount
shall be paid to any Guarantor in violation of the preceding sentence and any
amounts owing to the Trustee or the Holders of Securities under the Securities,
this Indenture, or any other document or instrument delivered under or in
connection with such agreements or instruments, shall not have been paid in
full, such amount shall have been deemed to have been paid to such Guarantor for
the benefit of, and held in trust for the benefit of, the Trustee or the Holders
and shall forthwith be paid to the Trustee for the benefit of itself or such
Holders to be credited and applied to the obligations in favor of the Trustee or
the Holders, as the case may be, whether matured or unmatured, in accordance
with the terms of this Indenture. Each Guarantor, by its execution of a
Guarantee, will acknowledge that it will receive direct and indirect benefits
from the financing arrangements contemplated by this Indenture and that the
waiver set forth in this Section 11.05 is knowingly made in contemplation of
such benefits.

SECTION 11.06.    Immediate Payment.

          Each Guarantor agrees to make immediate payment to the Trustee on
behalf of the Holders of all Obligations due and owing or payable to the
respective Holders upon receipt of a demand for payment therefor by the Trustee
to such Guarantor in writing.

SECTION 11.07.    No Set-Off.

          Each payment to be made by a Guarantor hereunder in respect of the
Obligations shall be payable in the currency or currencies in which such
Obligations are denominated, and shall be made without set-off, counterclaim,
reduction or diminution of any kind or nature.

SECTION 11.08.    Obligations Absolute.

          The obligations of each Guarantor hereunder are and shall be absolute
and unconditional and any monies or amounts expressed to be owing or payable by
each Guarantor hereunder or thereunder which may not be recoverable from such
Guarantor on the basis of a Guarantee shall be recoverable from such Guarantor

                                      -127-

<PAGE>

as a primary obligor and principal debtor in respect thereof.

SECTION 11.09.    Obligations Continuing.

          Subject to Section 11.04 hereof, the obligations of each Guarantor
hereunder shall be continuing and shall remain in full force and effect until
all the Obligations have been paid and satisfied in full. Each Guarantor, by its
execution of a Guarantee, will agree with the Trustee that, upon the Trustee's
reasonable request, it will from time to time deliver to the Trustee suitable
acknowledgments of this continued liability hereunder and under any other
instrument or instruments in such form as counsel to the Trustee (acting
reasonably) may advise and as will prevent any action brought against it in
respect of any default hereunder being barred by any statute of limitations now
or hereafter in force and, in the event of the failure of a Guarantor so to do,
it, by its execution of a Guarantee, will irrevocably appoint the Trustee the
attorney and agent of such Guarantor to make, execute and deliver such written
acknowledgment or acknowledgments or other instruments as may from time to time
become necessary or reasonably advisable, in the reasonable judgment of the
Trustee on the advice of counsel, to fully maintain and keep in force the
liability of such Guarantor hereunder and under its Guarantee.

SECTION 11.10.    Obligations Not Reduced.

          The obligations of each Guarantor hereunder shall not be satisfied,
reduced or discharged solely by the payment of such principal, premium, if any,
interest, fees and other monies or amounts as may at any time prior to discharge
of this Indenture pursuant to Article Eight be or become owing or payable under
or by virtue of or otherwise in connection with the Securities or this
Indenture.

SECTION 11.11.    Obligations Reinstated.

          The obligations of each Guarantor hereunder shall continue to be
effective or shall be reinstated, as the case may be, if at any time any payment
which would otherwise have reduced the obligations of any Guarantor hereunder
and under its Guarantee (whether such payment shall have been made by or on
behalf of the Company or by or on behalf of a Guarantor) is rescinded or
reclaimed from any of the Holders upon the insolvency, bankruptcy, liquidation
or reorganization of the Company or any Guarantor or otherwise, all as though
such payment had

                                      -128-

<PAGE>

not been made. If demand for, or acceleration of the time for, payment by the
Company is stayed upon the insolvency, bankruptcy, liquidation or reorganization
of the Company, all such Indebtedness otherwise subject to demand for payment or
acceleration shall nonetheless be payable by each Guarantor as provided herein
and under its Guarantee.

SECTION 11.12.    Obligations Not Affected.

          Subject to Section 11.04 hereof, to the fullest extent permitted by
law, the obligations of each Guarantor hereunder shall not be affected, impaired
or diminished in any way by any act, omission, matter or thing whatsoever,
occurring before, upon or after any demand for payment hereunder (and whether or
not known or consented to by any Guarantor or any of the Holders) which, but for
this provision, might constitute a whole or partial defense to a claim against
any Guarantor hereunder and under its Guarantee or might operate to release or
otherwise exonerate any Guarantor from any of its obligations hereunder and
under its Guarantee or otherwise affect such obligations, whether occasioned by
default of any of the Holders or otherwise, including, without limitation:

          (a)     any limitation of status or power, disability, incapacity or
     other circumstance relating to the Company or any other Person, including
     any insolvency, bankruptcy, liquidation, reorganization, readjustment,
     composition, dissolution, winding-up or other proceeding involving or
     affecting the Company or any other Person;

          (b)     any irregularity, defect, unenforceability or invalidity in
     respect of any indebtedness or other obligation of the Company or any other
     Person under this Indenture, the Securities or any other document or
     instrument;

          (c)     any failure of the Company, whether or not without fault on
     its part, to perform or comply with any of the provisions of this Indenture
     or the Securities, or to give notice thereof to a Guarantor;

          (d)     the taking or enforcing or exercising or the refusal or
     neglect to take or enforce or exercise any right or remedy from or against
     the Company or any other Person or their respective assets or the release
     or discharge of any such right or remedy;

                                      -129-

<PAGE>

          (e)     the granting of time, renewals, extensions, compromises,
     concessions, waivers, releases, discharges and other indulgences to the
     Company or any other Person;

          (f)     any change in the time, manner or place of payment of, or in
     any other term of, any of the Securities, or any other amendment,
     variation, supplement, replacement or waiver of, or any consent to
     departure from, any of the Securities or this Indenture, including, without
     limitation, any increase or decrease in the principal amount of or premium,
     if any, or interest on any of the Securities;

          (g)     any change in the ownership, control, name, objects,
     businesses, assets, capital structure or constitution of the Company or a
     Guarantor;

          (h)     any merger or amalgamation of the Company or a Guarantor with
     any Person or Persons;

          (i)     the occurrence of any change in the laws, rules, regulations
     or ordinances of any jurisdiction by any present or future action of any
     governmental authority or court amending, varying, reducing or otherwise
     affecting, or purporting to amend, vary, reduce or otherwise affect, any of
     the Obligations or the obligations of a Guarantor under its Guarantee; and

          (j)     any other circumstance, release of a Guarantor pursuant to
     Section 11.04 that might otherwise constitute a legal or equitable
     discharge or defense of the Company under this Indenture or the Securities
     or of a Guarantor in respect of its Guarantee hereunder.

SECTION 11.13.    Waiver.

          Without in any way limiting the provisions of Section 11.01 hereof,
each Guarantor waives (to the fullest extent permitted by law) notice of
acceptance hereof, notice of any liability of any Guarantor hereunder, notice or
proof of reliance by the Holders upon the obligations of any Guarantor
hereunder, and diligence, presentment, demand for payment on the Company,
protest, notice of dishonor or non-payment of any of the Obligations, or other
notice or formalities to the Company or any Guarantor of any kind whatsoever.

                                      -130-

<PAGE>

SECTION 11.14.    No Obligation To Take Action Against the Company.

          Neither the Trustee nor any other Person shall have any obligation to
enforce or exhaust any rights or remedies or to take any other steps under any
security for the Obligations or against the Company or any other Person or any
property of the Company or any other Person before the Trustee is entitled to
demand payment and performance by any or all Guarantors of their liabilities and
obligations under their Guarantees or under this Indenture.

SECTION 11.15.    Dealing with the Company and Others.

          To the fullest extent permitted by law, the Holders, without
releasing, discharging, limiting or otherwise affecting in whole or in part the
obligations and liabilities of any Guarantor hereunder and without the consent
of or notice to any Guarantor, may

          (a)     grant time, renewals, extensions, compromises, concessions,
     waivers, releases, discharges and other indulgences to the Company or any
     other Person;

          (b)     take or abstain from taking security or collateral from the
     Company or from perfecting security or collateral of the Company;

          (c)     release, discharge, compromise, realize, enforce or otherwise
     deal with or do any act or thing in respect of (with or without
     consideration) any and all collateral, mortgages or other security given by
     the Company or any third party with respect to the obligations or matters
     contemplated by this Indenture or the Securities;

          (d)     accept compromises or arrangements from the Company;

          (e)     apply all monies at any time received from the Company or from
     any security upon such part of the Obligations as the Holders may see fit
     or change any such application in whole or in part from time to time as the
     Holders may see fit; and

          (f)     otherwise deal with, or waive or modify their right to deal
     with, the Company and all other Persons and any security as the Holders or
     the Trustee may see fit.

                                      -131-

<PAGE>

SECTION 11.16.    Default and Enforcement.

          If any Guarantor fails to pay in accordance with Section 11.06 hereof,
the Trustee may proceed in its name as trustee hereunder in the enforcement of
the Guarantee of any such Guarantor and such Guarantor's obligations thereunder
and hereunder by any remedy provided by law, whether by legal proceedings or
otherwise, and to recover from such Guarantor the obligations.

SECTION 11.17.    Amendment, Etc.

          No amendment, modification or waiver of any provision of this
Indenture relating to any Guarantor or consent to any departure by any Guarantor
or any other Person from any such provision will in any event be effective
unless it is signed by such Guarantor and the Trustee.

SECTION 11.18.    Acknowledgment.

          Each Guarantor acknowledges communication of the terms of this
Indenture and the Securities and consents to and approves of the same.

SECTION 11.19.    Costs and Expenses.

          Each Guarantor shall pay on demand by the Trustee any and all costs,
fees and expenses (including, without limitation, reasonable legal fees of
counsel) incurred by the Trustee in enforcing any rights under any Guarantee.

SECTION 11.20.    No Waiver; Cumulative Remedies.

          No failure to exercise and no delay in exercising, on the part of the
Trustee or the Holders, any right, remedy, power or privilege hereunder or under
this Indenture or the Securities, shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, remedy, power or privilege
hereunder or under this Indenture or the Securities preclude any other or
further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges in the Guarantee and
under this Indenture, the Securities and any other document or instrument
between a Guarantor and/or the Company and the Trustee are cumulative and not
exclusive of any rights, remedies, powers and privilege provided by law.

                                      -132-

<PAGE>

SECTION 11.21.    Survival of Obligations.

          Subject to Section 11.04, without prejudice to the survival of any of
the other obligations of each Guarantor hereunder, the obligations of each
Guarantor under Section 11.01 shall survive the payment in full of the
Obligations and shall be enforceable against such Guarantor without regard to
and without giving effect to any defense, right of offset or counterclaim
available to or which may be asserted by the Company or any Guarantor.

SECTION 11.22.    Guarantee in Addition to Other Obligations.

          The obligations of each Guarantor under its Guarantee and this
Indenture are in addition to and not in substitution for any other obligations
to the Trustee or to any of the Holders in relation to this Indenture or the
Securities and any guarantees or security at any time held by or for the benefit
of any of them.

SECTION 11.23.    Severability.

          Any provision of this Article Eleven which is prohibited or
unenforceable in any jurisdiction shall not invalidate the remaining provisions
and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction
unless its removal would substantially defeat the basic intent, spirit and
purpose of this Indenture and this Article Eleven.

SECTION 11.24.    Successors and Assigns.

          Each Guarantee shall be binding upon and inure to the benefit of each
Guarantor and the Trustee and the other Holders and their respective successors
and permitted assigns, except that no Guarantor may assign any of its
obligations hereunder or thereunder.

                                      -133-

<PAGE>

                                 ARTICLE TWELVE

                           SUBORDINATION OF GUARANTEES

SECTION 12.01.    Guarantee Obligations Subordinated to Guarantor Senior Debt.

          Anything herein to the contrary notwithstanding, each Guarantor
jointly and unconditionally, for itself and its successors, and each Holder, by
his or her acceptance of Guarantees, agrees that the payment of all Obligations
owing to the Holders in respect of its Guarantee (collectively, as to any
Guarantor, its "Guarantee Obligations") is subordinated, to the extent and in
the manner provided in this Article Twelve, to the prior payment in full in cash
or Cash Equivalents (other than Cash Equivalents of the type referred to in
clauses (4), (5) and (6) of the definition thereof), or such payment duly
provided for to the satisfaction of the holders of Guarantor Senior Debt, of all
Guarantor Senior Debt of such Guarantor.

          This Article Twelve shall constitute a continuing offer to all Persons
who become holders of, or continue to hold, Guarantor Senior Debt, and such
provisions are made for the benefit of the holders of Guarantor Senior Debt and
such holders are made obligees hereunder and any one or more of them may enforce
such provisions. Each such holder shall be deemed to have acquired such Senior
Debt in reliance upon the covenants and provisions contained in this Article
Twelve.

SECTION 12.02.    Suspension of Guarantee Obligations When Guarantor Senior Debt
                  Is in Default.

          (a)     If any default occurs and is continuing in the payment when
due, whether at maturity, upon any redemption, by declaration or otherwise, of
any principal of, interest on, unpaid drawings for letters of credit issued in
respect of, or regularly accruing fees with respect to, any Guarantor Senior
Debt, then no payment of any kind or character shall be made by or on behalf of
such Guarantor or any other Person on its behalf with respect to any Guarantee
Obligations or to acquire any of the Securities for cash or property or
otherwise and until such Payment Default shall have been cured or waived or
shall have ceased to exist or such Guarantor Senior Debt shall have been
discharged or paid in full in cash or Cash Equivalents (other than Cash
Equivalents of the type referred to in clauses (4), (5) and (6) of the
definition thereof).

                                      -134-

<PAGE>

          (b)     At any time while any Payment Blockage Period is in existence,
neither any Guarantor nor any other Person on any Guarantor's behalf shall (x)
make any payment or distribution of any kind or character with respect to any
Obligations on its Guarantee or (y) acquire any of the Securities for cash or
otherwise.

          (c)     In the event that, notwithstanding the foregoing, any payment
shall be received by the Trustee or any Holder when such payment is prohibited
by the foregoing provisions of this Section 12.02, such payment shall be held in
trust for the benefit of, and shall be paid over or delivered to, the holders of
Guarantor Senior Debt (pro rata to such holders on the basis of the respective
amount of Guarantor Senior Debt held by such holders) or their respective
Representatives, as their respective interests may appear. The Trustee shall be
entitled to rely on information regarding amounts then due and owing on the
Guarantor Senior Debt, if any, received from the holders of Guarantor Senior
Debt (or their Representatives) or, if such information is not received from
such holders or their Representatives, from a Guarantor and only amounts
included in the information provided to the Trustee shall be paid to the holders
of Guarantor Senior Debt. If payment of the Securities is accelerated because of
an Event of Default, the Trustee shall promptly notify the holders of the
Guarantor Senior Debt of such Guarantor or the Representative of such holders of
the acceleration.

SECTION 12.03.    Guarantee Obligations Subordinated to Prior Payment of All
                  Guarantor Senior Debt on Dissolution, Liquidation or
                  Reorganization of Such Guarantor.

          (a)     Upon any payment or distribution of assets of any Guarantor of
any kind or character, whether in cash, property or securities, to creditors
upon any total or partial liquidation, dissolution, winding-up, reorganization,
assignment for the benefit of creditors or marshaling of assets of such
Guarantor or in a bankruptcy, reorganization, insolvency, receivership or other
similar proceeding relating to such Guarantor or its property, whether voluntary
or involuntary, all Obligations due or to become due upon all Guarantor Senior
Debt shall first be paid in full in cash or Cash Equivalents (other than Cash
Equivalents of the type referred to in clauses (4), (5) and (6) of the
definition thereof), or such payment duly provided for to the satisfaction of
the holders of Guarantor Senior Debt, before any payment or distribution of any
kind or

                                      -135-

<PAGE>

character is made on account of any Guarantee Obligations or for the acquisition
of any of the Securities for cash or property or otherwise. Upon any such
dissolution, winding-up, liquidation, reorganization, receivership or similar
proceeding, any payment or distribution of assets of such Guarantor of any kind
or character, whether in cash, property or securities, to which the Holders or
the Trustee under this Indenture would be entitled, except for the provisions
hereof, shall be paid by such Guarantor or by any receiver, trustee in
bankruptcy, liquidating trustee, agent or other Person making such payment or
distribution, or by the Holders or by the Trustee under this Indenture if
received by them, directly to the holders of Guarantor Senior Debt (pro rata to
such holders on the basis of the respective amounts of Guarantor Senior Debt
held by such holders) or their respective Representatives, or to the trustee or
trustees under any indenture pursuant to which any of such Guarantor Senior Debt
may have been issued, as their respective interests may appear, for application
to the payment of Guarantor Senior Debt remaining unpaid until all such
Guarantor Senior Debt has been paid in full in cash or Cash Equivalents (other
than Cash Equivalents of the type referred to in clauses (4), (5) and (6) of the
definition thereof) after giving effect to any concurrent payment, distribution
or provision therefor to or for the holders of Guarantor Senior Debt.

          (b)     To the extent any payment of Guarantor Senior Debt (whether by
or on behalf of a Guarantor, as proceeds of security or enforcement of any right
of setoff or otherwise) is declared to be fraudulent or preferential, set aside
or required to be paid to any receiver, trustee in bankruptcy, liquidating
trustee, agent or other similar Person under any bankruptcy, insolvency,
receivership, fraudulent conveyance or similar law, then, if such payment is
recovered by, or paid over to, such receiver, trustee in bankruptcy, liquidating
trustee, agent or other similar Person, the Guarantor Senior Debt or part
thereof originally intended to be satisfied shall be deemed to be reinstated and
outstanding as if such payment had not occurred.

          (c)     In the event that, notwithstanding the foregoing, any payment
or distribution of assets of any Guarantor of any kind or character, whether in
cash, property or securities, shall be received by any Holder when such payment
or distribution is prohibited by this Section 12.03, such payment or
distribution shall be held in trust for the benefit of, and shall be paid over
or delivered to, the holders of Guarantor Senior Debt (pro rata to such holders
on the basis of the respective

                                      -136-

<PAGE>

amount of Guarantor Senior Debt held by such holders) or their respective
Representatives, or to the trustee or trustees under any indenture pursuant to
which any of such Guarantor Senior Debt may have been issued, as their
respective interests may appear, for application to the payment of Guarantor
Senior Debt remaining unpaid until all such Guarantor Senior Debt has been paid
in full in cash or Cash Equivalents (other than Cash Equivalents of the type
referred to in clauses (4), (5) and (6) of the definition thereof), after giving
effect to any concurrent payment, distribution or provision therefor to or for
the holders of such Guarantor Senior Debt.

          (d)     The consolidation of any Guarantor with, or the merger of any
Guarantor with or into, another Person or the liquidation or dissolution of a
Guarantor following the conveyance or transfer of all or substantially all of
its assets, to another Person upon the terms and conditions provided in Article
Five hereof and as long as permitted under the terms of the Guarantor Senior
Debt shall not be deemed a dissolution, winding-up, liquidation or
reorganization for the purposes of this Section if such other Person shall, as a
part of such consolidation, merger, conveyance or transfer, assumes the
Guarantee of such Guarantor hereunder in accordance with Article Five hereof.

SECTION 12.04.    Payments May Be Paid Prior to Dissolution.

          Nothing contained in this Article Twelve or elsewhere in this
Indenture shall prevent (i) any Guarantor, except under the conditions described
in Sections 12.02 and 12.03, from making payments at any time for the purpose of
making payments on Guarantee Obligations, or from depositing with the Trustee
any moneys for such payments, or (ii) in the absence of actual knowledge by a
Responsible Officer of the Trustee that a given payment would be prohibited by
Section 12.02 or 12.03, the application by the Trustee of any moneys deposited
with it for the purpose of making such payments on Guarantee Obligations to the
Holders entitled thereto unless at least two Business Days prior to the date
upon which such payment would otherwise become due and payable a Responsible
Officer shall have actually received the written notice provided for in the
first sentence of Section 10.02(b) or in Section 12.07 (provided that,
notwithstanding the foregoing, the subordination of the Guarantees to the
Guarantor Senior Debt shall not be affected and the Holders receiving any
payments made in contravention of Sections 12.02 and/or 12.03 (and the
respective such payments)

                                      -137-

<PAGE>

shall otherwise be subject to the provisions of this Article Twelve). Each
Guarantor shall give prompt written notice to the Trustee of any dissolution,
winding-up, liquidation or reorganization of such Guarantor, although any delay
or failure to give any such notice shall have no effect on the subordination
provisions contained herein.

SECTION 12.05.    Holders of Guarantee Obligations To Be Subrogated to Rights of
                  Holders of Guarantor Senior Debt.

          Subject to the payment in full in cash or Cash Equivalents (other than
Cash Equivalents of the type referred to in clauses (4), (5) and (6) of the
definition thereof) of all Guarantor Senior Debt, the Holders of Guarantee
Obligations of any Guarantor shall be subrogated to the rights of the holders of
Guarantor Senior Debt of such Guarantor to receive payments or distributions of
cash, property or securities of such Guarantor applicable to such Guarantor
Senior Debt until all amounts owing on or in respect of the Guarantee
Obligations shall be paid in full; and, for the purposes of such subrogation, no
such payments or distributions to the holders of such Guarantor Senior Debt by
or on behalf of such Guarantor, or by or on behalf of the Holders by virtue of
this Article Twelve, which otherwise would have been made to the Holders shall,
as between such Guarantor and the Holders, be deemed to be a payment by such
Guarantor to or on account of such Guarantor Senior Debt, it being understood
that the provisions of this Article Twelve are and are intended solely for the
purpose of defining the relative rights of the Holders, on the one hand, and the
holders of Guarantor Senior Debt, on the other hand.

SECTION 12.06.    Obligations of the Guarantors Unconditional.

          Nothing contained in this Article Twelve or elsewhere in this
Indenture or in the Guarantees is intended to or shall impair, as among the
Guarantors, their creditors other than the holders of Guarantor Senior Debt, and
the Holders, the obligation of the Guarantors, which is absolute and
unconditional, to pay to the Holders all amounts due and payable under the
Guarantees as and when the same shall become due and payable in accordance with
their terms, or is intended to or shall affect the relative rights of the
Holders and creditors of the Guarantors other than the holders of the Guarantor
Senior Debt, nor shall anything herein or therein prevent any Holder or the
Trustee on its behalf from exercising all remedies otherwise

                                      -138-

<PAGE>

permitted by applicable law upon default under this Indenture, subject to the
rights, if any, in respect of cash, property or securities of the Guarantors
received upon the exercise of any such remedy.

SECTION 12.07.    Notice to Trustee.

          Each Guarantor shall give prompt written notice to the Trustee of any
fact known to such Guarantor which would prohibit the making of any payment to
or by the Trustee in respect of the Guarantees pursuant to the provisions of
this Article Twelve, although any delay or failure to give any such notice shall
have no effect on the subordination provisions contained herein. Regardless of
anything to the contrary contained in this Article Twelve or elsewhere in this
Indenture, the Trustee shall not be charged with knowledge of the existence of
any default or event of default with respect to any Guarantor Senior Debt or of
any other facts which would prohibit the making of any payment to or by the
Trustee unless and until a Responsible Officer of the Trustee shall have
received at the Corporate Trust Office of the Trustee notice in writing from a
Guarantor or from a holder of Guarantor Senior Debt or a Representative therefor
and, prior to the receipt of any such written notice, the Trustee shall be
entitled to assume that no such facts exist. The Trustee shall be entitled to
rely on the delivery to it of any notice pursuant to this Section 12.07 to
establish that such notice has been given by a holder of Senior Debt (or a
trustee thereof).

          In the event that the Trustee determines in good faith that any
evidence is required with respect to the right of any Person as a holder of
Guarantor Senior Debt to participate in any payment or distribution pursuant to
this Article Twelve, the Trustee may request such Person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amounts of Guarantor Senior
Debt held by such Person, the extent to which such Person is entitled to
participate in such payment or distribution and any other facts pertinent to the
rights of such Person under this Article Twelve, and if such evidence is not
furnished the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment.

                                      -139-

<PAGE>

SECTION 12.08.    Reliance on Judicial Order or Certificate of Liquidating
                  Agent.

          Upon any payment or distribution of assets of a Guarantor referred to
in this Article Twelve, the Trustee, subject to the provisions of Article Seven
hereof, and the Holders shall be entitled to rely upon any order or decree made
by any court of competent jurisdiction in which any insolvency, bankruptcy,
receivership, dissolution, winding-up, liquidation, reorganization or similar
case or proceeding is pending, or upon a certificate of the trustee in
bankruptcy, liquidating trustee, receiver, assignee for the benefit of
creditors, agent or other Person making such payment or distribution, delivered
to the Trustee or the Holders, for the purpose of ascertaining the Persons
entitled to participate in such payment or distribution, the holders of the
Guarantor Senior Debt and other Indebtedness of such Guarantor, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Article Twelve.

SECTION 12.09.    Trustee's Relation to Guarantor Senior Debt.

          The Trustee and any agent of a Guarantor or the Trustee shall be
entitled to all the rights set forth in this Article Twelve with respect to any
Guarantor Senior Debt which may at any time be held by it in its individual or
any other capacity to the same extent as any other holder of Guarantor Senior
Debt and nothing in this Indenture shall deprive the Trustee or any such agent
of any of its rights as such holder.

          With respect to the holders of Guarantor Senior Debt, the Trustee
undertakes to perform or to observe only such of its covenants and obligations
as are specifically set forth in this Article Twelve, and no implied covenants
or obligations with respect to the holders of Guarantor Senior Debt shall be
read into this Indenture against the Trustee. The Trustee shall not be deemed to
owe any fiduciary duty to the holders of Guarantor Senior Debt.

          Whenever a distribution is to be made or a notice given to holders or
owners of Guarantor Senior Debt, the distribution may be made and the notice may
be given to their Representative, if any.

                                      -140-

<PAGE>

SECTION 12.10.    Subordination Rights Not Impaired by Acts or Omissions of the
                  Guarantors or Holders of Guarantor Senior Debt.

          No right of any present or future holders of any Guarantor Senior Debt
to enforce subordination as provided herein shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of any Guarantor
or by any act or failure to act, by any such holder, or by any noncompliance by
any Guarantor with the terms of this Indenture, regardless of any knowledge
thereof which any such holder may have or otherwise be charged with.

          Without in any way limiting the generality of the foregoing paragraph,
the holders of Guarantor Senior Debt may, at any time and from time to time,
without the consent of or notice to the Trustee, without incurring
responsibility to the Trustee or the Holders of the Securities and without
impairing or releasing the subordination provided in this Article Twelve or the
obligations hereunder of the Holders of the Securities to the holders of
Guarantor Senior Debt, do any one or more of the following: (i) change the
manner, place or terms of payment or extend the time of payment of, or renew or
alter, Guarantor Senior Debt, or otherwise amend or supplement in any manner
Guarantor Senior Debt, or any instrument evidencing the same or any agreement
under which Guarantor Senior Debt is outstanding; (ii) sell, exchange, release
or otherwise deal with any property pledged, mortgaged or otherwise securing
Guarantor Senior Debt; (iii) release any Person liable in any manner for the
payment or collection of Guarantor Senior Debt; and (iv) exercise or refrain
from exercising any rights against the Guarantors and any other Person.

SECTION 12.11.    Holders Authorize Trustee To Effectuate Subordination of
                  Guarantee Obligations.

          Each Holder of Guarantee Obligations by its acceptance of them
authorizes and expressly directs the Trustee on its behalf to take such action
as may be necessary or appropriate to effectuate, as between the holders of
Guarantor Senior Debt and the Holders, the subordination provided in this
Article Twelve, and appoints the Trustee its attorney-in-fact for such purposes,
including, in the event of any dissolution, winding-up, liquidation or
reorganization of any Guarantor (whether in bankruptcy, insolvency,
receivership, reorganization or similar proceedings or upon an assignment for
the benefit of credits or otherwise) tending towards liquidation of the

                                      -141-

<PAGE>

business and assets of any Guarantor, the filing of a claim for the unpaid
balance under its Guarantee Obligations and accrued interest in the form
required in those proceedings.

          If the Trustee does not file a proper claim or proof of debt in the
form required in such proceeding prior to 30 days before the expiration of the
time to file such claim or claims, then the holders of the Guarantor Senior Debt
or their Representative are or is hereby authorized to have the right to file
and are or is hereby authorized to file an appropriate claim for and on behalf
of the Holders of said Guarantee Obligations. Nothing herein contained shall be
deemed to authorize the Trustee or the holders of Guarantor Senior Debt or their
Representative to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Guarantee Obligations or the rights of any Holder thereof, or to
authorize the Trustee or the holders of Guarantor Senior Debt or their
Representative to vote in respect of the claim of any Holder in any such
proceeding.

SECTION 12.12.    This Article Twelve Not To Prevent Events of Default.

          The failure to make a payment on account of principal of or interest
on the Guarantees by reason of any provision of this Article Twelve will not be
construed as preventing the occurrence of an Event of Default.

SECTION 12.13.    Trustee's Compensation Not Prejudiced.

          Nothing in this Article Twelve will apply to amounts due to the
Trustee pursuant to other sections of this Indenture.

                                ARTICLE THIRTEEN

                                  MISCELLANEOUS

SECTION 13.01.    TIA Controls.

          If any provision of this Indenture limits, qualifies, or conflicts
with another provision which is required or deemed to be included in this
Indenture by the TIA, such required or deemed provision shall control. If any
provision of this Indenture modifies or excludes any provision of the TIA that
may

                                      -142-

<PAGE>

be so modified or excluded, the latter provision shall be deemed (i) to
apply to this Indenture as so modified or (ii) to be excluded, as the case may
be.

SECTION 13.02.    Notices.

          Any notices or other communications required or permitted hereunder
shall be in writing, and shall be sufficiently given if made by hand delivery,
by telecopier or registered or certified mail, postage prepaid, return receipt
requested, addressed as follows:

          if to the Company or a Guarantor:

          BWAY Corporation
          8607 Roberts Drive, Suite 250
          Atlanta, GA  30350
          Attention:  Kevin C. Kern

          Telephone:  (770) 645-4800
          Facsimile:  (770) 587-0156

          with a copy to:

          Debevoise & Plimpton
          919 Third Avenue
          New York, NY  10022-3897
          Attention:  David Brittenham, Esq.

          Telephone:  (212) 909-6000
          Facsimile:  (212) 909-6836

          if to the Trustee:

          The Bank of New York
          101 Barclay Street, 8W
          New York, NY  10286
          Attention:  Corporate Trust Division --
                       Corporate Finance Unit
                       (BWAY Corporation)

          Telephone:  (212) 815-4812
          Facsimile:  (212) 815-5707

                                      -143-

<PAGE>

          with a copy (which shall not be deemed to constitute a notice or other
          communication to the Trustee) to:

          Bryan Cave LLP
          245 Park Avenue
          New York, NY

          Attention:  Robert E. Pedersen

          Telephone:  (212) 692-1808
          Facsimile:  (212) 692-1900

          Each of the Company, any Guarantors and the Trustee by written notice
to each other such Person may designate additional or different addresses for
notices to such Person. Any notice or communication to the Company and any
Guarantors shall be deemed to have been given or made as of the date so
delivered if personally delivered; when receipt is acknowledged, if telecopied;
and five (5) calendar days after mailing if sent by registered or certified
mail, postage prepaid (except that a notice of change of address shall not be
deemed to have been given until actually received by the addressee). Except as
otherwise expressly provided for herein, any notice or communication to the
Trustee shall be deemed to have been given or made as of the date such notice or
communication was actually received by the Trustee.

          Any notice or communication mailed to a Securityholder shall be mailed
to him by first class mail or other equivalent means at his address as it
appears on the registration books of the Registrar and shall be sufficiently
given to him if so mailed within the time prescribed.

          Failure to mail a notice or communication to a Securityholder or any
defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it.

          Where this Indenture provides for notice in any manner, such notice
may be waived in writing by the Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Holders shall be filed with the Trustee, but such
filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

                                      -144-

<PAGE>

SECTION 13.03.    Communications by Holders with Other Holders.

          Securityholders may communicate pursuant to TIA Section 312(b) with
other Securityholders with respect to their rights under this Indenture, the
Securities or the Guarantees. The Company, the Guarantors, the Trustee, the
Registrar and any other Person shall have the protection of TIA Section 312(c).

SECTION 13.04.    Certificate and Opinion as to Conditions Precedent.

          Upon any request or application by the Company or any Guarantor to the
Trustee to take any action under this Indenture, the Company or such Guarantor,
as the case may be, shall furnish to the Trustee at the request of the Trustee:

          (1)     an Officers' Certificate, in form and substance reasonably
     satisfactory to the Trustee, stating that, in the opinion of the signers,
     all conditions precedent to be performed or effected by the Company, if
     any, provided for in this Indenture relating to the proposed action have
     been complied with; and

          (2)     an Opinion of Counsel stating that, in the opinion of such
     counsel, any and all such conditions precedent have been complied with.

SECTION 13.05.    Statements Required in Certificate or Opinion.

          Each certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture, other than the Officers'
Certificate required by Section 4.06, shall include:

          (1)     a statement that the Person making such certificate or opinion
     has read such covenant or condition;

          (2)     a brief statement as to the nature and scope of the
     examination or investigation upon which the statements or opinions
     contained in such certificate or opinion are based;

          (3)     a statement that, in the opinion of such Person, he has made
     such examination or investigation as is necessary to enable him to express
     an informed opinion as to

                                      -145-

<PAGE>

     whether or not such covenant or condition has been complied with; and

          (4)     a statement as to whether or not, in the opinion of each such
     Person, such condition or covenant has been complied with;

provided, however, that with respect to matters of fact an Opinion of Counsel
may rely on an Officers' Certificate or certificates of public officials.

SECTION 13.06.    Rules by Trustee, Paying Agent, Registrar.

          The Trustee, Paying Agent or Registrar may make reasonable rules for
its functions.

SECTION 13.07.    Legal Holidays.

          If a payment date is not a Business Day, payment may be made on the
next succeeding day that is a Business Day.

SECTION 13.08.    Governing Law.

          THIS INDENTURE, THE SECURITIES AND THE GUARANTEES WILL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED
TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT SUCH PRINCIPLES ARE NOT
MANDATORILY APPLICABLE BY STATUTE AND THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY. Each of the parties hereto agrees to
submit to the jurisdiction of the courts of the State of New York in any action
or proceeding arising out of or relating to this Indenture, the Securities or
the Guarantees.

SECTION 13.09.    No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret another indenture, loan or
debt agreement of any of the Company, any Guarantor or any of their
Subsidiaries. Any such indenture, loan or debt agreement may not be used to
interpret this Indenture.

                                      -146-

<PAGE>

SECTION 13.10.    No Recourse Against Others.

          A director, officer, employee, stockholder or incorporator, as such,
of the Company or any of its subsidiaries shall not have any liability for any
obligations of the Company under the Securities, this Indenture or the
Guarantees or for any claim based on, in respect of or by reason of such
obligations or their creation. Each Securityholder by accepting a Security
waives and releases all such liability. Such waiver and release are part of the
consideration for the issuance of the Securities.

SECTION 13.11.    Successors.

          All agreements of the Company and the Guarantors in this Indenture,
the Securities and the Guarantees shall bind their respective successors. All
agreements of the Trustee in this Indenture shall bind its successor.

SECTION 13.12.    Duplicate Originals.

          All parties may sign any number of copies of this Indenture. Each
signed copy or counterpart shall be an original, but all of them together shall
represent the same agreement.

SECTION 13.13.    Severability.

          In case any one or more of the provisions in this Indenture, in the
Securities or in the Guarantees shall be held invalid, illegal or unenforceable,
in any respect for any reason, the validity, legality and enforceability of any
such provision in every other respect and of the remaining provisions shall not
in any way be affected or impaired thereby, it being intended that all of the
provisions hereof shall be enforceable to the full extent permitted by law.

                                      -147-

<PAGE>

                                   SIGNATURES

          IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed all as of the date first written above.

                                       BWAY FINANCE CORP.,
                                         as Issuer

                                       By:  /s/ James J. Connors II
                                           --------------------------------
                                           Name:  James J. Connors II
                                           Title: Vice President

                                       By:  /s/ Stanley de J. Osborne
                                           --------------------------------
                                           Name:  Stanley de J. Osborne
                                           Title: Vice President

                                       THE BANK OF NEW YORK,
                                         as Trustee

                                       By:  /s/ Mary LaGumina
                                           --------------------------------
                                           Name:  Mary LaGumina
                                           Title: Vice President

                                       S-1

<PAGE>

                                                                       EXHIBIT A

                               BWAY FINANCE CORP.
                          10% Senior Subordinated Note
                              due October 15, 2010

                                                                  CUSIP No. ____
No. ________                                                            $ ______

          BWAY FINANCE CORP., a Delaware corporation (the "Company", which term
includes any successor corporation), for value received promises to pay to CEDE
& CO. or registered assigns, the principal sum of _____ on October 15, 2010.

          Interest Payment Dates: April 15 and October 15, commencing April 15,
2003.

          Record Dates: April 1 and October 1.

          Reference is made to the further provisions of this Security contained
herein, which will for all purposes have the same effect as if set forth at this
place.

                                       A-1

<PAGE>

          IN WITNESS WHEREOF, the Company has caused this Security to be signed
manually or by facsimile by its duly authorized officers.

Dated:
      ---------

                                       BWAY FINANCE CORP.

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

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

                                       A-2

<PAGE>

                [FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION]

          This is one of the 10% Senior Subordinated Notes due 2010 described in
the within-mentioned Indenture.

                                       THE BANK OF NEW YORK,
                                       as Trustee

                                       By:
                                           --------------------------------
                                                 Authorized Signatory

                                       A-3

<PAGE>

                              (REVERSE OF SECURITY)

                               BWAY FINANCE CORP.

                          10% Senior Subordinated Note
                              due October 15, 2010

1.   Interest.

          BWAY FINANCE CORP., a Delaware corporation (the "Company"), promises
to pay interest on the principal amount of this Security at the rate per annum
shown above. The Company will pay interest semi-annually on April 15 and October
15 of each year (the "Interest Payment Date"), commencing April 15, 2003.
Interest on this Security will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from . Interest on this
Security will be computed on the basis of a 360-day year of twelve 30-day
months.

          The Company shall pay interest on overdue principal from time to time
on demand at the rate borne by this Security and on overdue installments of
interest (without regard to any applicable grace periods) to the extent lawful.

2.   Method of Payment.

          The Company shall pay interest on the Securities (except defaulted
interest) to the Persons who are the registered Holders at the close of business
on the Record Date immediately preceding the Interest Payment Date even if the
Securities are cancelled on registration of transfer or registration of exchange
after such Record Date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company shall pay principal and interest in
money of the United States that at the time of payment is legal tender for
payment of public and private debts ("U.S. Legal Tender"). However, the Company
may pay principal and interest by wire transfer of Federal funds, or interest by
check payable in such U.S. Legal Tender. The Company may deliver any such
interest payment to the Paying Agent or to a Holder at the Holder's registered
address.

3.   Paying Agent and Registrar.

          Initially, The Bank of New York (the "Trustee") will act as Paying
Agent and Registrar. The Company may change any

                                       A-4

<PAGE>

Paying Agent, Registrar or co-Registrar without notice to the Holders. The
Company or any of its Subsidiaries may, subject to certain conditions, act as
Paying Agent, Registrar or co-Registrar.

4.   Indenture.

          The Company issued the Securities under an Indenture, dated as of
November 27, 2002 (the "Indenture"), between the Company and the Trustee. This
Security is one of a duly authorized issue of Securities of the Company
designated as its 10% Senior Subordinated Notes due 2010 (the "Securities"). The
Securities are treated as a single class of securities under the Indenture
unless otherwise specified in the Indenture. Capitalized terms herein are used
as defined in the Indenture unless otherwise defined herein. The terms of the
Securities include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. Sections
77aaa-77bbbb) (the "TIA"), as in effect on the date of the Indenture until such
time as the Indenture is qualified under the TIA, and thereafter as in effect on
the date on which the Indenture is qualified under the TIA. Notwithstanding
anything to the contrary herein, the Securities are subject to all such terms,
and Holders of Securities are referred to the Indenture and the TIA for a
statement of them. The Securities are not limited in aggregate principal amount.

          The Securities may hereafter be entitled to certain Senior
Subordinated Guarantees made for the benefit of the Holders. Reference is made
to Article Eleven of the Indenture for terms relating to such Guarantees,
including the release, termination and discharge thereof. Neither the Company
nor any Guarantor shall be required to make any notation on this Security to
reflect any Guarantee or any such release, termination or discharge.

5.   Subordination.

          The Securities are subordinated in right of payment, in the manner and
to the extent set forth in the Indenture, to the prior payment in full in cash
or Cash Equivalents (other than Cash Equivalents of the type referred to in
clauses (4), (5) and (6) of the definition thereof) of all Senior Debt of the
Company, whether outstanding on the date of the Indenture or thereafter created,
incurred, assumed or guaranteed. In addition, the Guarantee of any Guarantor is
subordinated in right of payment, in the manner and to the extent set forth in
the

                                       A-5

<PAGE>

Indenture, to the prior payment in full in cash or Cash Equivalents (other than
Cash Equivalents of the type referred to in clauses (4), (5) and (6) of the
definition thereof), of all Guarantor Senior Debt of such Guarantor, whether
outstanding on the date of the Indenture or thereafter created, incurred,
assumed or guaranteed. Each Holder by his acceptance hereof agrees to be bound
by such provisions and authorizes and expressly directs the Trustee, on his
behalf, to take such action as may be necessary or appropriate to effectuate the
subordination provided for in the Indenture and appoints the Trustee his
attorney-in-fact for such purposes.

6.   Optional Redemption.

          The Securities will be redeemable, at the Company's option, in whole
at any time or in part from time to time, on and after October 15, 2006, upon
not less than 30 nor more than 60 days' notice, at the following redemption
prices (expressed as percentages of the principal amount) if redeemed during the
twelve-month period commencing on October 15 of the years set forth below, plus,
in each case, accrued and unpaid interest thereon, if any, to the date of
redemption:

     Year                                                      Percentage
     ----                                                      ----------
     2006..........................................             105.000%
     2007..........................................             103.333%
     2008..........................................             101.667%
     2009 and thereafter...........................             100.000%

7.   Optional Redemption upon Equity Offerings.

          At any time, or from time to time, on or prior to October 15, 2005,
the Company may, at its option, use the net cash proceeds of one or more Equity
Offerings to redeem up to 35% of the aggregate principal amount of the
Securities issued under the Indenture at a redemption price equal to 110% of the
principal amount thereof, plus accrued and unpaid interest thereon, if any, to
the date of redemption; provided that at least 65% of the original principal
amount of Securities issued under the Indenture remains outstanding immediately
after any such redemption. In order to effect the foregoing redemption with the
net cash proceeds of any Equity Offering, the Company shall make such redemption
not more than 90 days after the consummation of any such Equity Offering.

                                       A-6

<PAGE>

          As used in the preceding paragraph, "Equity Offering" means a sale of
Qualified Capital Stock (i) of the Company or (ii) of any direct or indirect
parent of the Company (including Holding), provided that proceeds of such sale
sufficient to pay the redemption price plus accrued interest to the redemption
date shall be contributed to the Company.

8.   Mandatory Redemption.

          In the event that (i) the BWAY Assumption is not consummated on or
prior to March 31, 2003 or (ii) the Merger Agreement is terminated on or prior
to March 31, 2003, for any reason, the Company shall redeem all the Securities
at the applicable Mandatory Redemption Price at the redemption date on (a) April
7, 2003, in the event that the BWAY Assumption is not consummated on or prior to
March 31, 2003, or (b) the fifth day (or if such day is not a Business Day, the
next following Business Day) following the termination of the Merger Agreement.

9.   Notice of Redemption.

          Notice of redemption pursuant to paragraph 6 or paragraph 7 will be
mailed at least 30 days but not more than 60 days before the Redemption Date and
notice of redemption pursuant to paragraph 8 will be mailed promptly after the
occurrence of the event triggering such redemption, in each case to each Holder
of Securities to be redeemed at such Holder's registered address. Securities in
denominations of $1,000 may be redeemed only in whole. The Trustee may select
for redemption portions (equal to $1,000 or any integral multiple thereof) of
the principal of Securities that have denominations larger than $1,000.

          If any Security is to be redeemed in part only, the notice of
redemption that relates to such Security shall state the portion of the
principal amount thereof to be redeemed. A new Security in a principal amount
equal to the unredeemed portion thereof will be issued in the name of the Holder
thereof upon cancellation of the original Security. On and after the Redemption
Date, interest will cease to accrue on Securities or portions thereof called for
redemption.

10.  Change of Control Offer.

          Upon the occurrence of a Change of Control, the Company will be
required to offer to purchase all of the outstanding Securities at a purchase
price equal to 101% of the

                                       A-7

<PAGE>

principal amount thereof, plus accrued and unpaid interest, if any, thereon to
the date of repurchase.

11.  Limitation on Asset Sales.

          The Company is, subject to certain conditions, obligated to make an
offer to purchase Securities at 100% of their principal amount, plus accrued and
unpaid interest, if any, thereon to the date of repurchase with certain net cash
proceeds of certain sales or other dispositions of assets in accordance with the
Indenture.

12.  Denominations; Transfer; Exchange.

          The Securities are in registered form, without coupons, in
denominations of $1,000 and integral multiples of $1,000. A Holder shall
register the transfer of or exchange Securities in accordance with the
Indenture. The Registrar may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and to pay certain transfer
taxes or similar governmental charges payable in connection therewith as
permitted by the Indenture. The Registrar need not register the transfer of or
exchange any Securities or portions thereof selected for redemption, except the
unredeemed portion of any security being redeemed in part.

13.  Persons Deemed Owners.

          The registered Holder of a Security shall be treated as the owner of
it for all purposes.

14.  Unclaimed Funds.

          Subject to applicable escheat and abandoned property laws, if funds
for the payment of principal or interest remain unclaimed for two years, the
Trustee and the Paying Agent will repay the funds to the Company at its request.
After that, all liability of the Trustee and such Paying Agent with respect to
such funds shall cease.

15.  Discharge Prior to Redemption or Maturity.

          The Company may be discharged from its obligations under the Indenture
and the Securities except for certain provisions thereof, and may be discharged
from obligations to comply with certain covenants contained in the Indenture and
the Securities, in each case upon satisfaction of certain conditions specified
in the Indenture.

                                       A-8

<PAGE>

16.  Amendment; Supplement; Waiver.

          Subject to certain exceptions, the Indenture and the Securities may be
amended or supplemented with the written consent of the Holders of at least a
majority in aggregate principal amount of the Securities then outstanding, and
any existing Default or Event of Default or compliance with any provision may be
waived with the consent of the Holders of a majority in aggregate principal
amount of the Securities then outstanding. Without notice to or consent of any
Holder, the parties thereto may amend or supplement the Indenture and the
Securities to, among other things, cure any ambiguity, defect or inconsistency,
provide for uncertificated Securities in addition to or in place of certificated
Securities or comply with any requirements of the Commission in connection with
the qualification of the Indenture under the TIA, or make any other change that
does not materially adversely affect the rights of any Holder of a Security.

17.  Restrictive Covenants.

          The Indenture contains certain covenants that, among other things,
limit the ability of the Company and its Restricted Subsidiaries to make
restricted payments, to incur indebtedness, to create liens, to sell assets, to
permit restrictions on dividends and other payments by Restricted Subsidiaries
of the Company to the Company, to consolidate, merge or sell all or
substantially all of its assets or to engage in transactions with affiliates.
The limitations are subject to a number of important qualifications and
exceptions. The Company must annually report to the Trustee on compliance with
such limitations.

18.  Defaults and Remedies.

          If an Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in aggregate principal amount of Securities then
outstanding may declare all the Securities to be due and payable immediately in
the manner and with the effect provided in the Indenture. Holders of Securities
may not enforce the Indenture or the Securities except as provided in the
Indenture. The Trustee is not obligated to enforce the Indenture or the
Securities unless it has received indemnity satisfactory to it. The Indenture
permits, subject to certain limitations therein provided, Holders of a majority
in aggregate principal amount of the Securities then outstanding to direct the
Trustee in its exercise of any trust or

                                       A-9

<PAGE>

power. The Trustee may withhold from Holders of Securities notice of certain
continuing Defaults or Events of Default if it determines that withholding
notice is in their interest.

19.  Trustee Dealings with Company.

          The Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Securities and may subject to
certain conditions specified in the Indenture, otherwise deal with the Company,
its Subsidiaries or their respective Affiliates as if it were not the Trustee.

20.  No Recourse Against Others.

          No stockholder, director, officer, employee or incorporator, as such,
of the Company, any Guarantor or any Subsidiary thereof shall have any liability
for any obligation of the Company or any Guarantor under the Securities, any
Guarantee or the Indenture or for any claim based on, in respect of or by reason
of, such obligations or their creation. Each Holder of a Security by accepting a
Security waives and releases all such liability. The waiver and release are part
of the consideration for the issuance of the Securities.

21.  Authentication.

          This Security shall not be valid until the Trustee or authenticating
agent signs the certificate of authentication on this Security.

22.  Abbreviations and Defined Terms.

          Customary abbreviations may be used in the name of a Holder of a
Security or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).

23.  Governing Law.

          This Security shall be governed by, and construed in accordance with,
the laws of the State of New York without giving effect to applicable principles
of conflicts of laws to the extent that such principles are not mandatorily
applicable by statute and the application of the laws of another jurisdiction
would be required thereby.

                                      A-10

<PAGE>

24.  CUSIP Numbers.

          Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be
printed on the Securities as a convenience to the Holders of the Securities. No
representation is made as to the accuracy of such numbers as printed on the
Securities and reliance may be placed only on the other identification numbers
printed hereon.

25.  Registration Rights.

          Pursuant to the Registration Rights Agreement, the Company will be
obligated to consummate an exchange offer pursuant to which the Holder of this
Security shall have the right to exchange this Security for a 10% Senior
Subordinated Note due 2010 of the Company which shall have been registered under
the Securities Act, in like principal amount and having terms identical in all
material respects to this Security. The Holders shall be entitled to receive
liquidated damages in the event such exchange offer is not consummated or the
Securities are not offered for resale and upon certain other conditions, all
pursuant to and in accordance with the terms of the Registration Rights
Agreement.

26.  Indenture.

          Each Holder, by accepting a Security, agrees to be bound by all of the
terms and provisions of the Indenture, as the same may be amended from time to
time. Capitalized terms used herein and not defined herein have the meanings
ascribed thereto in the Indenture.

          The Company will furnish to any Holder of a Security upon written
request and without charge a copy of the Indenture. Requests may be made to:
BWAY Corporation, 8607 Roberts Drive, Suite 250, Atlanta, GA 30350, Attention:
Kevin C. Kern.

                                      A-11

<PAGE>

                                 ASSIGNMENT FORM

I or we assign and transfer this Security to

________________________________________________________________________________

________________________________________________________________________________
      (Print or type name, address and zip code of assignee or transferee)

________________________________________________________________________________
 (Insert Social Security or other identifying number of assignee or transferee)

and irrevocably appoint _______________________________________ agent to
transfer this Security on the books of the Company. The agent may substitute
another to act for him.

Dated:                                 Signed:
       -----------------                       ---------------------------------
                                                     (Sign exactly as name
                                                      appears on the other
                                                     side of this Security)

Signature Guarantee:                   -----------------------------------------
                                       Participant in a recognized Signature
                                       Guarantee Medallion Program (or other
                                       signature guarantor program reasonably
                                       acceptable to the Trustee)

          In connection with any transfer of this Security occurring prior to
the date which is the earlier of (i) the date of the declaration by the
Commission of the effectiveness of a registration statement under the Securities
Act of 1933, as amended (the "Securities Act"), covering resales of this
Security (which effectiveness shall not have been suspended or terminated at the
date of the transfer) and (ii)the undersigned confirms that it has not utilized
any general solicitation or general advertising in connection with the transfer
and that such transfer is:

                                       [Check One]

(1)  [ ]  to the Company or a subsidiary thereof; or

<PAGE>

(2)  [ ]  pursuant to and in compliance with Rule 144A under the Securities Act;
          or

(3)  [ ]  to an institutional "accredited investor" (as defined in Rule
          501(a)(1), (2), (3) or (7) under the Securities Act) that has
          furnished to the Trustee a signed letter containing certain
          representations and agreements (the form of which letter can be
          obtained from the Trustee); or

(4)  [ ]  outside the United States to a "foreign purchaser" in compliance
          with Rule 904 of Regulation S under the Securities Act; or

(5)  [ ]  pursuant to the exemption from registration provided by Rule 144
          under the Securities Act; or

(6)  [ ]  pursuant to an effective registration statement under the
          Securities Act; or

(7)  [ ]  pursuant to another available exemption from the registration
          statement requirements of the Securities Act;

and unless the box below is checked, the undersigned confirms that such Security
is not being transferred to an "affiliate" of the Company as defined in Rule 144
under the Securities Act (an "Affiliate"):

          [ ] The transferee is an Affiliate of the Company.

          Unless one of the items is checked, the Trustee will refuse to
register any of the Securities evidenced by this certificate in the name of any
person other than the registered Holder thereof; provided, however, that if item
(3), (4), (5) or (7) is checked, the Company or the Trustee may require, prior
to registering any such transfer of the Securities, in its sole discretion, such
written legal opinions, certifications (including an investment letter in the
case of box (3) or (4)) and other information as the Trustee or the Company has
reasonably requested to confirm that such transfer is being made pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act.

          If none of the foregoing items are checked, the Trustee or Registrar
shall not be obligated to register this Security

                                       -2-

<PAGE>

in the name of any person other than the Holder hereof unless and until the
conditions to any such transfer of registration set forth herein and in Section
2.16 of the Indenture shall have been satisfied.

Dated:                              Signed:
       ------------------------             ------------------------------------
                                            (Sign exactly as name appears on the
                                             other side of this Security)

Signature Guarantee:
                    ------------------------------------------------------------

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

          The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
1933, as amended, and is aware that the sale to it is being made in reliance on
Rule 144A and acknowledges that it has received such information regarding the
Company as the undersigned has requested pursuant to Rule 144A or has determined
not to request such information and that it is aware that the transferor is
relying upon the undersigned's foregoing representations in order to claim the
exemption from registration provided by Rule 144A.

Dated:
       -----------------------------   -----------------------------------------
                                       NOTICE: To be executed by an executive
                                               officer

                                       -3-

<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Security purchased by the Company
pursuant to Section 4.12 or Section 4.13 of the Indenture, check the appropriate
box:

Section 4.12 [      ] Section 4.13 [       ]

          If you want to elect to have only part of this Security purchased by
the Company pursuant to Section 4.12 or Section 4.13 of the Indenture, state the
amount: $___________

Dated:                                  Signed:
       -----------------                       ---------------------------------
                                                     (Sign exactly as name
                                                      appears on the other
                                                     side of this Security)

Signature Guarantee:                   -----------------------------------------
                                       Participant in a recognized Signature
                                       Guarantee Medallion Program (or other
                                       signature guarantor program reasonably
                                       acceptable to the Trustee)

<PAGE>

                                                                       EXHIBIT B

                                BWAY CORPORATION
                          10% Senior Subordinated Note
                              due October 15, 2010

                                                               CUSIP No.________
No._______                                                              $ ______

          BWAY CORPORATION, a Delaware corporation (the "Company", which term
includes any successor corporation), for value received promises to pay to CEDE
& CO. or registered assigns, the principal sum of ________ on October 15, 2010.

          Interest Payment Dates: April 15 and October 15, commencing April 15,
2003.

          Record Dates: April 1 and October 1.

          Reference is made to the further provisions of this Security contained
herein, which will for all purposes have the same effect as if set forth at this
place.

                                       B-1

<PAGE>

          IN WITNESS WHEREOF, the Company has caused this Security to be signed
manually or by facsimile by its duly authorized officers.

Dated: _________

                                       BWAY CORPORATION

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

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

                                       B-2

<PAGE>

                [FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION]

          This is one of the 10% Senior Subordinated Notes due 2010 described in
the within-mentioned Indenture.

                                       THE BANK OF NEW YORK,
                                       as Trustee

                                       By:
                                           --------------------------------
                                                 Authorized Signatory

                                       B-3

<PAGE>

                              (REVERSE OF SECURITY)

                                BWAY CORPORATION

                          10% Senior Subordinated Note
                              due October 15, 2010

1.   Interest.

          BWAY CORPORATION, a Delaware corporation (the "Company"), promises to
pay interest on the principal amount of this Security at the rate per annum
shown above. The Company will pay interest semi-annually on April 15 and October
15 of each year (the "Interest Payment Date"), commencing April 15, 2003.
Interest on this Security will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from . Interest on this
Security will be computed on the basis of a 360-day year of twelve 30-day
months.

          The Company shall pay interest on overdue principal from time to time
on demand at the rate borne by this Security and on overdue installments of
interest (without regard to any applicable grace periods) to the extent lawful.

2.   Method of Payment.

          The Company shall pay interest on the Securities (except defaulted
interest) to the Persons who are the registered Holders at the close of business
on the Record Date immediately preceding the Interest Payment Date even if the
Securities are cancelled on registration of transfer or registration of exchange
after such Record Date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company shall pay principal and interest in
money of the United States that at the time of payment is legal tender for
payment of public and private debts ("U.S. Legal Tender"). However, the Company
may pay principal and interest by wire transfer of Federal funds, or interest by
check payable in such U.S. Legal Tender. The Company may deliver any such
interest payment to the Paying Agent or to a Holder at the Holder's registered
address.

3.   Paying Agent and Registrar.

          Initially, The Bank of New York (the "Trustee") will act as Paying
Agent and Registrar. The Company may change any

                                       B-4

<PAGE>

Paying Agent, Registrar or co-Registrar without notice to the Holders. The
Company or any of its Subsidiaries may, subject to certain exceptions, act as
Registrar or co-Registrar.

4.   Indenture.

          The Company issued the Securities under an Indenture, dated as of
November [ ], 2002 (the "Indenture"), between the Company and the Trustee. This
Security is one of a duly authorized issue of Securities of the Company
designated as its 10% Senior Subordinated Notes due 2010 (the "Securities"). The
Securities are treated as a single class of securities under the Indenture
unless otherwise specified in the Indenture. Capitalized terms herein are used
as defined in the Indenture unless otherwise defined herein. The terms of the
Securities include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. Sections
77aaa-77bbbb) (the "TIA"), as in effect on the date of the Indenture until such
time as the Indenture is qualified under the TIA, and thereafter as in effect on
the date on which the Indenture is qualified under the TIA. Notwithstanding
anything to the contrary herein, the Securities are subject to all such terms,
and Holders of Securities are referred to the Indenture and the TIA for a
statement of them. The Securities are not limited in aggregate principal amount.

          The Securities may hereafter be entitled to certain senior
subordinated Guarantees made for the benefit of the Holders. Reference is made
to Article Eleven of the Indenture for terms relating to such Guarantees,
including the release, termination and discharge thereof. Neither the Company
nor any Guarantor shall be required to make any notation on this Security to
reflect any Guarantee or any such release, termination or discharge.

5.   Subordination.

          The Securities are subordinated in right of payment, in the manner and
to the extent set forth in the Indenture, to the prior payment in full in cash
or Cash Equivalents (other than Cash Equivalents of the type referred to in
clauses (4), (5) and (6) of the definition thereof) of all Senior Debt of the
Company, whether outstanding on the date of the Indenture or thereafter created,
incurred, assumed or guaranteed. In addition, the Guarantee of any Guarantor is
subordinated in right of payment, in the manner and to the extent set forth in
the Indenture, to the prior payment in full in cash or Cash Equivalents

                                       B-5

<PAGE>

(other than Cash Equivalents of the type referred to in clauses (4), (5) and (6)
of the definition thereof), of all Guarantor Senior Debt of such Guarantor,
whether outstanding on the date of the Indenture or thereafter created,
incurred, assumed or guaranteed. Each Holder by his acceptance hereof agrees to
be bound by such provisions and authorizes and expressly directs the Trustee, on
his behalf, to take such action as may be necessary or appropriate to effectuate
the subordination provided for in the Indenture and appoints the Trustee his
attorney-in-fact for such purposes.

6.   Optional Redemption.

          The Securities will be redeemable, at the Company's option, in whole
at any time or in part from time to time, on and after October 15, 2005, upon
not less than 30 nor more than 60 days' notice, at the following redemption
prices (expressed as percentages of the principal amount) if redeemed during the
twelve-month period commencing on October 15 of the years set forth below, plus,
in each case, accrued and unpaid interest thereon, if any, to the date of
redemption:

      Year                                                     Percentage
      ----                                                     ----------
      2006..........................................            105.000%
      2007..........................................            103.333%
      2008..........................................            101.667%
      2009 and thereafter...........................            100.000%

7.   Optional Redemption upon Equity Offerings.

          At any time, or from time to time, on or prior to October 15, 2005,
the Company may, at its option, use the net cash proceeds of one or more Equity
Offerings to redeem up to 35% of the aggregate principal amount of the
Securities issued under the Indenture at a redemption price equal to 110% of the
principal amount thereof, plus accrued and unpaid interest thereon, if any, to
the date of redemption; provided that at least 65% of the original principal
amount of Securities issued under the Indenture remains outstanding immediately
after any such redemption. In order to effect the foregoing redemption with the
net cash proceeds of any Equity Offering, the Company shall make such redemption
not more than 90 days after the consummation of any such Equity Offering.

          As used in the preceding paragraph, "Equity Offering" means a sale of
Qualified Capital Stock (i) of the Company or

                                       B-6

<PAGE>

(ii) of any direct or indirect parent of the Company (including Holding),
provided that proceeds of such sale sufficient to pay the redemption price plus
accrued interest to the redemption date shall be contributed to the Company.

8.   Notice of Redemption.

          Notice of redemption pursuant to paragraph 6 or paragraph 7 will be
mailed at least 30 days but not more than 60 days before the Redemption Date to
each Holder of Securities to be redeemed at such Holder's registered address.
Securities in denominations of $1,000 may be redeemed only in whole. The Trustee
may select for redemption portions (equal to $1,000 or any integral multiple
thereof) of the principal of Securities that have denominations larger than
$1,000.

          If any Security is to be redeemed in part only, the notice of
redemption that relates to such Security shall state the portion of the
principal amount thereof to be redeemed. A new Security in a principal amount
equal to the unredeemed portion thereof will be issued in the name of the Holder
thereof upon cancellation of the original Security. On and after the Redemption
Date, interest will cease to accrue on Securities or portions thereof called for
redemption.

9.   Change of Control Offer.

          Upon the occurrence of a Change of Control, the Company will be
required to offer to purchase all of the outstanding Securities at a purchase
price equal to 101% of the principal amount thereof, plus accrued and unpaid
interest, if any, thereon to the date of repurchase.

10.  Limitation on Asset Sales.

          The Company is, subject to certain conditions, obligated to make an
offer to purchase Securities at 100% of their principal amount, plus accrued and
unpaid interest, if any, thereon to the date of repurchase with certain net cash
proceeds of certain sales or other dispositions of assets in accordance with the
Indenture.

11.  Denominations; Transfer; Exchange.

          The Securities are in registered form, without coupons, in
denominations of $1,000 and integral multiples of $1,000. A Holder shall
register the transfer of or exchange Securities in accordance with the
Indenture. The Registrar may

                                       B-7

<PAGE>

require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and to pay certain transfer taxes or similar governmental
charges payable in connection therewith as permitted by the Indenture. The
Registrar need not register the transfer of or exchange any Securities or
portions thereof selected for redemption, except the unredeemed portion of any
security being redeemed in part.

12.  Persons Deemed Owners.

          The registered Holder of a Security shall be treated as the owner of
it for all purposes.

13.  Unclaimed Funds.

          Subject to applicable escheat and abandoned property laws, if funds
for the payment of principal or interest remain unclaimed for two years, the
Trustee and the Paying Agent will repay the funds to the Company at its request.
After that, all liability of the Trustee and such Paying Agent with respect to
such funds shall cease.

14.  Discharge Prior to Redemption or Maturity.

          The Company may be discharged from its obligations under the Indenture
and the Securities except for certain provisions thereof, and may be discharged
from obligations to comply with certain covenants contained in the Indenture and
the Securities, in each case upon satisfaction of certain conditions specified
in the Indenture.

15.  Amendment; Supplement; Waiver.

          Subject to certain exceptions, the Indenture and the Securities may be
amended or supplemented with the written consent of the Holders of at least a
majority in aggregate principal amount of the Securities then outstanding, and
any existing Default or Event of Default or compliance with any provision may be
waived with the consent of the Holders of a majority in aggregate principal
amount of the Securities then outstanding. Without notice to or consent of any
Holder, the parties thereto may amend or supplement the Indenture and the
Securities to, among other things, cure any ambiguity, defect or inconsistency,
provide for uncertificated Securities in addition to or in place of certificated
Securities or comply with any requirements of the Commission in connection with
the qualification of the Indenture under the TIA, or make any other change that
does

                                       B-8

<PAGE>

not materially adversely affect the rights of any Holder of a Security.

16.  Restrictive Covenants.

          The Indenture contains certain covenants that, among other things,
limit the ability of the Company and its Restricted Subsidiaries to make
restricted payments, to incur indebtedness, to create liens, to sell assets, to
permit restrictions on dividends and other payments by Restricted Subsidiaries
of the Company to the Company, to consolidate, merge or sell all or
substantially all of its assets or to engage in transactions with affiliates.
The limitations are subject to a number of important qualifications and
exceptions. The Company must annually report to the Trustee on compliance with
such limitations.

17.  Defaults and Remedies.

          If an Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in aggregate principal amount of Securities then
outstanding may declare all the Securities to be due and payable immediately in
the manner and with the effect provided in the Indenture. Holders of Securities
may not enforce the Indenture or the Securities except as provided in the
Indenture. The Trustee is not obligated to enforce the Indenture or the
Securities unless it has received indemnity satisfactory to it. The Indenture
permits, subject to certain limitations therein provided, Holders of a majority
in aggregate principal amount of the Securities then outstanding to direct the
Trustee in its exercise of any trust or power. The Trustee may withhold from
Holders of Securities notice of certain continuing Defaults or Events of Default
if it determines that withholding notice is in their interest.

18.  Trustee Dealings with Company.

          The Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Securities and may, subject to
certain conditions specified in the Indenture, otherwise deal with the Company,
its Subsidiaries or their respective Affiliates as if it were not the Trustee.

19.  No Recourse Against Others.

          No stockholder, director, officer, employee or incorporator, as such,
of the Company, any Guarantor or any Subsidiary thereof shall have any liability
for any obligation of the

                                       B-9

<PAGE>

Company or any Guarantor under the Securities, any Guarantee or the Indenture or
for any claim based on, in respect of or by reason of, such obligations or their
creation. Each Holder of a Security by accepting a Security waives and releases
all such liability. The waiver and release are part of the consideration for the
issuance of the Securities.

20.  Authentication.

          This Security shall not be valid until the Trustee or authenticating
agent signs the certificate of authentication on this Security.

21.  Abbreviations and Defined Terms.

          Customary abbreviations may be used in the name of a Holder of a
Security or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).

22.  Governing Law.

          This Security shall be governed by, and construed in accordance with,
the laws of the State of New York without giving effect to applicable principles
of conflicts of laws to the extent that such principles are not mandatorily
applicable by statute and the application of the laws of another jurisdiction
would be required thereby.

23.  CUSIP Numbers.

          Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be
printed on the Securities as a convenience to the Holders of the Securities. No
representation is made as to the accuracy of such numbers as printed on the
Securities and reliance may be placed only on the other identification numbers
printed hereon.

24.  Indenture.

          Each Holder, by accepting a Security, agrees to be bound by all of the
terms and provisions of the Indenture, as the same may be amended from time to
time. Capitalized terms used herein and not defined herein have the meanings
ascribed thereto in the Indenture.

                                      B-10

<PAGE>

          The Company will furnish to any Holder of a Security upon written
request and without charge a copy of the Indenture. Requests may be made to:
BWAY Corporation, 8607 Roberts Drive, Suite 250, Atlanta, GA 30350, Attention:
Kevin C. Kern.

                                      B-11

<PAGE>

                                 ASSIGNMENT FORM

I or we assign and transfer this Security to

________________________________________________________________________________

________________________________________________________________________________
      (Print or type name, address and zip code of assignee or transferee)

________________________________________________________________________________
 (Insert Social Security or other identifying number of assignee or transferee)

and irrevocably appoint _______________________________________ agent to
transfer this Security on the books of the Company. The agent may substitute
another to act for him.

Dated:                                  Signed:
       -----------------                       ---------------------------------
                                                     (Sign exactly as name
                                                      appears on the other
                                                     side of this Security)

Signature Guarantee:                   -----------------------------------------
                                       Participant in a recognized Signature
                                       Guarantee Medallion Program (or other
                                       signature guarantor program reasonably
                                       acceptable to the Trustee)

<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

          If you want to elect to have this Security purchased by the Company
pursuant to Section 4.12 or Section 4.13 of the Indenture, check the appropriate
box:

Section 4.12 [      ] Section 4.13 [       ]

          If you want to elect to have only part of this Security purchased by
the Company pursuant to Section 4.12 or Section 4.13 of the Indenture, state the
amount: $___________

Dated:                                  Signed:
       -----------------                       ---------------------------------
                                                     (Sign exactly as name
                                                      appears on the other
                                                     side of this Security)

Signature Guarantee:                   -----------------------------------------
                                       Participant in a recognized Signature
                                       Guarantee Medallion Program (or other
                                       signature guarantor program reasonably
                                       acceptable to the Trustee)

<PAGE>

                                                                       EXHIBIT C

                                 FORM OF LEGENDS

          Each Global Note and Physical Note that constitutes a Restricted
Security or is sold in compliance with Regulation S shall bear the following
legend (the "Private Placement Legend") on the face thereof until after the
second anniversary of the Issue Date, unless otherwise agreed by the Issuer and
the Holder thereof:

          THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
     1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER ANY STATE SECURITIES LAWS
     AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR
     TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH
     BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS
     A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE
     SECURITIES ACT), (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS SECURITY
     IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES
     ACT OR (C) IT IS AN ACCREDITED INVESTOR (AS DEFINED IN RULE 501(a)(1), (2),
     (3) OR (7) UNDER THE SECURITIES ACT (AN "ACCREDITED INVESTOR")), (2) AGREES
     THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS
     SECURITY RESELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A) TO THE
     COMPANY OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES TO A
     QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE
     SECURITIES ACT, (C) INSIDE THE UNITED STATES TO AN ACCREDITED INVESTOR
     THAT, PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY
     A U.S. BROKER-DEALER) TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
     REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER OF
     THIS SECURITY (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE
     FOR THIS SECURITY), (D) OUTSIDE THE UNITED STATES IN AN OFFSHORE
     TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT (IF
     AVAILABLE), (E) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY
     RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (F) IN ACCORDANCE WITH
     ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
     (AND BASED UPON AN OPINION OF COUNSEL IF THE COMPANY SO REQUESTS) OR (G)
     PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES

                                       C-1

<PAGE>

     ACT IN EACH OF CASES (A) THROUGH (G) IN ACCORDANCE WITH ANY SECURITIES LAWS
     OF ANY STATE OF THE UNITED STATES, AND (3) AGREES THAT IT WILL GIVE TO EACH
     PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE
     EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF THIS SECURITY
     WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY, IF THE
     PROPOSED TRANSFEREE IS AN ACCREDITED INVESTOR, OR, IF THE TRANSFER IS
     PURSUANT TO CLAUSE (E) OR (F) ABOVE, THE HOLDER MUST, PRIOR TO SUCH
     TRANSFER, FURNISH TO THE TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS, LEGAL
     OPINIONS OR OTHER INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE TO
     CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR
     IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
     SECURITIES ACT. AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION," "UNITED
     STATES" AND "U.S. PERSON" HAVE THE MEANING GIVEN TO THEM BY REGULATION S
     UNDER THE SECURITIES ACT.

          Each Global Security authenticated and delivered hereunder shall also
bear the following legend:

          THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
     HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A
     NOMINEE OF A DEPOSITORY OR A SUCCESSOR DEPOSITORY. THIS SECURITY IS NOT
     EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN
     THE DEPOSITORY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED
     IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER
     OF THIS SECURITY AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE
     DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER
     NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT IN THE LIMITED
     CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

          UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
     OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE
     COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT,
     AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
     SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
     ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
     BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
     HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS

                                       C-2

<PAGE>

     WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
     INTEREST HEREIN.

          TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
     WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF
     OR SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL
     SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
     RESTRICTIONS SET FORTH IN SECTION 2.16 OF THE INDENTURE.

                                       C-3

<PAGE>

                                                                       EXHIBIT D

                            Form of Certificate To Be
                          Delivered in Connection with
                    Transfers to Non-QIB Accredited Investors

                                                         [             ], [    ]

[         ]

Ladies and Gentlemen:

          In connection with our proposed purchase of 10% Senior Subordinated
Notes due 2010 (the "Notes") of BWAY FINANCE CORP., a Delaware corporation (the
"Company"), we confirm that:

          1. We have received a copy of the Offering Memorandum (the "Offering
Memorandum"), dated November 21, 2002, relating to the Securities and such other
information as we deem necessary in order to make our investment decision. We
acknowledge that we have read and agreed to the matters stated in the section
entitled "Transfer Restrictions" of such Offering Memorandum, including the
restrictions on duplication and circulation of the Offering Memorandum.

          2. We understand that any subsequent transfer of the Securities is
subject to certain restrictions and conditions set forth in the Indenture
relating to the Securities (the "Indenture") as described in the Offering
Memorandum and the undersigned agrees to be bound by, and not to resell, pledge
or otherwise transfer the Securities except in compliance with, such
restrictions and conditions and the Securities Act of 1933, as amended (the
"Securities Act"), and all applicable State securities laws.

          3. We understand that the offer and sale of the Securities have not
been registered under the Securities Act, and that the Securities may not be
offered or sold except as permitted in the following sentence. We agree, on our
own behalf and on behalf of any accounts for which we are acting as hereinafter
stated, that if we should sell any Securities, we will do so only (i) to the
Company or any of its subsidiaries, (ii)

                                       D-1

<PAGE>

inside the United States in accordance with Rule 144A under the Securities Act
to a "qualified institutional buyer" (as defined in Rule 144A under the
Securities Act), (iii) inside the United States to an institutional "accredited
investor" (as defined below) that, prior to such transfer, furnishes (or has
furnished on its behalf by a U.S. broker-dealer) to the Trustee (as defined in
the Indenture) a signed letter containing certain representations and agreements
relating to the restrictions on transfer of the Securities (the form of which
letter can be obtained from the Trustee), (iv) outside the United States in
accordance with Rule 904 of Regulation S promulgated under the Securities Act to
non-U.S. persons, (v) pursuant to the exemption from registration provided by
Rule 144 under the Securities Act (if available), or (vi) pursuant to an
effective registration statement under the Securities Act, and we further agree
to provide to any person purchasing any of the Securities from us a notice
advising such purchaser that resales of the Securities are restricted as stated
herein.

          4. We are not acquiring the Securities for or on behalf of, and will
not transfer the Securities to, any pension or welfare plan (as defined in
Section 3 of the Employee Retirement Income Security Act of 1974), except as
permitted in the section entitled "Transfer Restrictions" of the Offering
Memorandum.

          5. We understand that, on any proposed resale of any Securities, we
will be required to furnish to the Trustee and the Company such certification,
legal opinions and other information as the Trustee and the Company may
reasonably require to confirm that the proposed sale complies with the foregoing
restrictions. We further understand that the Securities purchased by us will
bear a legend to the foregoing effect.

          6. We are an institutional "accredited investor" (as defined in Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have
such knowledge and experience in financial and business matters as to be capable
of evaluating the merits and risks of our investment in the Securities, and we
and any accounts for which we are acting are each able to bear the economic risk
of our or their investment, as the case may be.

          7. We are acquiring the Securities purchased by us for our account or
for one or more accounts (each of which is

                                       D-2

<PAGE>

an institutional "accredited investor") as to each of which we exercise sole
investment discretion.

                                       D-3

<PAGE>

          You, the Company, the Trustee and others are entitled to rely upon
this letter and are irrevocably authorized to produce this letter or a copy
hereof to any interested party in any administrative or legal proceeding or
official inquiry with respect to the matters covered hereby.

                                       Very truly yours,

                                       [Name of Transferee]

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

                                       D-4

<PAGE>

                                                                       EXHIBIT E

                       Form of Certificate To Be Delivered
                          in Connection with Transfers
                            Pursuant to Regulation S

                                                           [           ], [    ]

[         ]

          Re:     BWAY Finance Corp. (the "Company")
                  10% Senior Subordinated Notes due
                  2010 (the "Securities")

Ladies and Gentlemen:

          In connection with our proposed sale of $[ ] aggregate principal
amount of the Securities, we confirm that such sale has been effected pursuant
to and in accordance with Regulation S under the U.S. Securities Act of 1933, as
amended (the "Securities Act"), and, accordingly, we represent that:

          (1)     the offer of the Securities was not made to a person in the
     United States;

          (2)     either (a) at the time the buy offer was originated, the
     transferee was outside the United States or we and any person acting on our
     behalf reasonably believed that the transferee was outside the United
     States, or (b) the transaction was executed in, on or through the
     facilities of a designated offshore securities market and neither we nor
     any person acting on our behalf knows that the transaction has been
     prearranged with a buyer in the United States;

          (3)     no directed selling efforts have been made in the United
     States in contravention of the requirements of Rule 903 or Rule 904 of
     Regulation S, as applicable;

          (4)     the transaction is not part of a plan or scheme to evade the
     registration requirements of the Securities Act; and

                                       E-1

<PAGE>

          (5)     we have advised the transferee of the transfer restrictions
     applicable to the Securities.

          You, the Company and counsel for the Company are entitled to rely upon
this letter and are irrevocably authorized to produce this letter or a copy
hereof to any interested party in any administrative or legal proceedings or
official inquiry with respect to the matters covered hereby. Terms used in this
certificate have the meanings set forth in Regulation S.

                                       Very truly yours,

                                       [Name of Transferor]

                                       By:
                                           -------------------------------------
                                                   Authorized Signature

                                      E-2

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